Pennsylvania Sportsbooks Collect $45 Million in August Revenue

The Pennsylvania Gaming Control Board reported $45.4 million in gross sports betting revenue for August on Wednesday, as brick-and-mortar venues had one of their best showings in state history.

Gross winnings were up 48.4% from last year, easily outpacing the 23.5% increase in handle to $485.3 million. Pennsylvania's 10 mobile sportsbooks were aggressively courting business — their combined $15.4 million outlay was 79.7% higher than August 2023, with newcomer bet365 offering more than $2.5 million in bonuses and credits in its first full month of operations.

Handle was also up 17% compared to July, but the 9.4% overall hold — nearly 3.4 percentage points lower — contributed to revenue being down 13.8% month-over-month. The state was eligible to levy taxes on $30 million in adjusted gross revenue, claiming $10.2 million in receipts. The $112.5 million collected in the first eight months of the year is running $14.5 million ahead of last year's pace, with AGR up 14.7% at $330.8 million.

There is no denying the Keystone State's retail books have enjoyed the summer. The nearly $4.5 million in gross revenue claimed in August is a high-water mark for the year, and the 16.1% hold from $27.7 million handle is the highest monthly win rate for in-person betting in Pennsylvania history when excluding the 36% attained after launching in mid-November in 2018, when handle was a mere $1.4 million.

It was the second straight year Pennsylvania brick-and-mortar locations notched back-to-back, double-digit holds in July and August, but the $7.7 million in winnings this year were 34.9% higher than the two-month span in 2023. That revenue surge came despite a lesser 4.4% increase in handle to $50.3 million.

Bet365 Spends Its Way Onto Leaderboard

Bet365 has been known to fire the proverbial money cannon upon its entrance into a state, which has usually served as a catalyst to getting into the top five for handle among mobile operators. The England-based sportsbook served notice it would do so in Pennsylvania with an impressive $1.9 million spend in its first 10 days of action in late July.

That pace slowed in August, but the $2.5 million outlay trailed only digital titans FanDuel ($5.1 million) and DraftKings ($3.5 million) and was more than the $1.7 million doled out by Fanatics Sportsbook. Aggressive promotional spend is common in Pennsylvania, where unlimited deductions are allowed against the state's 34% tax rate on AGR. The $142.9 million in credits and bonuses lavished on the public by digital operators thus far in 2024 is 28.2% higher year-over-year.

Bet365 did take a loss for the second straight month in terms of AGR, finishing at minus-$546,525 after grossing nearly $2 million with a 7.1% hold. Its total operating losses spanning the first six weeks of action totaled more than $1.2 million, but the $28.1 million handle for August ranked fourth among mobile operators. Bet365 finished ahead of BetRivers ($24.7 million) and still relative newcomers Fanatics ($21.8 million) and ESPN BET ($20.8 million).

BetRivers and Fanatics, though, beat out bet365 for revenue, as the former claimed $2.2 million and the latter $2.1 million thanks to 9%-plus holds. ESPN BET had a more modest 7.8% win rate in claiming $1.6 million in revenue.

FanDuel again led all operators in handle and revenue, attaining a double-digit hold for the fifth consecutive month at 10.4%. It reported $18.2 million in winnings, nearly double that of last August, when a 6.9% win rate ended a 13-month run with 10%-plus holds. FanDuel also cleared $2 billion handle for the year after accepting $175.3 million worth of wagers.

DraftKings made it 12 consecutive months with eight-figure revenue hauls after collecting $11.1 million with a near-9% win rate from $123 million handle. The $117 million in gross winnings this year is 34.4% higher than the first eight months of 2023.

BetMGM was a comfortable third in both categories in August, notching an 8.1% hold to claim $2.8 million in revenue from $34.3 million worth of bets. BetMGM, which surpassed $300 million in handle for the year, also reached seven figures in promotional spend with $1.1 million worth of credits awarded.

Year-to-Date Figures Strong Heading Into Football Season

The $4.92 billion in total handle for the first eight months of 2024 is up 15.4% from the same span last year, while the $473.7 million in gross revenue is up 18.5%. The house has pressed its advantage slightly better than in 2023, with the 9.6% win rate up a quarter of a percentage point.

Despite the recent surge from retail sportsbooks, the $22.4 million in winnings for the calendar year is down 14.7% year-over-year despite handle lagging only 6.7% behind at $275.8 million.