Five years after PASPA repeal: How sports betting revenue has surged in Pennsylvania
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On the fifth anniversary of the landmark decision that changed the world of sports betting forever, it is clear that Pennsylvania has emerged as a prominent player in this lucrative form of gambling.
Prior to 2018, sports betting outside of Nevada was virtually nonexistent in the United States, until the Supreme Court overturned the Professional and Amateur Sports Protection Act (PASPA) on May 14 of that year.
This historic decision sent state lawmakers and gambling operators into a frenzy, and Pennsylvania was one of the first states to launch sports wagering, with the first online sportsbook opening in May 2019.
Since then, the sports betting industry has grown rapidly in Pennsylvania. In 2019, the state saw $2.5 billion in total sports wagers, with $2 billion coming from online sportsbooks alone. By 2022, the total handle had nearly tripled to $7.25 billion, setting a new record.
Earlier this year, Pennsylvania became the fourth state in the United States, after Nevada, New Jersey, and Illinois, to surpass a total sports handle of $20 billion.
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Sports bettors in Pennsylvania now have a wide range of wagering options, from predicting the final score of a game to the outcome of a single play. They can bet on teams like the 76ers in the NBA as well as the Eagles and Steelers in the NFL, among others. In-play betting has become increasingly popular, too, allowing for high-speed wagers on the outcome of the game while it’s still in progress.
The growth of the sports betting industry in Pennsylvania has translated into big gains for operators and regulators. Sports betting generated over $400 million in revenue in 2022 alone, with the state’s 36% tax rate for sports betting being among the highest in the country. Additionally, operators are required to pay a one-time $10 million fee for a sports betting license.
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Meanwhile, Pennsylvania’s commercial gaming industry surpassed $500 million in monthly revenue for the first time in history in March this year, with sports betting contributing significantly to that result.
The Pennsylvania Gaming Control Board’s (PGCB) financial summary for March showed that total revenue of $515.3 million was amassed across various platforms. These include traditional casinos, online gaming platforms, sports betting entities, truck stop video game terminals (VGTs), and fantasy sports competitions.
This figure comfortably surpassed the previous record of $475 million, which was set just recently in December of last year. When considering the blended tax rate of 41% (an average derived from different forms of gaming), local and state governments in Pennsylvania received $212.4 million.
A breakdown of the revenue sources revealed that sports betting contributed $50.6 million, while slots and table games at casinos generated $311.3 million. Online casinos followed with $148.2 million, VGTs contributed $3.8 million, and fantasy contests accounted for $1.4 million of the total revenue.
David Harbach, the PGCB’s communications director, stated in an interview with FOX43 last month: “This has become a significant revenue generator, and a lot of it is directly going back to citizens of Pennsylvania in one way or another.”
Adam Fiske, the CEO of Cipher Sports Technology Group, which runs Dimers.com, a leading resource for casual sports bettors, says Pennsylvania has been a vital market for the industry’s overall success.
“The repeal of PASPA was a game-changer for the sports betting industry, and the growth we’ve seen in the past five years has been nothing short of phenomenal, thanks largely to the results we’re seeing in Pennsylvania,” Fiske said.
While many find online sports betting to be a fun and entertaining pastime, it is important to note that it can also lead to problems. If you or a loved one has questions or needs to talk to a professional about gambling, call 1-800-GAMBLER or visit 1800gambler.net
If you or a loved one has questions or needs to talk to a professional about gambling, call 1-800-GAMBLER or visit 1800gambler.net
A California native with a writing background, Mac Douglass covers professional and collegiate sports and is an expert on the sports betting industry, with thousands of sports betting-related articles to his name. Having lived in New York, San Francisco, Los Angeles, and Melbourne, Australia, Mac has a broad knowledge of American and international sports and specializes in the NBA, NFL, Formula 1, and professional tennis.
