Record-Giving September Cuts in on Pennsylvania Sportsbooks' Profits
Sportsbooks handed out a Pennsylvania-record $29.5 million in promotional credits for the month. It drastically cut into revenue and the operators’ hold as profits fell to $36.6 million.
The Keystone State’s legal sports betting operators were in the giving mood in September, as sportsbooks handed out a Pennsylvania-record $29.5 million in promotional credits for the month.
That number drastically cut into revenue and the operators’ hold. The Pennsylvania Gaming Control Board announced gross revenue of $66.1 million on a September handle of $726.3 million, producing a win rate of 9.1%.
After promotions, though, the profits fell to $36.6 million, which is down 27% year-over-year, and the hold dropped to 5%.
In an effort to drum up business for a busy football season, Pennsylvania sports betting led to $21 million more in promotions handed out compared to August, but only $4 million more than September 2022.
The online and retail combined handle rose 85% month-over-month and 13% year-over-year while gross revenue was up 115% compared to August. Sportsbooks still saw profits rise 66% month-over-month after promotions.
The operators’ earnings turned into $12.5 million in taxes for the state, which is up $5 million from August’s haul.
Online sports betting made up 92.6% of the overall handle and all of the promotional credits. Mobile produced a hold of just over 9.1% while retail hit 8.5% of its $53.4 million.
FanDuel paces Pennsylvania
FanDuel recorded the highest handle in Pennsylvania for September with wagers topping out at $253.3 million, up 88.4% month-over-month. Promotional credits jumped more than $7 million from August to $11.1 million in September. Still, a hold of 11.8% produced over $18 million in profits.
DraftKings was second in the Keystone State with a handle of $228.2 million.
BetMGM topped $50 million in wagering to finish third while Caesars and Barstool were the only other two online sportsbooks to cross $30 million in handle.
