Pennsylvania’s gambling market is gradually recovering from the 2020 recession. In January, casinos across the state reported a gambling revenue of $311 million. This is a 3% increase from January 2020. The monthly sports wagers in sportsbooks and online casinos in Pennsylvania for January topped $600 million, an all-time record. Revenue for January was $34 million.
At this rate, a year-end sports betting handle greater than $6 billion looks likely. As long as the pandemic remains ‘under control’, and the sports calendar remains unaffected, there is no reason to expect any changes in the upward trend anytime soon. This is good news not only for the gambling community but for the state too. According to projections, the taxable revenue for online casinos and sportsbooks is expected to pass $800 million.
Numbers Rising
The January sports wagers of $615.3 million represent a 76% increase from the $348.5 million from January last year, and a 12% increase from the previous record of $548.6 million from December last year. There was an increase in taxable revenue of 49% from January last year ($22.8 million to $34 million). Online betting was responsible for 94.3% of the sports betting handle in January (down from 97.6%). The reason for this is the reopening of casinos which resulted in an increase in handle ($11.3 million to $35.4 million) and revenue ($1.2 million to $4 million).
The state made $11.6 million in taxes in January. A total of $111.7 million in taxes has been made since sportsbooks were made legal in Pennsylvania in 2018. New Jersey, whose legal sport betting industry is over a year older than Pennsylvania’s, is the only other state that has made more than $100 million in tax revenue.
This is partly because of the relatively higher sports betting revenue tax rate in Pennsylvania compared to other states that have legalized sports betting. With the growth seen in the Pennsylvania gambling market, it is safe to assume that the high tax rate (36%) has not had the negative effect many thought it would have on the growth of the gambling market in Pennsylvania.
According to figures from the Pennsylvania gaming control board, the sports betting handle of the 2020/21 fiscal year that began June last year has already passed $3.1 billion. This figure is already greater than the 2019/2020 fiscal year’s total of $2.5 billion.
Yearly Breakdown
Here is the breakdown of the handle, revenue, and taxes by fiscal year for sports betting in Pennsylvania.
2018/2019
- Handle: $244.6 million
- Revenue: $3.1 million
- State tax 34%: $699,319
- Local share: $41,136
2019/2020
- Handle: $2.5 billion
- Revenue: $163.2 million
- State tax: $46 million
- Local share: $2.7 million
2020/2021 (June to present)
- Handle: $3.1 billion
- Revenue: $175 million
- State tax: $59.4 million
- Local share: $3.5 million
Sports betting Handle & Revenue for Pennsylvania’s Online Sportsbooks in January 2021
Of the 12 online sportsbooks available in Pennsylvania, 7 reported an increase in handle and revenue.
FanDuel/Valley Forge Casino
- Handle – $220.7 million (up from $207.6 million)
- Revenue – $14.3 million
DraftKings/The Meadows
- $143.5 million in handle (up from $130.9 million)
- $7.7 million in revenue
Barstool/Hollywood Casino
- Handle – $65 million (down from $71.8 million)
- Revenue – $1 million
BetMGM/Hollywood Casino Morgantown
- Handle – $39.3 million (up from $12 million)
- Revenue – $414,300
Rivers Casino Pittsburgh
- Handle – $26.8 million (up from $26.7 million)
- Revenue – $1.2 million
Fox Bet/Mount Airy
- Handle – $26.6 million in handle (down from $28.6 million)
- Revenue – $1.7 million
Parx online sportsbook
- Handle – $22.7 million (down from $23.7 million)
- Revenue- $1.8 million
Rivers Casino Philadelphia
- Handle – $20.7 million (down from $21.8 million)
- Revenue – $1.4 million
Unibet/Mohegan Sun Pocono
- Handle – $10 million (up from $9 million)
- Revenue – $377,770
Caesars Sportsbook/Harrah’s
- Handle – $1.2 million (down from $1.4 million)
- Revenue – $36,506 in revenue
Recent evidence suggests that the growth experienced in January is expected to continue. This is a good sign for people who must have held worries following the recession from last year.
Online Casinos and Poker rooms reported a record $80.5 million revenue in January (up from $71.6 million in December). Lovers of online betting in Pennsylvania can certainly look forward to the upward trends that these numbers are sure to take.
