Pennsylvania Sportsbooks See Nearly 70% Taxable Revenue Drop in December
December 2024 turned out to be a rough month for sportsbooks in Pennsylvania. Despite an impressive handle of $893.4 million, just a 3.5% dip compared to December 2023, taxable sports betting revenue plummeted by 69.9% year-over-year.
Sports Betting Revenue Plummets
The month’s revenue came in at $47.5 million, a steep fall from the $98 million recorded in December 2023.
Tax contributions from sports betting followed suit, dropping to $7.87 million, as lower profitability weighed on operators across the board.
The month’s hold percentage—a key metric that reflects operator revenue as a share of bets placed—stood at just 5.6%.
Operator Performance
Most of Pennsylvania’s leading online sportsbooks felt the sting of December’s low hold rates, driven largely by predictable NFL results and higher player payouts.
- FanDuel, the state’s top sportsbook, handled $353.3 million in wagers but saw revenue of $13.95 million—a noticeable dip compared to previous months.
- DraftKings followed with a handle of $304.6 million and revenue of $6.88 million.
- BetMGM generated $824,091 from a handle of $45.5 million, while BetRivers earned $545,526 on $48.7 million wagered.
Several operators struggled to generate positive returns. ESPN Bet posted a $440,376 loss on a handle of $43.4 million, while TwinSpires faced a $868,296 loss on $37.1 million wagered.
Retail sportsbooks also saw a challenging month. Despite a total handle of $44.5 million, the hold percentage for brick-and-mortar locations dipped below 2%, contributing further to the state’s overall revenue decline.
Why December Was So Tough
Pennsylvania’s sports betting struggles in December reflected a broader trend across the U.S. The NFL’s regular-season finale was particularly challenging for sportsbooks, with many favorites winning as expected and covering the spread. This resulted in higher payouts for players and less revenue for operators.
The impact was so significant that leading operator FanDuel revised its 2024 financial guidance downward. Similar reports of lower-than-expected results emerged from other states, indicating that Pennsylvania’s tough December was part of a national pattern.
Bright Spot: iGaming Breaks Records
While sportsbooks struggled, Pennsylvania’s iGaming sector delivered record-breaking results in December. Online casino revenue reached an all-time high of $223.7 million, a 35.5% increase over the $165.1 million generated in December 2023.
The revenue breakdown included:
- Slots: $164.3 million
- Table games: $56.9 million
- Online poker: $2.47 million
iGaming tax revenue also surged, hitting $98.2 million for the month, providing a much-needed boost to the state’s finances.
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