Pennsylvania Sports Betting Sees Year-Over-Year Growth Amid Monthly Declines

This represents an 8.3% decline from April but shows a significant 19.4% increase compared to May 2023. The trend mirrors April’s performance, where the handle decreased by 19% from March yet surged by 13% year-over-year.

Revenue and Profits

Despite a reduction in the betting handle, gross revenue for May rose by 4.4%, reaching $61.7 million.

After accounting for nearly $17.5 million in promotional credits, the net profits for Pennsylvania’s online and retail sports betting operators were $44.2 million. This marks an increase from April’s $42.4 million and a 7.6% rise compared to the previous year.

Factors Influencing Betting Activity

The NBA and NHL playoffs, along with MLB, did not generate enough action to surpass April’s busier schedule. However, the hold rate improved, rising nearly a point month-over-month to 10.4%. This indicates better margins for operators despite fewer bets placed.

Pennsylvania’s tax revenue from sports betting in May was $15.9 million, up from $14.4 million in April. This increase in tax revenue reflects the overall growth in the state’s sports betting industry year-over-year.