Sports betting revenue in PA drops to record lows; Strong iGaming

Sports betting in Pennsylvania had their the worst month of my life for net income. After paying bettors and giving a record $22.6 million in promotions, sports betting operators gathered to a loss of $442,847. PA sports betting apps and retail sports betting combined to take $597 million in bets in February, down 24% month-over-month.

Turnover at PA Online Casinos and poker sites remained solid. Turnover achieved $123.7 million in gross gaming revenue, down 4.8% from last month and up 36.6% from a year ago. The shorter month of February resulted in a record $4.4 million gross gaming revenue per dayy for online casinos and poker.

February 2022 Numbers for Pennsylvania Sportsbook

Pennsylvania Gaming Control Board figures.

  • Handle: $597 million
  • Income: $22.1 million/negative gross taxable income of $442,847
  • Hold: 3.7% (compared to 6.7% last month)
  • Percentage of bets placed online: 93%
  • Promotional credits: $22.6 million
  • Month-over-month: handle decreased 24.7%; revenues decreased by 58.5%
  • Year over year: Handle jumped 17%; revenue decreased by 33%
  • January sports betting taxes: negative (-$150,568.03) for the state and additional (-$8,856.95) for local entities
  • Best sports betting app by handful: FanDuel Sportsbook with $213.3 million
  • Best sports betting app by revenue: FanDuel Sportsbook ($5.9 million)

* Full revenue breakdown below.

Pennsylvania Online Casinos & Poker February 2022 Numbers

  • Gross revenue from online slots: $68.1 million
  • Gross revenue from online table games: $31.4 million
  • Poker revenue: $2.8 million
  • $102.4 million in taxable income generated $42.3 million in state taxes and local assessments

* Full revenue breakdown below.

Four takeaways from PA gaming revenue in February 2022

The Super Bowl can’t wear the month

January had five weekends of NFL football, which resulted in a Pennsylvania state record for the handful. There was only one football match in February – albeit the biggest one. A state record $68 million was bet on Super Bowl 56. At the time, sports betting predicted revenue of around $4.5 million, a significant drop from the $9.4 million earned in the big game of the year last.

Sportbooks distributed numerous promotions during the NFL season

In February in PA, sports betting was distributed $22.6 million in promotional credits (a state record) for the purpose of acquiring and retaining customers. Of the 14 sports betting apps in the state, three gave the majority of freebies to customers in February – DraftKings ($8.3 million), FanDuel ($6 million) and BetMGM ($5.6 million ).

Here is an overview of the amount of promotional credits distributed by sportsbooks since the start of the NFL season.

  • September 2021: $19.8 million
  • October 2021: $18.7 million
  • November 2021: $21.2 million
  • December 2022: $19.1 million
  • January 2022: $21.2 million

Total gaming revenue slips for third straight month

Gross gaming revenue continued its three-month decline. Gross gaming revenue includes all forms of gaming in the state, including land-based casinos, iGaming, sportsbook, VGT, and DFS.

  • February 2022: $375.6 million
  • January 2022: $393.1 million
  • Dec. 2022: $406.3 million
  • October 2021: $425.9 million

So what happened? Less busy winter months combined with the surge of omicron.

Sportsbook check-in bar stool

CEO of Penn National Gaming Jay Snowden has made it clear that Barstool is going to rely on organic marketing and wants to be judged on net gross income (revenues minus promotional credits).

Bar stool in January 2022:

  • Revenue: $3.3 million
  • Promotional credits: $1.7 million
  • NGR: $1.5 million

Bar stool in February 2022:

  • Revenue: $1.9 million
  • Promotional credits: $859,553
  • NGR: $1.1 million

Sports betting management PA and revenue by operator February 2022

Licensed Online brand Full handle Total revenue Online handle Online income detail handle Retail revenue
Valley Forge FanDuel $215,047,108 $5,978,636 $213,152,290 $5,969,187 $1,894,818 $9,448
meadows DraftKings $141,468,879 $4,891,694 $140,065,075 $4,860,626 $1,403,804 $31,068
HollywoodMorgantown BetMGM $72,901,730 $4,319,501 $72,320,602 $4,268,610 $581,128 $50,891
Hollywood National Penn Stool $48,075,172 $1,979,664 $46,772,593 $1,986,789 $1,302,579 -$7,124
Pittsburgh Rivers Bet Rivers $29,087,513 $1,349,434 $23,969,096 $1,170,536 $5,118,416 $178,898
parx parx $20,631,548 $1,250,365 $14,196,354 $915,911 $6,435,194 $334,454
Philadelphia Rivers Sugar House $18,866,338 $628,438 $14,598,213 $258,269 $4,268,125 $370,169
Mount Airy fox bet $9,595,656 $554,038 $9,124,518 $551,961 $471,137 $2,077
Hollywood York PointsBet $9,587,010 $945,733 $7,915,820 $855,495 $1,671,190 $90,239
Mohegan Sun Pocono Unibet $7,620,222 $526,968 $6,618,459 $484,594 $1,001,763 $42,374
Long live Philadelphia Bet $6,194,220 -$417,139 $2,213,325 -$122,637 $3,980,895 -$294,501
Almost Isle TwinSpires $6,133,574 $312,527 $2,893,234 $155,063 $3,240,340 $157,464
Harrah’s Philadelphia Caesars $5,712,260 -$297,993 $3,250,975 -$173,263 $2,461,284 -$124,730
South Philly OTB $2,250,137 $73,143 $0 $0 $2,250,137 $73,143
wind stream wind stream $2,146,784 -$43,744 $1,018,495 -$48,426 $1,128,288 $4,682
Lehigh OTB $922,294 $42,900 $0 $0 $922,294 $42,900
Live Pittsburgh $644,514 $7,883 $0 $0 $644,514 $7,883
Parx Malvern $179,091 $58,503 $0 $0 $179,091 $58,503
Total $597,064,049 $22,160,553 $558,109,050 $21,132,714 $38,954,999 $1,027,839

iGaming PA Revenue by Operator in February 2022

Licensed Total revenue Slot machines the tables Poker Specials National/local taxes
Hollywood National Penn $51,639,484 $36,114,105 $15,241,712 $283,667 $8,977,896 $17,132,024
Philadelphia Rivers $30,816,996 $27,638,626 $3,099,036 $79,334 $6,299,528 $12,029,689
Valley Forge $19,600,645 $9,848,808 $9,751,836 $0 $1,102,619 $6,283,236
Mount Airy $6,950,248 $4,265,976 $1,044,401 $1,639,871 $2,686,948 $1,278,600
parx $3,538,516 $3,086,422 $452,094 $0 $553,407 $1,440,163
Long live Philadelphia $3,267,911 $2,564,213 $703,698 $0 $541,429 $1,204,895
Harrah’s Philadelphia $3,180,107 $1,897,064 $404,792 $878,251 $362,177 $1,027,329
Mohegan Sun Pocono $2,075,025 $1,803,401 $271,624 $0 $456,664 $770,698
wind stream $1,458,669 $1,367,897 $90,772 $0 $292,607 $595,180
Almost Isle $1,220,440 $863,019 $357,421 $0 $55,471 $493,263
Total $123,748,040 $89,449,530 $31,417,388 $2,881,123 $21,328,747 $42,255,078

Press release: Pennsylvania sports betting slips into post-Super Bowl downturn

Contact: Zack Hall, Catena Media, [email protected]

Main image by Katie Kohler