Strong July Earnings by Sports Betting Assisted PA Gaming Industry

Pennsylvania sports betting’s strong performance against bettors in July helped the state’s gaming industry boost its total revenue, monthly figures released Wednesday showed.

The Pennsylvania Gaming Control Board reported that all forms of commercial gaming generated $429.1 million in revenue last month, including $177.1 million allocated to state and local taxes. Revenue increased from $389.8 million in June to $423.7 million in July 2021.

The improvements came despite a drop in iCasino’s revenue, which at $98.6 million fell below $100 million in a month for the first time in 2022.

That drop was offset by an unusually strong 9.9% hold on sports betting, reflecting their win rate against punters on the $336.5 million in total management for the month. This resulted in gross revenues of $33.2 million for operators, including $25.4 million taxable after adjustments for promotional credits they gave to customers. This adjusted income was about twice as high as the June amount.

A slow but lucrative period for books

Mid-summer is usually the slowest time for sports betting, as the sports schedule is narrowed down to only Major League Baseball among the four major American sports. Betting volume of $336.5 million was down from $393.5 million in June and the lowest since July 2021. Good news for the 14 online operators and 18 retail operators is that July is not did not repeat the unusual scenario of June in which betting activity actually fell off from a year earlier.

Operator revenue figures were of course the other good news, with FanDuel leading the way. From $124.9 million in wagers (40.1% of the online handful), it recorded $14.9 million in gross revenue, including $12.1 million taxable after credits.

DraftKings, which has sharply reduced its level of promotions, recorded $5.3 million in gross revenue and $4.6 million in adjusted revenue compared to $75.8 million in management.

BetMGM’s taxable income was also much higher than usual, at $1.3 million against $3.8 million in gross income after taking $42.1 million in bets. In the four months since last December, he had actually declared a net loss of income and avoided paying taxes for the month.

While PENN Entertainment’s Barstool Sportsbook handled even less volume than a year ago, with just $20.1 million last month (6.5% of the online market), it still did well. featured in the revenue department. It grossed $1.9 million and generated $1.4 million in adjusted taxable income.

A mixed bag for other types of key games

The 18 online casino sites were close to what became their monthly norm in July, but it was still unusual to see them fall below the $100 million threshold. Their $98.6 million came from $71.9 million in slot games, $23.9 million in table games and $2.8 million in rake from online poker tournaments and gambling at four sites.

The $300.6 million in revenue from slot machines and brick-and-mortar tables at 16 casinos was significantly higher than the $269.1 million they earned in June. The darker side of the July figure was that it was actually lower than the $309.8 million in revenue they collectively collected in July 2021 from just 14 locations, before two more mini-casinos started. to operate in the state.

Photo: Gary Rotstein