Pennsylvania Sports Betting Market Busier Than Ever

The Pennsylvania sports betting market does not seem to be on the verge of cooling down anytime soon.

Sure, like other markets, the business model features ebbs and flows, month over month, as well as year over year. But sports betting in Pennsylvania launched in May 2019. That is more than a half-decade ago now. Even as online sports betting in the United States continues to increase in popularity, more veteran markets can see their handle (the total amount customers bet) drop or plateau.

As we close out the 2024 calendar, this is not the case for Pennsylvania sports betting. The Pennsylvania Gaming Control Board just released their data from October 2024. It turns out the sports betting handle for this period is the second highest of the entire year.

However, as the reports also show, Pennsylvania sports betting revenue (the money made after paying out winning wagers) actually declined. What caused this drop? Just how much money did Pennsylvanians bet in sports? And how is the market fairing overall, relative to last year?

Pennsylvania Sports Betting Handle Starting to Flirt with Billion Dollar Months

Ever since launching in 2019, the Pennsylvania sports betting handle has never hit $1 billion in a single month. That may soon change if business keeps climbing. As J.R. Duren writes for Gaming Today:

“Pennsylvania online sportsbooks brought in $811.8 million in handle this past month, a 6.1 percent increase over September’s total, according to the latest data from the Pennsylvania Gaming Control Board. It’s the third time an online betting handle has topped $800 million this year. All but three online sportsbooks that generated bets this past month posted gains. Rivers Casino Pittsburgh’s BetRivers platform led the way with 20 percent growth compared to September. In terms of overall handle, Valley Forge Casino’s FanDuel online book once again led the way with $344.7 million, followed by ESPN Bet.”

It comes as no surprise that FanDuel leads the way for Pennsylvania sportsbooks. Along with DraftKings, they control a majority of the sports betting market share in the United States. However, ESPN Bet checking in at No. 2 is interesting. It lends hope across the industry that other sportsbooks can in fact establish significant market shares while competing with FanDuel (and DraftKings).

The overall Pennsylvania sports betting handle, of course, is even more intriguing. Dating all the way back to 2022, the single-month handle has never eclipsed $800 million more than three times in a single year. This current period has two more months’ worth of handle to rake in a fourth.

What’s more, the highest Pennsylvania sports handle of all time is $934.2 million. That was posted in November 2023. The more often The Coal State clears $800 million per month, the more likely it is we will soon see the first $1 billion handle in Pennsylvania sports betting history.

Despite Sports Betting Handle Increase, Pennsylvania Sees a Dip Profits

Booming activity does not always equate to massive profits in the sports betting world. If customers are particularly adept at hitting on winning wagers in a given month, higher handles can result in lower profits.

This is what happened in October for the Pennsylvania sports betting market. Revenue in October dropped by 46.1 percent compared to September. That is a gargantuan month over month downturn. And some might see it as cause for concern. In actuality, this says more about the previous month.

September marks the start of the National Football League’s regular season. As such, betting on the NFL crescendos toward its fever pitch. All of that extra action can lend itself to outsized profit margins.

In September 2024 specifically, though, online NFL betting was almost entirely upended. As multiple outlets continue to note, upsets in the NFL ruled the day to open the season. Whenever this happens, revenue skyrockets. Because statistically speaking, bettors are more likely to invest in favorites—especially when it comes to moneyline wagers.

It makes sense, then, that Pennsylvania sports betting revenue would decline the following month as things settled. And rest assured, they have. NFL betting lines are no longer suffering from high-frequency upsets.

How is Pennsylvania Sports Betting Faring Overall Compared to 2024?

Of course, analysts can express concern for the Pennsylvania sports betting industry if declining revenue is part of a larger pattern. That is not the case here.

Last year, in 2023, Pennsylvania collected a total of $134.3 million in tax revenue from sports betting. For 2024, they have raked in around $163.8 million in tax revenue from sports betting. That is almost a year over year increase of 22 percent.

But here is the thing: This year ain’t over yet. The Pennsylvania sports betting market will still need to calculate November and December revenue reports. That means their year over year rise should technically continue to climb.

If we factor in their current monthly average ($16.4 million), Pennsylvania sports betting is on track to bring around $197 million in additional revenue to the state. Granted, not all months are uniform. But this is a reasonable benchmark. And if it holds, this would give Pennsylvania sports betting revenue an annual increase of…46.4 percent!

So, yeah, it is safe to say The Coal State has nothing to worry about at the moment. On the contrary, it appears the Pennsylvania sports betting market is now more profitable than ever.

Take a look at this list of the top online sportsbooks so you can find one that works for all of your sports betting needs: