Pennsylvania Sportsbooks Continue Record Pace in November

The legal sports betting industry in Pennsylvania continues to shine. Just one month after eclipsing the $800 million monthly handle mark for the first time, the Keystone State was able to better that total and surpass the $900 million sports betting plateau in November as our best sportsbooks saw even more action.

According to the released Tuesday, revenues for PA sports betting apps and the state's retail providers, unfortunately, didn't set a new record along with the overall handle.

ESPN BET and its promotional credits focus during its first 16 days of operation in the state had much to do with the industry's underwhelming overall revenues. So did the fact that bettors in the Keystone State got the better of Pennsylvania sportsbooks.

Despite the new handle record in the PA sports betting scene, it led to month-over-month revenue and tax contribution drops.

$934.1 million November handle

Pennsylvania sportsbooks combined to take in $934.1 million in November, marking the first time the sports betting scene in the Keystone State has eclipsed the $900 million monthly mark as bettors surely took advantage of PA sportsbook promos.

The $934.1 million is about 12% better than the previous monthly handle record for the state, which came in October when $829 million was wagered. October was the first time that Pennsylvania hit the $800 million mark.

November's totals are also about a $145 million year-over-year increase from the $789.2 million from November 2023.

Pennsylvania sports betting apps accounted for 94% of all wagers in the Keystone State in November.

Revenues way down

A couple of crucial factors kept Pennsylvania sportsbook revenues down in November. Promotional credits for state bettors increased by almost $11 million, thanks mainly to the arrival of ESPN BET, and an underwhelming hold rate for state sportsbooks all contributed to the revenue decline.

Pennsylvania sportsbooks reported $49.15 million in gross gaming revenue in November. It is $24.5 million less than the $73.6 million reported in October and is a year-over-year 75% drop from the nearly $70 million in profits reported in November 2022.

Thanks to an unflattering 5.2% hold rate, just $4.6 million in taxes was collected from Pennsylvania sports betting providers for state and local tax coffers. That’s down significantly from $16.4 million in October and $19 million in November 2022.

The win rate, for comparisons sake, was 8.8% in October and 8.9% in November 2022.

Operator battle between FanDuel, DraftKings...and ESPN BET

In typical fashion, the battle to be the most popular Pennsylvania sports betting app came down to FanDuel Pennsylvania and DraftKings Pennsylvania, with ESPN BET Pennsylvania making their presence felt in third place with regard to monthly handle.

FanDuel and DraftKings accounted for a combined 68% of the Pennsylvania market in November, with FanDuel taking in a state-best $384 million. DraftKings was next with $253 million in bets, and ESPN BET finished a respectable third with $66.8 million in November wagers.

Of note, because of promotional costs, ESPN BET ended up losing $7.8 million from their November handle haul in Pennsylvania.

BetMGM Pennsylvania was fourth with $54.3 million in November wagers, with Caesars Sportsbook Pennsylvania rounding out the Top-5 with $47.6 million in November bets.