Pennsylvania’s sports handle declined for the month as the sports schedule didn’t favor the sportsbook operators despite February featuring the Super Bowl. The heavy promotions made the numbers even worse than it seems.
Pennsylvania’s Sports Betting Handle Declines in February
Sportsbook operators brought in $597.1 million, which is a 24.8 percent decrease from the previous month from January’s $793.7 million, but 17.2 percent more than February 2021’s $509.5 million. Operators had an underwhelming hold percentage that showed 3.7 percent translated to just $22.2 million in sports betting revenue.
The national average is anywhere between five and seven percent. Promotion deductions led to costing sportsbooks $22.6 million which led to a negative revenue of -$442,847. To start the new year, bookmakers brought in a total of $32.2 million in January and $16.4 million in February 2021.
Dustin Gouker who is an analyst for the PlayUSA stated, “The Super Bowl is the most bet-on singular game in the US, but it can’t alone replace a full schedule of football games…The lull in February is expected and always short-lived. March Madness should get sportsbooks back into record or near-record territory.
The negative figures may be short-lived as sportsbooks in many jurisdictions across the country have focused their attention on March Madness. March could be a great rebound month for not only Pennsylvania but also a majority of the industry.
Sportsbook Operators Struggle in Pennsylvania
There were four sportsbooks in the red for the month. DraftKings led the way with the most promotions in the state that topped the leaderboard with $8.2 million or 36.1 percent of the overall promotion handle. BetMGM came in second with 5.8 million deducted, or 25.8 percent of the overall total.
PointsBet gave away approximately $1.1 million in promotions which is way higher than its opening month’s revenue total of $855,495. However, the sportsbook had the strongest hold that hit 10.8 percent for the month.
TwinSpires was also in the red as the sportsbook handed out $161,303 in promotions. Churchill Downs hasn’t found much success in the mobile sports betting and online casino markets as it has struggled to stay profitable in the competitive industry. However, its horse racing app will stay operational.
Despite ranking third in promotions in the Keystone State. FanDuel led all sportsbook competitors with a handle share of 40 percent. FanDuel, DraftKings, and BetMGM combined to make up 76.3 percent of the mobile sports betting handle that hit $558.1 million in February. Barstool came in fourth with 8.4 percent of the handle.
The other ten sportsbooks that operate in the state made up 15.3 percent of the handle.
Can Pennsylvania Set a New Record in March?
March Madness will grab the most attention in March as the average betting volume is expected to increase. Last March’s handle was $560.3 million, which was 8.9 percent below the then-record set January 2021.
Pennsylvania will be adding another sportsbook to its arsenal. Greenwood Gaming & Entertainment, Inc., parent company of Parx Casino in Pennsylvania, along with Playtech, the world’s largest online gambling software supplier launched the new betPARX app in both Pennsylvania and New Jersey.