Pennsylvania’s retail sportsbooks and online casinos made a surprising move recently. In January, they had a record month after processing $615.3 million in aggregated wagers and then handed over roughly $34 million in combined taxes.
According to sources from the Pennsylvania Gaming Control Board, these results stepped over the previous all-time high. Just a few months ago, the recent high was at $548.6 million that was set in December.
This also represented the first time that these components had produced over $600 million in aggregated handle since their launch date of about two years ago. A lot of hiccups have interfered with these results along the way during this time.
However, there could be a recent spark to these numbers. If these performances continue on for the rest of the year, then it is possible that sportsbooks and online casinos in Pennsylvania could finish out the year with an aggregated annual handle of roughly $6 billion and have around $800 million in aggregated wagers.
Back to Normal
January’s handle figures were 76 percent higher than previously set a year ago at $348.4 million. This also took the local operator’s matching tax bill up by 49 percent.
In this record-setting 31-day month, you could argue a handful of variables. The main one to acknowledge here is whether or not this is a “return to normal” after the events of the coronavirus pandemic.
The Pennsylvania Gaming Control revealed for online sports betting was responsible for 94 percent of January’s handle figure. The main service that helped these numbers were from FanDuel Group and Valley Forge Casino Resort, which again stepped foot above the market after processing about $220 million in online wagers.
Local retail brick and mortar operations were allowed to re-open on January 4. They had a nice bounce back. That was a strong handling of $35.4 million in bets and taking home $4 million.
Positive iGaming Numbers
Looking more so at the online casinos and poker rooms, the Pennsylvania Gaming Control Board’s figures showed that January revenues had also hit all-time highs. These grew to $80 million, after having an improvement of 5.6 percent increase compared to last month.
‘The Keystone State’ had a little over $17 million in taxes and brought in local share assessments and county grants that made up about $10 million. This was generally unexpected since casinos and sportsbooks were expected to take a hit from the last few months.
There were also high tax rates for sports betting and iGaming operators to consider within the state of about 13 million people. This is a whopping 14 percent for remote table games.
In the beginning, it slowed the progression of table games. But now, it appears to no longer be much of an issue.
Many operators have made moves into the state and have gained millions in revenue in the process. In this regard, regulators have achieved their main goal of establishing a reliable revenue source for the state and could attract the attention from other neighboring states to set up legal sports betting.
Pennsylvania also has a lot going for them. They have some of the nation’s most beloved teams and loyal fans to help produce a steady flow of sports wagers.
They also came in third when looking at the highest handles in the nation. This was behind the likes of New Jersey and Nevada.
Moving forward, Pennsylvania has a large runaway for sports betting and moves within the iGaming space. Do not be surprised if they move ahead of the top two handles listed above.