Pennsylvania’s sports betting handle in June tumbled 25% from May and was down over 5% from a year ago. Nevertheless, FanDuel contributed to over half the monthly revenue generated by the mobile apps in the Keystone State.
Major League Baseball is the only one of the four primary North American sports currently in action and the June numbers attest to the beginning of the summer doldrums. The Pennsylvania Gaming Control Board released its June numbers and it turns out that interest in sports betting waned precipitously from the previous month as evidenced by May’s handle of $495.5 million, slumping 25% to June’s $373.1 million.
The lower handle coupled with a hold, or win rate, that went from 11.1% in May to 9% in June also saw less revenue in the best sportsbooks’ pockets which ultimately lowers the take for the state.
The operators did take lower promotion deductions in June, dropping from $16.4 million in bonus bets in May to $10.8 million, and although revenue decreased a whopping 44%, it is important to note that the books showed an 80% year-over-year revenue increase.
And while some might point the finger at an uncertain economy, high gas prices, and rising interest rates for mortgages and personal loans, the American Gaming Association (AGA) noted last year at this time that gaming numbers are not affected as much as one would think from those external forces.
The summer sports betting malaise has more to do with a dearth of action and people getting away for a few weeks. Spending money on outdoor and vacation activities during the summer months is where many allocate their discretionary income, even avid sports bettors.
“While national gaming revenue growth has slowed significantly since the late spring due to more difficult annual comparisons, higher gas prices and increasing interest rates have not resulted [in] a steep drop-off in gaming revenue,” the AGA said. “The gaming industry has repeatedly weathered high gas prices over the past two decades and although higher interest rates and inflation are impacting operator costs, it does not yet appear to be driving dramatic changes to gaming consumer behavior.”
FanDuel Takes Half
FanDuel continues to rule in Pennsylvania regardless of the season and they did so again last month. The sports betting giant once again dominated the market with a handle of $138.6 million of the $349.3 million in online sports bets accepted by the 13 mobile sportsbooks in the state.
The New York-based industry leader had the largest handle of any operator in the state last month, its revenue accounted for 51% of the entire market and reported $16.6 million of the $32.5 million in revenue generated by all the books.
DraftKings took its familiar place as the bridesmaid with $99.7 million in accepted wagers with revenues topping $7.7 million. And although Caesars Sportsbook has a long way to go before they can dream of supplanting the duopoly in the state, they have demonstrated impressive inroads into the market with a handle of $25.2 million in June, or 5.5% of the market share, which is a solid number considering their monthly handle was less than 1% of the market in January 2022.