SPORTS BETTING
US – Online casinos shatter records closing transformational year for Pennsylvania
By Phil - 21 January 2022
Betting volume at Pennsylvania’s online and retail sportsbooks remained near all-time highs in December with more than $750m in wagers as revenue slipped from November’s record.
With a record-shattering $127.6m in online casino revenue in December, too, the month closed a year that brought more than $6.5bn in sports wagers, a US-best $122.5m in tax revenue from sports betting, and nearly $1.3bn in online casino revenue.
“With so many records set this fall, a modest pullback in December is not a particular surprise,” said Katie Kohler, an analyst for PlayPennsylvania.com. “Importantly, though, sportsbooks remained near all-time highs for wagering, extending a four-month stretch in which wagering reached nearly $3m. It’s been a fitting end to an impressive year.”
In December, Pennsylvania’s sportsbooks accepted $750.4m in wagers, which was up 36.8% from $548.6 million in December 2020, according to official data released Wednesday. December’s betting volume was the third-most ever.
A month after gross revenue spiked to $84.9m, bettors won at a far higher rate in December. That created $38m in gross revenue for sportsbooks, down 16.3 per cent from $45.3m in December’s 2020. After $19.1m in promotional spending, sportsbooks closed the month with $18.8m in taxable revenue, yielding $6.8m in state taxes and local share assessments.
Wagering nearly doubled in 2021, and no state wrung more tax revenue out of its sports betting industry than Pennsylvania. At the same time, the Keystone State has been surpassed in overall handle by Illinois, which is almost identical in population.
For the year, Pennsylvania’s retail and online sportsbooks produced $6.5bn in wagers, up 83 per cent from $3.6bn in 2020. This generated $505.5m in gross revenue, up 87.3 per cent from $269.9m in 2020. This meant $122.5m was paid in state taxes and local share assessments, up 79.4 per cent from $68.3m in 2020
“If the carrot for legislators to legalise sports betting is to create a sustainable and consistent revenue source for the state, no state has been more successful than Pennsylvania,” said Dustin Gouker, analyst for the PlayUSA.com Network, which includes PlayPennsylvania.com. “Pennsylvania’s relatively high tax rate does seem to contribute to slower growth overall, but that seems to be a worthwhile tradeoff that has been an overall benefit to the state.”
In December, online sportsbooks took in $693.3m in wagers, or 92.4 per cent of the state’s handle. FanDuel topped the online market with $246.8m in wagers, or 32.9 per cent per cent of the state’s online market.
“With college football winding down in December, betting on NBA and college basketball made up the difference,” Kohler said. “Basketball betting quietly has become an important cog for sportsbooks, especially in the Northeast where basketball takes in more in wagering than football, even as football gains the most attention.”
Online casinos and poker rooms produced a record $127.6m in gross gaming revenue in December, topping the previous best of $117m reached in October. Revenue was up 17.6 per cent from $108.5m in December 2020.
Online casino games and poker produced $102.1m in taxable revenue, which yielded $42.5m in state taxes and local assessments. Wagering at online casinos rose to $4.3bn from $3.8bn in November.
For the year, Pennsylvania’s online casinos generated $1.3m in gross revenue from online casino games and poker rooms, up 91.1 per cent from $680.2m in 2020.
“The growth in online casino gambling seems almost endless,” Kohler said. “Online casino revenue nearly doubled year over year, a significant jump from 2020 when the global pandemic kept people at home. Growth should taper some in the year ahead, but online casinos have yet to reach their ceiling.”
