Pennsylvania Sportsbooks Lose Out on $300m in Bets in March While Online Casinos Surge, According to PlayPennsylvania
LAS VEGAS, May 18, 2020 /PRNewswire/ -- Pennsylvania's sportsbooks generated just a fraction of the bets that they would have expected during a normal April, while online casinos and poker rooms smashed their revenue record with $43.1 million. The state lost out on more than $300 million in sports bets, according to PlayPennsylvania estimates.
"The growth in online gambling as well as betting on non-traditional sports are industry bright spots," said Dustin Gouker, lead analyst for PlayPennsylvania.com. "But there just isn't any way for Pennsylvania operators to compensate for such a dramatic loss of revenue, including at retail sportsbooks and land-based casinos, which can't generate a single dollar right now."
During a month in which PlayPennsylvania.com would have estimated a handle of nearly $350 million, Pennsylvania sportsbooks generated just $46 million in wagers, according to official data. That is down from $131.3 million in March.
Sportsbooks yielded $3.2 million in gross revenue, up from $8.6 million in March. The win resulted in $988,255 in state taxes.
"The momentum that brought records month after month for Pennsylvania's sportsbooks has been reversed almost instantly," said Valerie Cross, analyst for PlayPennsylvania.com. "Until sports leagues figure out a way to reopen, these dreary results will continue."
With retail sportsbooks shuttered in April—potentially losing out on some $35 million of in-person bets—online sportsbooks generated Pennsylvania's entire handle. FanDuel Sportsbook at Valley Forge Casino led with $19 million in April wagers, down from $53.7 million in March. That yielded $1.3 million in taxable revenue.
"A $46 million handle with such limited options in terms of sports is a surprise," Gouker said. "April could potentially be the statistical low point, but there is so much that can happen that the immediate future is impossible to predict. That is a bit disconcerting for operators."
Online casinos and poker
Online casinos and poker rooms combined to generate a whopping $43.1 million in April revenue, up 77.4% from the record $24.3 million in March 121% over February's $19.5 million. Revenue hit $1.4 million per day in the 30 days of April, up from $782,768 per day in March.
Online table games and slots generated $1.4 billion in wagers, up from $871.6 million, producing $37.8 million in revenue. Mount Airy/PokerStars—the Keystone State's only online poker room—generated a record $5.3 million in revenue, alone setting the online poker revenue record for any state.
The $23.6 million revenue difference between April and February, represents just 8.5% of the $277.8 million generated by land-based casinos in April 2019.
"There will likely be long-term implications from this surge in online gambling interest with a behavioral shift that makes online gambling permanently more popular is likely to continue even after casinos reopen," Cross said. "But the reality is that despite the gains made at online casinos, the closing of land-based casinos left a revenue hole that can't be made up."
Rivers-Philadelphia led the online casino market with $13.7 million in revenue on $477 million in wagers. And the number of online casinos in Pennsylvania grew to 10 with the launch of Caesars in April and DraftKings in early May.
"The competition between FanDuel and DraftKings has been a force for innovation in sports betting markets across the country, and we expect that will transfer well to their online gambling products," Gouker said.
For more, www.playpennsylvania.com/news.
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The PlayUSA.com Network and its state-focused branches is a leading source for news, analysis, and research related to the market for regulated online gaming in the U.S.
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SOURCE PlayPennsylvania.com
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