December Numbers For PA
The Pennsylvania numbers in December were quite impressive. This includes a total betting handle, or total amount wagered, of $548.6 million. On top of this, the total revenue made by sportsbooks was $45.3 million. While only $34.1 million was taxable revenue for the state, that still came out to a massive $12.3 million made in state revenue.
There are some impressive things about these numbers, but one of the biggest is the fact that the state made well north of $10 million. Several state/month sports betting handle records have been higher, mostly held by New Jersey; however, this total amount collected is one of the highest on record. New Jersey is almost doubling the total handle while the state is taking home less money than Pennsylvania. This is absolutely huge for the state in times where the pandemic is hurting tax revenue.
Recovery After Dip in November
December was a record-breaker for sports handle revenue in Pennsylvania by reaching $548.6 million. However, the previous record was in October when it had hit $525.8 million. This was because November of 2020 saw a massive drop off to $492 million wagered. There seemed to be no good reason for this, except for players betting less.
However, the recovery can be explained by many things. First off, BetMGM, the official sports betting partner of the Steelers, entered the state. Second, the NBA returned, and third, a full slate of NFL games were played, where there were no schedule changes due to Covid. Pennsylvania got back on the right track and shattered the previous months’ numbers.
Sports betting started in July of 2020 for Pennsylvania, and since that date, the state has collected over $2.5 billion in the total betting handle. Sportsbooks made a revenue of $201 million, and the state collected a total of $47.8 million in taxes.
These numbers are highly impressive for the state’s first year. If extended over the course of a full 12 months, then this would rank Pennsylvania right behind New Jersey in just about every category. With more growth expected next year, as sports betting is established more in the state, it is possible that Pennsylvania takes the lead in the United States.
Online Sports Betting Dominates
Retail sportsbooks account for less than 10% of all bets collected when it came to sports betting handle. While this may increase as the country recovers from the pandemic, it shows how important online sports betting is. Pennsylvania would have no chance, pandemic or not, competing with other states when it came to sports betting numbers if it were retail only. Online sports betting is the future and most likely will continue to see 90%+ of the sports betting handle in states in which it is offered.
Pennsylvania’s 2020 was impressive, and its online sports betting model should be used as a blueprint for many states looking to legalize in 2021. Missouri, Ohio, Georgia, Massachusetts, New York, and more should be looking at the Keystone State for guidance on how to do sports betting right. This is both from a sports betting standpoint and a state revenue standpoint, with the Keystone State on track to record almost $100 million in tax revenue over a 12 month period.