Pennsylvania sportsbooks had a big month for handle in March, even as the industry has shown some weakness in other states. However, favorable results for bettors meant that the books experienced low hold and failed to convert that gain in handle into increased revenue.
It’s no secret that football is the most popular sport to bet on in Pennsylvania, as in other states. However, the intensity of NCAA basketball during March Madness means March rivals any month of the NFL season in its importance to sports betting.
The Pennsylvania Gaming Control Board (PGCB) reported on Monday that sports betting operators produced $842.9 million in handle and $49.2 million in revenue. Hold percentage came out to only 5.8%.
Handle increased from last month and last year by 11% and 5%, respectively. March Madness took in more total bets than it did during September, the start of football season. November is usually the most productive year for operators, as it posted $935.5 million in handle. However, March Madness comes close to other football months, which have tallied the following handle figures:
- September: $811.3 million
- October: $858.2 million
- November: $935.5 million
- December: $893.8 million
- January: $873.1 million
Revenue increased 45% from last month, but decreased 23% from the same period last year.
Pennsylvania March sports betting at a glance
- Handle: $842.9 million (11% MoM increase; 5% YoY increase)
- Revenue: $49.2 million (45% MoM increase; 23% YoY decrease)
- Adjusted Gross Revenue (taxable): $27.0 million
- Hold: 5.8% (up from from 4.5% last month)
- Percent of bets placed online: 95.7%
- Promotional credits: $22.2 million
- March sports betting tax revenue: $9.2 million
- State and local entities tax revenue: $540,536
- Top sports betting app by handle: FanDuel Sportsbook with $328.6 million
- Top sports betting app by revenue: FanDuel with $18.6 million
Final Four chalk hurts sportsbooks
March Madness is known for shocking upsets and Cinderella teams making deep runs. However, that did not happen as much in this tournament.
All four No. 1 seeds made the Final Four, which hasn’t been done since 2008. That, without a doubt, impacted sportsbooks’ bottom lines.
FanDuel makes a lot of revenue from its same game parlays. It leads all online platforms in lifetime hold at 9.9%. However, the operator was only able to maintain a 5.7% hold rate last month. Its rival DraftKings, finished with a better rate at 6.6%.
ESPN BET boasts encouraging hold rate
In a space where FanDuel usually dominates, ESPN BET actually beat out the market leader in hold rate. The operator recorded a 7.0% rate, which finished behind Wind Creek (8.7%) and betPARX (8.0%).
That is an impressive finish for ESPN BET, considering it held more of its wagers than FanDuel, DraftKings and BetMGM. It also recovered in market share, recording nearly 4.2%, up from 3.7% in February.
ESPN BET has made some slight improvements during the football season despite crashing during the month of the Super Bowl. However, a rebound during March Madness is an encouraging sign for the operator.
Fanatics drops sharply during March Madness
Fanatics Sportsbook sure had a coming out party in February, when it finished third in handle behind FanDuel and DraftKings and ahead of BetMGM. The operator took a massive hit last month.
Fanatics produced only $58.9 million in handle, which is a 39% drop from February. Because of the dip, Fanatics relinquished the No. 3 spot to BetMGM, which generated $78.2 million, a 33% month-over-month increase.
BetMGM has been in third in the market for years and reclaimed that spot once again. Fanatics is hoping to prove that February wasn’t just a one-hit-wonder.
PA sportsbook handle by operator in March
| Licensee | Online Brand | Handle | Revenue | Hold | Taxes |
|---|---|---|---|---|---|
| Valley Forge | FanDuel | $328,567,261 | $18,616,388 | 5.7% | $3,380,020 |
| Hollywood Meadows | DraftKings | $209,157,319 | $13,882,991 | 6.6% | $3,163,407 |
| Hollywood Morgantown | BetMGM | $78,207,276 | $4,018,676 | 5.1% | $691,564 |
| Hollywood York | Fanatics | $58,941,839 | $3,914,508 | 6.6% | $401,822 |
| Presque Isle Downs | bet365 | $35,336,420 | $1,287,695 | 3.6% | $119,872 |
| Hollywood Penn National | ESPN BET | $35,079,368 | $2,449,224 | 7.0% | $552,517 |
| Harrah's Philadelphia | Caesars | $30,525,637 | $940,145 | 3.1% | $220,312 |
| Rivers Pittsburgh | BetRivers | $13,801,207 | $1,615,629 | 6.1% | $418,252 |
| Parx | betParx | $15,652,770 | $1,250,457 | 8.0% | $404,189 |
| Rivers Philadelphia | PlaySugarHouse | $13,801,207 | $789,080 | 5.8% | $228,121 |
| Live Philadelphia | Betway | $6,158,857 | $312,935 | 5.1% | $112,657 |
| Live Pittsburgh | $1,229,869 | ($64,411) | -5.2% | ($23,188) | |
| Wind Creek | Wind Creek | $1,115,648 | $97,608 | 8.7% | $35,139 |
| Mohegan Pennsylvania | $980,997 | ($3,442) | -0.4% | ($1,239 | |
| Mohegan Lehigh Valley | $974,161 | $7,845 | 0.8% | $2,824 | |
| Mount Airy | $768,739 | $48,061 | 6.3% | $17,302 | |
| Parx Shippensburg | $63,883 | $16,913 | 26.5% | $6,089 | |
| Total | $842,856,961 | $49,189,301 | 5.8% | $9,729,658 |
