PA Sportsbooks Break Monthly Handle Record In January

• According to a new report released by the Pennsylvania Gaming Control Board, Pennsylvania’s sportsbooks turned over a larger sports betting handle in January than ever before.
• January continues a several-month-long stretch of sports betting success in Pennsylvania, coinciding with a significant increase in sportsbooks’ promotional spending.

HARRISBURG, Pa. – Pennsylvania put together its strongest sports betting month in January since launch, according to the Pennsylvania Gaming Control Board’s most recent revenue report.

The Pennsylvania sports betting market continues the same trend as multiple states in January.

PA Sportsbooks Continue Strong Run, Break Handle Record In January

According to the revenue report, sportsbooks in Pennsylvania turned over a $793,722,787 sports betting handle in January.

This was good for $53,403,655 in sports betting revenue. The nearly $800 million bet on sports in January was the largest sports betting handle Pennsylvania has seen since legal sports betting launched.

At a 34% state tax rate, Pennsylvania’s sportsbooks contributed $10.9 million to the state’s coffer with $643,399 going to local jurisdictions at a 2% tax rate.

Pennsylvania’s sports betting industry has been riding a hot streak for several months. In July and August of 2021, Pennsylvania turned over $304.4 million and $348.5 million in sports betting handle respectively; however, that number jumped to $578.8 million in September and then to $776.3 million in October.

Is Promotional Spending Buying PA Sports Betting Handles?

Pennsylvania has been able to maintain the momentum they acquired in September and October, posting four straight months with greater than $750 million in sports betting handle.

Interestingly, this spike in sports betting handle has coincided with a remarkable increase in promotional spending by Pennsylvania’s sportsbooks.

In July and August, sportsbooks spent $7.6 million and $7.3 million on promotions; however, that number nearly tripled in September, when sportsbooks spent a combined $19.9 million on promotions.

That level of promotional spending has seemingly become the new status quo in Pennsylvania. Since September, sportsbooks in Pennsylvania have spent no less than $18.7 million on promotions in any given month.

In January, sportsbooks in Pennsylvania spent a combined $21.2 million on promotions.

While it remains to be seen if Pennsylvania’s sportsbooks can maintain their handle and revenue levels with continued high rates of promotional spending, it does seem to be a strategy that is paying dividends in other states as well.

In neighboring New York, sports betting is supported by unprecedented levels of promotional spending. Perhaps not-so-coincidentally, sportsbooks in New York also shattered the United States’ previous single-month sports betting handle record in January.

While there are certainly other aspects contributing to New York’s historic January, promotional spending cannot be ruled out as a large contributing factor. Moreover, with Pennsylvania’s run of success similarly coinciding with a significant increase in promotional spending, the correlation is getting harder for sportsbooks to ignore.

News tags: New York | Pennsylvania | Pennsylvania Gaming Control Board