Pennsylvania Leads The Country In Sports Betting Tax Benefits

by | Nov 24, 2019 9:12 am | Revenue | 0 comments

Pennsylvania Leads The Country In Sports Betting Tax Benefits

Sports betting in Pennsylvania has been most beneficial of the regulated states.

  • Pennsylvania has now collected more than $10 million over the last two months from legal sports betting taxes.
  • The “Big 4” continues to dominate the Pennsylvania sports betting market share, collecting 89% of all wagers.
  • Over $241 million was bet on sports in Pennsylvania – the second-highest of the reported legal betting states.

HARRISBURG, Pa. – Pennsylvania sports betting is becoming the biggest market in the entire country. While their betting handle still is well behind that of Nevada and New Jersey, their 36% tax rate combined with the population of the state makes the taxation of legal sports betting better than any of the legal states.

The state has now benefited over $5 million in tax contribution for two straight months from sports betting. Only New Jersey has accomplished one month of a $5 million contribution – which also happened to be in October.

This is even more remarkable considering the sports bettors in Pennsylvania are amongst the best of any state nationwide. Decreasing the state’s sportsbooks’ hold percentage from 9.07% in August, to 7.67% in Sep, and to 6.2% in Oct, it now gives Pennsylvania their sixth-straight month with winning percentages above 90% for bettors. Only Nevada – who hasn’t posted under 90% since PASPA repealed – and NJ – who hasn’t seen a winning percentage under 90% since September 2018 – can say the same.

With the $5.08 million sent to the statehouse in October, Pennsylvania has now seen just under $23 million in sports betting taxes.

Imagine what Pennsylvania could be dragging in from sports betting taxes if they had a winning percentage at the reported sportsbooks’ average (9.95%). At that level, the state would have collected $8.16 million in tax benefits.

In short, expect one of the next three months to see a contribution well above $7.5 million should bettors fall off their winning strategies.

As far as how much money was bet in Pennsylvania during October, the total sports betting handle was $241,185,065. With the launch of mobile sports betting a few months ago, the betting handle in Pennsylvania has soared month over month. This is now the fifth month in a row that the handle has increased, bringing the year-to-date total above $830 million.

However, October should be noted as the driving force in this total, as this month saw more money risked in wagers than Pennsylvania’s first six months of 2019.

Pennsylvania’s “Big 4” Sportsbooks

The top four sportsbooks in Pennsylvania continue to dominate the state’s market. Between the Valley Forge Casino, Sugarhouse Casino, Rivers Casino, and Parx Casino, these four accounted for 89.3% of the Pennsylvania betting handle during October as well as 84% of the revenue.

Valley Forge Casino – $118,042,775 monthly handle

This book alone had a higher monthly revenue and sent more money to their state government than the sportsbooks of Delaware, Iowa, West Virginia, and Rhode Island. The FanDuel properties are taken full advantage of sports betting legalization, as their market share is similar in that of neighboring New Jersey.

Rivers Casino Philadelphia (Sugarhouse) Casino – $37,224,117 monthly handle

Accounted for 18% of the combined revenue for the month. Sugarhouse still holds the slight revenue lead over Valley Forge since the state’s launch ($15.99 million versus $15.67 million, respectively). But as of the recent months, the lead has been shrinking and the latter has taken the nod when only accounting for betting action throughout 2019.

Rivers Casino Pittsburgh – $34,268,260 monthly handle

Rivers Casino has never struggled since entering the Pennsylvania sports betting market in December of last year. Finishing as the most wagered on sportsbook in the state every month from February to May of this year, Rivers Casino has collected more in legal sports bets than the combined eight non-“Big 4” sportsbooks since their launches.

Parx Casino – $25,949,811 monthly handle

With the near $26 million in accepted wagers, Parx Casino has now eclipsed the $100 million betting handle mark. Their $2.2 million in revenue also propelled them above $10 million overall since their launch. Interestingly enough, Parx Casino is the only one of the “Big 4” Pennsylvania sportsbooks that have sports bettors winning over 10% of their money wagered.

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