Despite the Handle Going Up in January, the Tax Revenue Notes a Steep Decline￼
Despite Philadelphia losing the three championship opportunities in MLS, MLB, and NFL, bettors have taken advantage of the sports betting calendar to start January 2023.
Despite Philadelphia losing the three championship opportunities in MLS, MLB, and NFL, bettors have taken advantage of the sports betting calendar to start January 2023. The Pennsylvania Gaming Control Board reported a monthly handle of $772.3 million.
Handle and Revenue Witness an Inverse Relationship
The total handle registered a slight increase of 2.3 percent from December’s numbers; however, it’s clear that bringing back the average betting volume in October and November has been challenging. A larger handle to start 2023 didn’t necessarily lead to positive results across the board.
The public fared with better results to start the year. The hold rate noted a decline from 9.4 percent to just 7.5 percent. To put that in perspective, the national average in the industry is slated at 7.2 percent.
The gross revenue figures declined from 71.2 million to just $57.9 million. Following three straight months of declines, promotional credits went up in January, another boost to bettors throughout the Keystone State. Despite a 12 percent increase from December, January’s $18.7 million fell short of September’s $25.1 million.
Tax Receipts Weren’t As Strong as the State Had Hoped
With the lower win rate situation, the taxes collected for the month also registered a decline, to say the least. After factoring in the deductions, the sportsbook operators that accept wagers in Pennsylvania reported an adjusted revenue number of $39.2 million.
The numbers don’t come as a surprise because 92.3 percent of the total wagers accepted for the month came via mobile platforms. The remaining percentage came from brick-and-mortar locations across the state.
The tax receipts collected for the month were the lowest amount that was finalized since the start of the NFL season. The state received $13.3 million in payments from bookmakers, while the local jurisdiction received $785,000.
Which Sportsbooks Found the Most Success in the New Year?
Still, FanDuel remains on the throne by taking 40.5 percent of the overall market share for the month. DraftKings trailed in second place with 26.2 percent of the total. BetMGM rounded out the top three with seven percent and the rest were shared between the other sportsbooks that accept wagers in the state.
Bookmakers not only in Pennsylvania but across the nation will be looking forward to March Madness, which will be starting on March 14th. The average wagering volume is expected to skyrocket after February numbers are reported by the Pennsylvania Gaming Control Board.
The state had a solid 2022 in terms of sports success as a whole but came up short at their respective championship games of the season. Is it possible for a school like Villanova Wildcats or the NBA’s Philadelphia 76ers to bring a much-needed championship to the city? They are in solid positions in their respective seasons to make runs at the titles.