Pennsylvania Sports Betting Growth

Since sports betting launched in Pennsylvania, the state has experienced significant year-over-year growth in the market.

Sports betting started slow in 2018, with $2.5 million in gross gaming revenue (GGR) in the first few months after launch. By 2019, GGR had jumped to $111.7 million as more operators entered the market and online sports betting had gained popularity.

The trend continued in 2020, with revenue reaching $269.9 million despite disruptions caused by the pandemic. By 2021, the market more than doubled to $505.5 million as professional and collegiate sports returned to full schedules. In 2022, Pennsylvania's sports betting revenue climbed to $597.3 million, followed by a new high of $686.9 million in 2023, reflecting a 15% increase over the previous year.

In 2024, Pennsylvania’s sports betting industry continued its strong performance. From January to September, the state reported a total handle of $6.14 billion, generating $529.53 million in GGR and collecting $138.08 million in tax revenue. The average hold percentage during this period was 9.54%, showcasing steady profitability for operators.

Highlights for 2024 (January-September):

• Total Handle: $6.14 billion
• Gross Gaming Revenue (GGR): $529.53 million
• Sports Betting Tax Revenue: $138.08 million
• Highest Monthly Handle: September 2024, $811.28 million
• Highest Monthly GGR: September 2024, $95.82 million

Since its launch, Pennsylvania's sports betting industry has produced over $2.7 billion in GGR. With a 36% tax rate, a significant portion of these funds continues to support public programs across the state, further cementing Pennsylvania’s role as a leader in the U.S. sports betting market. (Pennsylvania Gaming Control Board, 2024).

• October 18, 2024: The PGCB announced gross gaming revenue for September reached $53.5 million, up 46.1% over the previous year. (Lehigh Valley Business, 2024)
• October 11, 2024: Pennsylvania Governor Josh Shapiro instructs the PGCB to enter the Multi-State Internet Gaming Agreement to allow the state's residents to play online poker against players in other states. (CDC Gaming, 2024)
• September 19, 2024: Offshore sportsbook Bovada is no longer available in the Pennsylvania market after being sent a cease-and-desist by the Pennsylvania Gaming Control Board in August. (SBC Americas, 2024)
• July 2024: Bet365 receives approval to operate in Pennsylvania. (SBC Americas, 2024)

Pennsylvania has become one of the best sports betting markets in the US, offering mobile and retail options and a strong sports culture. Since 2018, the industry has grown and brought big economic benefits to the state.

2018

In its first year, Pennsylvania sports betting started small. The handle was $17.6 million, revenue sat at $2.5 million, and tax revenue was just $906,000.

2019

The first full year of sports betting saw huge growth. The handle rose 8,371% from 2018 to $1.49 billion. Revenue surged 4,338% to $111.7 million, and tax revenue improved by 3,243% to $30.3 million. The launch of online betting was the driving force behind this growth.

2020

2020 was a resilient year despite the COVID-19 pandemic. Sports betting handle went up 140% from 2019 to $3.58 billion. Revenue increased 141% to $269.9 million, and tax revenue jumped 125% to $68.3 million.

2021

Pennsylvania sports betting had another big year in 2021 as the disruption to major sports events was reduced. Handle improved 83%, reaching $6.55 billion. Revenue shot up 87% to $505.5 million, and tax revenue rose 79% to $122.4 million.

2022

This was the year the pace of growth began to slow slightly. Sports betting handle went up 11% to $7.25 billion. Revenue rose slightly more (18%) to $597.4 million, and tax revenue followed the same growth trajectory, reaching $144.4 million.

2023

The growth continued in 2023, but its pace of expansion was reduced once again. Handle up 6% to $7.68 billion. Revenue was up 15% to $686.9 million and tax revenue improved 14% to $165.1 million. Pennsylvania sports betting has shown steady growth and is a big economic driver for the state.

Over five years, Pennsylvania sports betting has had significant year-over-year growth. Although it's no longer expanding at its earlier pace, it’s still bringing in considerable funds for public programs like property tax relief and agricultural support.

2024

From January to September 2024, Pennsylvania recorded a total handle of $6.14 billion, generating $529.53 million in revenue and collecting $138.08 million in tax revenue. The market demonstrated strong monthly performance, with September 2024 standing out as the best month for both handle ($811.28 million) and revenue ($95.82 million). The year-end handle is expected to surpass $8 billion, marking another record year for the state.

Pennsylvania's total handle has increased by 415.59% since the state's first year with online sports betting in 2019.

The state's gaming revenue increased by at least $90 million from 2021 to 2022 and 2022 to 2023. Pennsylvania has generated more than $2.1 billion in gross revenue since legalization.

In 2023, the Pennsylvania Gaming Control Board reported that the state collected $165.1 million in taxes. That was an annual record that put all-time tax revenue over the $500 million mark.

Pennsylvania's sports betting market has matured, but growth remains strong, creating significant taxable revenue for the state.

Since legalization, the total value of sports betting has increased at least $400 million yearly, making it clear that the Keystone State is fertile ground for this industry to flourish.