September proved to be a successful month for Pennsylvania’s sports betting industry.
As per the Pennsylvania Gaming Control Board, $194.5 million was taken in wagers by the Keystone State retail and mobile/online sportsbooks.
Of that number, a total of $19.3 million accounts for the revenue generated.
The lion’s share was handled through online and mobile betting – $158.15 million, of which $13.71 million is in revenue.
That said, only $9.26 million of that number is taxable, thanks to the rest being written off as promotional credits by the books.
Retail books, on the other hand, handled $36.35 million, of which $5.65 million was given out in winnings.
It’s been a history of slow options roll-outs for the state of Pennsylvania. Although the first retail sportsbook was opened in November 2018, it wasn’t until May 2019 that online and mobile wagering began.
So while the handling of $194.5 million – as well as the $19.3 million revenue – represents a new record for Pennsylvania, the neighboring state of New Jersey remains in the lead.
This is because, despite New Jersey’s population being significantly smaller, its longer online/mobile betting history put it streaks ahead.
Pennsylvania’s numbers pale in comparison to New Jersey’s September handling of $445.6 million and $37.9 million in revenue.
Another reason for Pennsylvania’s struggle to climb is the 36% effective tax rate hampering the sports betting industry.
This also led to Governor Chris Christie (New Jersey) recently calling the industry a “rolling dumpster fire”.