Backing Of Sports Betting In PA
The state of Pennsylvania saw a 27% increase in sports betting revenue in the month of August compared to July. With the start of the National Football League (NFL) season, the Pennsylvania online sportsbook revenue shows no signs of slowing down.
The gambling market in Pennsylvania only continues to grow with the expansion of both online and brick-and-mortar sports betting as well as the continued expansion of the online product.
On a year-over-year view, both the online and brick-and-mortar casino product, as well as brick-and-mortar and online sports betting, has increased 4.2%, according to PlayPennsylvania.
Revenue Spikes In August
The Pennsylvania Gaming Control Board announced from their data that the state’s revenue, which was previously $33.2 million in July shot up to $42.2 million in August. The main increase for revenue was led by the beginning of football season as well as the ending of the baseball season heading into the postseason. In total, sportsbook handles saw $337 million in July, which saw an increase going into August, where the handle was $363 million.
The Managing Editor for PlayPennsylvania, Katie Kohler, said that all the signs are pointing for the month of September to be a large month for sports books in the state of Pennsylvania, both online and brick and mortar.
The online casinos in the state of Pennsylvania have begun to come back to their original form after the standard summer dip that they usually see. August showed the fourth best month for Pennsylvania in regards to online gambling, outside of the time period of March to May. This shows that the ceiling has not yet been hit in Pennsylvania, a crucial moneymaker in the state.
Gambling’s Impact In Pennsylvania
It has become clear that sports gambling in the Keystone state is done online. Currently, 92% of sports wagers were made online as opposed to at a brick-and-mortar casino.
Out of the $42 million in sports betting revenue for both online and brick-and-mortar, just under $34 million was taxable. This amount, in the state of Pennsylvania, is hit with a 34% state tax as well as a 2% local share assessment. At the end of it all, the total for the state of Pennsylvania becomes roughly $12.2 million for taxed revenue.
Revenue from gambling has become a fairly large taxable source of revenue in Pennsylvania. Experts estimate that almost $5 billion in revenue came from online and brick-and-mortar gambling operations in 2020, as reported by Center Square.
Rather than potentially growing in existing markets, gambling in Pennsylvania has found expansion through newer forms of gambling. These include online gambling and sports betting as opposed to your traditional brick-and-mortar casinos.
Experts also believe that how the economy is performing will have an impact on tax revenue in the future. It stands to reason that the gambling industry is dependent on discretionary money.
As we’ve seen in the past, recessions and periods of economic struggle also see revenue in gambling dip. Should the state of Pennsylvania become too dependent on tax revenue as the online casino and sports betting industry continues to expand, legislatures could face a problem in the future.