Wagering at Pennsylvania Sportsbooks, Online Casinos Surge in September

"Nothing stirs the sports betting drink like football, even when the Steelers and the Eagles get off to slow starts," said Katie Kohler, analyst for PlayPennsylvania.com. "Penn State made a difference in boosting interest, which certainly helps. The bottom line is every sportsbook wants a strong start to the football season, and that is exactly what Pennsylvania's industry got in September."

Pennsylvania's online and retail sportsbooks drew $578.8 million in wagers in September, according to official data released Tuesday. September's volume was up 25.1% from $462.8 million in September 2020 and up 66.1% from $348.5 million in August.

Gross sports betting revenue nearly hit an all-time high, falling just short of the record $49.3 million in revenue generated in January. Operators generated $48.1 million in gross revenue in September, up 163.2% from $18.3 million in September 2020 and up 90.1% from $25.3 million in August. That created $28.3 million in taxable revenue, generating $10.2 million in state taxes and local share assessments.

Through the first nine months of 2021, bettors have placed $4.3 billion in wagers, or 45.6% of the $9.4 billion wagered in Pennsylvania since sports betting opened in November 2018.

"Pennsylvania's sportsbooks are in a position to generate more in wagering this fall than the $1.5 billion that was bet in all of 2019," said Dustin Gouker, analyst for the PlayUSA.com Network, which includes PlayPennsylvania.com. "The industry will in all likelihood continue to grow in the months ahead, gaining steam in October with baseball's postseason and the opening of the NBA season. Sports betting should produce some eye-popping numbers over the next few months."

Online sportsbooks accepted $527.4 million in wagers in September. FanDuel claimed 34.8% of the online market with $183.7 million in wagering. Revenue rose to $21.2 million. DraftKings was second with $164.7 million in wagers, which yielded $5.1 million in gross revenue.

Penn National's Barstool-branded app celebrated its first anniversary by attracting $52.8 million in wagers in September. Those bets produced $2.6 million in gross revenue. Since launching in September 2020, the Barstool app has generated $52.9 million in revenue on $647.7 million in bets.

"Barstool hasn't quite achieved the 'world domination' that founder Dave Portnoy proclaimed with the app launched, but it has performed well," Gouker said. "No operator has seriously challenged the dominance of FanDuel and DraftKings yet. But Barstool has at least proven to be an important player in Pennsylvania."

Retail sportsbooks drew $51.3 million in wagers in September, up from $48.7 million in September 2020. Those wagers created $7.2 million in gross sports betting revenue, up from $5.1 million September 2020. Rivers Pittsburgh topped the retail market with $7.9 million in bets.

Online casinos and poker

Online casinos and poker rooms produced $111.8 million in gross gaming revenue, the second-most all time in Pennsylvania. September's revenue was up 61.3% from $69.4 million in September 2020 and up 8.4% from $103.2 million in August. The monthly revenue record for online casinos and poker is $113.8 million, set in May.

The win was whittled to $97.8 million in taxable revenue, which yielded $41.7 million in state and local taxes. Wagering at online casinos hit $3.5 billion in September, up from $3.2 billion in August.

"Online casinos have a symbiotic relationship with online sportsbooks," Kohler said. "When sportsbooks do well it tends to lift the fortunes of online casinos, and vice versa. We saw that in action in September."