- Pennsylvania sportsbooks kept $44.7 million in September, roughly 40% less than New Jersey or Massachusetts, but the state collected the most tax at $16.1 million.
- The handle fell in all three states, with one fewer NFL Sunday and a 1.3% football hold in New Jersey.
- DraftKings closed in on FanDuel in New Jersey and Pennsylvania, while Fanatics nearly doubled its Massachusetts revenue.
HARRISBURG, Pa. – Pennsylvania sportsbooks kept far less money than their neighbors in September, yet the state still came out ahead. The Pennsylvania Gaming Control Board’s September revenue report shows sportsbooks kept $44.7 million in taxable revenue, roughly 40% less than Massachusetts and New Jersey. But Pennsylvania collected $16.1 million in state and local taxes, more than either.
- Pennsylvania: $16.1 million in taxes on $44.7 million
- New Jersey: $15.7 million in taxes on $77 million
- Massachusetts: $14.2 million in taxes on $71.2 million
The difference is the rate. Pennsylvania sports betting is taxed at 36% of sportsbook revenue, with 34% going to the state and 2% to local governments. Massachusetts and New Jersey tax online sportsbooks at roughly 20%.
Pennsylvania’s take is also growing. Sportsbooks cut promotional credits 31.6%, from $42 million to $28.8 million, leaving more revenue to tax. As a result, taxes jumped 50.5% from $10.7 million last September.
That growth came despite fewer bets in all three states.
The amount of money bet on sports fell 6.1% to $798.7 million in Pennsylvania, 3.4% to $772.9 million in Massachusetts and 3.6% to $1.09 billion in completed events in New Jersey.
Blame the football calendar. The NFL opened Sept. 10, leaving September with three NFL Sundays compared to four last year.
New Jersey took the hardest hit. The New Jersey Division of Gaming Enforcement’s September report shows football bets fell 15.3% to $318.8 million, and sportsbooks kept just 1.3% of them. Football win dropped 76.4% to $4.3 million, dragging the state’s revenue down 14.3%.
Massachusetts went the other way. The Massachusetts Gaming Commission’s September report shows hold climbed from 6.8% to 9.4%, pushing taxable revenue up 36%.
DraftKings Closes In
The other trend across the region is at the top of the market. In New Jersey, FanDuel’s revenue fell 34.4% to $24.7 million while DraftKings dipped just 5.9% to $21.3 million. A $15 million gap last September is now $3.4 million.
In Pennsylvania, Hollywood Casino at the Meadows, home to DraftKings, tripled its revenue to $12.6 million. FanDuel’s Valley Forge Casino stayed flat at $15.8 million after leading by nearly $12 million a year ago.
In Massachusetts, DraftKings already handles twice as much as FanDuel, $389.4 million to $199.2 million, with revenue up 25.8% to $34.1 million. But Fanatics was the bigger story in the Bay State. Its handle slipped 9.6% to $75.2 million, but revenue nearly doubled from $3.3 million to $6.4 million as its hold jumped from 4% to 8.5%.
With a full NFL slate in October and promos shrinking, legal sports betting in Pennsylvania should keep out-earning its neighbors.
