Pennsylvania Sports Betting Revenue, Handle and Taxes

Pennsylvania Sports Betting Revenue

Pennsylvania sports betting launched in 2019 and today there are 13 different sports betting apps operating in the state. Pennsylvania sports betting revenue started out relatively slowly in May of 2019, generating just $2.8 million. This continued for the next few months, as Pennsylvania sports betting revenue did not exceed $10 million for the first time until September of 2019.

Pennsylvania sports betting revenue hovered around $17-$20 million until December of 2019 before finally jumping to over $30 million in January of 2020. That revenue spike was short lived, though, as Pennsylvania sports betting revenue immediately fell to $11 million the following month and continued to drop over the next few months as a result of the pandemic.

By October of 2020, Pennsylvania sports betting revenue had returned to normal – reaching $47 million. This trend continued for the next year, with revenue numbers between $25 million and $49 million up until October of 2021. Then, in November of 2021, Pennsylvania sports betting revenue reached its all-time high at $84 million. Finally, from December of 2021 to May of 2023, Pennsylvania sports betting revenue was between $20 million and $75 million – with the majority of the months exceeding at least $40 million. 

Pennsylvania Sports Betting Taxes

The Pennsylvania sports betting tax rate is currently set at 24% for Federal taxes and a flat 3.07% for State tax. Depending on which tax bracket you fall into, the Federal tax could be higher than the standard 24%.

All gambling winnings must be reported as they are all considered taxable income. To report your gambling winnings, you will need Form W-2G from the sportsbook and you must include the amount you won as “Other Income” on Form 1040.

As painful as paying taxes on your gambling winnings can be, these taxes are used for services such as infrastructure and education. 

Pennsylvania Sports Betting Handle

Sports betting handle is essentially just the amount of money bet during a specified time period. Like with Pennsylvania sports betting revenue, their handle also started slowly at just $35 million in May of 2019. This increased month by month until the pandemic, where Pennsylvania sports betting handle fell to as low as $46 million between March of 2020 and July of 2020.

Once August 2020 rolled around, Pennsylvania’s sports betting handle shot back up to more than $300 million. This trend continued during the Fall months, as the handle was increasing. During late Spring and the Summer months, the handle decreased. The highest Pennsylvania sports betting handle recorded was $797.1 million back in October of 2022. In 2023, Pennsylvania’s sports betting handle reached as high as $772.2 million in January; once football season finally arrives, it is expected to exceed these numbers.   

Pennsylvania Sports Betting Handle Per Capita

Handle per capita is the average amount of money sports bettors are placing on bets over a given time period. Usually this metric is measured from month to month. Pennsylvania’s handle per capita started out very low in May of 2019 at just $4 per person. This did not grow much over the next few months with the highest handle per capita being $39 through the first year of sports betting in Pennsylvania.

Once the pandemic had settled down, handle per capita has been steadily increasing each month since, starting with a rise to $41 in August of 2020. Handle per capita reached as high as $90 in January and October of 2022 but has yet to reach $100. The obvious trends show that handle per capita is bound to sharply decrease in the summer months with there being a lull in sports, but once football begins, this number is sure to increase.

Compared to the heavy hitters, Pennsylvania handle per capita has a lot of catching up to do. Residents in states like Nevada, New Jersey and New York are betting hundreds of dollars on average and these states produce handle per capita numbers as high as $779.

Pennsylvania Sports Betting Hold

A sports betting hold is the percentage that a sportsbook keeps for profit on any one bet. This percentage will vary based on the market and the type of wager. Pennsylvania sports betting hold has overall been very high, an average of 8.1% since the launch of sports betting in the state in May of 2023. Over this four-year period, Pennsylvania sports betting hold has exceeded 10% six times. They have seen their hold dip below 4% just three times.

The majority of Pennsylvania sports betting hold numbers have hovered between 6% and 9%, which is a good number for the sportsbooks seeing that the average hold percentage for most legal sportsbooks is 7.25%.