December numbers for PA
The December numbers in Pennsylvania were pretty impressive. This includes a total stake of $ 548.6 million. Additionally, total sports betting revenue was $ 45.3 million. While only $ 34.1 million was taxable revenue for the state, that still resulted in a massive $ 12.3 million in government revenue.
There are some impressive things about these numbers, but one of the biggest is the fact that the state made well north of $ 10 million. Several state / month sports betting records were higher, mostly in New Jersey. However, this total amount collected is one of the highest ever recorded. New Jersey nearly doubles its total throughput, while the state takes less money home than Pennsylvania. This is absolutely huge for the state at a time when the pandemic is affecting tax revenues.
Recreation after immersion in November
December was a record $ 548.6 million for sporting goods sales in Pennsylvania. However, the previous record was in October when it hit $ 525.8 million. This was because it saw a massive drop to $ 492 million in November 2020. There didn’t seem to be a good reason for this except for players who bet less.
However, many things can explain the recovery. First, BetMGM, the Steelers’ official sports betting partner, entered the state. Second, the NBA returned, and thirdly, a slew of NFL games were played that had no schedule changes due to Covid. Pennsylvania was back on track and rocked the numbers of the past few months.
Sports betting began for Pennsylvania in July 2020, and since that date the state has raised over $ 2.5 billion in total. Sports betting had sales of $ 201 million, and the state raised a total of $ 47.8 million in taxes.
These numbers are very impressive for the first year of the state. If this were to be extended over a 12 month period, it would place Pennsylvania just behind New Jersey in nearly every category. With more growth expected in the next year as sports betting become more established in the state, it is possible that Pennsylvania will take the lead in the US.
Online sports betting dominate
Retail sports bets make up less than 10% of all bets collected in connection with sports betting. While this may increase as the country recovers from the pandemic, it shows the importance of online sports betting. Pandemic or not, Pennsylvania would have no chance of rivaling other states when it comes to sports betting if it were just retail. Online sports betting is the future, and most likely will continue to see 90% of the sports betting trade in the states where they are offered.
Pennsylvania 2020 was an impressive year and its online sports betting model should serve as a blueprint for many states looking to legalize in 2021. Missouri, Ohio, Georgia, Massachusetts, New York and more should seek guidance from Keystone State for guidance on getting sports betting right. This is from both a sports betting standpoint and a state revenue standpoint, with Keystone State on track to generate nearly $ 100 million in tax revenue over a 12 month period.