Analysis

Barstool takes lion’s share in record betting PA haul

Pennsylvania had a record betting handle in December.

But Barstool Sportsbook’s revenues meant it took 41% of the online revenue market share on considerably stronger margins than its competitors. 

Barstool’s revenues came to $13.9m in December, or 41% the state’s total revenues of $44.2m. That was more than FanDuel and DraftKings combined ($12.7m).

Strong brand appeal

Barstool’s revenues from a handle of $72.5m means it recorded margins of 19.2%.

That compares with margins of 3.5% for FanDuel from a handle of $209.2m and 4.1% handle of  $131.4m for DraftKings.

The figures show that Bartsool is appealing to a broad player base that is betting on a largely recreational basis and is not particularly mindful of price. 

As a betting brand, the mass market appeal of Barstool CEO and founder Dave Portnoy is certainly helping. 

His Barstool Fund also raised $26m.5 to help small businesses affected by COVID19 in the run up to Christmas.

Such initiatives have cemented his place in consumers’ minds, raising the brand’s awareness when sporting events come around.       

Record betting handle 

Overall the Keystone State recorded $548.6m in handle for the month, up on the previous record from October of $525.8m.

Betting revenues came to $45.3m, dropping to $34m in taxable revenue once the $11.3m spent on promotional credits are taken out. 

Online betting totaled $44.2m of that overall revenue figure, with taxable revenues of $32.9m for the state.

The state took $12.3m in tax revenues according to its official report.

The figures cemented Pennsylvania’s place as 2nd in the Wedge Index of gaming friendliness.

Nearly all Pennsylvania players, 97.6% of them totalling $535.2m in bets, wagered via online platforms, with mobile used for more than 90% of the bets.

FanDuel and DraftKings lead the state in online market share at 38.8% and 24.5% respectively.

As mentioned, Barstool took 13.4% in handle with BetRivers taking 9.1%.

BetMGM had a strong start to its activities in Pennsylvania. It launched in the second half of December and took $12.1 million in handle or 2.3% of the online market. 

Pennsylvania closed 2020 as the third-biggest US state in sports betting handle, recording $3.6bn in 2020. New Jersey leads the market at $6bn, Nevada is in second at just over $4bn. 

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Jake Pollard

Jake Pollard is an experienced journalist and editor who has covered the online gaming and betting industry for many years. He has written for the leading media outlets as well as operators and suppliers in the igaming space. His current areas of focus are wide-ranging and include regulatory developments in the US, emerging markets in South America and how European countries are adapting to a decade of igaming regulation.

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