A record-setting January pushed Pennsylvania’s online and retail sportsbooks past $100 million in lifetime revenue.

But even with a strong start to the New Year, Pennsylvania still has much ground to gain to catch New Jersey and Nevada as the largest sports betting markets in the country.

“Pennsylvania’s momentum is growing, and January shows that the state’s sportsbooks can sustain it even as the NFL season winds down,” said Dustin Gouker, lead analyst for PlayPennsylvania.com. “Pennsylvania will likely remain the nation’s No. 3 market for the foreseeable future. But it is becoming clearer that it will one day challenge Nevada and New Jersey as the largest legal sports betting market in the U.S.”

Pennsylvania’s sportsbooks accepted a record $348.4 million in wagers in January, breaking the $342.6 million record set in December up dramatically from $32 million in January 2019, according to official data released Wednesday. $308.6 million, or 88.6%, of the state’s January handle came online.

January’s bets produced a record $31.6 million in gross revenue — up from $17.5 million in December. That produced $7.78 million in state taxes. With January’s gains, Pennsylvania’s sportsbooks have now generated $116.4 million in gross revenue since launching in November 2018.

Pennsylvania is still well behind New Jersey, which generated a handle of $540.1 million in January, and Nevada, which is expected to post a January handle of around $500 million. Pennsylvania’s $30.7 million handle for February’s Super Bowl was third behind Nevada ($154.7 million) and New Jersey ($54.2 million), another sign of the Keystone State’s current place in the sports betting pecking order.

“The opportunities for growth are abundant for Pennsylvania,” Gouker said. “Its population base is a huge advantage. Infrastructure issues have slowed the state’s development. But the industry is unquestionably getting past its growing pains.”

The gap between the top two online sportsbooks appears to be narrowing. FanDuel Sportsbook at Valley Forge Casino remains the market leader with $153.1 million January bets, down from $154.5 million in December. That yielded $8.1 million in taxable revenue, up from $7 million. But DraftKings at The Meadows grew to $58.7 million in January from $35.9 million in December. That produced $2.8 million in taxable revenue, up from $732,883.