Pennsylvania sports betting revenue declines in March

Sports Betting

With pro and college sports shut down for most of March due to the covid-19 crisis, Pennsylvania’s retail and online sportsbooks took a big hit in monthly revenue. But online casinos and poker exploded to a new record.

Coronavirus shutdowns cost sportsbooks $220 million in wagers during March, according to estimates by the gambling website PlayPennsylvania. Pennsylvania’s handle slumped to just $131 million for the month, according to official data released Thursday. That’s down over 60% from $330 million in February.

But those shutdowns sent homebound bettors to online casinos and poker rooms in record numbers. Combined, online casino games and poker generated a record $24.3 million in revenue, easily surpassing the previous best of $19.5 million in revenue set last month. The March gains yielded $5.9 million in tax revenue for the state.

Still, while the growth in online casinos is helping, it can’t entirely make up for the revenue lost from sports betting and land-based casinos being shut down, said Dustin Gouker, lead analyst for PlayPennsylvania.

“Pennsylvania’s gaming industry is navigating waters that are unprecedented anywhere,” said Gouker. “It’s an industry that employs thousands in Pennsylvania and generates millions of dollars in tax revenue, and it is not designed to be closed.”

Gouker said the timing of the coronavirus shutdowns was particularly damaging to Pennsylvania sportsbooks, costing the industry millions in March Madness college basketball-related bets alone.

“The first weekend of March Madness is the second-biggest sports betting event in the U.S., behind only the Super Bowl, and its cancellation leaves no feasible way to make up that revenue,” Gouker said.

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