The experts at PennStakes.com assembled this guide to explain the terms surrounding Pennsylvania sports betting financial figures. These include the terms handle, revenue, gross revenue, and tax collections.
The sports betting market in Pennsylvania includes retail sportsbooks at the commonwealth’s casinos as well as mobile sports betting apps.
Overall, Pennsylvania has a sweeping array of legalized gambling options. The commonwealth has legalized traditional casino gambling and online casino gambling (slots and table games); sports wagering, both in-person and online; live and internet poker; video gambling terminals at truck stops; and fantasy sports. Pennsylvania also has horse racing and the lottery but those financial results are not included in the commonwealth’s monthly gaming report.
In sports betting language, handle is the terms for all sports wagers placed in the state during any month (or year). The handle is broken down into retail bets, placed in person, or online handle. In Pennsylvania, bettors wager hundreds of millions of dollars each month. The vast majority of those bets are placed by people using online Pennsylvania sportsbook apps via computers or mobile devices, such as smart phones.
Revenue is what is left to the gambling operators after winnings are paid out. However, many states allow deductions resulting from promotions and bonuses to customers from the revenue total before the tax rate is applied. In Pennsylvania, the taxable revenue is called Gross Revenue in the commonwealth’s financial reports.
In Pennsylvania, sports betting Gross Revenue is taxed at a relatively high tax rate of 36% (34% state & 2% local). But operators can deduct promotions and bonuses to customers before the tax rate is applied.
In Pennsylvania, retail sports gambling began in 2018 and online sports wagering began in 2019.
Pennsylvania sports betting handle for January was down from the previous month but far ahead of the same month a year ago.
The numbers were released late Tuesday by the Pennsylvania Gaming Control Board (PGCB).
January total sports betting handle was $858,152,503, down 7.3% from December ($925,570,368). However, it was up a healthy 11.1% from January 2023 ($772,289,648).
The same was true for revenue. Gross sports betting revenue (taxable) posted at $69,924,036, down 3.6% from December ($72,506,446) but up from January 2023 ($39,250,402).
Taxes collected by Harrisburg amounted to $23,774,172.
Mobile betting handle was 94.2% of the overall amount in January.
The Keystone State’s total sports betting handle for January through December 2023 was just over $7.68 billion. Of that, about $7.165 billion came from online operators that often offer promotions. Revenue derived from wagering at mobile and retail sportsbooks combined topped $458.6 million and the state collected $155.9 million in taxes.
The tax rate for Pennsylvania sports betting is 36% (34% state & 2% local). The tax rate is applied to Gross Revenue which has promotions and bonuses deducted from the initial Revenue figure.
The Pennsylvania Gaming Control Board reports its figures for sports betting once a month.
In Pennsylvania, 34% of sports wagering taxes go to the state and 2% to local jurisdictions.
The Pennsylvania Gaming Control Board (PGCB) regulates sports betting and online gambling.
Mobile sports betting handle refers to the amount of money wagered on mobile or online apps, using phones, laptops, or other online devices. In Pennsylvania, total handle refers to the combined handle of both online wagering and sports betting done in-person.
Handle is the term used to refer to the amount of money wagered. Hold refers to what’s left after operators pay out winning bets.
The experts at PennStakes who bring you the latest updates in Pennsylvania sports betting and online casinos. We pull together decades of experience to give you analysis as well as comparisons of the best PA online gambling apps.
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