Pennsylvania Points Finger at ESPN Bet for November Betting Revenue Dip

Pennsylvania, known for its vibrant gambling scene, recently reported a 1.7% decrease in total revenue for November, reaching $444.5 million, compared to $452.4 million from the same month last year. This decline raised eyebrows, considering the state witnessed a remarkable sports betting handle of $934.1 million in November, a significant surge from October's $829 million, marking an 18.4% year-on-year increase.

Despite the record-breaking handle, sports betting revenue plummeted from $52.9 million in October to just $12.9 million in November, a staggering 73% drop. The Pennsylvania Gaming Control Board attributed this sharp decline to a low hold percentage and the recent launch of ESPN Bet in November.

Operating in partnership with the Hollywood Casino at Penn National, ESPN Bet incurred a substantial loss of $7.8 million, mainly due to its extensive use of non-taxable promotional play as it sought to establish a presence in the Pennsylvania market. ESPN Bet, a product of a $1.5 billion deal between Penn Entertainment and Disney-owned ESPN, debuted in 17 states on November 14th.

While ESPN Bet is still finding its footing, industry giants FanDuel and DraftKings continue to lead the way in Pennsylvania's sports betting arena. FanDuel, based at the Valley Forge Casino Resort, boasted a state-leading sports wagering handle of $384.1 million in November, generating $8.4 million in total revenue. DraftKings followed closely with a handle of $253.1 million and total revenue of $7.9 million.

Despite the overall revenue decline, Pennsylvania's igaming segment remains robust, accounting for $158 million in November, a 22.8% increase compared to the previous year. Slots and table games reported substantial year-on-year growth, while poker revenue experienced a slight downturn.

A new partnership between Playtech and Boyd Interactive's Stardust-branded online casinos promises to further boost igaming in Pennsylvania. This positive trend in igaming mirrors the success seen in Michigan, another state with a thriving online gaming market.

Pennsylvania's gambling landscape continues to evolve, with ESPN Bet's entry shaking up the market and igaming providing a silver lining in the face of declining sports betting revenue. The coming months will undoubtedly be crucial in determining the future of gambling in the Keystone State.