Sports Betting Revenue in Pennsylvania Falls 24% Year-on-Year in August

The sports betting sector in Pennsylvania saw a significant decline in August, reporting $50.5 million in gross gaming revenue (GGR), representing a 24% drop compared to the same month in 2025, according to data published by the Pennsylvania Gaming Control Board (PGCB). This slowdown, attributed in part to the low sports calendar ahead of the NFL season and the growth of prediction markets, brought the handle down to $498.5 million. This marks the first time since July 2025 that the market has fallen below the $500 million monthly threshold.

Dynamics of the Sports Betting Market in August

The decline in revenue and handle reflects the typical seasonal effect of summer, when major sporting event activity decreases. The hold — that is, the proportion of bets retained as revenue — was 10.1%, totaling the fourth month in five with a double-digit figure for state operators.

After deducting $11.1 million in bonuses and promotions, adjusted gross revenue (AGR) reached $39.4 million, a 19.9% decrease compared to August 2025. This resulted in tax payments to the state of $13.4 million.

FanDuel and DraftKings Lead the Digital Sector in Pennsylvania

FanDuel, operating online, maintained its top position with a handle of $169.3 million and $18.8 million in gross revenue, surpassing the state average with a hold of 11.1%. DraftKings, its primary competitor, closely followed with $161.5 million in betting volume and $14.8 million in GGR, corresponding to a profit rate of 9.2%.

Both operators together accounted for nearly 70% of total spending on bonuses, with FanDuel dedicating $3.7 million and DraftKings $4.1 million, the latter being significant given its return was lower compared to its promotional investment.

The third operator by volume was Fanatics Sportsbook, which reported $4.5 million in gross revenue from $36.4 million in handle, achieving the highest profit rate in the local market at 12.3%.

“The hold in August saw another double-digit month, highlighting the typical summer volatility ahead of the NFL,” the PGCB report notes.

The iGaming Market in Pennsylvania Grows 6.3% Year-on-Year

While sports betting has seen a decline, the state’s iGaming market exhibited an increase. Gross gaming revenue from online games rose to $245.7 million, a 6.3% increase from the $231.3 million reported in August 2025.

Online slots led with $195.2 million (79.4% of the total), followed by online table games ($48.1 million) and online poker ($2.4 million). This figure continues to position Pennsylvania as one of the most significant markets in iGaming revenue at the state level.

Implications for Operators and Competitive Trends

The decline in sports betting in August does not necessarily forecast the annual trend, as the sector anticipates a strong recovery with the NFL kickoff in September. However, the increasing competition from prediction markets and high spending on bonuses may pressure the margins of major operators like FanDuel and DraftKings.

The regulation section can monitor these developments to assess the evolution of betting offerings and their impact on the state’s tax base. For B2B providers and operators, the sustained growth of iGaming compared to the seasonal instability of sports betting could influence future product strategies and budget allocations.

Outlook for the Final Quarter

The end of summer usually marks a transitional period for the U.S. industry, with expectations that September and the following months will significantly boost revenues due to professional and college football. At the same time, data shows that while some verticals falter, others like online slots maintain an upward pace.