Pennsylvania Sports Betting Handle Drops for Second Consecutive Month
Pennsylvania
Pennsylvania sports betting faced headwinds in May as the state’s handle declined for the second consecutive month. The downturn marks a concerning trend for one of the nation’s largest sports betting markets, raising questions about market sustainability and seasonal betting patterns.
Accordingly, online sports betting Pennsylvania operators managed to soften the impact through stronger hold percentages, demonstrating how sportsbooks can maintain revenue stability even when wagering volume decreases. This article examines the May performance data, analyzes how hold rates compensated for lower handle figures, and reviews the ongoing market share competition between industry leaders FanDuel and DraftKings.
Pennsylvania Sports Betting Handle Falls Below $600 Million in May
Bettors wagered $595.60 million on sports in Pennsylvania during May 2026, representing a 9.1% decline from the same period in 2025. The figure marked the state’s lightest-volume month since February and just the second time in nine months that Pennsylvania sports betting failed to produce $600 million in wagers.
The monthly handle also dropped 7.2% from April’s $641.60 million, continuing a downward trajectory that began in March when platforms processed $730.90 million in bets. This marks the third consecutive month of year-over-year declines, following March’s 12.2% decrease and April’s 9.8% drop.
Online sports betting Pennsylvania platforms accounted for 96% of all wagers placed during the month. Operators generated $67.60 million in gross revenue, down 12.3% from April’s $77.20 million. The hold percentage settled at 11.3%, down from April’s 12%.
State coffers benefited from the activity, collecting nearly $17.90 million in taxes from the $52.60 million in taxable revenue. Promotional credits totaled $15 million during the period.
The slowdown occurred despite May featuring NBA and NHL playoffs alongside regular MLB action. By comparison, May 2025 wagering rose almost 11% from the previous year, while May 2024 handle increased by nearly $100 million year over year.
How Strong Hold Percentages Offset Revenue Losses
Despite the handle decline, Pennsylvania sports betting revenue showed resilience through operational adjustments. May 2026 generated $50.80 million in gross revenue, down 33% year-over-year, as the hold cooled to 8.53%. This marked a significant retreat from the double-digit hold percentages operators achieved throughout late 2025.
The state collected $17.30 million in tax revenue at the 34% rate during May, demonstrating how Pennsylvania sports betting continues to deliver substantial public funds even during slower periods. In contrast, April saw tax collections jump 38.6% to $20.00 million as operators slashed promotional deductions, illustrating how reduced bonusing directly impacts state coffers.
Operators experienced six double-digit holds during 2025, all occurring between May and December. December 2025 produced the year’s highest hold at 13%, more than double December 2024’s win rate. These elevated percentages helped online sports betting Pennsylvania platforms maintain profitability during periods of softer wagering volume.
The U.S. national hold averaged 10.15% in 2025, meaning sportsbooks retained roughly $10.15 of every $100.00 wagered. May’s 8.53% hold fell below this benchmark, suggesting operators faced more favorable outcomes for bettors during the month. Evidently, the pullback in promotional spending proved more effective at protecting margins than maintaining elevated hold rates.
FanDuel and DraftKings Lead Market Share Battle
FanDuel maintained its position atop the Pennsylvania sports betting market in May, posting a hold percentage of 14.4% with $219.80 million in handle. The operator’s performance demonstrated stronger profitability metrics despite lower overall wagering volume across the state.
DraftKings secured second place in the market, continuing the duopoly that defines online sports betting Pennsylvania operations. Nationally, the two operators command approximately 78% of all sports betting gross gaming revenue. FanDuel holds an estimated 44% market share by GGR, while DraftKings maintains 34%.
The national dominance translates to state-level control, with combined market share reaching 67% according to industry analysts. FanDuel generated $5.79 billion in revenue during 2024, reflecting a 19.6% increase over the previous year. Over $50.00 billion was wagered on FanDuel platforms in 2024, representing a 26% increase from 2023 figures.
BetMGM holds a distant third position with approximately 14% of national gross gaming revenue, while Fanatics has captured 6.7% market share. By comparison, smaller operators have reduced promotional activity as the market matures.
