Oct 2, 2020; Baltimore, Maryland, USA;  A view of the Betting Area sign at Pimlico Race Course. Mandatory Credit: Tommy Gilligan-USA TODAY Sports

Sports betting handle shrinks in July

The addition of the Tokyo Summer Olympics and the end of Euro 2020 wasn’t enough to make up for a sports betting dollar shortfall in July.

July is typically one of the slower months for sports betting with a light sports schedule compared to other months and it lived up to its slow reputation in Michigan, New Jersey and Pennsylvania.

How much did sports betting handle shrink?

In Michigan the reported sports betting handle for July was 206.3 million. That may sound like a lot, but it was down 20.5 percent from June when it reported a $259.5 million handle. Reported revenue of $20.8 million was down 23 percent from June, which allowed the state to collect $808,027 in taxes.

Not surprisingly online bets continued to make up the majority of bets in Michigan with $188 million wagered online in July. That was down 20 percent from the $235.1 million reported in June.

The two newest sportsbook sponsors at NnationalFootballPost.com – FanDuel Sportsbook and DraftKings Sportsbook – continued to battle for top spot in the market.  FanDuel owned 29 per cent market share and DraftKings came in right behind with 28 per cent.

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In New Jersey in July the sports betting handle dropped below $600 million for the first time this year with $578.7 million reported. That was down 25 percent from the handle reported in June.

It was actually the first time since July, 2020 that the handle in New Jersey fell below $600 million. In July, 2020 in the throngs of the pandemic when most sports were shutdown, New Jersey reported a tiny handle of $315.1 million. Revenue reported in New Jersey this July was $55 million which allowed the tax man to take in $8.3 million.

The Meadowlands, which partners with FanDuel and PointsBet continued to dominate the New Jersey industry with 58 percent of all revenue in July. Their closest competitor was Resorts Digital, partnered with DraftKings and Fox Bet, which took in 19 percent of all revenue.

Finally, in Pennsylvania the reported handle in July was $304.4 million, a 27.6 percent drop from the $420.1 million handle reported in June. It was the first time Pennsylvania’s handle has dropped below $400 million since August, 2020.

July sports betting revenue took an even bigger hit in July down 35.3 percent from $42.4 million to $27.5 million. That led to $7.1 million in taxes, which seems high compared to other states because Pennsylvania has one of the highest tax rates on sports betting in the country.

In Pennsylvania, FanDuel and DraftKings continued to be the most popular option for bettors in July. FanDuel led the way with 38.7 percent of all handle in July, followed by DraftKings with 24 percent of all handle.