Pennsylvania Fantasy Sports

The regulated fantasy sports market in Pennsylvania took something of a dip in January 2020 in terms of revenue, though a market high in entry fees suggests demand remains strong.

At just over $2 million in net gaming revenue reported by the ten operators doing business in the state, it represented a 2% dip on the same period a year ago.

The market is now well into its second year of operation, with nine months of lapping results. January is only the second to see a year-over-year decline in revenue.

The story was very different in entry fees. Operators took in over $26 million in January, up 38% on the year prior, and the standout here was FanDuel: It took in $15.8 million in entry fees, the highest for any single operator in any month since the market opened. It soared ahead of its primary competitor DraftKings, which normally leads the market by this metric.

This resulted in a cut to FanDuel’s margin, down to 6.1% in January 2020—half what it normally enjoys. This suggests the operator aggressively marketed to players in the state to coincide with the launch of its online casino. Given how much revenue it generated at table games last month, it looks like the strategy was highly successful.

Yahoo was also notable last month for both a big spike in revenue and entry fees. It took in over $1.2 million in January, it’s largest ever, on which it reported $53,000 in revenue—enough to secure third place in the market by both metrics. Its margin of 4.4% is actually ahead of its historic average.