- The PGCB is now releasing data on its nascent regulated fantasy sports industry on a monthly basis.
- In July, regulated fantasy sports operators in Pennsylvania collected $9.45 million in entry fees and collectively reported $878k in net gaming revenue.
- DraftKings lead the market in July, generating $437k in revenue.
The Pennsylvania Gaming Control Board (PGCB) is now releasing data on its nascent regulated fantasy sports industry on a monthly basis, reporting total revenue, collected entry fees and tax paid for every licensed operator in the market. PRO is now tracking this with a full data set starting at the first reported month on May 2018.
In July, regulated fantasy sports operators in Pennsylvania collected $9.45 million in entry fees and collectively reported $878k in net gaming revenue. It represents a decline on fees and revenue from June, which itself was a slide from May; however, DFS is highly seasonal, so sequential monthly comparisons are fairly irrelevant.
When the market first opened in May, the PGCB reported data from ten licensed operators in Pennsylvania. In July, this had dropped to nine, with FastPick.com removed from the reporting. Its status in Pennsylvania is unclear.
Of these nine, only two generated significant revenues. DraftKings led the market in July, generating $437k in revenue. FanDuel was not far behind, at $427k. It is the second month with DraftKings leading the market, with FanDuel losing its lead after reporting the highest revenue in May. The two combined represent some 98% of the total market in terms of revenue.
While no other operator reported revenue in six figures in July, the clear third place operator, at least in terms of revenue, remains Draft.com, generating $8760.
The situation is less clear cut when considering entry fees. While DraftKings and FanDuel still clearly dominate, by this metric their market share slips to 90%, with other operators carving out some of their own share.
Yahoo has reported six-figure entry fees every month and is third in the market in July, enjoying month-over-month gains as a result of $184k in fees collected. The operator’s strategy appears is be to return practically all fees back to players in either promotions or contest wins; revenue for July was a trivial $1600, and in June the company actually reported a loss.
FantasyDraft is also growing, posting just over $100k in entry fees in July 2018. Again, like Yahoo, it is returning practically all of this back to players.
Other data points of note include Draft.com’s huge June 2018 of $1.6 million in entry fees; some ten times bigger than both May and July.
Overall, in the first three months of the market almost $500k has been paid in tax. Nearly $40 million in entry fees from Pennsylvania players has been collected, of which over $30.5 million has been returned in contest wins and other promotions and rewards.
The average gross profit margin among all operators is 9.5%, with DraftKings at 10% and FanDuel slightly higher at 10.5%.
