Multiple States See Decline in February Gaming Revenue

February is typically a rather fortuitous time for U.S. sportsbooks thanks to a large swath of bettors hoping to make a quick buck off the Super Bowl.

However, that’s not always the case.

Data shows that gaming revenue was actually down last month in several key states, including Pennsylvania, Maryland, and Michigan.

Gaming receipts in Pennsylvania totaled $477.2 million, a decrease of 4.38% from February 2024, according to the state’s Gaming Control Board.

While the Philadelphia Eagles’ 40-22 victory over the Kansas City Chiefs in Super Bowl LIX may be partly to blame, it has certainly raised some eyebrows.

The state has now seen revenue decline for three straight months, and February’s drop was the most precipitous. Gross sports betting revenue was just $7.4 million, a whopping 75.2% drop over the previous year. And this was despite a 14.4% increase in player spending over that time.

Meanwhile, in Michigan, commercial and tribal operators reported a combined $268.5 million in revenue from iGaming and sports betting last month. That marked an 18.9% decrease from January.

Contrary to Pennsylvania, the online sports betting handle dipped 31.6% to $379.8 million from the $555.2 million recorded in January.

In Maryland, revenue from iGaming fell 2.6% to $155.1 million over the previous month, though profits from sports betting increased 38% to $60 million from February 2024.

An important factor was the total handle, which rose by 7.5% year-over-year to $475.7 million. This was largely fueled by the state’s 11 online operators, who largely outperformed its 13 retail locations. In fact, the retail sports betting handle fell 11.3% year-over-year to $12.5 million.

Now legally accessible in 38 states plus Washington, D.C. – Missouri is poised to join that list this fall — online sports betting has expanded rapidly on a national level. Seven states also offer legalized iGaming: Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia.

Legislative efforts continue in places such as Hawaii, and Texas, but roadblocks remain. Managing the effects of problem gambling is a common obstacle.

As the industry evolves, it won’t be uncommon to see more fluctuation from a revenue standpoint. Regulatory changes — for example, increased tax rates — are a common factor.

Even New York, the country’s most lucrative sports betting area, experienced a dip in certain areas last month, proving nobody’s immune to market volatility.

With the NCAA men’s and women’s basketball tournaments dominating the sports landscape in March, revenue could very well tick back up for operators as they inch deeper into 2025. March Madness traditionally produces one of the highest betting handles of any event, alongside the Super Bowl and NFL Sundays, and may help explain whether last month’s results were merely a blip or a sign of things to come.