Pennsylvania’s online sports betting handle fell nearly 10% year over year to $747.8 million in January, according to newly released figures from the Pennsylvania Gaming Control Board. The decline contrasts sharply with the same period in 2025, when the state recorded $830.4 million in wagers amid the Philadelphia Eagles’ run to the Super Bowl.
This year, the Eagles were eliminated early in the wild-card round by the San Francisco 49ers. The abrupt end to the postseason run contributed to softer engagement, as January traditionally benefits from NFL playoff momentum and related wagering activity.
Even with reduced betting volume, taxable revenue climbed 37.5% year over year to reach $67.6 million. This trend reflects an increasingly common national pattern in which sportsbooks generate more revenue per dollar wagered through improved hold percentages. Operators were able to convert diminished activity into higher profitability.
State tax collections mirrored the revenue increase, reaching $23 million for January. Higher revenues from lower volume highlight the efficiency-driven growth that has become a defining characteristic of the current sports betting landscape.
FanDuel again led the Pennsylvania market, processing $274.8 million in online wagers and generating $27.5 million in revenue. Both figures were down year over year, reflecting the broader decrease in wagering activity tied to the Eagles’ shortened playoff presence. DraftKings, however, moved in the opposite direction, posting a 7% increase in handle and a 51.1% increase in revenue compared with January last year.
Fanatics also registered a notable improvement, turning last January’s loss into $5.5 million in revenue while processing $55.6 million in wagers. BetMGM and BetRivers both reported year-over-year drops in handle but increases in revenue, reinforcing the broader pattern of operators earning more from fewer bets.
January is typically one of the strongest months for sports wagering due to the NFL postseason. While any market experiences increased activity during playoff season, states with an active home team in contention often see even sharper boosts in handle. Pennsylvania benefitted from this dynamic in 2025, when Eagles fans remained engaged throughout the full playoff run.
In contrast, the shortened participation in 2026 reduced the natural momentum that normally fuels wagering into late January and early February. The Pittsburgh Steelers were also knocked out early, offering little offset to the lower Eagles-driven betting volume. Even so, the elevated revenues demonstrate that operators’ profitability remains less dependent on broad participation than it once was.
The divergence between handle and revenue suggests a maturing market where operator margins and hold strategies are becoming more sophisticated. While total betting activity dropped sharply without a deep playoff run from the Eagles, sportsbooks managed to post substantial year-over-year revenue gains, indicating resilience within the industry.
Looking ahead, Pennsylvania’s sports betting revenues may continue to show strength even in months where engagement lags, particularly if operators maintain current efficiency levels. However, total handle will likely remain sensitive to the performance of local NFL teams, as their playoff participation has historically been a major driver of wagering volume across the state.
