Pennsylvania Gambling Revenue Reaches All-Time High

Pennsylvania

Pennsylvania’s gambling industry has experienced record-breaking figures in both the iGaming and sports betting sectors for 2023, the state’s gambling revenue soared to an all-time high of $5.70bn, marking a 9.3% increase from the previous record set in 2022.

When it comes to revenue generation, physical slot machines continue to lead the way in Pennsylvania’s gambling landscape. In 2023, revenue from physical slots rose by 3.1%, reaching an impressive $2.46bn. However, land-based table games experienced a slight decline of 1.9%, generating $971.7m in revenue. Despite this dip, table games remain a significant contributor to the state’s overall gambling revenue.

The rise of iGaming has been a game-changer for Pennsylvania’s gambling industry. In 2023, revenue from iGaming soared to a record-breaking $1.74bn, surpassing the previous year’s figures by an impressive 27.7%. The Pennsylvania Gaming Control Board (PGCB) did not provide a comprehensive breakdown of revenue per game type for the iGaming market. However, data on individual operators revealed that Hollywood Casino at Penn National led the way with $712.4m in revenue, followed by Valley Forge Casino Resort with $392.7m and Rivers Casino Philadelphia with $340.3m.

Since the launch of the regulated market in 2019, iGaming revenue in Pennsylvania has experienced exponential growth. The state surpassed the $1.00bn milestone in 2021, and if current trends continue, it is poised to exceed $2.00bn in 2024, further solidifying iGaming’s position as a major revenue driver.

Sports betting has also played a significant role in Pennsylvania’s record-breaking gambling revenue. In 2023, revenue from sports betting reached an all-time high of $458.6m, surpassing the previous record set in 2022 by 14.3%. The total amount wagered by players, known as the handle, also increased by 6.0% to $7.68bn. The popularity of sports betting is evident in the numbers, highlighting Pennsylvania’s growing appetite for this form of gambling entertainment.

Leading the sports betting market in Pennsylvania are Valley Forge Casino Resort and FanDuel, generating $233.6m in revenue. Hollywood Casino at the Meadows and DraftKings secured the second spot with $121.1m, while Hollywood Casino Morgantown and BetMGM followed closely with $21.0m.

In addition to slots, table games, iGaming, and sports betting, Pennsylvania’s gambling revenue includes other streams such as video gaming terminals (VGTs) and fantasy contests. VLT revenue experienced a slight drop of 2.0%, generating $41.2m in 2023. Similarly, fantasy sports contest revenue declined by 10.0%, amounting to $20.1m.

While these revenue streams may not contribute as significantly as slots, table games, iGaming, and sports betting, they still play a role in Pennsylvania’s diverse gambling industry.

Not only did Pennsylvania achieve record-breaking figures for the entire year, but it also set new monthly revenue records in December. Total market revenue in December 2023 reached an all-time high of $534.2m, surpassing the previous record set in March 2023 by $18.9m. This represented a 12.5% increase from December 2022 and a substantial 20.1% growth from November 2023.

When examining the monthly revenue breakdown, it becomes evident that retail slots were the top revenue generator, bringing in $207.8m, a 4.9% increase from the previous year. Land-based table games also experienced a modest growth of 1.6%, generating $82.9m.

Meanwhile, iGaming revenue in December 2023 witnessed a significant surge of 22.7% year-on-year, reaching $165.1m. This figure includes $116.9m from online slots, $45.8m from table games, and $2.4m from poker. Hollywood Casino at Penn National dominated the iGaming market during this period, generating $61.0m in revenue. Valley Forge Casino Resort followed closely with $41.3m, and Rivers Casino Philadelphia secured the third spot with $31.3m.

Sports betting revenue in December 2023 also experienced substantial growth, reaching $72.5m, a 32.7% increase from the previous year. Online sports betting accounted for the majority of this revenue, totaling $67.2m, while retail sports betting contributed $5.3m. Valley Forge Casino Resort and FanDuel continued their dominance in this sector, generating $39.2m in revenue. Hollywood Casino at the Meadows and DraftKings followed with $19.2m, and Hollywood Casino Morgantown and BetMGM secured $3.7m.

VLT revenue saw a slight increase of 3.1%, bringing in $3.4m, while fantasy sports revenue experienced a decline of 11.3%, totaling $2.5m.