Pennsylvania’s gaming industry has once again showcased its resilience and growth, with a remarkable $467 million in gambling revenue reported last month. This figure represents an impressive 8.9% increase compared to the same period last year, confirming the state’s ongoing dominance in the gaming sector.
The surge in revenue has been primarily driven by the rising popularity of iGaming and sports betting segments, both of which achieved new heights in terms of revenue. These gains have cemented 2023 a strong contender for yet another record-breaking year for the state’s gaming revenue.
A Successful Trajectory: Revenue Grows As New Players Are Lured In
July’s gaming revenue in Pennsylvania has outstripped last year’s figure of $429.1m in July 2022 by a notable margin, indicating a 6.0% growth compared to June’s revenue of $440.5 million. The consistent upward trajectory of revenue underscores the expansion of Pennsylvania’s gaming market, successfully attracting new players into the fold.
Fresh off an extraordinary year that saw the total gross gaming revenue (GGR) cross the $5.1 billion mark, the state’s gaming industry has sustained its revenue growth through the first seven months of 2023.
The Pennsylvania Gaming Control Board (PGCB) announced that iGaming was the primary driver of July’s revenue surge. Notably, when it comes to USA no deposit casinos, a 34.8% increase (or $132.9 revenue) was recorded. This boost was propelled by the impressive performance of online slots revenue, surging by 31.9%, and internet table games revenue soaring by 48.0%.
While retail slots retained their position as the main revenue source, collecting a substantial $214.7 million during July, retail table games revenue experienced a modest decline of 3.8%, resulting in a total revenue of $83.4 million.
Leading the iGaming segment, Hollywood Casino at Penn National dominated with an impressive $54.4 million in revenue. Valley Forge Casino Resort secured second place with $29.2 million, closely followed by Rivers Casino Philadelphia which made $26.8 million in revenue.
The sports betting also experienced a noteworthy increase, with revenue amounting to $32.1 million. This represents a significant 26% improvement compared to the same period last year. Of the total sports betting revenue ($32.1m) $29.1 million originated from online wagers, while $3.0 million was generated from retail sportsbooks. The total handle also rose by 0.6% year-on-year to $338.5m.
Declining Revenue For Physical Casinos And The Video Gaming Market
Interestingly, the gains made in online gaming and sports betting compensated for the losses encountered by the state’s 17 brick-and-mortar casinos. While retail slots remained nearly flat at just under $214.7 million compared to the previous year, table game win witnessed a decrease of 4% to $83.4 million.
In the meantime, the video gaming terminal sector continued to grapple with challenges, recording a 7.2% decline in revenue to $4.4m in July. Leading the pack, Marquee by Penn made $2.0 million in revenue for the month, followed by Jango at $380,910. Online poker rake and fantasy sports also faced declines, with interactive poker charges totaling $2.6 million (-4.5%), and fantasy sports generating $655K (-24%) in fees.
Gearing Up For Record Revenue
The odds are increasingly favorable for Pennsylvania’s gaming industry to establish a new revenue record for the third consecutive year. The Keystone State’s gaming industry attained GGR of $4.73 billion in 2021, driven by the pent-up demand stemming from the COVID-19 pandemic. Following this banner year, the gaming sector achieved unprecedented growth, surging to a staggering $5.21 billion in income.
By the end of the first seven months of 2023, the Pennsylvania gaming industry has reaped over $3.365 billion from players, reflecting an impressive 11% increase compared to the same period last year.
This trend is not unique to Pennsylvania alone. The American Gaming Association (AGA) recently reported that commercial casinos raked in over $16 billion in the second quarter, signaling the potential for a third consecutive annual revenue record in the industry.
The AGA also highlighted that commercial gaming operators garnered $32.71 billion within the first six months, a remarkable 12% surge to the industry’s record year in 2022, where revenue surpassed $60.4 billion.
While Pennsylvania and New Jersey continue their friendly rivalry for the position of the nation’s second-richest gaming state after Nevada, the Keystone State’s consistent growth trajectory remains a testament to its gaming prowess. However, as online gaming gains momentum, the industry faces fresh challenges in revenue sharing and potential impacts on other streams such as food, beverage, and entertainment.
