Posted on: August 18, 2023, 11:16h.
Last updated on: August 18, 2023, 11:18h.
Pennsylvania gaming revenue last month reached $467 million, marking a nearly 8.9% increase compared to the previous year.
The gaming industry in Pennsylvania is thriving as it expands and attracts new players. After a record-breaking year with a total gross gaming revenue (GGR) of over $5.2 billion, the state’s gaming industry has continued to grow its revenue in the first seven months of 2023.
The Pennsylvania Gaming Control Board (PGCB) announced today that iGaming drove the revenue growth in July. Online slots saw a 32% year-over-year increase with $94.8 million in winnings, while interactive table games experienced a 48% surge with $35.4 million in winnings.
Sportsbooks also performed well, keeping $32 million of the $338.4 million wagered in July. This represents a 26% improvement compared to July 2022.
The gains in online gaming and sports betting offset the losses at the state’s 17 brick-and-mortar casinos. Retail slot revenue remained flat at just under $214.7 million, while table game revenue dropped 4% to $83.4 million.
Video gaming terminals at truck stops saw a 7% decline, retaining $3.3 million in revenue. Online poker and fantasy sports also experienced declines, with interactive poker generating $2.6 million (-4.5%) in charges and fantasy sports generating $655,000 (-24%) in fees.
Pacing for Record Revenue
The odds are increasingly in favor of the Pennsylvania gaming industry setting a new revenue record for the third consecutive year.
In 2021, the gaming industry in Pennsylvania generated $4.73 billion in GGR, a record high driven by pent-up demand during the COVID-19 pandemic. The following year, gaming income soared to $5.21 billion, another unprecedented achievement.
In the first seven months of 2023, the Pennsylvania gaming industry has already won over $3.365 billion from players, representing an 11% increase compared to the same period last year.
This trend is experienced nationwide, as reported by the American Gaming Association (AGA). Commercial casinos in the second quarter alone won over $16 billion, putting the commercial market on track for its third consecutive annual revenue record.
The AGA revealed that commercial gaming operators have already won $32.71 billion in the first six months of this year, nearly 12% higher than the record-breaking year of 2022 with over $60.4 billion in revenue.
Legacy Gaming Concerns
Pennsylvania and New Jersey are in a constant battle for the title of the nation’s second-richest gaming state, behind Nevada. New Jersey claimed the honor last month with a total GGR of $506.1 million.
Similar to Pennsylvania, New Jersey’s July revenue report highlighted continued growth in iGaming, while revenue from the nine casinos in Atlantic City declined by 3%.
Although Pennsylvania’s brick-and-mortar casino revenue saw a less than 1% decline last month, the ongoing surge in iGaming raises concerns for retail interests. Casino executives argue that not all gaming revenue is the same, as online income is shared with third-party operators and faces higher tax rates. Additionally, casinos do not generate food and beverage, hotel, and entertainment revenue from iGaming players.