Pennsylvania Maintains iGaming Growth Momentum Through May

Article by : Erik Gibbs Jun 21, 2024

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Pennsylvania’s gaming industry continues to demonstrate significant growth, following the momentum from a record-breaking year in 2023 when gamblers lost a total of $5.7 billion.

Recent reports from the Pennsylvania Gaming Control Board (PGCB) revealed that May’s gaming revenue reached nearly $521 million, with gamblers losing $520,997,868 across various gaming activities, such as casino slots, table games, sports betting and online gambling. However, the figure excludes lottery losses.

This figure represents a 9% increase in gross gaming revenue (GGR) compared to May 2023, when operators won approximately $479.4 million. Every month in 2024 has shown year-over-year revenue gains, with March 2024 being the highest-grossing month ever for Pennsylvania’s gaming industry, reporting a GGR of over $554.6 million.

The competition for the title of the second-richest gaming state continues to intensify between Pennsylvania and New Jersey. Although Nevada remains the top gaming state in the US, with a record casino revenue of $15.5 billion last year, Pennsylvania and New Jersey have been vying for the second spot.

Pennsylvania edged out New Jersey in 2022 by a narrow margin, reporting a GGR of $5,211,303,191 compared to New Jersey’s $5,211,274,456. However, New Jersey regained the second spot in 2023 with a GGR of more than $5.77 billion, surpassing Pennsylvania by approximately $70 million.

In the first half of 2024, Pennsylvania’s GGR totaled $2,556,551,344, while New Jersey’s gaming revenue from January through May amounted to $2,567,771,975, a difference of about $11.2 million.

iGaming platforms significantly contributed to Pennsylvania’s GGR for May. Online slots generated $126.9 million in revenue, a 26% increase year over year, while interactive table games brought in $44.9 million, a 19% improvement.

Retail gaming also saw gains, with brick-and-mortar slots and table games collectively generating around $297.85 million, marking a 2% increase from May 2023. Pennsylvania currently hosts 17 physical casino properties.

Sports betting activity in May saw over $591.9 million in bets placed, with oddsmakers keeping $44.2 million. In-person bets accounted for only $2.6 million of the total win, indicating the growing preference for online betting platforms.

The FanDuel Sportsbook, in partnership with Valley Forge Casino Resort, dominated the sports betting market in Pennsylvania, holding $22.8 million in May. Additionally, video gaming terminals in truck stops contributed $3.7 million in revenue, a 3% increase from the previous year.

However, fantasy sports revenue saw a decline, with contest commissions totaling $1.15 million, a 5% decrease from May 2023, indicating a continuing decline in the fantasy sports industry. Online poker rake also saw a decline, totaling $2.27 million, a 9% decrease from the previous year.

In terms of individual casino performance, Parx Casino, one of only two non-smoking casinos in Pennsylvania, led in retail play, generating $32.6 million in slot revenue and $18.3 million from table games. Wind Creek Bethlehem ranked second, with slot revenue of $24 million and table game income of $20.2 million.

The success of Parx Casino has been cited in ongoing efforts in the Harrisburg capital to ban tobacco smoking on casino floors. Proponents, using Parx Casino’s performance as evidence, argue that non-smoking policies do not negatively impact casino revenue.

Overall, Pennsylvania’s gaming industry continues to show robust growth and resilience, maintaining its competitive edge in the national gaming landscape.