Pennsylvania Gambling Revenue Surges to Record $5.70bn in 2023

Get ready to dive into the astounding world of Pennsylvania’s gambling industry, where 2023 witnessed an unprecedented surge in revenue, soaring to a staggering $5.70 billion.

This remarkable feat was propelled by the booming domains of igaming and sports betting, setting new records and raising intriguing questions. Join us as we dissect the numbers and uncover the driving forces behind this phenomenal growth, offering expert insights and predictions for the future!

Pennsylvania’s Record-Breaking Gambling Revenue

In a gaming landscape marked by volatility and competition, Pennsylvania defied the odds, achieving a remarkable milestone in 2023. The state’s total gambling revenue surged to a jaw-dropping $5.70 billion, a remarkable 9.3% increase over the previous record set in 2022, which stood at $5.21 billion.

Diverse Revenue Streams

Pennsylvania’s revenue juggernaut encompasses a diverse range of sources, including traditional slot machines, table games, sports wagering, igaming, video gaming terminals (VGTs), and fantasy contests. These elements form a multifaceted gaming ecosystem that contributed to the state’s extraordinary financial performance.

Dominance of Physical Slots and Digital Ascent

While physical slots maintained their dominance, registering a 3.1% revenue increase to $2.46 billion, land-based table games experienced a minor dip, with revenue slipping by 1.9% to $971.7 million. Yet, the star of the show was igaming, where revenue surged to $1.74 billion in 2023, marking a remarkable 27.7% increase over the previous year. The Pennsylvania Gaming Control Board (PGCB) did not provide a detailed breakdown of revenue per game type for this thriving market.

Leading the Igaming Frontier

Within the realm of igaming, individual operators left their mark. Hollywood Casino at Penn National continued its reign as the frontrunner, amassing an impressive $712.4 million in igaming revenue. Valley Forge Casino Resort secured the second spot with $392.7 million, closely followed by Rivers Casino Philadelphia, which posted revenue of $340.3 million. The exponential growth of igaming in Pennsylvania since its regulated launch in 2019 hints at the possibility of surpassing the $2 billion milestone in 2024 if the current trends persist.

A Sports Betting Spectacle

In the world of sports betting, Pennsylvania also achieved remarkable heights in 2023. Revenue soared to an all-time high of $458.6 million, surpassing the previous record set in 2022 by a substantial 14.3%. With the legal sports wagering market launching in 2018, player spending on sports betting, also known as handle, reached a monumental $7.68 billion, signifying a 6.0% increase over the previous record of $7.25 billion reported in 2022.

Leaders in the Sports Betting Arena

Valley Forge Casino Resort and FanDuel emerged as the undeniable leaders in this lucrative market, raking in $233.6 million in revenue. Hollywood Casino at the Meadows and DraftKings secured the second position with $121.1 million, followed by Hollywood Casino Morgantown and BetMGM with $21.0 million.

A Glance at Other Revenues

While some sectors experienced growth, others faced challenges. VLT revenue reported a 2.0% drop, settling at $41.2 million in 2023. Fantasy sports contest revenue also declined by 10.0%, reaching $20.1 million.

Setting Monthly Records

Pennsylvania’s gambling revenue not only shattered annual records but also reached unprecedented monthly heights. Total market revenue in December 2023 surged to $534.2 million, surpassing the previous record set in March 2023 by $18.9 million. This impressive figure marked a 12.5% increase compared to December 2022 and an astonishing 20.1% surge from November 2023.

Diverse Revenue Streams: A Closer Look

Taking a closer look at the breakdown, retail slots claimed the lion’s share of revenue, generating $207.8 million, a 4.9% increase over 2022. Land-based table games revenue also saw a slight uptick, rising by 1.6% to $82.9 million.

Igaming Continues to Thrive

Igaming revenue recorded an astounding 22.7% year-on-year increase, totaling $165.1 million. This figure encompassed $116.9 million from online slots revenue, $45.8 million from table games, and $2.4 million from poker. Hollywood Casino at Penn National led the pack in this category, amassing $61.0 million in igaming revenue, followed by Valley Forge Casino Resort with $41.3 million and Rivers Casino Philadelphia with $31.3 million.

Sports Betting: A Winning Streak

In the realm of sports betting, revenue witnessed a substantial 32.7% surge to $72.5 million, with $67.2 million attributed to online and $5.3 million to retail. Handle also exhibited a robust increase of 22.6% to reach $925.6 million. Valley Forge Casino Resort and FanDuel retained their supremacy with revenue of $39.2 million, followed by Hollywood Casino at the Meadows and DraftKings with $19.2 million, and Hollywood Casino Morgantown and BetMGM on $3.7 million.

Mixed Results in Other Sectors

While VLT revenue saw a modest 3.1% increase to $3.4 million, fantasy sports revenue faced an 11.3% decline, settling at $2.5 million. The Pennsylvania gambling landscape continues to evolve, presenting a dynamic mix of successes and challenges in various segments.