Pennsylvania gambling revenue up in January

Pennsylvania Gambling Revenue Sees Year-on-Year Growth Despite Sports Betting Decline

In January, Pennsylvania’s gambling sector reported a remarkable year-on-year revenue increase of 10.9%, totaling $529.1 million (£417.8 million/€504.7 million). This announcement, made by the Pennsylvania Gaming Control Board on February 20, 2024, highlights a substantial rise from January 2024’s $477.2 million. However, it also indicates a slight 0.8% decrease from the previous month’s revenue of $533.1 million in December.

Online Gambling: The Pinnacle of Pennsylvania’s Gaming Landscape

Online gambling in Pennsylvania showcased significant growth, with revenue surging by 40.5% year-on-year to $210.2 million. Nonetheless, this figure falls short of the December 2023 record of $223.6 million.

Within the online gambling segment, online slots dominated revenue generation, contributing $158.6 million—a remarkable 44.2% increase compared to the previous year. Meanwhile, internet table games also experienced a healthy growth of 32.7%, generating $48.9 million. In contrast, online poker revenue saw a slight decline of 2.3%, amounting to $2.6 million.

Consumer engagement remained high, as players wagered approximately $4.23 billion on online slots and another $2.92 billion on table games during January. Specific figures for online poker are currently not disclosed.

Hollywood Casino at Penn National continued to lead the iGaming market, achieving a revenue of $79.7 million, reflecting an impressive 57.9% increase from the previous year. Valley Forge Casino ranked second with $57.6 million, a rise of 38.5%, while Rivers Casino Philadelphia secured third place with $35.4 million, showcasing a 19.8% uplift.

A Decline in Sports Betting Revenue

Conversely, the sports betting sector in Pennsylvania experienced a consecutive month of revenue decline with figures reaching $51.5 million—down 26.4% year-on-year. This downturn aligns with a broader national trend, as several states reported similar declines attributed to customer-friendly outcomes in various sporting events.

Online sports betting led the charge with revenue of $49.2 million, while retail sportsbooks contributed $2.3 million to the total. The total handle for January was approximately $873.1 million, representing a 1.8% year-on-year increase. This figure includes $830.4 million in online wagers and $42.8 million from retail operations.

State-Wide Hold: 5.90%

The state-wide hold for all operators in Pennsylvania stood at 5.90%. Leading the segment, FanDuel, in partnership with Valley Forge Casino Resort, reported taxable revenue of $28.8 million from a handle of $342.3 million, culminating in an 8.41% hold.

DraftKings, alongside Hollywood Casino at the Meadows, followed closely in second place, reporting $15.0 million from a $221.0 million handle and a hold of 6.79%. Meanwhile, BetMGM, in collaboration with Hollywood Casino Morgantown, improved its standings to third place, generating $3.4 million from a handle of $68.7 million, marked by a hold of 4.95%.

Other notable operators included Parx Casino and Kambi, which posted $1.1 million in revenue from an $18.7 million handle for a 5.88% hold, while ESPN Bet, in partnership with Hollywood Casino York, experienced a $1.8 million loss after ranking third in December.

Land-Based Gambling Growth in Pennsylvania

On the land-based front, all major gambling sectors in Pennsylvania reported positive growth for January. Slot machine revenue increased by 4.6% to $187.8 million, while table games revenue experienced a 1.5% rise, totaling $73.7 million. Additionally, revenue from video gaming terminals climbed by 4.5% to $3.2 million.

Fantasy sports revenue also saw an impressive boost, increasing by 8.9% year-on-year to reach $2.7 million.

In terms of taxation, January’s total amount reached an impressive $221.6 million. This sum included $93.9 million from iGaming, $51.5 million from sports betting, $94.8 million from land-based slots, and $12.3 million from table games, with the remaining taxes attributed to video gaming terminals and fantasy sports.