Online gambling, or interactive gambling as it is also known, has been legal in Pennsylvania since late 2017 when then-Governor Tom Wolf signed Bill HB 271 into law. This bulky 470-page piece of legislation propelled the local gambling industry to new heights as it authorized online casino gaming, sports wagering, poker, and daily fantasy sports. Thanks to it, the Keystone State is now second only to Nevada in terms of earnings from casino gambling.
Gross gaming revenue (GGR) from interactive casino gambling reached $1.53 billion for the fiscal 2022/2023, eclipsing the previous high of $1.23 billion by 24.4%. A sizeable portion of these earnings came from online slot games, which appear to enjoy an increasing popularity among gamblers from the state.
The following report gives you an in-depth look at Pennsylvania’s interactive casino industry and provides comprehensive information about overall iGaming revenue and the profits generated from different casino games. Also included are detailed statistics on the financial performance of the operators that currently hold iGaming licenses from the Pennsylvania Gaming Control Board.
- Pennsylvania is home to 11 licensed iGaming companies that presently operate 21 online casinos.
- In 2021/2022, Pennsylvania surpassed all states bar Nevada with $5.34 billion in gross casino gaming revenue, up 10.6% from the previous year.
- Online casino gambling accounted for $1.23 billion of the revenue Pennsylvania’s commercial casinos generated in 2021/2022.
- Online casinos in the Keystone State reported record gross gaming revenue of $1.53 billion for the year ending in June 2023.
- Online slots are the highest-grossing games in Pennsylvania with $1.07 billion in revenue for 2022/2023.
- Gamblers in the Keystone State wagered a combined $30.82 billion on interactive slots and won $29.40 billion during the financial 2022/2023.
- Interactive table games brought in gross revenue of $428.51 million during the twelve-month period that ended in June 2023.
- Online poker is the poorest performer as it generated only $31.91 million in rake and tournament fees for the period between June 30th, 2022 and July 1st, 2023.
- Pennsylvania collected $364.6 million in tax money from slots, $59.9 million from interactive table games, and $4.32 million from online poker.
- Penn National was the most profitable iGaming operator for the financial 2022/2023, with gross revenue of $440.54 million from interactive slots, $203.6 million from online table games, and $4.05 million from online poker.
Combined iGaming Revenue in Pennsylvania for 2022/2023
Pennsylvania’s iGaming industry has been demonstrating consistent growth ever since the first online casinos launched in the Keystone State in 2019. Licensees of the Pennsylvania Gaming Control Board have so far reported a combined total of $3.90 billion in GGR over the last four financial years.
The twelve-month period between July 1st, 2020 and July 1st, 2021 recorded the strongest growth as revenue jumped by a whopping 272.5% year-on-year, increasing from $240.89 million to $897.22 million. Revenue continued to climb in the following years, growing by $335.09 million for a 37.3% increase in 2021/2022 and by $300.45 million for a 24.4% increase in 2022/2023.
| Combined Gross Revenue from iGaming in Pennsylvania | |
|---|---|
| FY 2019/2020 | $240,894,851.00 |
| FY 2020/2021 | $897,216,021 (up 272.5% YoY) |
| FY 2021/2022 | $1,232,309,138 (up 37.3% YoY) |
| FY 2022/2023 | $1,532,761,065 (up 24.4% YoY) |
| Total Gross Revenue | $3,903,181,075.00 |
Source: Pennsylvania Gaming Control Board
Revenue from Online Slots in Pennsylvania
Interactive slots account for the largest portion of the revenue generated by licensed online casinos in the Keystone State. Official data released by the Pennsylvania Gaming Control Board indicates this form of gambling enjoys the highest popularity among local players. Online slots have brought in approximately $2.68 billion in combined revenue during the last four years.
The amount corresponds to approximately 68.6% of the total gross revenue from the online casino segment. Licensed operators’ earnings from interactive slots have risen by a whopping 598% since online casinos first launched in 2019.
The biggest increase occurred between June 30th, 2020 and July 1st, 2021 when revenue from slots climbed by $449.7 million, representing a growth of around 293% from the previous year. The twelve months ending in June 2023 marked the first full financial year when revenue passed the one-billion mark as casinos reported $1.07 billion in slot earnings.
| Combined Revenue from Interactive Slots in Pennsylvania | |
|---|---|
| FY 2019/2020 | $153,639,304 |
| FY 2020/2021 | $603,338,626 (up 292.7% YoY) |
| FY 2021/2022 | $847,462,388 (up 40.5% YoY) |
| FY 2022/2023 | $1,072,334,661 (up 26.5% YoY) |
| Total Revenue | $2,676,774,979 |
Source: Pennsylvania Gaming Control Board
Gross Revenue from Online Table Games in Pennsylvania
Table games are the second highest-performing type of online gambling activity in Pennsylvania revenue-wise. The combined revenue from interactive tables from the last four years amounts to $1.10 billion. The biggest increase took place during the financial year ending on June 30th, 2021, when local casinos saw a 320.4% growth with $263.18 million in revenue. Earnings from interactive tables peaked in the year ending in July 2023 when licensed operators reported $428.51 million in profits.
| Combined Revenue from Interactive Table Games in Pennsylvania | |
|---|---|
| FY 2019/2020 | $62,605,637 |
| FY 2020/2021 | $263,183,498 (up 320.4% YoY) |
| FY 2021/2022 | $349,622,080 (up 32.8% YoY) |
| FY 2022/2023 | $428,513,296 (up (22.6% YoY) |
| Total Revenue | $1,103,924,511 |
Source: Pennsylvania Gaming Control Board
Gross Revenue from Online Poker in Pennsylvania
Non-banking tables lag behind where profitability is concerned. For clarification, this category includes games like poker where players compete against each other rather than against the house. To generate revenue and offset the expenses associated with hosting such games, casinos collect rake or charge tournament entry fees.
Combined revenues from online poker are quite underwhelming as licensees reported a paltry $122.48 million in profits for the last four fiscal years. Online poker posted its highest earnings to date in the fiscal 2021/2022 when it generated $35.22 million, a 14.8% improvement from the previous year. The sector lost momentum from July 1st, 2022 through June 30th, 2023 and reported only $31.91 million in revenue, representing a 9.4% decline year-on-year.
| Combined Revenue from Online Poker in Pennsylvania | |
|---|---|
| FY 2019/2020 | $24,649,910 |
| FY 2020/2021 | $30,693,897 (up 24.5% YoY) |
| FY 2021/2022 | $35,224,670 (up 14.8% YoY) |
| FY 2022/2023 | $31,913,108 (down 9.4% YoY) |
| Total Revenue | $122,481,585 |
Source: Pennsylvania Gaming Control Board
Monthly Breakdown of Pennsylvania’s Interactive Slot Revenue in FY 2022/2023
The rates of online slot play remained solid across licensed interactive casinos during the fiscal 2022/2023, with operators reporting a combined gross revenue of $1.07 billion for a 26.5% year-on-year growth. By means of comparison, slot revenue failed to reach the one-billion mark one year earlier when casinos collected only $847.5 million.
May of this year was the most profitable month to date as slot revenue amounted to a record $100.6 million as opposed to $78.21 million for the same month in 2021/2022. July 2022 was the slowest month since Pennsylvanian gamblers spent only $71.91 million on interactive slots, which is 28.6% less than the results from May 2023.
Source: Pennsylvania Gaming Control Board
In turn, slot players throughout the state pocketed the impressive $29.4 billion (up 28.1%) in cumulative winnings this year, having wagered a combined $30.82 billion, a 28.2% increase from the previous fiscal year. Slot handle was consistent throughout 2022/2023 and surpassed the two-billion mark each month. March 2023 saw the most action as residents of the state wagered a whopping $3.02 billion on slot games (up 31.9% YoY), with online casinos returning $2.88 billion in the form of winnings (up 31.8%).
Source: Pennsylvania Gaming Control Board
Monthly Breakdown of Revenue from Interactive Table Games in FY 2022/2023
Online table games are considerably less popular among players from the Keystone State as revenue from this segment amounted to approximately $428.51 million for the period ending on June 30th, 2023. Nonetheless, there is a significant improvement compared to the previous fiscal year when licensees of the Pennsylvania Gaming Control Board collected $78.9 million less in revenue from this segment.
Similarly to online slots, interactive table games posted their most impressive figures for the last fiscal year in the month of March when operators bagged $40.47 million in profits. To put this into context, this figure corresponds to a growth of 13.4% compared to the same month one year earlier. July 2022 was the weakest month in terms of table games revenue during this fiscal period. Profits during this month rose by 4.5% only, jumping from $22.86 million to $23.9 million year-on-year.
Source: Pennsylvania Gaming Control Board
Where handle from online table games is concerned, residents of the Keystone State placed $26.61 billion in bets for the entire fiscal 2022/2023. The segment posted a 19.1% growth compared to the previous twelve-month period when licensed iGaming operators collected around $4.27 billion less in wagers on table games like baccarat, roulette, and blackjack. January 2023 was the month that attracted the most action at banking tables, with Pennsylvanian players wagering $2.59 billion in total, resulting in an increase of $543.8 million from the same month one year earlier.
Source: Pennsylvania Gaming Control Board
Monthly Breakdown of Revenue from Online Poker in FY 2022/2023
Official figures from the Pennsylvania Gaming Control Board reveal that peer-to-peer poker is the least profitable segment of the state’s young iGaming industry. Licensees of the gambling watchdog earned an unimpressive $31.91 million in revenue from tourney entry fees and rake. Comparing this to the results from the previous year, we see this figure reflects a 9.4% decline in revenue, which makes non-banking poker the only segment to suffer a dip year-on-year.
When it comes to monthly results, decreases were observed during all months except July when revenue rose by 6.5% YoY from $2.6 million to $2.77 million. The new calendar year started out strong for the segment as January was the month with the highest revenue from rake and tournament fees, which generated around $2.9 million, representing a decrease of 14.5% from the same month a year earlier.
Source: Pennsylvania Gaming Control Board
How Much Tax Money Does Pennsylvania Collect from iGaming?
Pennsylvania imposes some of the steepest tax rates in the entire country. The state collects 34% of the gross gaming revenue from slots, whereas earnings from interactive table games and non-banking poker are subject to 14% state taxes. The table below provides a detailed look at the tax revenue the Keystone State has collected in the years following the legalization of online gaming.
| State Tax Revenue from Online Gaming in Pennsylvania | ||||
|---|---|---|---|---|
| Reporting Period | Total State Tax | Online Slots | Online Table Games | Online Poker |
| FY 2019/2020 | $64,435,189.00 | $52,237,363.00 | $8,764,789.00 | $3,433,037.00 |
| FY 2020/2021 | $246,184,723.00 | $205,135,133.00 | $36,845,690.00 | $4,203,900.00 |
| FY 2021/2022 | $341,748,623.00 | $288,137,212.00 | $48,947,091.00 | $4,664,320.00 |
| FY 2022/2023 | $428,900,699.00 | $364,593,785.00 | $59,991,861.00 | $4,315,053.00 |
- Overall state tax revenue from online casino gaming in Pennsylvania has been consistently rising over the past four years, jumping by 565.6% from $64.44 million in 2019/2020 to $428.9 million in 2022/2023.
- Interactive slots are the primary source of tax revenue in the Keystone State, accounting for around 85% of all funds the local government collected from iGaming in 2022/2023. State taxes from the slot segment have risen by 598% over the last four reporting periods.
- Interactive table games are the second largest source of tax revenue from iGaming, representing roughly 14% of all tax money the state government collected from licensed online casinos for the fiscal 2022/2023. State taxes from online table games have soared by 584% in the last four years.
- Peer-to-peer online poker is the least profitable segment from the government’s perspective since it has added a combined $16.62 million to the state coffers between 2019/2020 and 2022/2023. State taxes from non-banking poker are on the decline, which makes sense, considering rake and tournament fee revenue has also dropped in the past few years. The Pennsylvanian government pocketed $349,267 less from poker in 2022/2023 compared to the previous fiscal year.
The effective tax rates on online poker and table games in Pennsylvania are set at a combined 16%, out of which 14% go toward the state government’s coffers, and the remaining 2% is allocated to local share assessment. Interactive slots are subject to higher combined tax rates of 54%, which we attribute to their higher house edges and more addictive nature.
Out of these 54%, the government pockets 34% in the form of state taxes, 13% goes toward various county grants, and the remaining 7% is intended for local share assessment. Funds intended for local share assessment are typically apportioned to local governments and are used for various educational and economic development projects.
| Breakdown of Local Share Assessment and County Grants Taxes | |||
|---|---|---|---|
| Reporting Period | Online Slots County Grants and Local Share Assessment Taxes | Online Table Games Local Share Assessment Taxes | Online Poker Local Share Assessment Taxes |
| FY 2019/2020 | $19,973,110 for County Grants $11,050,009 for Local Share Assessment | $1,252,113 | $490,434 |
| FY 2020/2021 | $74,557,966 for County Grants $46,109,759 for Local Share Assessment | $5,263,670 | $600,557 |
| FY 2021/2022 | $110,170,110 for County Grants $59,322,367 for Local Share Assessment | $6,992,442 | $666,331 |
| FY 2022/2023 | $139,403,506 for County Grants $75,063,426 for Local Share Assessment | $8,570,266 | $616,436 |
Source: Pennsylvania Gaming Control Board
Pennsylvania Started the Fiscal 2023/2024 Off Strong
Pennsylvania’s iGaming sector shows no signs of slowing down in the new fiscal year 2023/2024 that commenced on July 1st. Licensed operators netted $277.84 million in combined revenue for July and August, a figure that represents a 35% increase compared to the same months a year earlier.
As per usual, the revenue from interactive slots comprises the bulk of the total and grew by 35.6% from $147.63 million in 2022 to $200.12 million in 2023.
Online table games like blackjack and roulette were the second-biggest grossers in the first two months of the new fiscal year. Earnings from these house-banked games jumped by 38% year-over-year, from $52.62 million to $72.63 million.
Peer-to-peer poker continues to underperform judging by the latest figures posted by the Pennsylvania Gaming Control Board. Online poker players collectively paid $5.08 million in tournament entry fees and rake, which is $424,500 (down 7.7%) less than the profits posted for the two summer months a year earlier.
Source: Pennsylvania Gaming Control Board
Penn National bagged the largest portion of the two-month total with $114.72 million in revenue. Valley Forge placed second with $61.63 million, followed by Rivers Philadelphia ($54.92 million), Caesars Interactive ($11.84 million), and Parx Casino ($9.8 million).
Pennsylvania’s iGaming Operators Ranked by Revenue in FY 2022/2023
During the fiscal year that ended on June 30th, 2023, Pennsylvania had as many as 11 iGaming operators that collectively managed 20 licensed online casino sites. Golden Nugget commenced operations in the Keystone State in August 2023, bringing the total number of licensed iGaming sites to 21 at the time of publication.
This latest addition to Pennsylvania’s rapidly expanding regulated iGaming market is not included below since it launched shortly after the new fiscal year started. The newcomer seems to face bright prospects judging by its fiscal results for August 2023 when Golden Nugget reported $0.54 million in monthly revenue and accepted $23.1 million in wagers on its interactive tables.
As for the fiscal year 2022/2023, Hollywood Casino at the Penn National Race Course left competing operators in the dust with an annual gross gaming revenue of $648.19 million. The figure represents a rise of 34.7% in overall earnings from the previous year, when the racetrack and its associated casino collected $481.4 million in revenue. Slots accounted for the bulk of the profits ($440.5 million) followed by online table games ($203.6 million) and poker ($4.05 million).
Rivers Philadelphia, Valley Forge, Mount Airy, and Parx Casino all made the cut in the top five of Pennsylvania’s highest-grossing online gaming operators. All top performers except for Mount Airy reported increases in earnings from the previous fiscal period, with Valley Forge Casino posting the biggest growth (39.5%) year-over-year. Mount Airy was the only operator in the top 5 to witness a decline, with revenues dropping by 7.7% from $61.36 million to $56.66 million for the year ended on June 30th, 2023.
Presque Isle Downs Casino placed tenth with a paltry $2.43 million in earnings for the last full fiscal year. It seems like the operator was dealt a losing hand in the twelve-month period ending on June 30th, 2023 as it suffered a dramatic downturn where profits are concerned. Revenue plummeted by a whopping 80% year-on-year, with the company earning $10.14 million less than it did in FY 2021/2022.
We attribute this enormous decline to the fact its online casino segment has generated no revenue whatsoever since March 2023. It appears the Presque Isle has dropped out of the iGaming race in the Keystone State as it is not included in the Gaming Control Board’s monthly reports for the new fiscal year.
Bally’s is a newcomer on the Pennsylvanian online gaming market, having commenced operations in June 2023, which is the last month of the industry’s fiscal year. Despite this, the company is showing great financial results thus far, boasting a gross revenue of around $449.5 million for this month alone.
Bally’s continues its upward trajectory in the fiscal 2023/2024 and recorded approximately $3.6 million in combined gross revenue from iGaming for July and August 2023. To draw a comparison, this is $1.17 million more than what Presque Isle Downs generated during its nine months of operation in the year ended June 2023.
Source: Pennsylvania Gaming Control Board
- Brands in Pennsylvania: Hollywood Casino, DraftKings, Barstool, PointsBet, BetMGM
- Total iGaming Revenue: $648,190,647 (up 34.7% from $481.36 million in FY 2021/2022)
- Online Slot Revenue: $440,544,658 (up 39.8% YoY)
- Online Table Game Revenue: $203,595,493 (up 24.9% YoY)
- Online Poker Revenue: $4,050,496 (up 23.1% YoY)
- State Tax Contribution: $178,817,526
- Brands in Pennsylvania: Borgata, BetRivers, PlaySugarHouse
- Total iGaming Revenue: $330,867,135 (up 3.5% from $319.67 million in FY 2021/2022)
- Online Slot Revenue: $285,254,001 (up 3.9% YoY)
- Online Table Game Revenue: $44,317,118 (up 0.7% YoY)
- Online Poker Revenue: $1,296,016 (up 29.9% YoY)
- State Tax Contribution: $103,358,827
- Brands in Pennsylvania: Stardust, FanDuel
- Total iGaming Revenue: $309,306,462 (up 39.5% from $221.79 million in FY 2021/2022)
- Online Slot Revenue: $176,020,653 (up 46.7% YoY)
- Online Table Game Revenue: $133,285,809 (up 30.9% YoY)
- Online Poker Revenue: Does not operate online poker
- State Tax Contribution: $78,507,035
- Brands in Pennsylvania: PokerStars
- Total iGaming Revenue: $56,655,667 (down 7.7% from $61.36 million in FY 2021/2022)
- Online Slot Revenue: $24,590,382 (down 0.3% YoY)
- Online Table Game Revenue: $12,475,980 (down 13% YoY)
- Online Poker Revenue: $19,589,305 (down 13% YoY)
- State Tax Contribution: $12,804,915
- Brands in Pennsylvania: betParx
- Total iGaming Revenue: $55,460,090 (up 38% from $40.2 million in FY 2021/2022)
- Online Slot Revenue: $45,533,946 (up 35.8% YoY)
- Online Table Game Revenue: $9,926,144 (up 48.9% YoY)
- Online Poker Revenue: Does not operate poker
- State Tax Contribution: $16,871,202
- Brands in Pennsylvania: Caesars Palace Online, WSOP
- Total iGaming Revenue: $50,092,695 (up 62.1% from $30.9 million in FY 2021/2022)
- Online Slot Revenue: $31,920,792 (up 82.4% YoY)
- Online Table Game Revenue: $11,194,613 (up 121.8% YoY)
- Online Poker Revenue: $6,977,290 (down 16.4% YoY)
- State Tax Contribution: $13,340,776
- Brands in Pennsylvania: Betway, PlayLive!
- Total iGaming Revenue: $35,927,503 (up 38.9% from $25.86 million in FY 2021/2022)
- Online Slot Revenue: $30,760,921 (up 38.9% YoY)
- Online Table Game Revenue: $5,166,582 (up 6.7% YoY)
- Online Poker Revenue: Does not operate online poker
- State Tax Contribution: $11,182,035
- Brands in Pennsylvania: Unibet
- Total iGaming Revenue: $22,916,231 (down 4.7% from $24.04 million in FY 2021/2022)
- Online Slot Revenue: $17,829,660 (down 7.4% YoY)
- Online Table Game Revenue: $5,086,571 (up 6% YoY)
- Online Poker Revenue: Does not operate online poker
- Tax Revenue: $6,774,204
- Brands in Pennsylvania: WindCreek
- Total iGaming Revenue: $20,463,527 (up 40.5% from $14.57 million in FY 2021/2022)
- Online Slot Revenue: $17,598,367 (up 36.7% YoY)
- Online Table Game Revenue: $2,865,160 (up 69.6% YoY)
- Online Poker Revenue: Does not operate online poker
- State Tax Contribution: $6,384,567
- Brands in Pennsylvania: TwinSpires
- Total iGaming Revenue: $2,431,559 (down 80.1% from $12.57 million in 2021/2022)
- Online Slot Revenue: $1,914,448 (down 78.8% YoY from $9.04 million)
- Online Table Game Revenue: $517,111 (down 85.3% YoY from $3.53 million)
- Online Poker Revenue: Does not operate online poker
- State Tax Contribution: $723,307
- Brands in Pennsylvania: Bally Casino
- Total iGaming Revenue: $449,549
- Online Slot Revenue: $366,834
- Online Table Game Revenue: $82,715
- Online Poker Revenue: Does not operate online poker
- State Tax Contribution: $136,304
How iGaming Revenue Measures Against Other Industry Segments
Pennsylvania’s gambling industry experienced an all-time high during the last full financial year, when overall revenues escalated to a record $5.51 billion, beating the results from 2021/2022 by approximately 10%. Earnings from other segments reached a combined $3.98 billion, accounting for roughly 72.2% of the total profits licensed operators reaped.
The bulk of this revenue came from the commercial casino sector as slot machines, house-banked and non-banking tables brought in $3.42 billion in 2022/2023, followed by sports wagering ($491.96 million), video lottery terminals ($42.11 million), and fantasy sports ($20.67 million).
The rise in overall revenue for the retail sector was almost non-existent from the previous year, as slot machines saw a nominal increase, while table games underperformed dramatically. Gaming tables and fantasy contests were the only segments to suffer decreases in revenue from the previous year.
- Number of Slot Machines: 25,348 (down 1.8% from FY 2021/2022)
- Slot Machine Handle: $31,73 billion (up 2.3% YoY)
- Slot Machine Payouts: $28.65 billion (up 2.4% YoY)
The revenue from slot machines across commercial casinos in Pennsylvania reached a healthy $2.45 billion in the fiscal 2022/2023, eclipsing the previous year’s results of $2.41 billion by 1.7%. Parx Casino grossed the highest amount out of the 17 landbased casino facilities, with $389.94 million in slot machine revenue. The last twelve-month results represent the second-best annual total in the local industry’s entire history.
Better results were reported only in the fiscal 2011/2012 when slot machines brought in a combined $2.48 billion in profits. By comparison, interactive slots generated $1.38 billion less revenue during the year that ended on June 30th, 2023 compared to their retail counterparts.
| Gross Revenue from Slot Machines in Commercial Casinos in Pennsylvania | |
|---|---|
| FY 2019/2020 | $1,697,955,472.00 |
| FY 2020/2021 | $1,887,573,437 (up 11.2% YoY) |
| FY 2021/2022 | $2,410,313,211 (up 27.7% YoY) |
| FY 2022/2023 | $2,452,239,439 (up 1.7% YoY) |
Source: Pennsylvania Gaming Control Board
- Total number of gaming tables: 1,419 in FY 2022/2023
- Revenue from House-Banked Tables: $884.53 million (down 5.2% from FY 2021/2022)
- Revenue from Non-Banking Tables: $49.16 million (up 6.9% from FY 2021/2022)
Gaming tables were the second highest-grossing segment of the retail sector in 2022/2023, bringing in a combined $974.02 million in earnings for a 4.3% decrease compared to the previous financial year. Banking tables were the primary source of revenue for the segment with $884.53 million, whereas non-banking poker games, hybrid tables, and fully automated electronic tables generated profits of $49.16 million, $33.54 million, and $6.79 million, respectively.
When drawing a parallel with the online sector, we see interactive table games yielded $545.5 million less revenue in 2022/2023 compared to their brick-and-mortar counterparts. Despite the stark contrast, things are looking quite healthy for the interactive tables segment in Pennsylvania as it has been experiencing consistent growth over the last four years.
| Gross Revenue from Table Games in Commercial Casinos | |
|---|---|
| FY 2019/2020 | $644,543,736.00 |
| FY 2020/2021 | $721,763,471 (up 12% YoY) |
| FY 2021/2022 | $1,015,735,661 (up 40.7% YoY) |
| FY 2022/2023 | $974,018,112 (down 4.3% YoY) |
Source: Pennsylvania Gaming Control Board
- Total Amount Wagered: $484.69 million (up 1.3% from FY 2021.2022)
- Total Payouts: $442.57 million (up 1.3% YoY)
The expansion bill that passed in 2017 allowed gambling outside designated commercial casinos, for example, at airports and truck stops. Slot machines operated in such venues are generally referred to as “video gaming terminals (VGTs)”, with each authorized truck stop being able to operate no more than five such machines.
At the close of the last full fiscal year, Pennsylvania had 67 facilities authorized to operate such terminals. Gaming revenue from these facilities climbed 1.3% year-on-year, jumping from $41.58 million in 2021/2022 to $42.11 million in 2022/2023. The facilities paid $17.69 million in state taxes on top of $4.21 million in contributions toward various local projects across Pennsylvania. These results cannot hold a candle to the figures posted for online and landbased slots, both of which passed the one-billion mark.
| Revenue from Video Gaming Terminals in Pennsylvania | |
|---|---|
| FY 2019/2020 | $6,798,122.00 |
| FY 2020/2021 | $31,334,744 (up 360.9% YoY) |
| FY 2021/2022 | $41,584,157 (up 32.7% YoY) |
| FY 2022/2023 | $42,114,592 (up 1.3% YoY) |
Source: Pennsylvania Gaming Control Board
- Sports Betting Handle: $7.22 billion (up 1.9% from FY 2021/2022)
- Retail Betting Handle: $519.5 million (down 2.4% YoY)
- Online Betting Handle: $6.70 billion (up 2.3% YoY)
Pennsylvania became the fourth state to introduce legal wagering on sporting events in late 2017, following in the footsteps of Nevada, Delaware, and New Jersey. The local sports betting industry has grown by leaps and bounds since then, witnessing a rise of 332.6% over the last four years. The fiscal 2022/2023 saw the highest results recorded to date as the gross taxable revenue from the segment grew by 55.8% to reach $491.96 million.
Similarly to the casino gambling segment, remote sports betting accounted for the bulk of the profits. The 19 licensed sports wagering operations in the state collected 89.5% of their overall revenue from the online segment, which earned them a combined $440.47 million in 2022/2023.
By comparison, retail locations reported $51.49 million in annual profits for the year ended on June 30th, 2023. As impressive as this growth is, online sports betting is yet to catch up with iGaming which produced $1.04 billion more in revenue during the latest full reporting period.
| Sports Betting Gross Taxable Revenue in Pennsylvania | |
|---|---|
| FY 2019/2020 | $113,724,759.00 |
| FY 2020/2021 | $308,849,184 (up 171.5% YoY) |
| FY 2021/2022 | $315,716,247 (up 2.2% YoY) |
| FY 2022/2023 | $491,960,612 (up 55.8% YoY) |
Source: Pennsylvania Gaming Control Board
The commonwealth state currently has 14 operators authorized to conduct fantasy sports contests, including popular brands like DraftKings, FanDuel, and Yahoo Fantasy Sports. Players based in Pennsylvania cumulatively paid $197.21 million in entry fees in the fiscal 2022/2023, representing a 23.8% decline from the previous year. As expected, this hurt the operators’ revenue which slid down for a third consecutive year.
Fantasy sports contests yielded approximately $20.67 million in adjusted revenue during the fiscal 2022/2023. This 24.3% decrease is in sharp contrast with the profits of $27.31 million during the previous year, marking the most precipitous decline the segment has suffered to date.
This steep fall was mirrored at a licensee level since almost all authorized operators reported decreases. FanDuel had it worst as its adjusted revenue from fantasy contests plummeted by 45.3%, from $11.56 million in 2021/2022 to $6.32 million in 2022/2023. Only online poker can compete with these underwhelming annual figures, but it still outperformed fantasy sports with $11.24 million more in revenue.
| Fantasy Sports Betting Revenue in Pennsylvania | |
|---|---|
| FY 2019/2020 | $20,868,176.00 |
| FY 2020/2021 | $28,186,529 (up 35.1% YoY) |
| FY 2021/2022 | $27,308,976 (down 3.1% YoY) |
| FY 2022/2023 | $20,668,195 (down 24.3% YoY) |
Source: Pennsylvania Gaming Control Board
Pennsylvania’s iGaming Revenue Compared to Other Top-Performing States
Pennsylvania’s online gaming industry is still young but this has not prevented the Keystone State from consistently ranking among the top 5 states in terms of interactive gambling revenue. At the time of publication, Pennsylvania is one of six states with legal online casinos, alongside Michigan, New Jersey, Connecticut, Delaware, and West Virginia. Rhode Island will join them in March 2024 when online casino games will officially become available to residents of the Ocean State.
Nevada has legal online poker and online sports betting but lacks regulated remote casinos for the time being, which is why we have not included it in our ranking. All six states with legal online casinos witnessed increases in iGaming revenue last year, with Pennsylvania ranking third with $1.23 billion.
Sources: New Jersey Division of Gaming Enforcement, Michigan Gaming Control Board, Pennsylvania Gaming Control Board, Connecticut Department of Consumer Protection, West Virginia Lottery Commission, Delaware Lottery
The Keystone State came right behind Michigan with $1.58 billion and New Jersey with $1.66 billion. Delaware was the lowest revenue earner in the Big Six as it generated a paltry $13.6 million from online casinos. Here are the full details on how Pennsylvania’s five contenders did revenue-wise in 2022.
- Legalized iGaming In: February 2013 via HB A2578
- Number of Licensed iGaming Sites: 33
- Notable iGaming Providers: WynnBet, Betfair, Golden Nugget, SugarHouse, bet365, Unibet
- iGaming Revenue for 2022: $1.66 billion (a 21.6% increase from 2021)
- Total Gaming Revenue for 2022: $5.21 billion (a 10% increase from 2021)
New Jersey is a pioneer in the field of online casino gambling having passed legislation to legalize it in 2013. The local gambling industry saw its second-highest revenue record in 2022 when profits increased by 10% from the previous year, reaching an impressive $5.21 billion.
The iGaming sector reaped a solid double-digit revenue uptick last year as profits jumped to $1.66 billion, a 21.6% increase from 2021. The Garden State continues to post solid figures this year as it netted $1.24 billion in earnings during the first eight months of 2023. This makes for a 14.6% growth from the same period in 2022 when iGaming revenue stood at $1.08 billion.
- Legalized iGaming In: December 2019 via HB 4311
- Number of Licensed Online Casinos: 15
- Notable iGaming Providers: BetRivers, BetMGM, PointsBet, FanDuel, DraftKings
- iGaming Revenue for 2022: $1.58 billion (a 42.1% increase from 2021)
- Total Gaming Revenue for 2022: $3.26 billion (a 20.7% increase from 2021)
Michigan is among the top performers in the United States where revenue from online gambling is concerned. The local iGaming industry reported earning $1.58 billion in gross profits last year, outpacing revenue by over 42% compared to 2021. The Mitten is rapidly emerging as one of the biggest regulated iGaming markets in the country as it generated revenue of $1.24 billion during the first eight months of 2023 alone.
- Legalized iGaming In: May 2021 via HB 6451
- Number of Licensed Online Casinos: 2
- Notable iGaming Providers: Mohegan Sun, DraftKings
- iGaming Revenue for 2022: $280.7 million (a 489.7% increase from the previous year)
- Total iGaming and Sports Betting Revenue for 2022: $416.2 million (a 430% increase from 2021)
Connecticut passed legislation to legalize online gaming and sports wagering in 2021 and currently has two online casinos operated by the Mashantucket Pequot and the Mohegan tribal nations. The young age of the local industry, combined with the limited number of legal options, is a prerequisite for the underwhelming performance of the Nutmeg State.
Revenue saw a dramatic uptick of over 489% but still failed to pass the half-billion mark in 2022 when iGaming operators netted $280.7 million in profits. The country’s third smallest state is set to improve on these results as local tribal operators already collected $200.97 million in gross iGaming revenue in the first eight months of 2023.
- Legalized iGaming In: March 2019 via HB 2934
- Number of Licensed Online Casinos: 8
- Notable iGaming Providers: BetMGM, FanDuel, DraftKings, Golden Nugget, Caesars, Bet Rivers
- iGaming Revenue for 2022: $112.6 million (an 84.9% increase from the previous year)
- Total Gaming Revenue for 2022: $756.3 million (a 13.2% increase from 2021)
West Virginia has been operating commercial casino gaming for almost thirty years but interactive gambling is still relatively young in the Mountain State. Online casinos became legal in 2019 and have been consistently driving the growth of the local market ever since. Last year, West Virginia’s gambling industry recorded its highest revenue since 2013 as operators pocketed north of $756 million in combined earnings.
The online casino segment accounted for approximately 15% of the 2022 total with $112.6 million in revenue, while interactive sports wagering lagged behind with $41.6 million. The market has managed to maintain the solid pace of its growth this year, as commercial gaming brought in $468.8 million during the first seven months of 2023 alone. The iGaming segment posted revenue that slightly exceeded $26 million for July, August, and mid-September 2023, which we consider a sign of positive growth.
- Legalized iGaming In: June 2012 via HB 333
- Number of Licensed Online Casinos: 3
- Notable iGaming Providers: Bally’s Dover Downs, Harrington Raceway & Casino, Delaware Park
- iGaming Revenue for 2022: $13.6 million (a 29% increase from 2021)
- Total Gaming Revenue for 2022: $491.8 million (a 1.8% increase from 2021)
The country’s second-smallest state is home to an equally small commercial gambling market that generated roughly $492 million in revenue during the previous year. The online casino segment contributed a trifling 2.8% of this amount, reporting earnings of $13.6 million in 2022. As small as this total is, especially when compared to figures from big players like Pennsylvania, New Jersey, and Michigan, this was a record revenue for the First State that outpaced profits from the previous year by 29%.
Several factors could have contributed to Delaware’s underwhelming figures, including the limited number of legal options as there are only three regulated mobile casinos in the diamond-shaped state. With that in mind, licensed iGaming operators reported combined gross revenue of $3.56 million for May, June, and July of 2023 and will perhaps improve their previous year’s results if they manage to maintain their current pace.