Over the past ten years, the Pennsylvania gambling market has seen considerable growth and diversification. It has become one of the largest gambling markets in the country, second only to Nevada. Land-based casinos exist in 24 states in the U.S., and over 30 states allow online sports betting. Online casinos are only permitted in a handful of states and one of them is Pennsylvania. It keeps expanding its casino and gambling offerings to appeal to a range of users.
Legalization of online gambling
Pennsylvania has 17 brick-and-mortar casinos. These casinos offer a wide variety of gaming options such as slot machines, table games, and sports betting. In 2017, Pennsylvania was the fourth state to legalize online gambling. Land-based casinos such as Parx Casino were allowed to apply for online gambling licenses. Pennsylvania online gambling is regulated by the Pennsylvania Gaming Control Board (PGCB). By allowing casino games to be played legally on mobile devices from the comfort of home, online gambling became a massive contributor to tax revenue for the state.
Total revenue and tax revenue for the year
Pennsylvania brought in a record $5.7 billion in revenue from gambling in 2023. Pennsylvania also topped the list of states on gaming tax revenues for 2023. Land-based slots are still Pennsylvania’s largest source of gambling revenue.
The American Gambling Association (AGA) puts Pennsylvania at $2.3 billion in casino tax revenue. The state taxes online slots at 54% and table games at 18%. Whether it’s online casinos, business consultancy firms, or other businesses, financial management is critical for ensuring cash flow, tracking profitability, and complying with tax laws.
Sports betting
Sports betting is one of the most popular online gambling formats. The legalization of online sports betting adds to the overall revenue generated by online gambling. Both retail and online sportsbooks are flourishing in Pennsylvania. The state has many sports teams to bet on, such as the Pittsburgh Steelers and the Philadelphia Eagles. Betting always ticks up at the start of the NFL season. The fiscal year 2023/24 revenue from sports wagering was $486,566,429.
Live dealer games
In May this year, Evolution Gaming officially launched a live dealer video poker game in Pennsylvania. Live dealer games offer a sense of immersion that other online games might be missing. Players can interact with a live dealer who draws cards and spins the wheel. They can also chat with other players using live chat. The introduction of more live dealer games is likely to contribute to the growth of online gaming in the future.
The future for Pennsylvania
Pennsylvania brought in $1,949,017,248 from iGaming in the fiscal year 2023/24. This was a more than 27% increase in revenue from the previous year. iGaming growth is driving up total gaming revenue.
In September, retail casino revenue experienced a decline, but online casino revenue was approximately $176.7 million. This was up nearly 11% from September 2023. The way forward for the US economy is looking positive. Continuous developments in the gambling market are attracting new players and helping to retain experienced ones.
Many Pennsylvanian adults now engage in some form of gambling. The market is one of the most robust in the country, with both land-based and online casinos. Despite some segments experiencing dips, the overall positive outlook suggests that the market is resilient.
