Pennsylvania Achieves Record Gambling Revenue Amid Challenges in Certain Segments
In March, Pennsylvania’s gambling sector achieved a historic milestone, generating an impressive $574.5 million (£429.7 million/€499.7 million). This figure reflects a 3.6% increase compared to March of the previous year and marks a substantial 20.4% rise from February’s totals, according to the latest figures released by the Pennsylvania Gaming Control Board (PGCB) on April 21.
A Record-Breaking Month for Igaming
Igaming was a standout performer this month, producing a remarkable $238.2 million in revenue—an increase of 24.7% year-on-year. Online slots dominated this revenue stream, contributing $179.5 million, marking a significant year-over-year surge of 32.5%. Additionally, internet table games recorded a revenue of $56.2 million, up 5.8%, while online poker experienced a modest increase to $2.6 million, a climb of 3.3%.
Hollywood Casino at Penn National Race Course emerged as the leading revenue generator, collecting $90.7 million through its online gaming platforms. Valley Forge Casino Resort and Rivers Casino Philadelphia followed, earning $64.8 million and $38.6 million, respectively.
Decline in Sports Betting Revenue
Conversely, the sports betting segment faced challenges, seeing revenue drop by 40.7% year-on-year to $27 million. Despite this decline, overall betting activity saw a positive change, with total wagers reaching $842.9 million—an increase of 5.3% compared to March of the prior year. Online wagers accounted for $806.3 million of this total, while retail outlets generated $36.6 million.
This resulted in a statewide hold of 3.2%. Leading the sports betting market were FanDuel and Valley Forge Casino Resort, which earned $9.4 million from a handle of $328.6 million, achieving a hold of 2.86%. DraftKings and Hollywood Casino at the Meadows secured second place with revenues of $8.8 million from a $209.2 million handle, reflecting a more favorable hold of 4.21%.
Continued Decline in Land-Based Gambling
The landscape for land-based gambling in Pennsylvania remains challenging, with notable declines observed in various sectors. Retail slot machines still contribute the lion’s share of gambling revenue, totaling $222.5 million, albeit down by 2.4%. Table games also fell, generating $81.9 million—a decline of 3.9%. Meanwhile, revenues from video game terminals dipped slightly to $3.7 million, while daily fantasy sports revenue saw a rise of 6.9%, reaching $1.2 million.
On the tax front, the state collected $244.3 million from all gambling activities in March, with igaming contributing a sizeable portion of $106.3 million. Sports betting taxes amounted to $9.7 million, while retail slots brought in $112.5 million, and land-based table games added $13.7 million to state coffers.
In summary, while Pennsylvania’s gambling revenue reached unprecedented heights in March, the mixed performance across sports betting and traditional venues highlights the evolving nature of the state’s gaming landscape. As consumers adapt to new technologies and platforms, the market is likely to continue its dynamic shifts in the coming months.