Amid fluctuating fortunes in various sectors of Pennsylvania’s gambling landscape, the state has witnessed a mixed range of outcomes in revenue generation for January. A small increase from the previous year marks a moment of cautious optimism, but the story is more complex when observing the array of gaming avenues the state provides.
The most recent data indicate that Pennsylvania’s gambling revenue achieved $464.4 million in January 2023. This figure, while showing an upward trajectory from last year, is engaged in a tightrope walk, as it falls 10.7% short of December’s robust $534.2m haul.
Despite the ever-evolving digital age, physical slots have continued their reign as the dominant force in the state’s gambling revenue portfolio, pulling in $179.5 million. However, this figure also represents an 11.2% decline when compared year-over-year. Meanwhile, land-based table games trailed with revenues slipping by a more pronounced 13.4%, amounting to $72.7 million.
Nevertheless, spotlighting a sector of undeniable growth within Pennsylvania’s gaming industry, online gambling is charging ahead. January showcased the strength of the igaming sector with revenues soaring to $149.6 million, marking a not insignificant 12.4% increase from the year prior.
Breaking down the specifics within the virtual realm, online slots continue to be the juggernaut driving this growth, their revenues climbing steeply to $110.0 million—a notable 22.0% leap. On the flip side, the news was not as cheerful across all online channels, as online table games saw a dip of 7.8% with their figures cooling to €36.9 million, and internet poker revenue leveling out at a near-static $2.7 million.
Emerging triumphant amidst its competitors, Hollywood Casino at Penn National carved its place at the apex with a commanding $50.5 million in total igaming revenue. Valley Forge Casino Resort smoothly slid into second place with $41.6 million, and Rivers Casino Philadelphia staked its claim with $29.5 million for January.
Turning our gaze to the sports betting landscape, an area undoubtedly in a state of flux with swells of activity, Pennsylvania paints a picture of industry growth at a significant clip, with total revenue experiencing a dramatic 77.9% upswing to $69.9 million. This laudable sum includes $66.0 million from the increasingly preferred online sports wagering and a contribution of $3.9 million from traditional, retail sportsbook engagements.
Confronting the specifics of betting habits, the handle—or total amount bet—swelled to $858.2 million for January, an 8.1% increase from the previous year’s $793.7 million. Of this, the lion’s share, a towering $808.8 million, emerged from online betting activities, with land-based locations drawing in $49.4 million.
In a market roiled by spirited competition, the partnership between Valley Forge Casino Resort and sports betting juggernaut FanDuel secured a commanding lead with $39.6 million in sports betting revenue for January. In a distant but respectable second place, Hollywood Casino at the Meadows and DraftKings combined their efforts to a $19.0 million purse, and not far behind, Hollywood Casino Morgantown and BetMGM saw a joint revenue of $3.6 million.
Shifting our attention to Pennsylvania’s other gaming offerings, Video Lottery Terminals (VLTs) did not mirror the overall growth of the market, as their contributions dwindled by 9.1% to $3.0 million. Fantasy sports revenues followed a downward trajectory, albeit slight, shrinking by 3.9% to $2.5 million.
As the winds of change bring new players to the field, Pennsylvania’s gaming market braces for the infusion of fresh vigor. The past month signaled the entrance of Fanatics Betting and Gaming, which lifted the curtain on its sportsbook and online casino, poised to engage the market after PointsBet’s exit. Meanwhile, microbetting upstart Betr solidified a Pennsylvania market access deal via Cordish Gaming Group, with ambitions fueled by parallel deals in states such as Colorado and Kentucky.
As Pennsylvania plots its course through the turbulent seas of the gambling industry, January’s mix of setbacks and successes sets the stage for a dynamic year ahead, as the commonwealth leans into the promise of new growth and the resilient performance of its digital gaming frontiers.
