Pennsylvania Gambling Revenue Surges 8.7% in May, iGaming Leads Growth

Pennsylvania’s gambling market witnessed substantial growth in May, with revenue rising 8.7% year-on-year to reach $521.0m (£409.9m/€485.2m). This increase was largely fueled by the booming iGaming sector, along with notable gains in sports betting and land-based gambling.

Impressive Performance in iGaming Sector

The iGaming segment stood out with a remarkable gross revenue of $174.1m in May, marking a 23.5% increase from the previous year. This significant rise underscores the growing popularity and profitability of online gambling in Pennsylvania.

Overall gambling revenue for May was notably higher than the $479.4m recorded in the same month last year. It also sured the $504.6m reported in April 2024 by 3.3%, highlighting a consistent upward trend.

Despite the rapid growth in iGaming, land-based slots remained the primary source of gambling revenue in the state. Revenue from physical slot machines reached $214.1m, reflecting a modest 1.6% increase.

Sports Betting and Land-Based Gains

The sports betting sector also saw positive growth, with mobile sports betting gross gaming revenue climbing 10.5% year-on-year to $59.1m. The betting handle reached $557m, up 21% from the previous year, driven by a 6.3% increase in promotional spending by operators.

In the land-based segment, table games revenue experienced a 2.5% rise, bringing in $83.7m. However, there were some mixed results among individual properties. Deutsche Bank reported a 12.2% decline in gross gaming revenue for Caesars’ land-based operations, while Penn’s properties saw a slight 1.2% decrease.

The favorable calendar in May 2024, which included nine weekend days compared to eight in May 2023, was noted by Deutsche Bank as a contributing factor to the overall revenue performance.

iGaming Sector Dominates Pennsylvania Market

Within the iGaming market, online slots posted the highest growth, with revenue surging 26.2% to $126.9m. Online table games also performed well, with revenue increasing by 18.6% to $44.9m. However, internet poker experienced a 9.1% decline, generating $2.3m in revenue.

According to estimates by Deutsche Bank, DraftKings with an 18.7% share, and BetRivers with 18%.

Among individual casinos, Hollywood Casino at Valley Forge Casino Resort and Rivers Casino Philadelphia followed with $44.4m and $31.3m in revenue, respectively.

All operators within the Pennsylvania iGaming sector reported growth in May, indicating a robust and expanding market.

Sports Betting Handle Nears $600m

The sports betting sector continued to thrive, with total revenue rising 7.6% year-on-year to $44.2m. Online wagering contributed $41.6m, while retail sportsbooks generated $2.6m.

The total sports betting handle reached $591.9m, up 19.4% from $495.6m in May 2023. Valley Forge Casino Resort, in partnership with FanDuel, led the market with $22.8m in revenue. Hollywood Casino at the Meadows, paired with DraftKings, came in second with $11.0m, and Hollywood Casino at Penn National, collaborating with ESPN Bet, secured the third spot with $2.2m.

Other gambling revenue sources in Pennsylvania saw varied results. Video game terminal revenue rose by 3.0% to $3.7m, while fantasy sports revenue dipped by 5.2% to $1.2m.

Total tax revenue generated from all forms of gambling for the month amounted to $216.3m, underscoring the significant contribution of the gambling industry to the state’s finances.

Source: 

“Pennsylvania igaming revenue jumps 24% in May”, iGaming Business, June 19, 2024. 

“Gaming Control Board Reports Revenue for May 2024”, Pennsylvania Gaming Control Board, June 18, 2024.