A casino room filled with lots of slot machines photo – Free Tulalip casino Image on Unsplash
Pennsylvania’s gambling sector is a major contributor to the state's economy, with revenues climbing steadily year after year. The state embraced a comprehensive approach to gambling, legalizing all forms of gaming, including brick-and-mortar casinos, sports betting, video gaming terminals (VGTs), and online casino platforms.
This diversified gambling market has yielded impressive results. In the 2023-2024 fiscal year, Pennsylvania’s gambling sector generated $5.89 billion in total gross gaming revenue. This substantial sum translates into significant contributions, with $3.62 billion in tax benefitting the state. These funds play a crucial role in supporting various social programs and initiatives across Pennsylvania.
The biggest source of gambling revenue in Pennsylvania comes from its online casino sector. Currently, there are 21 licensed online platforms operating in the state. In February 2024, these platforms collectively generated $184.9 million in revenue, which is a significant 4.05% increase compared to February 2023.
While Pennsylvania has regulated online casinos, some players also explore offshore casino platforms. According to Michael Graw from Value Walk, some of the best payout online casinos for 2024 offer unlimited instant withdrawals and generous bonuses, with massive jackpots and simplified registration (or no-registration) policies.
The most appealing feature for US players using these online casinos is the option to gamble using cryptocurrencies like Bitcoin and Ethereum. Although Pennsylvania’s current stance on cryptocurrencies appears neutral, the state does not accept cryptocurrency as a form of payment in its regulated gambling industry.
The revenue generated from Pennsylvania’s online casino games differs:
This distribution of revenue contributes greatly to funding local social programs.
While online gambling has seen significant growth, physical gambling establishments continue to play an important role in the gambling industry. The state has 17 land-based casinos spread across Pennsylvania.
Sports betting has become a significant contributor to Pennsylvania’s gambling revenue. In August 2024, the total sports betting handle reached $485.2 million, marking a 23.5% increase from last year.
However, the taxable revenue from sports betting dropped by 30.02%. operators who were responsible for the bulk of this handle were mostly physical casinos, with Valley Forge Casino Resort and Hollywood Casino at the Meadows leading the charge.
Fantasy sports, which is a much smaller segment of the gambling market, have seen a decline in 2024. In August, fantasy sports generated $647,522, dropping by 18.3% from the previous year. This decline can be attributed to the popularity of sports betting.
Pennsylvania is the second biggest gambling market in the U.S. after Nevada. This is largely due to its diverse gambling ecosystem that includes online gambling platforms, casinos, and sports betting to VGTs. The state has solidified its position as one of the largest gambling markets in the US.
Analysts are predicting that online gambling will remain the fastest-growing sector, due to their convenience. In August 2024, iGaming revenue reached $183.7 million, the second-highest monthly total on record. Brick-and-mortar casinos, on the other hand, continue to play an important role, adapting to changing consumer preferences and providing modern amenities online offerings.
VGTs and betting shops are showing steady growth. The number of VGT locations has expanded from 69 in 2023. Sports betting is expected to continue to grow, with revenue likely to fluctuate seasonally based on major sports leagues and events. Despite the fluctuations, the sector may experience volatility in hold percentages.
Pennsylvania’s gambling industry is well-positioned to flourish due to innovation and its diversified gambling market. The gambling sector is set to grow across multiple sectors, with online gambling leading the charge, while traditional forms of gambling continue to adapt and thrive.
