In July, gaming revenue in Pennsylvania reached a staggering $467 million, making it a likely candidate for a record-breaking year.
In the previous month, Pennsylvania's gaming revenue reached $467 million, which is a massive 8.9% growth compared to the same period last year. The gaming industry continues to flourish in Pennsylvania as it expands and attracts more players. Following their record year in 2022, where they achieved an unprecedented total gross gaming revenue of $5.2 billion, the Pennsylvania gaming industry has sustained its revenue growth through the first seven months of 2023.
According to the Pennsylvania Gaming Control Board (PGCB)'s announcement on Friday, online gaming played a significant role in boosting the revenue gained. Online slots earned a whopping $94.8 million, a staggering 32% increase from the previous year. Interactive table games brought in $35.4 million, marking a 48% jump. Bookmakers profited from $32 million out of the $338.4 million bet by players, a 26% improvement in comparison to July 2022.
However, Pennsylvania's 17 brick-and-mortar casinos faced losses. Retail slots won approximately $214.7 million, staying stable from the previous year, but the table game wins dropped to $83.4 million, a decrease of 4%. Video gaming terminals in truck shops took $3.3 million from the coin-in, showing a 7% decline. Online poker rake and fantasy sports charges also dipped, generating $2.6 million (-4.5%) and $655K (-24%) respectively.
Setting New Revenue Records
It seems inevitable that the Pennsylvania gaming industry will maintain its track record and set a new revenue record for the third year in a row. They surpassed the $4.73 billion record set in 2021 – a feat fueled by pent-up demand resulting from the COVID-19 pandemic. Subsequently, they impressed the world again by posting an even higher $5.21 billion in 2022.
So far in 2023, the Pennsylvania gaming industry has secured more than $3.365 billion. This represents an approximate 11% rise from the revenue they held at this time last year.
This upward trend is not unique to Pennsylvania, as it’s being witnessed throughout the country too. The American Gaming Association (AGA) revealed that commercial casinos won an impressive $16 billion in the second quarter. The industry's trade group also added that the commercial market is predicted to achieve its third consecutive annual revenue record.
The AGA's report stated that the $32.71 billion won through the first six months of 2023 is almost 12% higher than the industry's revenue record in 2022, where they pocketed more than $60.4 billion.
Legacy Gaming Challenges
Pennsylvania and New Jersey are competing to become the second-richest gaming state in the country behind Nevada. New Jersey claimed the title last month, with their July revenue totaling $506.1 million.
Similar to Pennsylvania, New Jersey's July revenue report was influenced by the continuous growth in iGaming. The revenue from the nine casinos in Atlantic City, on the other hand, contracted, as their brick-and-mortar income dropped by 3%.
Pennsylvania's brick-and-mortar casino revenue fell by less than 1%, but the rise in online gaming might pose concerns for retail establishments. Executives at these casinos believe that not all gaming revenue is the same, as online income is often shared with third-party operators and is subjected to higher taxation. Furthermore, casinos don't receive income from food, beverage, hotel, and entertainment sales from iGaming players.
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Source: www.casino.org
