Pennsylvania’s Gaming Revenue Soars: A September to Remember
Last Thursday, the Pennsylvania Gaming Control Board released an eye-catching report revealing a substantial leap in taxable gaming revenue for September 2023. The figure stood at an impressive $505.9 million, reflecting a robust 6.2% increase compared to the same month the previous year. This remarkable growth can be attributed primarily to the booming sectors of internet casino gaming and sports betting. With a notable increase in the digital realm, the state has cemented its reputation as a leading market for online gaming in the United States.
Internet Gaming and Sports Betting Thrive
A significant portion of the revenue comes from internet gaming, which reached $176.7 million, marking a 10.8% year-over-year growth. This strong performance underlines the increasing popularity of online casinos among Pennsylvanians, illustrating a shift in gaming preferences towards digital platforms. Additionally, adjusted gross revenue for the year climbed to an impressive $1.5 billion, reiterating the industry’s resilience and ability to adapt to changing consumer habits.
However, the data also indicated a 3.8% decline in revenue from the previous month, August 2024, where taxable revenue was recorded at $183.7 million. Gross revenue in September totaled $227.4 million, placing it as the second-highest total ever recorded in the state, only eclipsed by March’s $233.1 million. This holding pattern sets the stage for a potentially robust Q4 as the holiday season approaches.
Bonuses and Credits Play a Role
A noteworthy aspect of the September numbers was the record amount of credits and bonuses, which amounted to $43 million. This contributed significantly to the overall performance, with the adjusted gross revenue at $53.5 million coming from a gross revenue figure of $95.8 million. This represented a staggering 46.1% increase year-over-year, showcasing how operators are incentivizing play to retain existing customers and attract new ones.
Local Casinos Feel the Impact of Online Gaming
The growth in online gambling positioned internet casinos and sportsbooks at an advantageous spot, even as they experienced a 1.7% dip in casino revenue amounting to $270.4 million. Furthermore, there was a slight downturn in table games revenue, which saw a 2.3% reduction to $73.4 million. Despite these challenges, the state overall managed to collect $211.2 million in taxes from all gaming avenues, with $51.1 million derived from internet casinos alone. The staggering total of $6.21 billion wagered through iGaming platforms marks the second-highest in state history, illustrating the public’s increasing engagement with online gaming.
The Top Online Casinos in Pennsylvania
When it comes to the most profitable online casinos in Pennsylvania, Hollywood Casino reigned supreme in September. Their online operations, including partnerships with DraftKings and BetMGM, amassed a combined revenue of $66.9 million, up 3.2% year-over-year. Interestingly, although their revenue was on the rise, the overall handle fell from $2.84 billion to $2.58 billion, indicating that even modest player base changes could have significant impacts.
Meanwhile, Valley Forge’s FanDuel sportsbook reported an impressive 33% increase in revenue year-over-year, totaling $47.1 million. With $1.73 billion wagered, FanDuel’s performance was just shy of the previous year’s record in March.
BetRivers also demonstrated noteworthy performance by surpassing the $30 million threshold for the sixth time in seven months, achieving $31.5 million in September. Other notable operators included Harrah’s and Golden Nugget, which reported revenues of $8.5 million and $4.7 million, respectively.
Brick-and-Mortar Casinos Stand Strong
While online platforms thrived, brick-and-mortar casinos in Pennsylvania also demonstrated resilience. Parx Casino and Wind Creek remained the top two operators, with Parx Casino leading the way at $30.2 million, despite a 4.3% decrease in revenue. Wind Creek’s $24.2 million marked a modest 2.1% year-over-year increase, showcasing that traditional casinos continue to find ways to adapt amidst the growing dominance of online gaming.
The Future of Gaming in Pennsylvania
The overall trends highlight a thriving gaming market in Pennsylvania, characterized by year-over-year growth in both internet gaming and traditional casinos, notwithstanding the slight monthly fluctuations. As the industry prepares for the holiday season and beyond, stakeholders will be eager to see how these patterns evolve. With the combined strength of brick-and-mortar venues and the robust online gaming landscape, Pennsylvania is poised to maintain its position as a leader in the North American gaming sector.
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