Pennsylvania Gaming Revenue Continues To Grow, Online Play Accounts For 41.6% Of May Total

Eric Raskin

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The Pennsylvania Gaming Control Board reported this week May revenue numbers for the state’s robust gambling industry, and they tell the same story told in most other recent months: Revenue continues to grow in nearly all verticals, but is growing fastest in online casino.

All licensed operators combined for a few dollars shy of $521 million in revenue in May, a year-over-year increase of 8.68%.

Of that $521 million, $216.9 million came from online gambling — iCasino, online sports betting, iPoker, and daily fantasy. That online figure represents 41.6% of Pennsylvania operators’ total haul, and it also equates to a 19% increase in online gambling revenue over May 2023.

The brick-and-mortar sector is growing, but at a relatively modest pace, with retail slots revenue up 1.55% and retail table games revenue rising 2.54% across Pennsylvania’s 17 casinos. Mobile gaming is expanding at a much faster rate, clearly. (The door is thus left open for hardliners on either side of the “cannibalism” debate to decide how to spin this.)

A happy taxman

Taxes vary depending on vertical, but with numbers as high as 54% on both brick-and-mortar slots revenue and online slots revenue, the Keystone State is among the more aggressive gaming taxation states, and as such produced $216.3 million in tax revenue in May.

Exact rankings of the online casinos in the state can be difficult to calculate because some land-based operators are partnered with multiple skins. Hollywood Casino at Penn National Race Course led the way in May with $65.1 million in iGaming revenue, and the majority of that likely came via DraftKings Casino, but other brands account for some percentage of it. Valley Forge Casino Resort — which is partnered with FanDuel — placed next with $44.4 million, followed Rivers Casino Philadelphia with $31.2 million.

Online slots accounted for $126.9 million in revenue, and iTables produced $44.9 million (taxed much lower than iSlots at 16%).

Online poker is one of the few gambling verticals that decreased in revenue year-over-year, down 9.1% from $2.5 million in May 2023 to $2.27 million last month. Fantasy contests revenue also dipped, by 5.2%, from $1.21 million to $1.15 million.

The statewide May iCasino revenue of $174.1 million was the third-highest in Pennsylvania history — with the two months that top it both coming this year. The record is $191.1 million set in March, followed by February’s $184.9 million.

May marked the fourth straight month with online casino revenue above $170 million — a benchmark never topped prior to 2024.

Sports wagering handle for the month was $591.9 million, up 19.4% year-over-year, and produced taxable revenue of $44.2 million — translating to a 7.46% hold rate for the house.