Pennsylvania Gaming Revenue Surges In July Amid iGaming And Sports Betting Boom
Online casino was up more than 30% year-over-year in July as the state had a banner tax month
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The Pennsylvania Gaming Control Board (PGCB) announced a significant increase in statewide gaming revenue for July 2024, with total revenue reaching $500.8 million. This marks a 7.2% uptick compared to the $467 million generated in July 2023, underscoring the continued growth of the gaming industry in the state.
The past three months have been particularly exceptional for Pennsylvania. iGaming emerged as the standout performer once again, with revenue soaring to $174.3 million, a 31.2% increase from July 2023’s $132.9 million. The surge was primarily driven by online slot and table games, which saw increases of 32.2% and 31.7%, respectively.
Hollywood Casino at Penn National Race Course — whose digital partners include DraftKings Casino — led the way in this category, generating $64 million in iGaming revenue, a 17.7% increase from the previous year. Valley Forge Casino Resort — partnered with FanDuel — also posted impressive gains, with a 55.7% year-over-year increase, totaling $45.5 million in iGaming revenue.
Sports wagering also contributed significantly in July, with total handle of $414.7 million, a 22.5% increase from July 2023. The total revenue from sports betting reached $38.6 million, marking a 20.2% year-over-year increase. Valley Forge/FanDuel was the top performer in this category, with $17.9 million in revenue, a 31% increase compared to the previous year.
Fantasy sports contests are on the rise, as well. DraftKings led the way, reporting $583,291 in revenue and a 5.8% year-over-year increase for the month. FanDuel was next, at $90,242, although it dropped 6.9%. However, Underdog Sports saw the biggest gain, adding 839.2% with its $37,805 in fantasy revenue.
Challenges in traditional gaming sectors
While iGaming and sports betting thrived, traditional gaming sectors such as retail slot machines and table games dipped. Retail slot machine revenue declined by 4.8%, from $214.7 million in July 2023 to $204.3 million in July 2024. This decline was connected to a reduction in the number of operating slot machines, which decreased from 25,291 in July 2023 to 24,709 in July 2024.
Similarly, retail table games revenue fell by 4.8%, from $83.4 million in July 2023 to $79.4 million in July 2024. The decline in both slots and table games indicates a possible shift in consumer preferences toward online gaming options, which offer greater convenience and variety.
Counting both retails and online revenue, Valley Forge and Hollywood Casino were the top performers. Valley Forge reported total revenue of $74.5 million, up 36.4% from $54.6 million in July 2023. Hollywood Casino saw total revenue of $79.5 million, a 13.4% increase from $70.1 million in July 2023.
Parx Casino remains the state’s top brick-and-mortar earner, but it saw a 3.1% decrease in total revenue, falling to $54.4 million in July 2024 from $56.1 million in the previous year. Wind Creek Bethlehem also reported a decline, with total revenue dropping by 6.7% to $47.6 million.
Tax revenue and economic impact
The gaming industry’s strong performance in July 2024 generated total tax revenue for the state from all forms of gaming and fantasy contests of $207.7 million. This revenue is critical for funding various public services and initiatives across Pennsylvania.
Despite the challenges faced by traditional gaming sectors, the overall growth in gaming revenue highlights the industry’s adaptability. The shift toward online gaming and sports wagering is likely to continue, driven by consumer demand for more accessible and diversified gaming options.
Pennsylvania is consistently a top-three online gaming state, but it’s not No. 1. Last Friday, New Jersey reported $195.4 million in iGaming revenue for July, about $21 million more than Pennsylvania. Michigan’s July report is expected to come out this week as well.
