Pennsylvania Gaming Industry Reports Best Year Ever, 2023 Revenue Nearly $5.7B
Posted on: January 18, 2024, 04:16h.
Last updated on: January 18, 2024, 04:16h.
Add Pennsylvania to calling 2023 its best year ever in terms of gaming. Joining New Jersey, which earlier this week announced record annual revenue, Pennsylvania on Thursday revealed that 2023 was a banner year for its gaming industry.
Pennsylvania has brick-and-mortar casinos, iGaming, in-person and online sports betting, truck stop video gaming terminals, and fantasy sports. In 2023, the varying gaming interests combined to win a record $5.697 billion. The 2023 win represents a 9.3% year-over-year increase.
The year-end report from the Pennsylvania Gaming Control Board (PGCB) revealed that iGaming — online slot machines and table games — was primarily responsible for the record performance. Internet gamblers lost $1.74 billion, 28% more than they did in 2022.
Physical slot machines inside the state’s 17 casinos also fared well for the houses, as the terminals generated record gross gaming revenue (GGR) of $2.46 billion, a 3% improvement. Oddsmakers saw their sports betting hold climb over 14% to a record $458.6 million.
The other verticals experienced slight year-over-year declines. Casino table game win dropped 2% to $990.5 million. VGT revenue fell 2% to $42 million and revenue from fantasy sports contests slowed by 10% to $20 million.
iGaming Surging
iGaming in the six states where online casinos are legal continues to thrive. The $1.74 billion won by the online channels last year continued the sector’s impressive run.
Pennsylvania legalized iGaming through the state’s 2017 gaming expansion package. Online operations didn’t go live until late 2019.
iGaming’s first full year in Pennsylvania — 2020 — came at a most suitable time. As the state ordered its physical casinos to shutter amid the pandemic, online casinos were open for play. iGaming platforms won over $565.7 million that year.
Pennsylvania online casinos have only furthered their growth since. iGaming GGR in 2021 topped $1.11 billion and ballooned to $1.36 billion in 2022.
The state’s land-based casinos have managed to increase their revenues despite iGaming’s significant revenue increases.
Retail slots and tables won $3.43 billion last year, a 1.6% year-over-year increase. The 2023 casino win also represents a 7% surge on 2021 GGR but only 5% richer than pre-pandemic 2019.
While brick-and-mortar casinos in iGaming states have managed to increase their year-over-year GGRs, analysts have expressed concerns that the online games could be slowing more robust brick-and-mortar growth.
Parx Leads
Parx Casino north of Philadelphia was the top-grossing casino in the commonwealth last year. The property won $386.2 million on its slots and $202 million on its tables for a combined haul of $588.2 million.
Parx and its sister casino, Parx Casino Shippensburg, are the only smoke-free casinos in the state.
Wind Creek Bethlehem placed second with GGR of $526.3 million, with slots accounting for $285 million and tables for $241.3 million.
As for iGaming, Penn Entertainment’s Hollywood Casino online brand led the way with revenue of $712.4 million. Penn held an impressive 41% market share on the iGaming industry. There are 12 online casino operators.
Pennsylvania Loses to New Jersey
Nevada and New Jersey had long been the country’s two richest gaming states until 2022 when Pennsylvania squeaked by the Garden State for second. Pennsylvania’s 2022 GGR of $5,211,274,456 edged New Jersey by just $28,735.
New Jersey, however, regained the second spot in 2023 after reporting GGR of over $5.77 billion. Nevada hasn’t yet revealed December numbers, but through November, the state’s casinos won more than $14 billion.
Source: casino.org
