In 2022, the state of Pennsylvania's gaming sector saw record-breaking success. Since they legalized all kinds of gambling in the Keystone State, the $5.2 billion in gaming income is a record.
The proliferation of PA online casinos and sports betting in the wake of the epidemic has significantly contributed to the expansion of the gambling industry in Pennsylvania. Land-based casinos, meanwhile, have witnessed revenue gains beginning in 2021, with the epidemic now being a distant memory.
Several compelling factors in the Pennsylvania gaming business account for its rapid expansion in recent years.
Quantifying the Whole Spectrum of Gambling Revenue in Pennsylvania
There was an increase in earnings from gambling in 2022 compared to 2021, except for the fantasy sports market. The percentage shifts includes the number of people who play slot machines in stores: 4.51%, sales of casino table games in retail establishments: 7.10%, betting on sports: 17.96%, online gaming: 22.60%, VGTs: 5.59%, and Fantasy Contests: -23.90%
Wind Creek Bethlehem saw one of the most significant percentage rises in the state. In 2019, the Bethlehem casino ranked first in the state for table games; however, in 2020 and 2021, Parx Casino will overtake them. In 2022, Wind Creek's revenues surged to $243.7 million, putting it back on top. This was an increase of 31.62% from the previous year.
The relationship between FanDuel PA sportsbook and Valley Forge Casino significantly contributed to the roughly 18% rise in sports betting revenue. FanDuel has a 40% market share consistently and about $210 million in sales in 2022, up 39.18% from the previous year.
The Hollywood Casino at The Meadows, which operates the DraftKings PA sportsbook, came in second with $78.2 million in revenue, up 11.57% from 2020.
Although its retail slot revenue of $393.8 million was down 3.81% from 2021, Parx Casino maintained its dominant position as the industry leader. Wind Creek took second place with $272.1 million in sales.
A state-record $561,2,000,000 was made at Hollywood Casino at Penn National Race Course thanks to joint ventures with BetMGM PA online casino and DraftKings PA online casino. This is an increase of roughly 34% from 2020.
The BetRivers, Borgata, and SugarHouse casinos run by Rivers Casino Philadelphia brought in $326.4 million in revenue, good enough for second place.
Pennsylvania's Existing Casinos are Undergoing Renovations While New Casinos Enter the Market.
The gaming business in Pennsylvania experienced a record-breaking year in many respects.
The previous two years have seen the opening of many new casinos in Pennsylvania, giving gamblers in the state more opportunities to try their luck. Two Hollywood Casinos in Pennsylvania debuted late in 2021 and are classified as Category 4 mini-casinos: Hollywood Casino York and Hollywood Casino Morgantown. In their first full calendar year, both casinos generated over $150 million from slot machines and table games.
In January 2021, Live! Casino Philadelphia had a "soft opening," although the official opening wasn't until February of that year. As a Category 4 casino, Live! Casino Philadelphia has been settling into its new home in South Philadelphia's Stadium District.
During the 2022 baseball and football seasons, South Philadelphia saw unprecedented success. Live! Casino Philadelphia broke the retail sports betting handling record with $10.05 million in bets thanks to the Phillies' surprising run to the World Series and the Eagles' outstanding season. The slot machines at Live! Casino Philadelphia brought in $122.5 million, ranking it ninth overall.
Although a few brand new casinos have opened their doors, the more established casinos have significantly upgraded to remain competitive and recruit new customers, including those in the under-30 age bracket.
There are now retail Barstool Sportsbooks in both the Hollywood Casino at Penn National Race Course and the Hollywood Casino at The Meadows, each of which cost $7 million to construct.
Some casinos have upgraded their entertainment and dining options to attract more visitors.
Online Gambling and Related Services in Pennsylvania are Expanding
The popularity of online casinos and the ability to gamble on sports from the comfort of one's home continues to rise. With the debut of PointsBet in April 2022, Pennsylvania will have 18 online casinos, including 14 online sportsbooks.
With the debut of Golden Nugget PA, approved by the PGCB last month, WynnBet Casino PA is anticipated to follow.
As more and more online casinos enter the market, the existing ones respond by improving and expanding their services. One may choose from dozens of different table games and hundreds of slot machines at any given online casino. Live dealer games, now available at most online casinos, have revolutionized the gambling industry in Pennsylvania.
While playing a live dealer game on a mobile device, the user interacts with a real person who acts as the dealer. According to the PGCB Annual Report, over half of online table games income produced in Pennsylvania was from live dealer games in the fiscal year 2021/2022.
The pandemic's effects on the casino industry resulted in a meteoric rise in the popularity of live dealer games and online gambling in general.
Revenue from Gaming in Pennsylvania Compared to Other States
Regarding gaming income, Pennsylvania is among the top states in the US. Being a nearby state with an even more developed gaming sector, New Jersey is a reliable yardstick against which to measure progress.
New Jersey's $5.2 billion in gambling profits in 2022 brought it into lockstep with Nevada's total. Regarding internet gambling, New Jersey was much ahead of Pennsylvania. Now, however, the two states are neck-and-neck.
State taxes of $508.4 million on $1.67 billion in internet sales make Pennsylvania number one in the country. However, regarding internet sales, New Jersey ranks second, behind Pennsylvania, by just $4 million in 2022.
Regarding income from land-based casinos, Pennsylvania competes with New Jersey for second place. Compared to New Jersey's $4.8 billion in sales, Pennsylvania's tallied $4.9 billion (through November 2022). However, according to the AGA, both states contribute to Nevada's staggering $13.5 billion annual income.
