In a landmark year for Pennsylvania’s gambling industry, 2023 saw revenues soar to an all-time high of $5.70 billion. This impressive figure, 9.3% higher than the previous record of $5.21 billion set in 2022, includes contributions from diverse gaming segments such as slot machines, table games, sports wagering, igaming, VGTs, and fantasy contests.
Physical slot machines remained a significant revenue contributor, bringing in $2.46 billion, a 3.1% increase from the previous year. However, land-based table games saw a slight dip in revenue, decreasing by 1.9% to $971.7 million. Notably, the state witnessed a substantial leap in iGaming revenues, hitting $1.74 billion in 2023 – a 27.7% increase over 2022. This surge was led by Hollywood Casino at Penn National with $712.4 million, followed by strong performances from Valley Forge Casino Resort and Rivers Casino Philadelphia.
Surge in Sports Betting and Online Gaming
The sports betting sector in Pennsylvania also reached new heights, with revenue climbing to a record $458.6 million, surpassing 2022’s figures by 14.3%. The total handle for sports betting stood at $7.68 billion, indicating robust player engagement and spending. Dominating this market segment were Valley Forge Casino Resort and FanDuel, leading in revenue generation.
The year concluded with a record-breaking December, setting an all-time monthly high with total market revenue of $534.2 million. This peak was driven by retail slots, which saw a 4.9% increase in revenue, and land-based table games, which edged up by 1.6%. iGaming revenue also experienced a significant year-on-year jump in December, including notable increases in online slots and table games.
Despite the overall upward trend, certain segments like VLTs and fantasy sports contests witnessed declines in revenue. VLT revenue fell slightly to $41.2 million, and fantasy sports contest revenue decreased by 10.0% to $20.1 million.
The exceptional growth in Pennsylvania’s gambling revenue, particularly in iGaming and sports betting, underscores the evolving nature of the industry and the state’s successful adaptation to emerging trends. With these sectors continuing to expand, Pennsylvania sets a precedent for the future of gambling revenue generation in the US.
