The online gaming industry in Pennsylvania has been experiencing a huge boom in recent years. Indeed, 2023 was another year in which the sector managed to boom even further. According to the Pennsylvania Gaming Control Board (PGCB), legalized gaming has returned increased revenues of almost 11% compared to 2021.
Market Size of Pennsylvania Online Gaming Industry
The figures revealed that a combined $5.2 billion had been generated from slot machines, table games, sports wagering, gaming, video gaming terminals (VGTs), and fantasy contests. Twelve months earlier, a total of $4.7 billion had been obtained from the same activities.
One of the main reasons for this revenue growth was an enormous upsurge in iGaming. In 2023, it had a whopping 22.6% increase to reach $1.4 billion compared with 2021! This can be attributed to its ongoing popularity and ease of accessibility as far as online gambling is concerned, making it much more convenient than ever before!
The revenue growth of 2022 was largely due to the rising success of sports wagering. With a reported $401 million, it is an impressive 17.9% increase compared with 2021 and reflects the widespread acceptance of sports betting across states that have legalized and regulated this activity.
The retail slot machine sector saw a remarkable surge for the 2022 calendar year, with revenues reaching $2.4 billion—an increase of 4.51% from 2021!
According to a survey conducted by the Pennsylvania Department of Drug and Alcohol Programs that is compiled annually, approximately 1 in 10 Pennsylvanians (11.1%) engaged in interactive gaming, while approximately 28% of Pennsylvanians reported any gambling activity over the last 12 months.
Furthermore, there were seven new interactive gaming sites to have been made available to residents, thus taking the total to 19, with 10 different certificate holders.
Several regulations are in place in Pennsylvania to ensure the safety and security of the gambling sector. The Pennsylvania Gaming Control Board (PGCB) is responsible for ensuring that all venues adhere to legal requirements, as well as, overseeing the licensing, regulation, and taxation of Pennsylvania online casinos, racetracks, and other gambling activities.
The current tax rates to have been set in PA include 16 percent on peer-to-peer games (i.e., poker), 16 percent on non-peer-to-peer table games, and 54 percent on slot machine games.
Pennsylvania’s online gaming industry has had a marked impact on the state’s economy. It has created jobs and supported local businesses, while also generating significant tax revenues for the government.
According to the most recent data from the PA Gambling Control Board, throughout its existence, legal gaming operations in Pennsylvania paid more than $11 billion in taxes and fees to state and local governments. Funding for programs like neighborhood schools, infrastructure improvements, and public safety is provided by this money.
Moreover, it is not just additional funds to have been generated. There has also been an increase in the number of jobs available to residents of the Keystone State. As of the figures provided in June 2022, 14,829 people were employed and this number has only been set to improve and grow further.
How does PA compare to other states?
It is no secret that Pennsylvania is one of the leading states in terms of online gaming revenue and customer base. However, there are a handful of other locations around the US that have also been able to capitalize on the growth of iGaming.
New Jersey and Michigan are the two other states that have decided to fully legalize the activity. Each state has implemented regulations that protect their residents to ensure a safe experience is enjoyed with each session. Nonetheless, three other states have permitted iGaming in some form, too. These are Delaware, Connecticut, and West Virginia.
As per Mordor Intelligence, New Jersey is the largest market for regulated online gambling. However, PA appeared to generate more revenue in 2021 than its neighbor. While the Garden State generated $4.74 billion, the Keystone State managed to edge it as its gross revenues by casinos were said to be $4.83 billion in the same report.
Future predictions for PA’s Online Gaming Industry
The future of gambling in PA looks very bright. With the increasing number of states legalizing and regulating iGaming, Pennsylvania will likely remain a leader in terms of revenue generation.
The key to success for PA will be its ability to attract new players and retain existing ones. Doing this will help the industry grow, and more tax revenues to be generated from gaming. In addition, Pennsylvania will likely look at further expanding the range of games allowed in the state. Indeed, by doing this successfully, it could have a positive outlook on the state’s economy moving forward.
If December 2022 was anything to go by, the future of the industry looks to be in safe hands. The month revealed record numbers, with the PGCB revealing an increase of 16.9% in terms of revenue generated at the same time in 2021 had been experienced.
In numbers, $475 million was generated from all forms of gambling. In the process, this made it the highest monthly total to have ever been recorded by PA. Moreover, the state managed to generate $192 million in tax, too.
What are some of the challenges that PA could face?
The overall outlook for PA’s online gaming industry looks to be very strong. However, there are still a few challenges that the state could face in the coming years. The most prominent of these will likely center around competition from other states.
As more states legalize and regulate iGaming, they will look at ways to attract players away from existing markets.
With the majority of states yet to approve iGaming, PA will need to remain competitive and continuously improve its offering to retain customers. Another challenge that could arise is getting residents to move away from illegal operators and onto legal sites.
This could be achieved by educating people about the advantages of using licensed sites. While this could take time, the industry must thrive in the long term.
Pennsylvania’s iGaming industry has grown massively over the past couple of years. The state now finds itself among some of the most successful in terms of revenue and customer base. As well as having a positive impact on its economy, the industry has allowed PA to become a major player in US gambling.
The future for Pennsylvania appears to be very bright. As long as the state can remain competitive and continue to improve its offering, it stands a good chance of remaining one of the top markets for online gaming in the US over the coming years.
Furthermore, educating residents about the advantages of using legal sites, could also help to reduce illegal gambling. This would benefit everyone in the long run and ensure that PA remains a leader within this sector for many years to come.