Pennsylvania's online casinos are not just gaining traction; they're rapidly transforming the state's gaming landscape.
The Pennsylvania Gaming Control Board (PGCB) reported that The Keystone State’s total gaming revenue fell to roughly $477 million in February, reflecting a 4.3% decline compared to the previous year.
The slump is being attributed to struggling retail casino revenues and sharp drops in taxable sports wagering. Conversely, the state's thriving iGaming market continues to flourish, offsetting some of the financial impact.
Retail Slots in PA Suffer Declines in February 2025
Retail slots and table games witnessed notable declines, with slot machine revenue dropping by more than 8% to just over $186 million and table games experiencing a 7.2% fall to $71.2 million.
The number of operational slot machines also decreased compared to last year, showcasing a shift in consumer behavior. Retail casinos like Parx Casino and Wind Creek Bethlehem reported decreases in slot revenue, intensifying concerns about traditional gaming's future in the state.
Pennsylvania Online Casinos Continue to Thrive
In contrast, iGaming thrived with an increase of more than 12%, reaching almost $208 million for the month.
Hollywood Casino at Penn National spearheaded this growth, generating $77.6 million. Valley Forge Casino Resort and Rivers Casino Philadelphia also enjoyed substantial gains, with revenues climbing by 26.5% and 17% respectively.
This should come as no surprise. Researchers at Penn State's Criminal Justice Research Center developed the 2024 Pennsylvania Interactive Gaming Assessment: Online Gambling Report for the state's Department of Drug and Alcohol Programs. Their survey of more than 1,400 Pennsylvania residents revealed that one in five adults (20%) now gamble online, an increase from 16% in 2023.
As the iGaming sector expands, contributing nearly $92 million in state taxes in February alone, it highlights a significant shift towards digital platforms. This trend underscores potential strategies for gaming operators who may need to focus more on enhancing their online presence and promotional activities for sports betting.
iGaming Practically Started in The Keystone State
Historically, Pennsylvania has played a pivotal role in casino gaming since the legalization of slot machines in 2004 and table games in 2010.
The state's progressive approach to gambling regulations set the stage for the subsequent introduction and rapid growth of online gaming. Today, Pennsylvania stands on the frontline of the United States' gaming industry, balancing traditional casino operations with digital innovations to cater to evolving consumer preferences.
Online Casinos Expected to Dominate in Pennsylvania
What's scary about the growth of the online casino industry in Pennsylvania is that it's in a spot to grow even more.
Pennsylvania is getting ready to legalize multi-state online poker, possibly as soon as April. However, the launch won't happen right away. The Pennsylvania Gaming Control Board (PGCB) informed PlayPennsylvania that they plan to join the Multi-State Internet Gaming Agreement (MSIGA) next month. This move will allow online poker players in Pennsylvania to start competing with others in New Jersey, Michigan, and Nevada.
Pennsylvania has five poker operators. BetRivers is the newest, it launched in November, joining PokerStars, BetMGM Poker, WSOP Poker and Borgata Poker.
Looking forward, operators in Pennsylvania might increase promotions to boost sports betting and continue expanding their iGaming offerings. Regulatory bodies will play a crucial role in harmonizing efforts to sustain both land-based and online gaming markets. As industry dynamics shift, Pennsylvania remains a key player in navigating the future of casino gaming.
