Online casinos in Pennsylvania have just posted the highest monthly revenue in the country for April, marking the second straight month they can make that claim after reporting $138 million in gross gaming revenue (GGR).
This is the second-highest total in state history behind the $142.7 million set in March, which holds the national record for a single month.
Total PA gaming revenue for the month was $461.6 million. That’s just $1.1 million short of March’s record $462.7 million, according to PGCB figures.
Outpacing New Jersey in gaming revenue
New Jersey has long been the US online gaming revenue leader, now recording more than $100 million in monthly GGR for 14 straight months.
In April, New Jersey reported a GGR of $136.8 million, just $1.1 million less than Pennsylvania, to take the No. 2 spot in the nation for the second month in a row. In March, Pennsylvania’s $140.6 million GGR edged out New Jersey for the top spot by $2.1 million, setting a new US monthly record.
PA online casino profits rapidly climbing
PA online casinos began to thrive around the beginning of the pandemic, and growth has not slowed since.
In April 2020, iGaming revenue was just $43 million. A year later, it reached $105.5 million. Now, the rest of the country is looking up at Pennsylvania’s $137,982,938, a 30.8% year-over-year increase.
PA sports betting also holding its own
Sports betting has also boomed over the last two-plus years. In late 2019, former NJ Gov. Chris Christie went as far as to call sports betting in the Keystone State “a rolling dumpster fire.”
Now, PA sportsbooks regularly see monthly handles exceeding $750 million during peak betting months.
More importantly, the state recently surpassed $1 billion in lifetime sports betting revenue, becoming the third state to do so, behind Nevada and New Jersey. This accomplishment is far from a dumpster fire and puts Pennsylvania into the same discussion as the gambling giants mentioned.
Gaming tax is not a deterrent in Pennsylvania
Former Gov. Christie’s comments were primarily related to Pennsylvania having some of the highest tax rates nationwide on casino gaming (16% for online table games and poker, 36% for sports betting, and 54% for online slots).
But it does appear Pennsylvania has found a way to tax itself and its operators both into prosperity. Eighteen online casinos are already in operation statewide, and more are awaiting licensure to enter the market, proving that such high tax rates are not a deterrent from the potential opportunities.
After all, one only needs to see that Pennsylvania’s led in online casino revenue the last two months. It makes sense why any operators would want to have their slice of the PA revenue pie. Despite such high tax rates, PA iGaming options remain player-friendly as online casinos compete for customers with welcome bonuses and regular promotions.
Of course, this also proves to be best for the state, whose monthly casino tax revenue is well above other states such as New Jersey and Michigan.
More room for revenue growth?
The pandemic showed that Pennsylvanians will still find room in their budgets for online casino gaming and other legal wagering. Despite an uncertain world climate in which many industries and businesses faltered, Pennsylvania casinos kept posting record numbers.
Fast forward to today, and new economic uncertainties come with rising inflation, supply chain shortages, and potentially unstable political climates. Still, Pennsylvania online gaming has grown to new heights.
Given the level to which PA online casinos have continued to thrive when many other industries have struggled to stay afloat, they will likely remain recession-proof and prove to be a viable source of revenue for the state for the foreseeable future.
Penn National leads revenue once more
Looking at individual casinos, Penn National and its five online casino brands of Hollywood, DraftKings, BetMGM, Barstool, and now PointsBet, accounted for nearly 40% of the state’s revenue ($54.9 million).
Rivers Casino ($35.7 million) and Valley Forge ($22.5 million) combined for another 42% of revenue for the month, with all other casinos totaling the remaining 18%. Of those casinos, Mount Airy ($6.7 million) and Parx ($6.2 million) rounded out the top five.
|Licensee||Total Revenue||Slots Revenue||Table Games Revenue||Poker Revenue|
|Hollywood Penn National||$54,896,545||$39,213,937||$15,434,126||$248,482|
|Mohegan Sun Pocono||$1,894,445||$1,497,783||$396,661||$0|
Photo by: Shutterstock