Pennsylvania casinos reported $464.5 million in total gaming revenue in January, as announced by the Pennsylvania Gaming Control Board. Though revenue fell short of December’s $475 million record, it was still enough to claim the No. 2 spot in state history.

Monthly adjusted gross revenue (AGR) increased by 18.15% year-over-year, fueled by gains in every major vertical:

  • Retail casinos: $286.2 million (+16% YoY)
  • iGaming: $133.2 million (+22.91% YoY)
  • Sports wagering: $39.3 million (+22.01% YoY)

Pennsylvania holds off New Jersey for second in the US

The Garden State may have a longer gambling history, but PA casinos have generated more revenue than New Jersey’s in 10 of the last 11 years.

Casinos in the Keystone State first surpassed $3 billion in gross gaming revenue (GGR) in 2012, edging out New Jersey by $60,000. It started an eight-year run above $3 billion, before 2020 shut down retail casino operations for several months and caused GGR to dip to $2.65 billion.

On the other hand, New Jersey dipped below $3 billion in GGR after 2012 and did not get above that mark until 2019. It did surpass PA in 2020 with $2.88 billion.

Since recovering from the pandemic, both states have set new records, with online casino contributions increasing steadily.

In 2021, Pennsylvania ($4.83 billion in GGR) edged out New Jersey ($4.74 billion) by less than $100,000. That gap narrowed to just $28,000 in 2022, as both states reported $5.21 billion in GGR.

Atlantic City’s recent recovery could help New Jersey regain its former spot. Either way, both states are nowhere near Nevada’s $13.5 billion GGR from 2022, so second place will have to do.

PA casino retail slots break $200 million in revenue for first time

Slots accounted for $202.2 million of retail casinos’ $286.2 million AGR in January, setting a monthly record and marking the first $200 million month ever recorded. Revenue grew 2.1% from December’s $198 million, and 20% YoY.

Impressively, iGaming verticals grew even more. Online table games saw a nearly 21% YoY increase in AGR and online slots over 25%.

Sports wagering also impressed in 2022, outpacing every vertical except online slots. More than 90% of its revenue comes from PA online sportsbooks

PA casinos January revenue breakdown

  • Retail slots: $202.2 million (+20.07% YoY)
  • Online slots: $90.2 million (+25.57% YoY)
  • Retail table games: $83.9 million (+7.27% YoY)
  • Online table games: $40 million (+20.97% YoY)
  • Sports wagering: $39.3 million (+22.01% YoY)

PA online slots outperform retail table games

While retail slots continue to reign supreme, online slots in PA are entrenching themselves as the second-highest revenue generator. 

January was the fourth straight month where online slots surpassed retail table games in AGR.

A year ago, retail table games revenue was $78.2 million, compared to online slots’ $71.8 million. Despite steady growth, retail table games have been unable to keep up with online slots.

Still, overall growth on the retail side shows that it can carry its weight as iGaming continues setting new highs.

Revenue growth at PA online casinos

PA continues to set the bar for the online casino industry in the US, finishing above New Jersey in both online casino revenue ($1.67 billion) and taxes ($508.4 million) in 2022.

PA online casinos are still on the up and up, with January’s $160.3 million in GGR representing 23.3% yearly growth

For more perspective, last January’s $130 million in GGR set a new record. This January’s total fell about $6.6 million short of the current record of $166.9 million from December.

iGaming revenue has now topped $160 million for two straight months and $150 million for four. This has resulted in at least $46 million in taxes to the state every month since October, as online slots are taxed at 54%.

Since becoming legal in July 2019, online casino revenue went from a virtual non-factor to one of the state’s primary contributors.

Annual PA online casino revenue since 2019

  • 2019: $39.3 million
  • 2020: $717.2 million
  • 2021: $1.29 billion
  • 2022: $1.67 billion

If January is any sign of what’s to come in 2023, that trend could continue upward to bring $2 billion into focus.

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