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The Pennsylvania gambling market witnessed unprecedented growth in September, with record-breaking figures in the iGaming segment. Total revenue for the month exceeded $448.5 million, surpassing the same month’s earnings from the previous year by a substantial margin. This performance also marked a remarkable 4.2% increase from August 2023 when the state generated $457.2 million. In this article, we will delve deeper into the key factors driving this remarkable growth and its implications for the Pennsylvania gambling industry.
Retail Slots and Physical Table Games Remain Strong
Despite the surge in iGaming revenue, retail slots continued to dominate the market, contributing significantly to the overall revenue. In September, they generated an impressive $199.9 million, representing a modest but noteworthy 0.7% increase compared to the previous year. However, physical table games, while still substantial, experienced a dip of 7.8% compared to September 2022, accounting for $75.2 million in revenue.
iGaming Segment Breaks Records
The real standout in September’s revenue report was the iGaming segment. It reported astounding growth, with revenue soaring by an astonishing 41.5% to reach a historic high of $159.5 million. This achievement surpassed the previous record of $148.2 million set in March, highlighting the rapid expansion and profitability of online gambling in the state.
Detailed Breakdown of iGaming Revenue
- Online Slots: The online slots category witnessed a remarkable surge, with revenue climbing by 47.3% to an impressive $114.7 million.
- Internet Table Games: Internet table games also performed exceptionally well, experiencing a substantial increase of 31.7% in revenue, reaching $42.4 million.
- Online Poker: The only blemish in this otherwise stellar performance was a 10.4% decrease in revenue from online poker, which amounted to $2.4 million.
Market Leaders in iGaming
Hollywood Casino at Penn National emerged as the clear market leader in the iGaming segment, raking in a remarkable $64.9 million in revenue during September. Valley Forge Casino Resort followed closely behind in the second position, with $35.4 million, while Rivers Casino Philadelphia secured the third spot with $29.2 million. These operators have capitalized on the growing popularity of online gambling, establishing themselves as industry leaders.
Decline in Pennsylvania Sports Betting Revenue
As reported by BetByState.com and in contrast to the iGaming segment’s success, Pennsylvania’s sports betting market reported a significant decline in revenue. The revenue for this segment dropped by 27.1% year-on-year, amounting to $36.6 million, despite a 12.6% increase in the handle, which reached an impressive $726.3 million.
Top Performers in Sports Betting
- Valley Forge and FanDuel: Valley Forge and FanDuel reclaimed the top spot within the sports betting market in September after briefly slipping to the second position in August. This partnership generated a substantial $19.1 million in revenue from a total of $256.4 million in bets.
- Hollywood Casino at the Meadows and Barstool: The operators that led the segment in August, Hollywood Casino at the Meadows and Barstool, placed second in September with revenue of $8.6 million, originating from a handle of $230.5 million.
- Parx Casino with Kambi: Parx Casino, in partnership with Kambi, secured the third position with $2.2 million in revenue from $22.6 million in wagers.
Other Gambling Segments in Pennsylvania
Apart from iGaming and sports betting, other segments of the Pennsylvania gambling market exhibited varying performances:
- Video Gaming Terminal Revenue: Video gaming terminal revenue experienced a 7.2% decline, totaling $3.2 million.
- Fantasy Sports Revenue: Fantasy sports revenue declined by 6.6% to $1.8 million, with DraftKings leading the segment with $1.3 million in revenue.
Operators Fined for Regulatory Breaches
The Pennsylvania Gaming Control Board (PGCB) took regulatory actions against several operators for breaching state regulations, imposing fines totaling $73,075. These fines serve as a reminder of the importance of compliance with state laws in the gambling industry.
- Stadium Casino Westmoreland: The operator of Live! Casino Pittsburgh was fined $30,000, including a $20,000 penalty for allowing two self-excluded individuals to enter and gamble at its PA casino. An additional $10,000 fine was issued for permitting underage gambling on the casino floor.
- Love’s Travel Stops & Country Stores: This operator faced a $25,000 fine for failing to inform the PGCB about ownership structure changes at five of its VGT Truck Stop Establishment locations.
- Greenwood Gaming and Entertainment: The operator of Parx Casino was sanctioned by the PGCB over a delay in submitting two license renewal applications, resulting in an $18,075 penalty.
Rivers Casino Philadelphia License Renewal
In a unanimous decision, the PGCB voted to renew the Category 2 stand-alone casino license of Sugarhouse HSP Gaming, the operator of Rivers Casino Philadelphia. This renewal extends the casino’s license for an additional five years, reflecting its substantial contributions to the state since opening in September 2010.
Rivers Casino Philadelphia has been a vital player in Pennsylvania’s gambling industry, generating a staggering $4.47 billion in gross revenue since its inception. The facility offers a diverse range of gambling options, including retail slot machines, table games, sports wagering, and iGaming. This has led to the state collecting over $1.94 billion in tax revenue, highlighting the significant economic impact of the casino.
In conclusion, the Pennsylvania gambling market’s impressive growth in September, driven primarily by record-breaking iGaming revenue, underscores the evolving landscape of the industry. While sports betting revenue declined, other segments like iGaming and retail slots continued to thrive. The fines imposed on operators serve as a reminder of the importance of regulatory compliance, and the license renewal for Rivers Casino Philadelphia highlights the enduring success of this establishment in contributing to the state’s revenue. As the industry continues to evolve, Pennsylvania remains a key player in the world of gambling, with ample room for further growth and innovation.
Written by Shane Pickrell
Shane Pickrell is a seasoned expert in the world of online gambling, with a profound passion for enhancing the gaming experience through his deep knowledge of online live dealer games. With over a decade of involvement in the industry, Shane has established himself as a respected authority on the intricacies of live dealer gaming and its dynamic impact on the gambling landscape.
Shane’s journey into the realm of online gambling was paved with a solid educational foundation. He holds a Bachelor’s degree in Business Administration from a prestigious university in the United States. His academic pursuits not only honed his analytical skills but also provided him with a well-rounded understanding of the business and technological aspects of the online gaming industry.