The Pennsylvania Gaming Control Board released the iGaming revenue report for Pennsylvania, and it shows a stronger-then-ever upward trajectory, reaching almost $175 million for July this year. The overall revenue for gaming in PA - which includes land-based slots and table games as well as sports betting and fantasy games - is at $500.8 million, an increase of 7.22% from last year.

The Pennsylvania Gaming Control Board has announced a robust total gaming revenue of $500.8 million for July of 2024, which is a notable 7.22% increase compared to the same period last year. This growth is primarily fueled by the strong performance of internet gaming or iGaming and sports wagering, reflecting broader industry trends seen in neighboring states like New Jersey.

The reported revenue includes contributions from a range of regulated gaming activities across the state, such as iGaming, table games, slot machines, sports wagering, fantasy contests, and video gaming terminals or VGTs. This diversity in revenue streams serves to highlight the adaptability of Pennsylvania's gaming industry in meeting evolving consumer preferences.

iGaming and sports wagering lead the charge

iGaming continues to be the standout performer, with the revenue for July 2024 reaching $174.3 million - a remarkable increase of 31.20% from July 2023. The growing popularity of online gaming platforms has not only bolstered overall revenue but also generated substantial tax income for the state, amounting to $75.5 million for the month.

Sports betting also saw significant growth, with total revenue encompassing $414.7 million in July 2024, representing a 22.52% year-on-year increase. The taxable revenue also rose by 20.18% to $38.6 million, contributing $13.9 million in tax revenue. The rise in both iGaming and sports wagering shows a shifting consumer preference towards digital platforms, a trend that mirrors the gaming landscape in New Jersey, where similar growth patterns have been observed.

Declines in traditional gaming segments

But while digital gaming segments thrived, traditional retail gaming faced challenges. Slot machines, once the biggest contributor to PA's gaming revenue, made $204.3 million in July of 2024. However, this points to a 4.83% decline compared to the previous year. The decrease coincided with a reduction in the number of slot machines still left running, which decreased from 25,291 in 2023 to 24,709 in 2024. But in spite of this downturn, the tax revenue from slot machines remained significant, reaching $103.2 million.

Land-based table games also experienced a dip, falling by 4.84% to $79.4 million in July this year. The corresponding tax revenue from table games reached $13.1 million. These declines in traditional gaming sectors suggest a potential shift in consumer behavior as more players gravitate towards the convenience and variety offered by online platforms.

Steady performance in other gaming categories

In addition to the major gaming segments, other categories also contributed to Pennsylvania's overall revenue growth. Video gaming terminals or VGTs, which are found at truck stops, produced $3.5 million in July, showing a 4.33% increase from the previous year. The tax revenue from these terminals were at $1.8 million, indicating steady performance in this niche market.

Fantasy contests saw an uptick in revenue as well, with July figures totaling $714,971, an increase of 9.01% year-on-year. The tax revenue from these contests reached $107,246, further adding to the state's overall gaming income.

A record-breaking year for Pennsylvania's gaming industry

These positive revenue figures are trailing Pennsylvania's record-breaking total of $5.7 billion for the whole year of 2023, solidifying the state's position as a leading player in the US gaming market. The continued growth in iGaming and sports wagering is expected to drive the market forward, helping offset the declines that were apparent in traditional segments such as table games and slots.