Pennsylvania iGaming Thrives Despite February Revenue Dip

Pennsylvania’s gambling sector saw a moderate slowdown in February, with total revenue dropping 4.3% year-on-year to $477.2 million, according to data from the Pennsylvania Gaming Control Board (PGCB). Despite this dip, iGaming revenue surged, helping offset losses from traditional casino games and sports wagering. While the data does not encompass verticals like skill games or lotteries, those sectors also saw significant developments.

Overall Results Remained Mixed

Hollywood Casino at Penn National Race Course remained among Pennsylvania’s top-performing casinos, reporting $89.5 million in revenue. However, this figure marked a 2.9% decline from February 2024. Valley Forge Casino Resort, however, saw robust growth, reporting $81.4 million for a 9.9% gain. If these trends persist, Valley Forge could emerge as the state’s leading venue in the following months.

Rivers Casino Philadelphia recorded a modest 5% growth, reaching revenues of $51.2 million. While Parx Casino Philadelphia’s revenue shrank by 2.7% to $49.9 million, the venue remained the leader in slots with $28.9 million. Statewide slot revenue, which commands the largest share among Pennsylvania casinos, decreased 8.1% to $186.3 million, explaining the overall negative trend.

While traditional casino gaming faced setbacks, Pennsylvania’s digital gaming sector retained its momentum with a 12.3% year-on-year increase. Hollywood Casino at Penn National led the pack with revenues of $77.6 million, while Valley Forge Casino Resort recorded one of the most impressive revenue surges, skyrocketing 26.5%. Rivers Casino Philadelphia also performed admirably, with February revenues settling at $34.2 million.

Sports Wagering Had a Rough Month

Pennsylvania’s sports wagering sector has witnessed increasing segmentation, with only two operators surpassing the $1 million gross revenue mark. While February’s sports betting handle was $756.92 million, overall revenues collapsed to just $7.5 million, partially due to the Philadelphia Eagles’ Super Bowl victory triggering massive payouts. Valley Forge Casino Resort performed the best with $13.7 million in sports betting revenue. However, 11 operators reported losses.

Beyond casino and online gaming, the Pennsylvania Lottery is calling for legislative changes that could increase revenue. State law sets a 20% minimum profit margin on traditional lottery games. However, this rule does not apply to online lottery offerings. The Pennsylvania Lottery argues removing the restriction would lead to higher payouts and more competitive games, bolstering overall profits.

Despite February’s overall revenue dip, Pennsylvania’s gambling industry remains strong, spearheaded by the surging iGaming vertical. However, declining slot and sports betting revenues highlight ongoing shifts in consumer behavior. Policymakers are considering several reforms to aid the brick-and-mortar sector, including a 52% revenue tax for the controversial skill game sector, a move that could significantly reshape industry dynamics.