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Pennsylvania is having a record year for gambling revenue. A large proportion of that has come from the online sector.
The Pennsylvania Gaming Control Board has reported that earnings for August related to online casinos have totalled $291.5 million, equating to $231.2 million in adjusted gross. This is the third-highest total in state history. It was also a huge 29.6% on the previous year’s August takings, which amounted to $225.0 million. All of this equated to the collection of $68.2 million in state taxes. An additional $36.9 million in local taxes was also collected, making a grand sum of $105.1 million.
The Rise of Online Gaming Revenue in Pennsylvania
The state of Pennsylvania has long had an open, liberal attitude to online gambling. It was one of the first to legalise online casino gaming, and it remains one of only seven states that allow it. This has built a healthy culture of competition, with websites like Online-casinos.com ranking the best online casinos in Pennsylvania. This has improved the quality by providing customers with information on the best game selection, bonuses, and those that have exceptional customer service. It has also made selecting a casino much easier, increasing the number of people playing games.
This has contributed to a year in which online casino and gambling takings have smashed all expectations. In July, $277.9 million was taken, just 4.9% less than in August. The total for this month was also just short of May's huge sum of $291,720,257 by $225,703.
The Increasing Popularity of Slot Games
Across the board, slot games are becoming one of the most popular forms of casino entertainment, both in online and physical casinos. This can be seen in the yield they are making. In August, retail slots rose by 2.6% to make $216.6 million. Online, digital slot games rose by 29.6% earning $179.3 million. Table games also remained popular. They managed to bring in $49.4 million in the month. Poker alone made $2.5 million.
When releasing figures, Pennsylvania gives two amounts. Adjusted gaming revenue is a total that removes promotional dollars from the total, thus giving a more accurate representation of actual funds spent from consumer pockets.
The state hands out licenses to existing physical casino operators, of which there are ten. They often team up with well-known brands and licences, particularly when it comes to sports betting, and each casino often operates multiple brands. There are only two casino operators not tied to a physical casino in the state. These are Golden Nugget and Bally.
Penn National, who operate the Hollywood Casino, had the most lucrative month. They also have well-known brands like DraftKings, BetMGM, and Fanatics. National managed to make $106,070,909 across its operations. Second was Valley Forge, who operate the FanDuel brand, and managed to make $88,619,270, followed by The River Philadelphia, which managed to net $44,570,371. The biggest percentage change was for Valley Forge, which increased its August takings by 52.1% in the space of a year. Only a few brands reported lower takings than last August, with Mount Airy leading the pack at -30%.
Overall Gambling Revenue Increase in Pennsylvania
This increase in online casino revenue was indicative of a good year for the gambling sector overall. In total, May has been the pinnacle of this, when all gambling revenue came to $601.8 million. August had only the third-highest total, despite its large figures. This was 15.5% higher than its previous year’s statistics.
It is not just online casinos that have contributed to this, but sports betting. In May, around $56.4 million was made from online betting, with $3 million from retail sportsbooks.
Despite this, there are still detractors who are worried about gambling addiction and issues in the state. Luckily, Pennsylvania has had a long time to put in place strategies and help to facilitate responsible gambling.
It is one of the few places where online casinos are legal, though it ranks fourth in terms of problem gambling and addiction problems. At the head of this is Nevada, home of Las Vegas. South Dakota and Montana are second and third, respectively, with Mississippi in fifth. It is worth noting that second and third place are extremely strict on gambling, with no online casinos and no online sports wagering. This could mean many people gamble elsewhere and are not included in the official figures.
A large amount of the profit from the industry goes into programmes such as the Pennsylvania Compulsive and Problem Gambling Treatment Fund. It receives .002% from gambling revenue to operate, at a minimum of $2 million per year. A further £3 million goes to the Department of Drug and Alcohol Programs.
Therefore, Pennsylvania can be seen as a figurehead for how gambling law should be introduced to a state. With the correct funds going back into treatment and education, the gambling sector is being used as a form of revenue to put money back into the state.