After making history as the first state to achieve four straight months of $200 million in online casino revenue, Pennsylvania’s iGaming market wrapped up June with $195.6 million. This is the first time revenue has fallen below $200 million since January.
The numbers come from the most recent report by The Pennsylvania Gaming Control Board. The board oversees all aspects of gambling, including 17 land-based casinos, online casino games, retail, and online sports betting, Video Gaming Terminals (VGTs) at qualified truck stops, and online fantasy sports contests.
June saw internet casino gaming revenue register the second-lowest figure of the year, surpassed only by January’s $149.6 million. Despite a 7.7% drop from May’s earnings, this total was still 18.6% higher than the $135.4 million recorded in June 2023.
But the news is not all bad.
Gambling Generating Big Tax Revenue for Pennsylvania
The Pennsylvania Gaming Control Board also revealed another record-breaking feat for the state. The $2.54 billion in tax revenue generated during the 2023-24 fiscal year is the highest in the state’s history.
This revenue comes from $5.89 billion generated by casinos, encompassing slots, table games, iGaming, fantasy sports, and other gaming activities.
In comparison, the 2022-23 fiscal year saw $5.5 billion in gambling revenue and $2.36 billion in taxes.
According to a Gaming Control Board news release, these tax funds will benefit Pennsylvanians through school property tax reductions, contributions to the Commonwealth General Fund to aid senior citizens, and regional economic development projects.
Big Year for iGaming in Keystone State
Year-over-year numbers show that iGaming, which includes online casino games, funds grew over $400 million and 27% from last year. Tax revenue grew to over $800 million from iGaming.
This year marked the most successful year for iGaming revenue in the five years since it was legalized in Pennsylvania, generating over $1.9 billion compared to the previous year’s $1.5 billion. Notably, iGaming was the only form of gambling reported by the gaming control board to see a revenue increase from the prior year.
What Might Lie Ahead for the Pennsylvania iGaming Market?
According to J.R. Duren with PlayUSA, anticipating the rest of the summer, we may witness a temporary dip in revenue below $190 million next month, based on growth data from 2023. However, this should mark the final instance of revenue staying below $200 million this year.
August promises a sharp revenue increase, followed by another significant surge in September. Considering the trends in Pennsylvania’s online casino market, the state could potentially shatter the national iGaming revenue record come December.
In March 2024, Pennsylvania’s online casinos achieved a remarkable milestone, raking in $233.1 million in revenue. Duren says that if December maintains the minimum 18% growth rate observed this year, hitting $240 million in a single month becomes a tangible possibility.
Keep in mind that summer typically yields lower numbers due to outdoor distractions. As the leaves change and fall approaches, expect the numbers to rise.
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