There’s a first time for everything. Pennsylvania’s commercial gambling business exceeded $500 million in monthly revenue in March for the first time. It’s thanks, in large part, to recording iCasino play, but also Pennsylvania sports betting contributed to the record-breaking revenue.
The Pennsylvania Gaming Control Board announced that combined March revenue from the state’s 17 casinos, fantasy contests, and video gaming terminals reached a new high of $515.3 million. That’s an increase of more than 11% year over year and generated over $212 million in total tax revenue for the month.
“This has become a significant revenue generator and a lot of it is directly going back to citizens of Pennsylvania in one way or another,” said David Harbach, the communications director for the Pennsylvania Gaming Control Board, told Fox 43 News.
Their combined revenue easily surpassed the previous high of $475 million just set in December.
iGaming Fuels Big Revenue Numbers in Pennsylvania
According to Harbach, the popularity of iGaming and sports betting contributed to record earnings. Pennsylvania is on track to exceed $2.4 billion in tax collections by 2023. This is a 9% increase over last year.
“Because additional revenue is coming in from online casino games in addition to the slots revenue tax, we are seeing about a 20% increase in the amount of property tax reduction for all homeowners,” Harbach explained.
“Revenue would not have reached $500 million without the addition of new forms of gaming,” said Richard McGarvey, the board’s deputy director of communications. “There is no doubt that iGaming and sports betting played a significant role… With a record in both iSlot and iTable gameplay, iGaming made the most difference.”
Tax Revenue Generated Is Also a Record
It’s also worth noting that for the first time, tax revenue exceeded $200 million in a single month. That also set a record.
According to McGarvey. In addition to property tax relief, that revenue is used for a variety of projects throughout Pennsylvania, including:
- Community grants in casino areas (often referred to as Local Share Assessment).
- Statewide economic development projects.
- Fire department grants.
- Problem gambling prevention and treatment services.
- Racehorse development funding.
Last year, analysts projected gaming revenue could exceed $5 billion. For tax revenues, the commonwealth is looking at an estimated $2 billion from the industry,
Expansion May Be Coming Soon
Prior to 2006, the only permitted gambling in Pennsylvania was on horse racing. Since then, the state’s gambling choices have grown, with internet gaming and slot machines generating the most revenue, followed by table games. Another form of gambling that may be on the horizon is skill games, which are now illegal.
With sports betting being the fastest-growing revenue stream and the possible expansion of gambling alternatives, it remains to be seen how far the industry in Pennsylvania may grow.
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