Pennsylvania recorded a new record year for legal gambling, according to a report by the Pennsylvania Gaming Board of Control (PGCB), with revenue nearly half a billion dollars higher than the previous year. In calendar year 2022, combined revenue from slot machines, table games, sports betting, iGaming, video game terminals (VGTs) and fantasy competitions totaled $5.2 billion, compared to $4.7 billion billion by 2021, making it the country’s second-richest gambling state.
The increase in total game revenue also resulted in record combined tax revenue production in 2022 of $2.1 billion, up from $1.9 billion in 2021. The bulk of it came from gross revenue from hunting machines. slots in the state’s casinos, by far the most profitable vertical with $2.4 billion in revenue, followed by iGaming ($1.4 billion), table games ($990.6 million), sports betting ($1.4 billion). $401.2 million) and VGTs and Fantasy Competitions ($64.3 million).
Slot machine games saw a 4.5% increase in 2022 when compared to the $2.3 billion generated in 2021. Despite a nearly 4% drop in revenue, Parx Casino led the segment with $393 .8 million in slot machine revenue, followed by Wind Creek Bethlehem ($272 million), Rivers Casino Pittsburgh ($266.9 million), Mohegan Pennsylvania ($185 million) and Hollywood Casino at The Meadows ($162.8 million).
Retail table games revenue jumped even further, increasing 7.1% year-over-year. Wind Creek Bethlehem dominated this vertical with $243.7 million and a whopping 31.6% increase, followed by Parx Casino ($204.9 million, down 1.4%), Live! Casino Philadelphia ($100.4 million), Rivers Casino Philadelphia ($98.2 million, 3% down) and Rivers Casino Pittsburgh ($88.2 million).
Last year was also great for sports betting, which saw increases in revenue and operations. Revenue jumped nearly 18% to $401.2 million, while total wagering value, both retail and online, was $7.2 billion, up 10.7% from 2021. Valley Forge Casino Resort was the vertical leader, recording $210 million in revenue thanks to an increase of nearly 40%. The Hollywood Casino at The Meadows was second with $76.2 million, and the Hollywood Casino at Penn National was third with $21.6 million.
iGaming overall delivered an even better year, with its revenue increasing by 22.6% to $1.4 billion, produced by 10 online gaming operators. Hollywood Casino at Penn National ranked first here with $561.2 million in revenue, followed by Rivers Casino Philadelphia ($326.4 million) and Valley Forge Casino Resort ($255.5 million).
VGTs at truck stops, which at the end of the year totaled 66 installations across the state, posted a 5.6% increase in revenue to $42 million. Meanwhile, fantasy sports competitions were the only vertical to record a drop in revenue year-over-year: the segment posted nearly 24% less revenue than in 2021, totaling $22.3 million.
Pennsylvania trumps New Jersey in betting segment
The record number puts Pennsylvania as the nation’s second richest gaming state in 2022, by a slim margin. With Nevada long-time top state for US gambling, New Jersey and Pennsylvania have been competing for second place in recent years – an achievement that now belongs to Keystone State.
Pennsylvania managed to outperform New Jersey, which also released its full-year revenue report this week, by a very small revenue margin of $28,000. While Garden State managed to retain its runners-up status in 2021, Pennsylvania has now finally dethroned its neighboring rival: New Jersey recorded $5,211,272,456 in betting revenue and Pennsylvania delivered $5,211,303,191, a difference of US$ $28,735.
Gaming revenue continues to grow in Pennsylvania thanks to the Expanded Gaming Act of 2017, which authorized online gaming, sports betting, fantasy sports and VGTs. It also created additional “mini-casino” opportunities to operate retail properties. And looking to the future, Pennsylvania looks poised for even greater growth.
Existing casinos across the community have, since the start of the pandemic, spent an estimated $250 million on renovations to attract more visitors. These investments were mainly in new buildings and amenities, aimed at attracting younger players.
But in addition to improving already operational properties, gaming interests are also looking at the prospects for opening new casinos. Greenwood Gaming and Entertainment is set to debut Cumberland County’s first casino next month, Parx Casino Shippensburg. It will become Pennsylvania’s fourth Category 4 – “mini-casino” property.
Category 4 properties are authorized to operate 300-750 slot machines and a maximum of 30 table games. Parx Casino will officially open its doors on February 3rd. According to the property’s website, the casino will feature 500 slot machines, 48 electronic table game locations, restaurants and bars.
An expansion of online games is also in the works. Earlier this month, the Pennsylvania Board of Gaming Control reopened its bidding process for iGaming operator licenses. Eligible Gaming Entities may seek to offer internet-based slot machines, table games and poker via a petition window opened between 3 January and 3 March 2023.
A Qualified Gaming Entity can obtain one or more of the three categories of iGaming certificates that remain available in the Commonwealth and can operate online without having any ties to a Pennsylvania casino. This is the second time the board has made iGaming certificates available to entities with no physical presence in Pennsylvania.
