The Pennsylvania gaming industry is booming. The Keystone State set a fiscal year record for revenue and taxes in 2022/2023.
The online vertical of gambling has helped push the state beyond the $5 billion threshold for gaming revenue the past two fiscal years. However, retail slots at Pennsylvania casinos are the state’s bread and butter, making up 44.4% of the entire gambling revenue.
Almost every gambling vertical increased in the state over the last 12 months.
Pennsylvania breaks fiscal year record in gambling revenue and taxes
After June revenue figures were released, the Pennsylvania Gaming Control Board (PGCB) reported a new state record for revenue and taxes.
Pennsylvania recorded $5.51 billion in gaming revenue for the FY 2022/2023 and reached a tax mark of $2.37 billion. Both categories are a record over any 12-month period, eclipsing the $5.2 billion in revenue the state made in the calendar year 2022.
To put into context, Pennsylvania generated $5.04 billion in gaming revenue last fiscal year, resulting in nearly a $500 million increase in this latest report. From FY 2011/2012, gaming revenue had always been around $3.2 billion. Since the addition of online gaming, it’s only increased from there:
- 2017/2018: $3.25 billion
- 2018/2019: $3.31 billion
- 2019/2020: $2.72 billion
- 2020/2021: $3.87 billion
- 2021/2022: $5.04 billion
- 2022/2023: $5.51 billion
PGCB Director of Communications, Doug Harbach, commented on the growth of the gaming industry to PlayPennsylvania:
“The market over the past year or so after the COVID period has rebounded well with continued significant play in the casinos. In addition, more players are comfortable with the growing online gaming options which are tested and closely monitored by Gaming Control Board staff, just has been the case for over 16 years in our work with casinos, to assure fairness and integrity with all games.”
Retail PA casino slot machines still rule the market
While the launch of online casinos and sports betting in Pennsylvania has moved the ball forward, as Harbach said, slot play at retail casinos have remained strong. In fact, land-based casinos reported the second-highest total revenue ever at $2.45 billion.
The record for retail slot revenue was set in 2011/2012, when PA casinos recorded $2.48 billion. This is only the fourth time the Keystone State produced retail slot revenue of more than $2.40 billion since 2010/2011.
Parx Casino is the leader of the slot pack by far. The Bensalem casino, which has been recently ranked as one of the world’s most profitable casinos, posted a revenue total of $390 million. Parx’s slot total dropped slightly (4.41%) this fiscal year.
The next closest casinos in slot revenue are Wind Creek Bethlehem and Rivers Casino Pittsburgh. Here are the top 10 slot operators in the state:
- Parx Casino: $390 million
- Wind Creek Bethlehem: $278.9 million
- Rivers Casino Pittsburgh: $269.5 million
- Mohegan Pennsylvania: $184 million
- Hollywood Casino at the Meadows: $169.2 million
- Mount Airy Casino Resort: $156 million
- Hollywood Casino at Penn National Race Course: $150.6 million
- Rivers Casino Philadelphia: $132 million
- Live! Casino Philadelphia: $131.2 million
- Harrah’s Philadelphia: $125.9 million
Wind Creek Bethlehem and Rivers Casino Pittsburgh were recognized recently as Top 20 Commercial Casinos Outside Nevada.
Pennsylvania casinos have recovered and even grown since the pandemic. Parx Casino opened another location in Shippensburg earlier this year.
Online and retail slots generate majority of PA gambling revenue
While the entire market is flourishing, slots are the main factor that drives revenue for the state.
As retail slots produced $2.45 billion in revenue, online slots registered slightly more than half that at $1.29 billion. Though Pennsylvania boasts the top market for online casinos in the country, it still gives perspective on how strong retail slots are.
Putting the two together, retail and online slots generate 67.9% of the gaming revenue in FY 2022/2023.
Clearly, there’s an appeal for slots in Pennsylvania. Tiffany Gambla, an online content creator and avid slot player, told PlayPennsylvania the promotions operators offer draw people in:
“As someone who genuinely enjoys playing slots, these promos make my bankroll last longer which means more hours of fun for me, and more chances to win,” she said last month.
Whatever casino operators are providing, both online and retail, it’s working.
Other PA gaming verticals’ performance FY 2022/2023
Here is every PA gambling verticals’ performance in FY 2022/2023:
- Retail slots: $2.45 billion
- Retail table games: $974 million
- Online casinos: $1.53 billion
- Sports betting: $492 million
- VGTs: $42.1 million
- Fantasy sports: $20.6 million
- Total: $5.51 billion
Only retail table games and fantasy sports revenue declined in FY 2022/2023.
The PA gambling industry is even continuing to expand, with several online casinos expected to launch in the Keystone State in the near future.