The American Gaming Association is reporting today that Pennsylvania has one of the most successful markets in the country, producing the second-most commercial gambling revenue in Q1 2024. The Keystone State generated nearly $1.7 billion in commercial revenue in the first three months of 2024, trailing just Nevada, which posted $3.9 billion.
Pennsylvania ranked higher than other respective gambling markets, including New York, New Jersey and Michigan. The Keystone State has just about all forms of gambling, which makes it a top market in the country. It soon could another, too.
Pennsylvania considered top gambling market outside of Nevada in Q1
Nevada finishing first in commercial gambling revenue shouldn’t be a shock to anyone. And, neither should Pennsylvania’s performance.
However, the Keystone State proved how mighty its gambling market is, after the state achieved $1.69 billion in commercial gambling revenue in Q1. The next markets to finish behind Pennsylvania included:
- New Jersey: $1.55 billion
- New York: $1.26 billion
- Michigan: $1.03 billion
No other state produced more than $1 billion in revenue during the first quarter. Ohio finished fifth overall at $840.2 million.
Retail slots are the biggest revenue driver for the Keystone State, which generated $610.1 million in Q1. Here’s a breakdown of gross revenue from the other gambling verticals:
- Retail slots: $610.1 million
- Retail tables: $234.5 million
- Online casinos: $637.7 million
- Sports betting: $145.8 million
- Online Poker: $7.6 million
- Video Gaming Terminals: $9.9 million
- Fantasy contests: $4.9 million
Retail casinos still pave the way for the state, making up almost exactly half of the gambling revenue. PA online casinos have been growing at a rapid pace, too, having produced $200+ million in February and March.
Pennsylvania could drive even more gambling revenue from skill games regulation
The Keystone State is already considered one the most prolific markets in terms of gambling revenue as currently constructed. The state is heavily considering adding another gambling vertical, which would make the Keystone State even stronger.
Gov. Josh Shapiro proposed a 42% tax on Pennsylvania skill games in his upcoming FY budget. There are other bills on the table, introduced by Pennsylvania Senator Gene Yaw (R-23) and Rep. Danilo Burgos that would generate a substantial amount of revenue, too.
Let’s say Pennsylvania went with Shapiro’s plan, the Independent Fiscal Office (IFO) projects the Keystone State would make $421 million by FY 2028/2029.
That would make Pennsylvania skill games a top five revenue generator in any quarter, likely behind sports betting.
As the popularity for gambling grows, Pennsylvania is looking like a powerhouse in the sector.
For more details, check out the AGA’s latest analysis.
