The Pennsylvania Gaming Control Board released its 2019-2020 Annual Report. The in-depth report details all aspects of the gambling industry in the state, including:
- Revenue figures for slot machines, table games, sports wagering, internet gaming, fantasy sports contests and video gaming terminal gross revenue
- Up-to-date status on gaming expansion initiatives, including casino construction
- A year in review report with statistical figures from the PGCB’s key bureaus
- PGCB revenue, expenditures and employment breakdown
- Stats on problem gaming and the self-exclusion program
Of course, like every other industry, casinos in Pennsylvania were hit hard by the coronavirus pandemic. All 12 brick-and-mortar casinos closed for about three months to slow the spread of the virus. The PGCB added a special report to this year’s edition to detail the impact of COVID-19 on PA’s casinos.
PA online gaming surge amid land-based shutdowns
Pennsylvania, only one of three states with iGaming, saw a surge in online play. The loss of revenue from brick-and-mortar closures was devastating, but it could have been much worse without iGaming and the growth of sports betting.
David Barasch, PGCB chairman, said in the report’s Chairman’s Message:
“To describe Fiscal Year 2019-2020 as different would be a massive understatement. The health and safety restrictions needed to fight the COVID-19 pandemic were debilitating for Pennsylvania’s land-based gaming industry. This led to significant revenue loss and temporary unemployment for thousands of industry workers.”
He continued by saying that the good news came in the form of online casinos and sports wagering, which provided people a legal way to gamble beyond the casinos.
Historic year for gambling in Pennsylvania
The 2019-20 fiscal year proved to be a historic one for gambling in Pennsylvania. The first iGaming site launched in July 2019 (SugarHouse) and was followed by eight more operators throughout the fiscal year. Sports betting had already started prior to FY 2019-20 but beefed up its roster with six new online sportsbooks and four retail spots.
Video gaming terminals (VGTs) also arrived in Pennsylvania at qualified truck stops throughout the state. Currently, there are 28 VGTs.
PGCB is busy
Most of the PGCB staff have returned to work after coronavirus shutdowns led to layoffs or temporary furloughs. The PGCB ensures the integrity of gaming in the commonwealth.
Here are some figures about the PGCB’s work this FY:
- 800 patron complaints investigated.
- 1,000 people signed up for the self-exclusion program.
- 8,000 credentials issued to individuals working in varying aspects of the casino industry. All applicants have to meet the requirements of the Gaming Act.
- 5,529 pay tables reviewed.
- 9,142 sports wagering types reviewed.
- Eight monthly public meetings held virtually since March.
The following are statewide revenue breakdowns for FY 2019-20.
Slot revenue
| FY 2019/2020 | FY 2018/2019 | % Change | |
|---|---|---|---|
| Slot Revenue | $1.70 billion | $2.38 billion | -28% |
| Tax revenue | $875.3 million | $1.24 billion | -29% |
| Slot win per day | $227 | $252 | -11% |
| # of machines | 23,404 | 24,869 |
Table games revenue
| FY 2019/2020 | FY 2018/2019 | % Change | |
|---|---|---|---|
| Table Games Revenue | $644.5 million | $885.6 million | -27% |
| Tax revenue | $103.6 million | $142.4 million | -27% |
| Total table games | 1,273 | 1,286 |
Sports betting revenue
| FY 2019/2020 | FY 2018/2019 | % Change | |
|---|---|---|---|
| Handle | $2.29 billion | $244.7 million | 834% |
| Online revenue | $85.3 million | $408,000 | 20,825% |
| Retail revenue | $28.4 million | $21.3 million | 33% |
| Tax revenue | $41 million | $7.8 million | 423% |
iGaming revenue
| FY 2019/2020 | FY 2018/2019 | |
|---|---|---|
| iGaming Revenue | $240.9 million | n/a |
| Online Slot revenue | $153.6 million | n/a |
| Online Table revenue | $62.6 million | n/a |
| Online Poker revenue | $24.6 million | n/a |
| iGaming tax | $97.2 million | n/a |
Slot revenue by operator in PA
| Operator | Slot Revenue |
|---|---|
| Parx Casino | $300.4 million |
| Rivers Casino Pittsburgh | $226.4 million |
| Wind Creek | $187.9 million |
| Hollywood Casino | $147.7 million |
| The Meadows | $144.9 million |
| Mohegan Sun Pocono | $140.9 million |
| Harrah's Philadelphia | $136.1 million |
| Rivers Casino Philadelphia | $123.6 million |
| Mount Airy Casino | $109.4 million |
| Presque Isle Downs | $80.9 million |
| Valley Forge Casino | $75.1 million |
| Lady Luck Nemacolin | $24.5 million |
The following are breakdowns by operator for each form of gaming for FY 2019/2020.
Table games revenue by operator in PA
| Operator | Table Games Revenue |
|---|---|
| Wind Creek Casino | $160.8 million |
| Parx Casino | $137.9 million |
| Rivers Casino Philadelphia | $94.5 million |
| Rivers Casino Pittsburgh | $63.7 million |
| Harrah's Philadelphia | $42.4 million |
| Mount Airy Casino | $28.2 million |
| Hollywood Casino | $27.6 million |
| Valley Forge Casino | $26.6 million |
| Mohegan Sun Pocono | $24.6 million |
| The Meadows | $24.5 million |
| Presque Isle Downs | $10.9 million |
| Lady Luck Nemacolin | $3 million |
Sports betting online revenue by operator
| Operator | Online Sports Betting Revenue |
|---|---|
| FanDuel (Valley Forge Casino) | $39.5 million |
| BetRivers (Rivers Casino Philadelphia) | $12.1 million |
| DraftKings (The Meadows) | $10.1 million |
| Parx Casino | $10 million |
| BetRivers (Rivers Casino Pittsburgh) | $8.1 million |
| FoxBet (Mount Airy Casino) | $5.3 million |
| Unibet (Mohegan Sun Pocono) | $228,000 |
| BetAmerica (Presque Isle Downs) | $153,000 |
| Caesars (Harrah's Philadelphia) | -$17,000 |
iGaming revenue by PA operator
| Operator | Online Casino Revenue |
|---|---|
| BetRivers (Rivers Casino Philadelphia) | $73.2 million |
| PokerStars (Mount Airy Casino) | $48.8 million |
| Hollywood Casino | $38.4 million |
| FanDuel (Valley Forge Casino) | $37.5 million |
| Parx Casino | $30.2 million |
| DraftKings (The Meadows) | $24.5 million |
| Unibet (Mohegan Sun Pocono) | $9.6 million |
| BetAmerica (Presque Isle Downs) | $1.4 million |
| Caesars (Harrah's Philadelphia) | $1.9 million |
Impact on PA casinos
For gaming in Pennsylvania, it’s a tale of two calendars. The 2019 calendar year set a record for overall gambling revenue, hitting $3.4 billion, 4.5% more than 2018. However, due to the coronavirus closures, FY 2019-20 resulted in an 18% drop in revenue.
The PGCB reported that the two-and-a-half-month closures of casinos subtracted $265 million in anticipated tax revenue.
In addition to the loss of revenue for casinos and tax coffers, most of Pennsylvania’s 16,000 casino workers were furloughed. According to the PGCB Diversity Report, more than 60% of the furloughed employees to work. In June 2019, PA casinos employed 16,717. COVID-19 closures and cutbacks resulted in a reduction to 9,883 employees.
Casinos are slowly returning to capacity, but COVID-19 safety guidelines and limited capacity will continue to affect land-based revenues into the next fiscal year.
Lead image credit: Charles Sykes/Invision/AP
