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Pennsylvania’s casino industry reported a record-breaking $6.8 billion in total gaming revenue in 2025, driven overwhelmingly by the surge in PA online casinos, according to a new statement from Pennsylvania Skill, powered by Pace-O-Matic.
The announcement comes amid continued debate over the role of skill games in the state’s gaming ecosystem and attempts by some casino operators to link those games to softer revenue in traditional brick-and-mortar facilities.
iGaming growth outpaces traditional gaming
The 2025 figures, reported by the Pennsylvania Gaming Control Board and highlighted by POM, show iGaming gross revenue surged to nearly 28% year-over-year to about $3.46 billion, while Pennsylvania sports betting also climbed, and brick-and-mortar slots and table games declined slightly:
- iGaming: $3.46 billion (up 27.7%)
- Sports wagering: $883.7 million (up 13.5%)
- Slot machine revenue: $2.43 billion (down 0.8%)
- Table games: $925.4 million (down 1.3%)
POM’s Chief Public Affairs Officer Mike Barley argued the data paint a clear picture.
“The data makes one thing abundantly clear: brick-and-mortar casinos are losing customers to online gambling – not skill games.”
Casinos and skill games: A divisive debate
While Pennsylvania casinos celebrate record revenue, debate continues around skill games – a category of devices found in many small businesses and fraternal organizations that operate under different regulatory rules than traditional casino games.
Casinos have at times pushed back against the proliferation of skill games, arguing they divert gambling spending away from licensed casinos. But POM’s statement challenges that narrative, emphasizing that the rapid growth of internet gaming coincides with softening retail revenue.
Barley noted that state gaming revenue had remained relatively flat until about 2021, when it began rebounding alongside the rapid expansion of iGaming, which further underscores the company’s position.
“This history shows that casino gambling and skill games have coexisted for years. If slot machine revenue has softened, the cause can be squarely attributed to the growth of internet gambling.”
Advocating for regulation
Beyond challenging the casinos’ targeting of skill games, Pace-O-Matic also called on lawmakers to establish a clear regulatory and tax framework for skill games through pending legislation.
Here are bills lawmakers introduced that would regulate skill games:
- Sen. Gene Yaw: Introduced SB 626, which enacts a 16% tax on the machines
- Sen. Gene Yaw: Introduced SB 1079, establishing fees
- Sen. Chris Gebhard: Introduced SB 756, which includes a 35% tax on the machines
- Rep. Kerry Benninghoff: Introduced HB 1619, which would place no additional tax on the games
- Rep. Danilo Burgos: Introduced SB 2046, which brings licensing fees and cuts taxes for Category 4 mini-casinos
Skill game operators argue the revenue supports thousands of small businesses and community organizations funding jobs, facility improvements, and even charitable giving.
What it means for Pennsylvania gaming
The conversation around where gaming dollars are really going, and competition, appears to be intensifying.
With iGaming continuing to see robust growth and brick-and-mortar revenue plateauing, industry observers say the dynamics of competition in Pennsylvania could shift further in the years ahead.
For casinos, expanding online offerings may be the key to future growth. For skill game advocates, the focus remains on establishing regulated stability and defending their place in the gaming landscape.
