Over any 12-month period, the Keystone State just set a record for overall gaming revenue and taxes in the FY 2022/2023. While almost all gaming verticals increased, the state wouldn’t have broken the record without the help of slot play on Pennsylvania online casinos.
The rise in overall online slot revenue was 31% from last year, more than a $300 million increase.
Online casino operators have increased their library of slots, as well as the specific content they provide. The revenue figures show that players are responding.
The PA casino market is continuing to grow, with more product innovation and new launches on the horizon.
Pennsylvania online casino slot revenue increased significantly from last fiscal year
Pennsylvania online casinos had a lot to do with the state generating a record $5.51 billion in gaming revenue over FY 2022/2023. To no surprise, slot play has been the main source of revenue for not only retail casinos, but online, too.
In FY 2021/2022, online casinos produced $1.23 billion in revenue, with $1.08 billion coming from slots. This fiscal year, online casino revenue totaled $1.53 billion, as slots registered $1.41 billion, a 31% boost.
Pennsylvania has recorded 11 straight months of online slot revenue exceeding $100 million. The state recorded its largest slot total ever in March with $138.2 million.
The last time slots dipped below $100 million in the Keystone State happened in July 2022, recording $96.6 million.
How PA online casinos keep slot libraries fresh
Pennsylvania online casinos are continuing to improve the user experience with new games and offerings daily.
Online operators have hundreds of slots available. For example, when DraftKings Casino PA first entered the PA market in May 2020, the company launched with only 27 slot titles. DraftKings now features just shy of 1,400 games on its platform.
BetMGM Casino PA launched in December 2020 with 120 slot titles. Now its library has grown to more than 1,500 slots.
That has been the case with most online casinos that launched in the early stages. With the amount of games available for players, it’s no surprise that the Hollywood Penn National license, partners with DraftKings, BetMGM, Hollywood, Barstool and PointsBet, leads the state in revenue. The license generated $426.1 million overall in 2023 so far.
BetMGM’s VP of Gaming, Angus Nisbet, shed light on the company’s online casino strategy. Nisbet said BetMGM’s exclusive games set it apart from everyone else. The company has 85 games made in-house and caters to the state where it’s operating.
In Pennsylvania, BetMGM capitalizes on sports-themed online casino games. Nisbet said last month:
“We’ve got exclusive games with the Philadelphia 76ers, doing roulette blackjack with them. We’ve got slots for the Detroit Lions, Pittsburgh Steelers and New York Jets. We have National Hockey League slots that are now exclusively with us. That’s just what we’re doing on our own.”
Creating games that players are familiar with often helps them stick around longer.
The appeal of slots at PA online casinos
Based on the numbers, there’s a huge appeal for slot play in the Keystone State. Most PA casinos are able to offer numerous free spins and promotions that entices players to gamble for hours on end, without spending too much money.
PlayPennyslvania spoke with online content creator and experienced slot player Tiffany Gambla last month on the appeal for slot games, both retail and online. While she mentioned promotions catch her eye, the amount per spin is so low, it allows her to play longer. That is not the case for table games.
“The appeal of slots for me is knowing I can bet 10 cents and have a possibility of winning a progressive jackpot of $5,000,” she said in June.
With many PA online casinos and jackpots available, players can take home even more than $5,000.
What’s next for Pennsylvania online casinos
The online casino industry is not finished growing. Existing operators have either begun plans or have them in place to further expand on customer retention strategies.
PA casino apps to focus on personalized marketing strategies
Barstool Sportsbook and casino launched its own technology platform, which gives the company control over its capabilities and offerings. Penn Entertainment CEO, Jay Snowden, said:
“Having full control of our product and roadmap will lead to improved operational efficiency and the ability to quickly introduce new features, bespoke promotions and wagering markets.”
Barstool has reported successful results with the platform in Ontario, and plans to replicate them in Pennsylvania. The upgraded app will help Barstool with personalized marketing for online casino players.
Caesars Casino PA is also shifting focus to a personalized marketing strategy, targeting online casino players. The operator is planning to debut a standalone online casino app at some point in Q3. Eric Hession, President of Caesars Sports & Online Gaming, is making it a point to emphasize slot players. He said during the Q1 earnings call:
“So we think that by giving that customer an option to go directly into the app, we’ll be able to provide them with something that’s more in line with what they’re expecting from their experience. I think it’s going to attract a higher percentage of the slot customer, which is our core customer from the land-based perspective.”
Expect continued innovation with Pennsylvania casinos
PA online casino operators keep finding ways to innovate their products to enhance the customer experience. BetRivers Casino PA offers premium games, a bonusing engine, multiplayer tournaments and community chats to engage customers.
Rush Street Interactive CEO, Richard Schwartz, said during a Q1 2023 earnings call:
“We have invested and continue to consistently invest resources to build efficiencies and improve the user experience. In addition, we constantly strive to bring new features to market.”
DraftKings noted its homegrown casino games and jackpots played a huge role in creating an additional $195 million in revenue in Q1 2023. Cross-sell strategies between DraftKings PA Casino and sportsbook also immensely helped with customer retention.
DraftKings CEO, Jason Robins, said during the Q1 2023 earnings call that “better products will create stickier customers.”
More PA online casino options are gearing to launch
The PA market is ready to accept several more online casinos in the near future. Bally PA Casino is the latest operator to launch in the Keystone State, with potentially four more coming.
The PGCB approved WynnBet Casino’s license in December 2022. The operator is working on completing the final steps with the Pennsylvania Gaming Control Board before debuting.
Golden Nugget Casino, owned by DraftKings, received licensure approval last month and is preparing for market entry.
Bet365 Casino is the only operator whose license has not been approved yet. The company applied for an application in both verticals in February, which will be decided on at some point in the future.
Though Fanatics Casino won’t technically be a new launch, the sports merchandise company is taking over PointsBet’s license in the near future. It, too, still has steps to complete before launching.
It’s safe to say there’s plenty of room for growth in the Pennsylvania online casino market. It’ll continue to be one of the most crucial revenue streams for the state going forward.
