Pennsylvania is one of the most dynamic gambling markets in the country. The Keystone State has 17 retail casinos, 23 online casinos and 11 online sportsbooks. It’s soon to join the Multi-State Internet Gaming Agreement (MSIGA), too, in 2025.
Because of Pennsylvania’s standing in the gambling industry, lots of big stories came out of the state that involve each gambling vertical, including a record-setting online casino market.
The prevalence of skill games is a significant issue within the state, as casinos are trying to ban the games or at the very least, regulate and tax the machines. It heads into 2025 without a solution, as of yet.
PA iGaming industry sets multiple revenue records
Pennsylvania online casinos lead the iGaming market over other states such as Michigan and New Jersey. Operators have set multiple US records, and are on pace to set a new yearly high, too.
The Keystone State raised the bar to $233.1 million in March, which beat February’s total of $215.3 million. Platforms continued to put up more than $200 million in revenue in every month but one this year.
It didn’t break March’s record until October’s output of $245.2 million. In the process, the state broke the $2 billion threshold for the year, too. Operators one-upped themselves in November, by posting $252.2 million in monthly revenue, another US record.
It’s clear Pennsylvanians love online casino games, specifically slots, because revenue in that sector alone crossed $200 million in November for the first time ever.
With December’s total to be reported in mid-January, operators are on pace to generate $2.65 billion in yearly revenue. That would shatter 2023’s total of $2.11 billion.
The sky is the limit for online casinos in the Keystone State. Even latecomers such as Fanatics Casino and bet365 Casino are experiencing success in the market.
Skill games debate continues as Supreme Court decides legality
Pennsylvania skill games have been a huge topic of discussion in 2024 and is expected to carry into the new year. PlayPennsylvania reported back in June that the Pennsylvania Supreme Court is going rule on the legality of skill games.
Skill games have not lost a court battle as of yet, which includes the Commonwealth Court deeming the machines as legal last December. Pace-O-Matic (POM), a Georgia-based skill games manufacturer, is seeking regulation and wants help small businesses and raise tax money for the state.
There is support on the legislative side, too, as Pennsylvania Senator Gene Yaw’s (R-23) and Rep. Danilo Burgos each sponsored bills that provides a framework for regulation. Burgos plans to re-introduce legislation in 2025.
Gov. Josh Shapiro appears to be in favor of regulating the machines, too. In his FY 2024/2025 budget address in February, he included a 42% tax to be collected and distributed back to the Commonwealth. However, that did not come to fruition.
There’s been obvious pushback from the casino industry, which wants the games banned altogether or taxed at the same rate of 52%. In July, 12 Pennsylvania casinos filed a complaint to the Supreme Court arguing that taxes on slot machines are unconstitutional because of the lack of oversight.
There’s no timetable on the Supreme Court’s ruling of the games or potential regulation. Storylines are sure to continue in 2025.
Pennsylvania start negotiations to enter MSIGA
PlayPennsylvania broke the news of Gov. Shapiro giving the Pennsylvania Gaming Control Board (PGCB) permission to enter MSIGA. PlayPennsylvania obtained a letter Gov. Shapiro wrote to the PGCB, which said:
“I respectfully request the Pennsylvania Gaming Control Board through its statutory authority pursuant to section 1207 Title 4 of the Pennsylvania Consolidated Statutes, begin the process of negotiating the Commonwealth’s entrance into the Multi-State Internet Gaming Agreement.”
Pennsylvania online poker has taken a backseat to Michigan and New Jersey, who are already part of MSIGA. Once the Keystone State joins, it’s likely to take over the top spot.
Pennsylvania joining MSIGA would be huge for the industry, including players and operators, who get to pool from multiple states including New Jersey, Michigan, Delaware, Nevada and West Virginia.
Players are going to benefit from much larger prize pools because of the Keystone State’s involvement in MSIGA.
New operators launch and are making an impact
Fanatics and bet365 are two prominent operators that went live in the Pennsylvania gambling market in 2024. Experts wondered how each platform would perform in a such a rich gambling state, considering both are late to the party.
Fanatics launched at the start of the year, in January, and has come into its own. The brand is not FanDuel or DraftKings, but it’s finished the top four or five in handle since football season has started. Fanatics is partnered with Hollywood Penn National for its online casino, which makes it difficult to see performance because the PGCB does not break down iGaming revenue by operator.
Bet365 launched over the summer and has also been strong. The operator has placed in the top six in sports betting handle during football season. As Presque Isle Down‘s only partner, bet365 casino’s performance is measurable.
During the football season, the operator has produced the following totals:
- September: $4.7 million
- October: $5.6 million
- November: $3.6 million
Despite a down November, bet365 has acquainted itself well with the PA market, as has Fanatics.
These storylines are expected to develop further as the calendar changes to 2025. New ones are going to come of age, too.
