Pennsylvania Gaming Reports Best Year, 2023 Revenue Nearly $5.7B

Posted on: January 18, 2024, 04:16h. 

Last updated on: January 19, 2024, 11:14h.

Add Pennsylvania to the list of states calling 2023 their best year in terms of gaming. Joining New Jersey, which earlier this week announced record annual revenue, Pennsylvania on Thursday revealed that 2023 was a banner year for its gaming industry.

Pennsylvania gaming revenue casinos
Parx Casino was the top-grossing property in the Pennsylvania gaming industry in 2023. The year was a banner performance for the state industry, as revenue reached nearly $5.7 billion. (Image: Parx Casino)

Pennsylvania has brick-and-mortar casinos, iGaming, in-person and online sports betting, truck stop video gaming terminals, and fantasy sports. In 2023, the varying gaming interests combined to win a record $5.697 billion. The 2023 win represents a 9.3% year-over-year increase.

The year-end report from the Pennsylvania Gaming Control Board (PGCB) revealed that iGaming, consisting of online slot machines and table games, was primarily responsible for the record performance. Internet gamblers lost $1.74 billion, 28% more than they did in 2022.

Physical slot machines inside the state’s 17 casinos also fared well, as the terminals generated record gross gaming revenue (GGR) of $2.46 billion, a 3% improvement. Oddsmakers saw their sports betting hold climb more than 14% to a record $458.6 million.

The other verticals experienced slight year-over-year declines. Casino table game win dropped 2% to $990.5 million. VGT revenue fell 2% to $42 million, and revenue from fantasy sports contests slowed by 10% to $20 million.

iGaming Surging

iGaming in the six states where online casinos are legal continues to thrive. The $1.74 billion won by the online channels last year continued the sector’s impressive run.

Pennsylvania legalized iGaming through the state’s 2017 gaming expansion package. Online operations didn’t go live until late 2019.

iGaming’s first full year in Pennsylvania in 2020 came at a most suitable time. As the state ordered its physical casinos to shutter amid the pandemic, online casinos were open for play. iGaming platforms won more than $565.7 million that year.

Pennsylvania online casinos have only furthered their growth since. iGaming GGR in 2021 topped $1.11 billion, and ballooned to $1.36 billion in 2022.

The state’s land-based casinos have managed to increase their revenues despite iGaming’s significant revenue increases.

Retail slots and tables won $3.43 billion last year, a 1.6% year-over-year increase. The 2023 casino win also represents a 7% surge on 2021 GGR, but was only 5% richer than pre-pandemic 2019.

While brick-and-mortar casinos in iGaming states have managed to increase their year-over-year GGRs, analysts have expressed concerns that the online games could be slowing more robust brick-and-mortar growth.

Parx Leads

Parx Casino north of Philadelphia was the top-grossing casino in the commonwealth last year. The property won $386.2 million on its slots and $202 million on its tables, for a combined haul of $588.2 million.

Parx and its sister casino, Parx Casino Shippensburg, are the only smoke-free casinos in the state.

Wind Creek Bethlehem placed second with GGR of $526.3 million, with slots accounting for $285 million and tables for $241.3 million.

As for iGaming, Penn Entertainment’s Hollywood Casino online brand led the way with revenue of $712.4 million. Penn held an impressive 41% market share of the iGaming industry. There are 12 online casino operators.

Pennsylvania Loses to New Jersey

Nevada and New Jersey had long been the country’s two richest gaming states. That’s until 2022, when Pennsylvania squeaked by the Garden State for second place. Pennsylvania’s 2022 GGR of $5,211,274,456 edged New Jersey by just $28,735.

New Jersey regained the second spot in 2023 after reporting GGR of more than $5.77 billion. Nevada hasn’t yet revealed its December numbers, but through November, the state’s casinos won more than $14 billion.