Revenue-breaking year for the Pennsylvania gambling industry and high hopes towards 2023
The Pennsylvania gambling industry continues to grow, suppressing previous years and setting new revenue records yearly.
According to Pennsylvania’s gaming control board (PCGB), a press release from Jan 18th, 2023, the combined revenue generated from online wagering, slots, Sports Betting, VGTs, and table games broke the previous record in over half a billion USD, totaling 2022 in $5,211,303,191. A significant increase compared to $4,734,552,201 in 2021, and 2023 revenue is expected to soar even higher.
Growth drivers
Pennsylvania’s gambling industry has experienced significant success which can be attributed to several factors. However, when reviewing the 2022 yearly statistics, it is evident that a few factors were more significant than others in this success. Among those are Slots, Online gambling, and sports betting.
Slots: The PA spinning reels show no sign of slowing down
Slots have always led the gambling revenue board of Pennsylvania’s gambling industry. The state’s casinos have invested heavily in slot machines, which have become increasingly popular among players because they are easy to play and offer the chance to win large jackpots. With slot machines now being placed in racetracks, truck stops, and even certain malls, there is no wonder the segment revenue increased by 4.51% from $2,28 billion generated in 2021 to $2,39 Billion generated in 2022, indicating that slots popularity trend is far from over.
Online gambling: major convenience, massive growth
Online gambling’s popularity reached new heights in 2022. Since its legalization in 2019, iGaming has opened up a new revenue stream for gambling operators by offering a more convenient way to play for those who can afford the game but can’t always afford the time. Younger players 21-36 are increasingly turning to online gambling as their go-to way to gamble on table games, slots, poker, and wager on sports. Pushing online gambling revenue growth to nothing less than remarkable with a yearly growth surge of 22.6%. This massive increase of $252 Million totaling 2022 online gambling revenue at $1.36 billion and is expected to reach new heights in 2023.
Sports wagering: $7.24 billion handle
With eight major league professional teams, it is no wonder that sports fans in the keystone state widely embraced the legalization of sports betting in 2018. With $7.24 billion wagering handles and a sports revenue of $401 million, The statistics show beyond a doubt that sports have become one of the most popular activities among Pennsylvanians. Several factors have driven the popularity of sports betting. Still, the recent growth can be attributed to the entrance of online gambling and mobile sports betting apps, providing players with a wider range of sports and events to bet on with significant payouts available and accessible.
Tourism
One of the most important factors that cannot be summed into wagering growth is the impact gambling tourist had on the staggering $5.2B revenue in 2022. The PA “Expanded Gaming Act” paved the way to regulated gambling but also to the transformation of the keystone state into one of the hottest locations in the world for casino resort vacations, Offering world-class brick & mortar casinos, racinos, and other forms of entertainment. 2022 also represented the year the world finally broke out of the 2020-21 quarantine circle and returned to normality – which means more and more tourists flowing into the state to view this remarkable transformation first-hand and participate in all the fun activities.
Looking Ahead to 2023 and Beyond
As we move into 2023, Pennsylvania’s gambling industry shows no signs of slowing down. With the state continuing to explore new opportunities for growth, including the expansion of online gaming and sports betting, there is every reason to believe that we will see another year of record-breaking revenue soon.
By continuing to foster a welcoming environment for the gambling industry, the state is well-positioned to maintain its position as one of the top gambling destinations in the United States for many years to come and, most important – provide more jobs to Pennsylvanians and support all other aspects of the economy.