As the end of 2021 is approaching, the gambling industry in the Keystone state comes up with the reports. Thus, thanks to those who are aware of how to count cards and spin the slots, the total of gambling industry income in PA comprises $3.4Bn in 2020/2021. Such information is considered to be credible, for it comes from the Pennsylvania Gaming Control Board.
In compliance with the gambling statistics PA page, the gambling industry in the state is booming. And this mind-blowing jump is not going to end, as even bigger revenues will have occurred by the end of 2022.
Boom in Gambling Revenues in Pennsylvania
Online casinos in Pennsylvania continue to grow and continue to grow.
Online casino and poker revenue totaled $ 54.5 million in July 2021, according to figures released by the Pennsylvania Gambling Regulatory Board. It nearly hit an all-time high of $ 55.9 million in May 2021.
Still, it was a month for the Pennsylvania online gambling industry, barely a year old, to boast. The record in May came when the coronavirus closed all 12 mainstream casinos. Casinos are now 50% open, but players are still flocking to online platforms.
Revenue From Slot Machine Games
Slot machines and table games generated $ 51.4 million in revenue, of which $ 23 million went to state and local taxes. In July, online poker generated nearly $ 3 million in online gambling revenue.
It was the third month in a row that the total betting volume on online slots exceeded $ 1 billion.
Which Casinos PA?
Wind Creek Casino and PlayLive! The casino launched its online offerings in August with a weekly difference. PlayLive arrived ahead of its usual counterparts in Philadelphia and Westmoreland, PA.
Online casinos in Pennsylvania remain popular in July 2021. Total gaming volume (slot machines and table games) jumped $ 160 million in July from the previous month, but fell $ 17.5 million below the May record.
Top Pennsylvania Online Casino Operators According to Revenue Generated
There are currently 12 online casinos operating in Pennsylvania. Ten of them are included in the July report of the PA Gambling Control Board (both BetRivers’ sites merged). The first numbers for Play Live! The casino will be unavailable until next month.
Philadelphia Rivers leads in total ad space revenue ($ 14 million). Penn National was the leader in board game revenues ($ 2.4 million). Penn now offers both the Hollywood Casino and the Pennsylvania DraftKings Casino app.
Parx and Valley Forge (FanDuel) have had good months as well.
New Online Casino Market Income in PA?
It took New Jersey more than six years to generate over $ 50 million in online gambling revenue in a month. Pennsylvania did it in less than a year. Total online slots bets exceeding $ 1 billion for the third month in a row represent more of a double game before the pandemic.
PokerStars, the only online poker room in Pennsylvania, set a record revenue in April 2021 at $ 5.3 million. In July 2021, it showcased nearly $ 3 million.
Perhaps soon it will get the taste of competition for the first time. In addition, the World Series of Poker (aka WSOP) is expected to launch in Pennsylvania in the near future in collaboration with Harrah’s Philadelphia.
Generally, the Keystone state online gambling products are tied to land-based casinos. But this does not apply to the PartyPoker GVC brand, which is now under the MGM / GVC ROAR Digital online gambling umbrella.
BetMGM is one of two Qualified Gaming Organizations (also known as QGO) licensed to use iGaming products in the Keystone state pending PGCB approval.
Another one is Golden Nugget, which has licenses for slot machines and table games, but not poker.
Pennsylvania Gambling Revenue Compared to the Other States
In countries with legal gambling, as a rule, part of the GGR goes to taxes, so the more casino customers place bets, the more money the state will earn.
Five PA casinos reported higher revenues in January 2021 compared to January 2020: on average, their revenues grew by 6.7%.
Detroit’s three casinos received 15% more revenue in January this year compared to January last year.
Even in Connecticut, where the gambling business has been on the decline for years due to increased competition, revenues have been on the rise lately.
A gambling renaissance has also begun in Atlantic City. In January, the eight casinos that remained in business generated 19% more revenue than the same month in 2014. If these eight casinos received income in January this year by 1% more than 12 casinos received in January 2021!
The data for the state of Maryland, which show that casino revenues have been declining here for two months in a row, in December 2020 and in January 2021, is a little out of the picture.
Indeed, in November 2020, the state treasury received a record $ 100.2 million, in November 2021 it was already more than $ 125.6 million. However, the record revenues in late summer and fall 2021 are largely attributed to the opening of the new Horseshoe Casino Baltimore in August.
By 2015, the newness of this casino had worn off, and the state’s revenues fell slightly. In general, revenues in Maryland in January 2021 increased by $ 18 million, or 28%, compared to the same month a year ago. That’s a lot, even considering that there was one less casino in the state a year ago.
In any case, we’d also love to pay some special attention to the leading states in accumulating gambling industry revenues in the US. It will help compare the results we got from Pennsylvania.
Las Vegas Casinos
In July 2021, Las Vegas casinos revenues amounted to $ 794 million, which is 46% more than in July 2019. The entire state of Nevada earned $ 1.36 billion in the last month.
According to a new report from the Las Vegas Convention and Visitors Authority, the number of visitors to Las Vegas in July this year has grown by 130% compared to July 2020.
Nevertheless, there were still 10.4% fewer tourists in the city than in July 2019.
The main positive trend is Las Vegas gambling revenues, which hit pre-COVID-19 numbers in July.
Earlier, the American Gaming Association said that in the second quarter of 2021, the revenue of the US gambling business amounted to a record $ 13.6 billion. Experts predict that the industry’s annual revenue will be more than $ 44 billion.
Nevada and New Jersey
Over the past three months, the state of Nevada earned the most from gambling in the United States — $ 3.46 billion, which is 17% more than in 2019.
The state of Pennsylvania is in second place ($ 1.21 billion and an increase of 44.6%), and in third place is New Jersey ($ 1.11 billion and an increase of 35.5%).
The Massachusetts Gaming Commission reported that the three largest US casinos had a combined gross gaming revenue (GGR) of $ 85 million in April this year. However, the state also earned a lot on the tax from the gambling business.
Land-Based Casinos Revenue
Revenue from land-based casinos did not grow so much, but online sports betting and digital gambling platforms, including online poker, slots, etc., helped hold the industry in place.
According to the US gambling experts, the full recovery of the Las Vegas gambling business should take place in 2023.
Core Reasons of Gambling Industry Growth in PA
What is the reason for the seemingly unexpected surge in interest in gambling? Surprisingly, many analysts cite low gas and petrol prices as a key factor. We all remember the epic drop in oil prices last year.
Here you still need to take into account the difference between regional and federal casinos.
Whereas people used to fly to Las Vegas or Atlantic City to gamble on weekends, casinos located in their state make it possible to quickly reach them by car and play at least every evening or night.
And cheap gas and petrol save money to be spent on slot machines or table games at their nearby casino.
In addition, analysts note an increase in the number of players and explain this by the fact that customers with low incomes received the opportunity to have fun in the casino. This is also due to lower prices for gas and gasoline: more and more people have surplus incomes that can be spent on entertainment.
In any case, if one accepts the concept that low prices for gas and gasoline give great benefits to regional casinos, then one cannot assume that heaven has come for them forever.
The cost of gas and gasoline in America is a derivative of the price of oil, and if you have noticed, since February it has started to increase slightly. Yes, prices are still low enough compared to last year for the average American to afford a trip to a nearby casino.
But who knows how long this will last? Nonetheless, Morgan Stanley’s economic team predicts that 2022 will be the best year since 2006 for the American consumer, and therefore for the US regional casinos as well.