Pennsylvania Crushes Annual Records With Historic $5 Billion+ Gaming Haul

According to a new report released by the Pennsylvania Gaming Control Board (PGCB), PA’s annual gaming revenue has hit an all-time high. Having brought in about $5.04 billion worth of revenue for the 2021-2022 fiscal year that ended on June 30, Pennsylvania now comes second after Nevada in total revenue generated in a year. New Jersey follows closely behind the Keystone State to round up the top three best performers in USA’s gaming industry for the just concluded fiscal year.

Likewise, the tax revenue for the state will also smash previous records as the Keystone State expects to receive more than $2 billion from operators for the very first time. The new record of $2.04 billion before adjustments by the PA Department of Revenue bests the previous fiscal year’s $1.59 billion tax revenue by 30%. At the same time, given that the Quaker State’s gaming scene racked up a $3.7 billion haul in the 2020-2021 fiscal year, there’s been a 36.2% revenue jump year-over-year.

This increase in revenue comes as no surprise, given the current gambling trends have shifted to an online-facing market due to the Coronavirus pandemic. In addition, the resumption of in-person gambling between 2021 and 2022 also played a massive role in the year-on-year growth. As a result, the gross gaming revenue collected by casinos across the country was about $53.03 billion for the 2021 calendar year.

Hollywood Casino Leads the Pack in PA

The historic gaming revenue was collected from 16 casinos, fantasy sports operators, and truck stops in the state. Among them are online casinos and four smaller-sized satellite casinos that have been in operation since Gov Tom Wolf signed a gaming expansion measure into law in 2017.

For the 2021-22 fiscal year, the most significant contributor to the revenue is the Hollywood Casino at Penn National Race Course in Dauphin County. The facility generated over $701 million in revenue, amounting to a 51.86% increase from the previous year. Other Hollywood Casino subsidiaries that had a good year despite being in operation for only a couple of months include Hollywood Casino York and Hollywood Casino in Morgantown. These subsidiaries attracted $77 million and $34.5 million, respectively.

More top contributors to the numbers are major regional casinos which include:

• Rivers Casino Philadelphia – $561 million
• Wind Creek Bethlehem – $530 million
• Valley Forge Casino – $522 million
• Live! Casino Philadelphia – $251 million
• Harrah’s Philadelphia – $217.5 million

Slot Machine Games Generate the Lion’s Share of Revenue

As with most states reporting exponential growth in the gambling industry, slots were responsible for the biggest chunk of the proceeds, amassing a total of $2.4 billion in the financial year. At the same time, table games also made a post-pandemic comeback during the year and were the third highest source of income for the operators, clicking over $1 billion. 

Online gambling and sports betting, which were legalized in 2017 to generate more income for projects in the state, were also big income generators in the 2021-2022 year. That said, operators collected over $1.2 billion from online gambling and $325 million from sports betting.

Video Gaming Terminals (VGTs) at truck stops recorded slightly over $41.58 million in revenue for the year, thanks to 15 more facilities compared to the 2020-2021 fiscal year. On the other hand, revenue collected from fantasy sports saw a slight drop from last year as it totaled about $27.31 million, which marked a 3.11% drop.

A Few Bumps on the Road to Historic Success

One thing that analysts are no doubt going to be on the lookout for is the fact that the last few months have not been so blissful for Pennsylvania and several other states. Gambling revenues have been steadily dropping, creating a bit of a panic for enthusiasts.

Although Pennsylvania reported an all-time monthly high of $462.7 million handle in March, the numbers have been going down since then. Gambling operators were worst-hit in June, with only New York recording a billion-dollar handle.

The ongoing inflation has most likely hit players leading to a decrease in activities and hence a drop in gaming expenditure. Consequently, despite being a bigwig in gaming revenue, Penny recorded 20.2% less revenue in June than in May, although the hold percentage was still high at 5.8%.

Another reason for Pennsylvania’s performance is the outcome of sporting events involving home teams, including the Phillies, who had been listed as favorites in 36% of matches by oddsmakers, negatively affecting sports bettors’ bankrolls.

A Gaming Force to Be Reckoned With

As one of the biggest gambling states in the country, Pennsylvania has proven to be an excellent example of how the industry should be run and its robust potential for state coffers. This is especially the case for states that are still taking it slow in making steps towards legalizing or moving forward with other aspects of the gambling trade.

In fact, 2022 has been a pivotal year for most US states, as more jurisdictions have passed laws to legalize sports betting. The surge in legislation has been attributed to a slow 2020, followed by a highly successful 2021 that saw some states hit billion-dollar winning streaks due to already having sports betting on their income list.

The Keystone State has obviously benefited from its much earlier decision to ease restrictions on different forms of gambling, as is evident from the results. Despite heated debates regarding proposed bills and amendments in Senates and Houses nationwide, pretty soon, we are most likely to see most, if not all, 50 states reaping the benefits of having regulated gaming markets. The multibillion-dollar industry is a hard one to resist, especially when things are done right.