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Pennsylvania Hits Record $4.7 Billion Gaming Revenue in 2021
By Jeff Osienya Jan 23, 2022 IndustryThe Pennsylvania gaming sector soars after experiencing a historic year in 2021 with $4.73 billion worth of gross gaming revenue (GGR) from all legalized verticals. iGaming win nearly doubled year-on-year to make up for pandemic-stricken retail lossesThe Pennsylvania Gaming Control Board (PGCB) has released its annual report for the gaming sector’s performance through the 2021 calendar year, and the numbers are absolutely remarkable. According to the PGCB report, the commonwealth saw record-shattering Gross Gaming Revenue (GGR) numbers in the 2021 calendar year, owing to strong performances in practically all legalized gaming verticals.
For the 12 months in question, the Keystone State saw a combined gaming revenue of a whopping $4.7 billion, up 78.5% higher than the $2.65 billion won in 2020. Further, according to the PGCB report, last year’s haul bested the previous $3.41 billion annual GGR record set in pre-pandemic 2019 by 38.7% or $1.29 billion. From the record-shattering GGR, the commonwealth closed the year with over $1.93 billion in tax revenue, which was also a new high.
The historic figures were generated by stellar performances from slot machines, video gaming terminals (VGTs), table games, iGaming, and sports wagering across the state. As of the end of 2021, there are 16 land-based casinos and 60 truck shops operating VGTs in the Keystone State, along with mobile sports betting and online casino platforms.
The shining performance seen by the Keystone state is a direct result of the gaming expansion that was okayed in 2017 to allow a range of new gaming verticals, including satellite casinos, iGaming, and sports wagering. Four years down the line, the big bet on gaming expansion has paid off beyond expectations.
Additionally, in an email correspondence with CDC Gaming Reports, Douglas Harbach, the PGCB Communications Director, attributed the smashing 2021 calendar year to two elements as follows:
Quote“One was the opening of three additional casinos during the year, which continued to project solid slot machine revenue and also led to a record revenue amount for table games. Second, the continued growth in the play of casino-type games and sports wagering via the internet.”
iGaming Skyrockets to Balance Out Stalled Retail Performance
iGaming activity, including online slot machines, table games, and poker, brought in nearly $1.12 billion after a 96.7% leap to shadow the $565.8 million produced in 2020. As a result, online casinos in the commonwealth kept $1.3 million from the internet casino games and poker rooms, 91.1% higher than the $680.2 million saw last year. Meanwhile, State coffers received $466.4 million in taxes from iGaming.
$418.8 million, or 37.39% of the total iGaming haul ($1.12 billion), was produced by the Hollywood Casino online platform at Penn National Gaming. Penn National is Pennsylvania’s oldest gaming operator, currently running three Hollywood-branded brick and mortar casinos in the commonwealth. The iGaming platforms hosted by Rivers Casino Philadelphia and Valley Forge Casino Resort followed Penn National to claim the second and third spots with $299.3 million and $190.5 million in revenue, respectively.
Retail slot machine games generated the most money for the Keystone State in brick-and-mortar casino gaming with a $2.29 billion win in 2021, an 83.4% jump year-on-year. Land-based table games also saw a similar 83.4% increase to bring in $924.9 million, whereas VGTs saw a year-over-year revenue spike of 139.4%, to $39.9 million. Overall, PA’s combined retail gaming activity generated a $3.21 billion GGR for the 2021 calendar year.
But then, as significant as the year-on-year revenue increase is, we must remember that land-based casinos were under mandatory closures and occupancy restrictions for the better part of 2020 due to the Covid-19 pandemic. As a result, compared to 2019, the last full year of retail casino gaming operations before the pandemic, retail slot machine GGR totaled $2.36 billion, 3.2% higher than in 2020. However, the slight slot machine losses were offset by table games gameplay as it recorded a 2.4% uptick from 2019. All in all, over the pre-pandemic 2019, the GGR generated from land-based casino gaming was $3.26 billion, about 1.5% higher than last year’s win.
Parx Casino, located just north of Philadelphia, saw the most action last year after keeping $409.4 million from slot machine gameplay, whereas table games garnered $207.7 million for the casino. Wind Creek Bethlehem was the second-best performer in 2019, after winning $264.9 million from slot machines and $185.1 million from table games.
Katie Kohler, an analyst for PlayPennsylvania, which is part of the PlayUSA Network, commented on the commonwealth’s iGaming performance, saying:
Quote“The growth in online casino gambling seems almost endless. Online casino revenue nearly doubled year over year, a significant jump from 2020 when the global pandemic kept people at home. Growth should taper some in the year ahead, but online casinos have yet to reach their ceiling.”
PA Sports Betting Continues its Upward Trend
Elsewhere, sports betting topped off the record-breaking year with $340.1 million in revenue from $6.5 billion worth of sports wagers, primarily thanks to mobile sports betting. In the end, the Keystone State won $122.5 million for its tax coffers, which goes into the books as another best-ever feat for the state.
Dustin Gouker, another analyst for the PlayUSA Network, voiced his opinion on the performance, citing how PA’s uniquely set sports betting legislation is boosting revenue generation. He said:
Quote“If the carrot for legislators to legalize sports betting is to create a sustainable and consistent revenue source for the state, no state has been more successful than Pennsylvania. Pennsylvania’s relatively high tax rate does seem to contribute to slower growth overall, but that seems to be a worthwhile trade-off that has been an overall benefit to the state.”
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