In July 2024, the Pennsylvania Gaming Control Board (PGCB) reported a notable total gaming revenue of $500.8 million, marking a 7.22% increase compared to the previous year. This figure encompasses various gaming sectors, including slot machines, table games, internet gaming (iGaming), sports wagering, video gaming terminals (VGTs), and fantasy contests.
Slot Machines: A Decline Despite High Revenue
Slot machines, historically the largest contributor to Pennsylvania’s gaming revenue, experienced a 4.83% decline in revenue, generating $204.3 million in July 2024. This decline is closely linked to a reduction in the number of slot machines in operation, which fell from 25,291 in July 2023 to 24,709 in July 2024. Despite the decreased number of machines, slot machine tax revenue remained significant, totaling $103.2 million.
Retail Table Games: Sluggish Performance
Retail table games also faced a downturn, with revenue dropping 4.84% to $79.4 million in July 2024. This decrease reflects broader trends in traditional gaming segments. The tax revenue generated from table games amounted to $13.1 million, highlighting a decrease in overall tax contributions from this sector.
iGaming: Continued Strong Growth
In contrast to the declines in traditional gaming sectors, iGaming demonstrated remarkable growth. July 2024 saw iGaming revenue soar to $174.3 million, marking a substantial 31.20% increase from the previous year. This surge was accompanied by $75.5 million in tax revenue, underscoring the growing popularity and financial impact of online gaming platforms in Pennsylvania.
Sports Wagering: A Robust Performance
Sports wagering experienced a notable upturn in July 2024. The total handle for sports bets reached $414.7 million, reflecting a 22.52% increase year-on-year. The taxable revenue from sports wagering also rose by 20.18%, totaling $38.6 million. This growth resulted in $13.9 million in tax revenue, highlighting the increasing significance of sports betting in the state’s gaming market.
Video Gaming Terminals (VGTs): Modest Increase
Video gaming terminals, which are operated at qualified truck stops, saw a slight increase in revenue. In July 2024, VGTs generated $3.5 million, representing a 4.33% rise. The tax revenue from VGTs amounted to $1.8 million, reflecting steady performance in this niche segment of the gaming industry.
Fantasy Contests: A Positive Trend
Fantasy contests also exhibited positive growth in July 2024. Revenue from fantasy contests reached $714,971, marking a 9.01% increase from the previous year. The tax revenue generated from fantasy contests was $107,246, indicating a modest but encouraging rise in this segment.
Industry Trends
The recent data from Pennsylvania mirrors broader trends observed in neighboring New Jersey. While traditional retail gaming segments like slots and table games have faced year-on-year declines, sectors such as iGaming and sports betting continue to expand. This shift reflects a broader industry trend where digital and remote gaming options are increasingly dominating the market, compensating for slower growth or declines in traditional gaming forms.
The Pennsylvania gaming revenue report for July 2024 reveals a dynamic and evolving gaming landscape. While traditional gaming sectors such as slot machines and table games experienced declines, iGaming and sports wagering have seen substantial growth. The ongoing success of these sectors is driving the overall revenue increase, indicating a significant transformation in the state’s gaming industry. The data underscores the importance of adapting to emerging trends in gaming and highlights the potential for continued growth in digital and remote gaming sectors.