Online gaming has overtaken slot machines as the largest source of gambling revenue in Pennsylvania, for the first time in the state’s history.
The announcement came as the Pennyslyvania Gaming Contol Board (PGCB) revealed gambling activity had generated a record $6.4 billion in revenues since the start of July 2024.
That obliterated the previous best by more than $500 million, but more surprising was the revelation that for the first time online casinos and gaming had become the No 1 source of gambling revenue.
How online gaming became No 1 in Pennsylvania
Online gaming generated $2.48 billion, a record in its category with a hefty 27.09 per cent increase on the previous fiscal year.
That also pushed iGaming ahead of the $2.44 billion returned by slot machines in casinos.
The total figure of $6.4 billion comprises revenues from money spent on casino slot machines and table games, iGaming, sports wagering, video gaming terminals (VGTs) and fantasy sports contests.
Retail table games at casinos collected $928.9 million while sports betting weighed in with $487.6 million.
That has earned the state nearly $2.8 billion in gambling tax revenue, eclipsing the previous best of $2.54 billion earned in 2023-24.
Pennsylvania’s fiscal year runs from July 1 to June 30.
What happens to the tax revenue from gambling?
The PGCB stated that the tax revenue earned is earmarked for economic development and budget priorities across the commonwealth, that include:
- school property tax reduction on an owner’s primary residence;
- state, county, and local economic development, safety and recreational projects;
- support of the agricultural industry through support of horse racing; and,
- revenue toward the Commonwealth’s General Fund.
The PGCB is an independent state agency created by the Pennsylvania Race Horse Development and Gaming Act of 2004.
It is charged with the regulatory oversight of certain types of legalized gaming in the Commonwealth of Pennsylvania.
Gambling laws in the US are very much under the purview of each individual state, so while some will allow online casinos and poker, others will have far stricter regulations.
Pennsylvania was one of the first states in the US to legalize online casinos in 2019, when regulators allowed Parx Casino in Philadelphia and Penn National’s Hollywood Casino to launch online gambling portals for patrons.
Jim Munro is a betting industry and gambling expert who has been a national newspaper journalist for over 25 years, predominantly at The Sunday Times and The Sun, where he wrote a weekly soccer betting column. Jim also worked on the launch of Virgin Bet with Gamesys and was subsequently head of editorial at LiveScore, the sports media and betting group.
