The latest annual revenue report from the Pennsylvania Gaming Control Board (PGCB) has revealed that gambling revenue in Pennsylvania topped $5 billion for FY 2021/22.
Taxes for the year came to a record-breaking $2 billion
This is the first time in history that Pennsylvania gambling operators surpassed the $5 billion mark shattering the record of $3.8 billion set in the previous year. According to the PGCB, the rise in revenue can be largely attributed to the growth of sports betting and online casino gaming.
FanDuel dominates the sports betting market
Online sportsbooks first launched in Pennsylvania in 2019 and there are now 14 in operation in the state. The report shows that during FY 2021/2022, sportsbooks accepted over $7 billion in wagers, a significant increase on the $5.6 billion wagered in the previous period. This resulted in $510 million in gross revenue of which $315.7 million was taxable. This was a slight increase on the $308.8 million in taxable revenue reported in the previous FY.
Of all sports wagers placed during the year, 92% came through online sportsbooks and sports betting apps. FanDuel dominated the market accepting 38% of all wagers placed online. This generated $228.5 million in revenue for both FanDuel and its partner Valley Forge Casino. DraftKings came a distant second with just $88.5 million in revenue.
Online casinos top $1 billion
Online casinos in Pennsylvania reported $1.2 billion in revenue for the fiscal period and set a US monthly record in March of 2022 by generating revenues of $142.7 million. The yearly total represents a 35% increase year-on-year. Penn National led the market with an impressive $481.3 million in revenue for the year.
Land-based casinos break more records
Despite the records set by online casinos, bricks and mortar casinos felt no impact from the online industry casinos reported a record $2.4 billion in revenue from slots alone during the fiscal period. This was a 28% jump on the previous year. Meanwhile table games revenue came to just over $1 billion for the year resulting in total casino gambling revenue of $3.4 billion.
Wind Creek Casino in Bethlehem led the casino market with $235.8 million in table games revenue, up by 76% on the previous year. Its nearest rival Parx casino reported $213.7 million while Rivers Casino Philadelphia ($104.7 million) and Live! Casino Philadelphia ($99.8 million) were next on the list.
Record taxes and fees
FY 2021/2022 saw Pennsylvania collect $114 million in taxes from sports betting alone thanks to the high tax rate of 34%. Meanwhile, taxes collected from slots came to around $816 million resulting in combined taxes of over $2 billion. This is the first time in state history that taxes have topped the $2 billion mark.
An experienced iGaming commentator and analyst based in New York City - Jenny reports on regulation and gambling industry news and events.