The gambling market in Pennsylvania has expanded with new additions both in the retail casino, iGaming, sports wagering, and Video Gaming Terminals (VGTs) sectors. This expansion resulted in rising revenues for the fiscal year 2021-2022 which ended on June 30, 2022.
Casino, iGaming, and Sports Betting Expansion Results in More Revenue
According to results reported by the Pennsylvania Gaming Control Board, there was an expansion across almost all segments of the gambling market in Pennsylvania during the fiscal year starting on July 1, 2021, and ending on June 30, 2022. This reflected positively on gaming revenue from almost all of the various game types offered in the state.
In August and December 2021 two new so-called mini-casinos were opened in Pennsylvania bringing the total count to 16 in the state.
This helped the total revenue from retail casinos reach $3.3 billion, which was higher than the previous $3.2 billion record from the fiscal year 2018-2019.
iGaming in the state also expanded by three new websites reaching a total of 19, which are currently operated by ten license holders. The new additions were Betway operated by Live! Philadelphia Casino, PointsBet, which belongs to Hollywood Casino at Penn National Race Course, and World Series of Poker, which is run by Harrah’s Philadelphia Casino.
The new additions, of course, positively affected revenues with an increase to $1.2 billion in FY2021/2022. This marked a boost of 37% in comparison to the $897 million reported in the previous fiscal year.
Sports betting was the gambling sector that saw the most growth in terms of new betting options. 18 new retail locations and 14 new online sports betting websites were added to the pool available to Pennsylvania residents.
The revenue in FY2021/2022 increased by 2% to $315 million when compared to FY2020/2021. The total sports wagering handle reached $7 billion for the whole fiscal year ending on June 30, 2022.
Video Gaming Terminals Locations Also on the Rise, Fantasy Sports Contests See Revenue Decline
Locations offering VGTs in Pennsylvania also increased to 65 adding 17 new venues when compared to the number of truck stops offering such game terminals at the end of the fiscal year 2020/2021. This marked an increase in the number of total VGTs in the state from 240 to 325.
The expansion with new VGT locations was reflected in the revenues reported for the last fiscal year. There was a 32% increase to $40 million in comparison to the previous fiscal year. The total tax revenue from these operations was $21 million. The VGT segment is under strict regulation from the Pennsylvania Gaming Control Board and licensees have to fulfil certain requirements in order to offer VGTs to customers.
The only gambling sector in Pennsylvania that did not enjoy an increase in revenues was fantasy sports contests. The segment suffered a minor decline in revenue to $27.6 million in FY2021/2022 compared to $28.1 million in FY 2020/2021.