(Newswire.net — February 23, 2024) — Last year was huge for Pennsylvania’s gambling industry as revenue smashed through the state’s existing record of $5.21 billion that was generated in 2022.
A total of $5.7 billion in revenue was collected by betting operators in 2023, an incredible jump of 9.3% from the previous year. Pennsylvania bettors have a wide variety of betting markets to choose from, including online and in-person sports and casino betting, horse racing, lotteries, and bingo. The popularity and convenience of online betting have been a big part of the industry’s success, with sports fans being able to back their favorite teams and enjoy online slots, poker, roulette, and blackjack apps to play with real money: it’s no wonder the state generated so much from its gambling industry.
PA gambling sites launched in May 2019 after legislation was passed in 2017 to allow it. Racetracks and casinos were legalized following the passing of Act 71 in 2004. There are now 14 licensed casinos operating in the state, including four racinos.
Racinos are a casino-racetrack hybrid that offers customers the opportunity to watch and back horse racing as well as betting on a variety of casino games.
The highest revenue earner in the state was the physical slot machines that are located in the casinos and racinos in Pennsylvania. They earned revenue of $2.46 billion in 2023, a rise of 3.1% on its 2022 figure.
Sports betting revenue was also up on 2022 figures by 14.3% at $458.6 million. The total sports betting handle (the amount spent by bettors on sports betting) showed an increase of 6% from 2022 figures, rising from $7.25 billion to $7.68 billion.
Online betting is beginning to close the gap on the state’s land-based gambling operators. 2023’s iGaming revenue figures of $1.74 billion show an increase of 27.7% from 2022 figures.
Online betting operators have the opportunity to offer new and existing customers great incentives. New customers can benefit from a variety of offers including free bets and deposit matching, while existing customers will benefit from personalized offers based on how they have bet.
The success of online betting facilities since their launch five years ago has provided Pennsylvania with consistent growth in the betting market. Improving technology including AI, VR, and AR is helping operators provide an immersive gaming experience for their customers. Greater connectivity facilitates high speed and low latency. This allows users to enjoy smooth gaming and also improves security. T-Mobile’s 5G coverage now extends over 37,000 square miles of the state, reaching 99% of the population. This bodes well for the future of online betting in Pennsylvania and could see revenue climb even higher in 2024.
One area for concern is with land-based casino table games where revenue was recorded at $971.7 million, a drop of 1.9% on 2022’s figures. In comparison to other percentages attributed to Pennsylvania gaming, this isn’t a huge drop and could be part of a trend that sees more people betting on this type of market online rather than in person.
The record-breaking tax revenue of $2,343,399,312 is another plus point for the state and will be hopeful for another strong financial year.