Pennsylvania’s Gaming Landscape: A Look at September’s Revenue Trends
Posted on: October 18, 2024, 09:42h
Last updated on: October 18, 2024, 10:00h
In the ever-evolving world of gaming, Pennsylvania’s latest revenue report from the Pennsylvania Gaming Control Board (PGCB) reveals an intriguing landscape. While the brick-and-mortar casinos faced a small downturn in September, the flourishing online gaming sector has more than compensated for the decline. This article delves into the key details of the report and what they mean for the future of gaming in the state.
A Slump in Brick-and-Mortar Casino Revenue
In September 2024, gross gaming revenue (GGR) from physical casinos in Pennsylvania showed signs of slowing. The PGCB’s report indicated that retail slot machines generated approximately $197 million, representing a 1.5% decline from September 2023, while table games reported earnings of $73.4 million, a 2.3% drop. When combined, in-person revenue totalled $270.4 million, which reflects a decrease of 1.7%—a loss of $4.7 million compared to the previous year.
These declines can be attributed to various factors, with one significant challenge being the comparative data from September 2023, which enjoyed an extra Friday and Saturday—two of the busiest days for casinos. New Jersey’s Atlantic City also reported a similar slump in casino revenue, indicating a possible trend in regional gaming performance during this period.
Caption: A billboard advertising the online casino BetRivers towers over the City of Philadelphia. September casino revenue dipped but those gaming revenue declines were more than offset online. (Image: Keystone Outdoor Advertising)
The Digital Advantage: Online Gaming Revenue Surges
While brick-and-mortar casinos faced challenges, the digital gaming realm painted a much brighter picture. The decline in physical casino revenue was significantly offset by robust performances in online gaming and mobile sports betting.
The GGR from online slots and interactive table games — excluding poker rake — totaled an impressive $174.5 million, marking an 11% year-over-year increase. This surge, amounting to approximately $17.4 million, underscores the growing popularity of online casinos, particularly with internet slots driving much of this revenue.
Mobile sports betting specifically shone, netting $53.5 million—a striking 46% increase. This rise can be largely attributed to the start of the NFL season, which typically brings in heavy betting action as sports enthusiasts look to wager on their favorite teams.
Moreover, slot-like video gaming terminals (VGTs) inside diesel truck stops contributed around $3.4 million, representing a 3.6% increase in the overall state gaming revenue. Despite some losses in online poker rake and a slight dip in fantasy sports fees, Pennsylvania’s gaming industry as a whole saw a 6.2% growth, totaling $505.87 million in winnings from gamblers last month.
The Leaders in Gaming
Within this competitive landscape, certain players continue to stand out. Parx Casino, located north of Philadelphia, remains a dominant force in the Pennsylvania gaming industry. This smoke-free establishment won $30.2 million on its slots alone, outperforming its nearest competitor, Wind Creek Bethlehem, which netted $24.2 million. Notably, Parx ranked second in table game earnings, showcasing its prowess across various gaming offerings.
When it comes to online gaming dominance, Penn Entertainment continues to lead with a GGR of $47.2 million across its iGaming operations linked to the Hollywood Casino and ESPN Bet platforms. Boyd Gaming’s FanDuel iGaming operation follows closely, generating $33.7 million.
In sports betting, Valley Forge’s FanDuel Sportsbook emerged as the frontrunner, achieving total revenue of $27.3 million. More than $26.6 million of this figure came from online operations, indicating a strong preference for mobile betting options among Pennsylvania sports bettors. Hollywood’s ESPN Bet secured the second position, with combined retail and online revenues of $18.8 million.
Looking Ahead: A Mixed but Positive Outlook
The September revenue report from the PGCB paints a nuanced picture of the Pennsylvania gaming market. While in-person revenue from traditional casinos may have faced a setback, the online segment continues to expand and thrive, highlighting consumer preferences shifting towards digital platforms.
As the gaming landscape evolves with technology and changing consumer habits, both brick-and-mortar and online operators will need to adapt to these trends to sustain and grow their market shares. For now, the outlook remains optimistic, especially with the promise of new sporting seasons and ongoing advancements in online gaming offerings.
In summary, Pennsylvania’s gaming industry reflects a complex interplay between traditional and digital gaming sectors, with the latter proving vital in bridging gaps left by falling in-person revenues. As the state moves into the latter part of 2024, all eyes will remain on how these dynamics will develop in the coming months.
