Gambling Revenue in Pennsylvania Rises 10.9% in January

Pennsylvania’s gambling industry continues to show robust growth despite facing challenges in its sports betting market. Figures released by the Pennsylvania Gaming Control Board reveal a notable 10.9% year-on-year increase in total gambling revenue for January 2025, reaching $529.1 million. This marks a rise from the $477.2 million generated in January 2024, though it falls slightly short of the $533.1 million earned in December 2024.

The state's performance underscores an interesting dynamic, with online gambling thriving and sports betting facing continuing struggles.

Online Gambling Powers Pennsylvania’s Surge

The standout performer in January was online gambling, which saw a dramatic 40.5% year-on-year surge to $210.2 million. While this growth is significant, the figure did not surpass the record-breaking $223.6 million generated in December 2024, signaling some seasonal fluctuations.

Within the online gambling sector, online slots accounted for the lion’s share of revenue, bringing in $158.6 million—an impressive 44.2% increase compared to the previous year. Internet table games also showed a strong rise, with revenue growing by 32.7% to $48.9 million. However, online poker revenue experienced a slight dip, down 2.3% year-on-year to $2.6 million.

Consumer spending on online gambling in Pennsylvania remained high, with players wagering $4.23 billion on online slots alone. Online table games garnered an additional $2.92 billion in bets, though exact figures for online poker spending were not disclosed.

Hollywood Casino at Penn National was once again the dominant player in the online gambling market. Its revenue hit $79.7 million in January, up 57.9% from the same month last year. Valley Forge Casino came in second with $57.6 million, marking a 38.5% year-on-year increase, while Rivers Casino Philadelphia rounded out the top three with $35.4 million, a 19.8% rise.

Sports Betting Faces Continued Declines

Despite the overall increase in gambling revenue, sports betting in Pennsylvania reported another challenging month. Revenue from sports wagering dropped 26.4% year-on-year, reaching $51.5 million. This marks the second consecutive month of declines in the state's sports betting market, a trend seen in several other states as well. Industry experts attribute this decline to customer-friendly results in sports, which likely impacted operator earnings.

Pennsylvania’s total sports betting handle—the total amount wagered—rose by a modest 1.8% from January 2024, totaling $873.1 million. Of this, $830.4 million was wagered online, and $42.8 million was placed at retail sportsbooks. The state-wide hold (the percentage of wagers kept by operators) stood at 5.90%.

FanDuel, partnered with Valley Forge Casino Resort, continued to dominate the sports betting landscape, generating $28.8 million in taxable revenue from $342.3 million in wagers. This resulted in an 8.41% hold. DraftKings and Hollywood Casino at the Meadows followed in second place with $15.0 million in revenue from $221.0 million in wagers, holding 6.79%.

BetMGM, in collaboration with Hollywood Casino Morgantown, had a standout month, climbing to third place with $3.4 million in revenue from $68.7 million in wagers and a hold of 4.95%.

Meanwhile, some of the smaller operators faced challenges. Parx Casino and Kambi reported $1.1 million in revenue from a $18.7 million handle, while ESPN Bet and Hollywood Casino York, which had been in third place in December, posted a $1.8 million loss in January.
Growth Across Land-Based Gambling Sectors

While online gambling continues to lead Pennsylvania's gaming revenue, land-based gambling also posted positive results in January. Slot machine revenue increased by 4.6% to $187.8 million, and table games revenue rose by 1.5% to $73.7 million. Revenue from video gaming terminals saw a healthy 4.5% increase to $3.2 million. Additionally, fantasy sports revenue was up 8.9% year-on-year, reaching $2.7 million.

The state's tax revenue from gambling in January totaled $221.6 million. Of this, $93.9 million came from iGaming, $51.5 million from sports betting, $94.8 million from land-based slots, and $12.3 million from table games. The remaining taxes were derived from video gaming terminals and fantasy sports.

 

Despite challenges in sports betting, Pennsylvania's gambling market continues to thrive, driven by the robust growth of online gambling, which remains the cornerstone of the state's gaming industry.

 

Outlook for the Future

January’s figures highlight a broader trend in Pennsylvania’s gambling industry: the strength of online gambling, particularly slots and table games, contrasted with the ongoing struggles in sports betting. While the state’s overall revenue continues to grow, the sports betting sector’s volatility may pose challenges for operators looking for sustained expansion.

As more states refine their regulatory frameworks and competition intensifies, Pennsylvania’s gambling landscape will need to adapt. The strong performance of online gambling is likely to continue driving overall revenue growth, but sustained efforts will be needed to revive the sports betting market.

In conclusion, while Pennsylvania’s gambling industry faces some hurdles, it remains one of the most lucrative markets in the U.S., bolstered by the ongoing rise of iGaming and steady growth in land-based gambling. The challenge for operators and regulators will be to ensure that this growth is not undermined by ongoing declines in sports betting revenue.