Pennsylvania iGaming Revenue Slight Decline in February

In February 2025, Pennsylvania’s gambling industry saw a notable decline in overall revenue, with total commercial gaming earnings falling by 4.4% year-on-year. This drop was primarily driven by a significant downturn in the sports betting sector, which recorded its lowest revenue in three years.

The state’s total commercial gaming revenue reached $477.3 million in February, a decrease from $499.1 million in the same month of the previous year. Additionally, this figure was 9.8% lower than January 2025, marking a decline across the board. This decline in gaming revenue aligns with a broader downturn observed in Pennsylvania’s gambling market during the early months of the year.

Sports Betting Struggles Continue

One of the most striking developments in the February figures was the continued decline in sports betting revenue. According to data released by the Pennsylvania Gaming Control Board on March 18, 2025, gross sports betting revenue amounted to only $7.4 million, a dramatic 75.3% drop compared to the previous year. This marks the lowest monthly revenue since February 2022, which saw a loss of $442,847 in the sector.

The downturn in February occurred despite a 14.4% increase in player spending, with total wagers in the state amounting to $756.9 million. Online wagering accounted for the majority of this, bringing in $726.7 million, while retail sportsbooks contributed $30.2 million. However, sports betting's overall performance was hindered by a significant $2.9 million loss from the retail market, leading to a monthly hold of just 0.98%.

Among the operators, only five partnerships posted positive revenue for the month. FanDuel, in partnership with Valley Forge Casino Resort, generated $13.7 million in revenue, far outpacing its competitors with a hold of 4.82% off $284.5 million in bets. Other operators, including DraftKings and BetMGM, reported losses, contributing to the sector’s overall decline.

While sports betting struggled, Pennsylvania's online casino market saw a positive uptick. Online casino revenue for February rose by 12.3% year-on-year, reaching $207.6 million. This growth was primarily driven by a 22.6% increase in internet slot revenue, which hit $154.3 million. However, online table games saw a slight decline of 10.1%, bringing in $50.9 million, and internet poker revenue remained largely flat, growing by just 0.4% to $2.4 million.

Hollywood Casino at Penn National Race Course remained a dominant player in the online casino space, generating $89.5 million in February, despite a 2.7% year-on-year decline. Other notable operators included Valley Forge Casino Resort, with $81.4 million in online gaming revenue (a 10% increase from 2024), and Rivers Casino Philadelphia, which saw a 5% rise in igaming revenue, reaching $50.7 million.

Land-Based Gambling Sees Declines

Land-based gambling operations in Pennsylvania also experienced a decline across various categories in February. Retail slot revenue, still the largest source of gambling income, fell by 8.1% to $186.3 million. Revenue from land-based table games also decreased by 7.2%, amounting to $71.2 million. Furthermore, video gaming terminal (VGT) revenue dropped by 1.2% to $3.2 million, while daily fantasy sports saw an increase of 17.5%, generating $1.5 million in revenue.

 

Sports betting revenue in Pennsylvania saw a dramatic 75.3% decline in February, marking its lowest monthly total in three years, despite a 14.4% increase in player spending

Tax Revenue Impact

Despite the overall decline in gambling revenue, Pennsylvania still collected substantial tax revenue from the sector. The state collected a total of $202.5 million in taxes from all forms of gambling in February. However, sports betting contributed just $2.7 million to this total due to the sharp drop in revenue. On the other hand, online casino taxes generated $91.8 million, retail slots provided $94.2 million, and land-based table games contributed $11.9 million. VGT taxes totaled $1.7 million, while fantasy sports taxes amounted to $224,393.

The February 2025 gambling revenue figures underscore a challenging month for Pennsylvania's gambling industry, particularly in the sports betting sector, which continues to struggle. While online casinos showed strong growth, particularly in the slots segment, land-based and retail operations faced declines across the board. As sports betting continues to experience volatility, the state's overall gambling revenue trajectory remains uncertain in the early months of 2025.