Pennsylvania’s commercial gambling market closed the 2025 calendar year with one of its strongest performances on record, driven by continued growth in online gaming despite ongoing softness in the land-based sector.

Total commercial gambling revenue reached $616.7 million in December, according to figures released by the Pennsylvania Gaming Control Board. The total marked the second-highest monthly revenue figure ever recorded in the state, trailing only November’s all-time high of $623.1 million. Compared with December 2024, overall revenue increased by 15.8%.

The near-record performance was underpinned by a new monthly high for online casino gaming, while sportsbooks also posted sharp year-on-year gains. However, a decline in traditional slot machine revenue prevented Pennsylvania from setting a new overall revenue record for a second consecutive month.

Online casino revenue climbed to a record $259.7 million in December, surpassing the previous high of $251.1 million set in October by 3.3%. The total was also 16.1% higher than the same month last year and 6.9% ahead of November’s result, reinforcing the sector’s role as the primary growth engine in Pennsylvania’s gambling market.

Online slots continued to dominate, generating $194.6 million in revenue, an 18.5% increase year-on-year and the single largest revenue stream across all gambling verticals for the month. Internet table games produced $62.8 million, up 10.3%, while online poker revenue declined 7.8% to $2.3 million.

Hollywood Casino at Penn National Race Course and its online partners maintained their position as market leader, reporting $102 million in online gaming revenue. Valley Forge Casino Resort and partners followed with $71.1 million, while Rivers Casino Philadelphia ranked third with $39 million.

Sports betting revenue surges despite lower handle

Sports betting also delivered a strong December, with revenue jumping 287.8% year-on-year to $84.8 million. While this figure fell 13.7% short of the record $98.3 million set in November, it still represented the second-highest monthly sports betting revenue total in Pennsylvania history.

Online sportsbooks accounted for the vast majority of the total with $80.4 million in revenue, compared with $4.4 million from retail sportsbooks. Total betting handle for the month stood at $797.4 million, down 10.7% from December 2024 and 19.5% below November’s handle, indicating that higher hold rates rather than increased wagering volume drove revenue growth. The statewide hold for December was 10.63%.

FanDuel, operating in partnership with Valley Forge Casino Resort, remained the market leader with $38.3 million in revenue from a $283.9 million handle, resulting in a 13.49% hold. DraftKings and Hollywood Casino at the Meadows ranked second with $25 million from $245.5 million in wagers, while Hollywood Casino York and Fanatics Sportsbook placed third with $4.6 million off a $55.1 million handle.

In contrast to the digital segments, Pennsylvania’s land-based gaming market delivered mixed results in December. Slot machine revenue declined 7.5% year-on-year to $186.8 million, continuing a trend that has increasingly constrained overall market growth. Retail table games revenue edged up just 0.3% to $79.3 million. Revenue from video gaming terminals at truck stops slipped 0.6% to $3.4 million, while fantasy sports contests revenue fell 0.3% to $2.7 million.

Pennsylvania’s December results highlight the growing role of online casino gaming, which set a new monthly revenue record and offset weaker performance from land-based slots

Strong tax contributions to close the year

The robust December performance translated into significant tax receipts for state and local governments. Total gambling-related tax revenue reached $255.8 million for the month. Online casinos contributed $115.5 million, sports betting generated $35.4 million, land-based slots delivered $94.2 million, and table games accounted for $13.4 million.

Overall, December’s figures highlight the growing divergence within Pennsylvania’s gambling market. Online casinos and sports betting continue to post record or near-record results, while land-based slots remain under pressure, increasingly shaping how close the state can come to setting new overall revenue milestones.