Pennsylvania iGaming Sets Record as Sports Betting Slumps

Pennsylvania’s gaming industry closed out December 2024 with mixed results, as record-breaking iGaming revenue contrasted sharply with declining sports betting performance. The figures highlight the state’s continued dominance in the online gaming sector but underscore the volatility of sports wagering.

In December, total gambling revenue in Pennsylvania reached $533.1 million, a slight 0.2% dip from the previous year and a 5.2% decline from November’s $562.4 million record. Despite this, the iGaming sector shone brightly, generating $223.6 million in monthly revenue—a 35.5% year-on-year increase and an 11.5% rise from November's record.

iGaming Leads the Way

Online slots led the charge with $164.3 million in revenue, up 40.5% compared to December 2023. Internet table games also saw significant growth, climbing 24.2% year-on-year to $56.8 million. Online poker posted modest gains, rising 2.9% to $2.5 million.

Player activity reflected this growth, with $4.28 billion wagered on online slots and $3.01 billion on internet table games in December. Hollywood Casino at Penn National retained its top spot in the iGaming market, reporting $86.4 million in revenue—41.8% higher than the previous year. Valley Forge Casino ranked second with $61.3 million (up 48.4%), followed by Rivers Casino Philadelphia with $35.2 million (up 12.4%). While iGaming thrived, Pennsylvania’s sports betting revenue faltered. Gross gaming revenue for sports wagering fell to $21.9 million, a 69.9% drop from December 2023 and a sharp decline from November’s $77.1 million record.

The downturn mirrored broader trends seen in other states, such as New Jersey and New York, where customer-friendly sports results reduced operator profits. Pennsylvania’s betting handle also shrank, reaching $893.4 million—down 3.5% year-on-year and 4.5% from November’s $935.5 million.

Online sports betting accounted for $848.8 million of the handle, generating $21.6 million in revenue. Retail sportsbooks contributed $44.6 million to the handle but brought in just $222,395 in revenue. The state-wide hold in December was a modest 2.45%, reflecting the challenging month for operators.

FanDuel Maintains Market Dominance

FanDuel, partnered with Valley Forge Casino Resort, remained the market leader in sports betting. In December, the operator posted $14.1 million in revenue on a $353.3 million handle, resulting in a 3.99% hold.

DraftKings, working with Hollywood Casino at the Meadows, placed second with $7.3 million in revenue from $238.5 million handle, a 3.06% hold. ESPN Bet, partnered with Hollywood Casino York, moved into third with $782,109 in revenue from $45.5 million in bets, yielding a 1.72% hold. The challenging month even affected BetMGM, typically among the top performers. Partnered with Hollywood Casino Morgantown, the operator reported a loss of $259,670 on $66.2 million in wagers due to unfavorable betting outcomes.

Beyond iGaming and sports betting, other segments of Pennsylvania’s gaming industry experienced declines in December. Land-based casino revenue dropped, with physical slots down 2.7% to $202.1 million and retail table games falling 4.3% to $79.4 million. Video gaming terminals (VLTs) also dipped slightly, with revenue down 0.9% to $3.4 million. However, fantasy sports saw a modest 9.7% increase, generating $2.7 million in revenue.

Despite mixed performance across sectors, Pennsylvania’s gambling industry contributed $223.7 million in taxes in December. Retail slots generated the largest share at $102.2 million, followed by iGaming with $98.2 million. Sports betting contributed $7.7 million, while VLTs and fantasy sports added $1.8 million and $404,660, respectively.

Pennsylvania’s iGaming sector continues to set new records, with monthly revenue hitting $223.6 million—35.5% higher than December 2023

Conclusion

Pennsylvania’s December figures highlight the growing importance of iGaming in the state’s gambling ecosystem, even as sports betting remains a volatile segment. With continued investment in the online gaming space and shifting dynamics in sports wagering, Pennsylvania’s gaming industry is poised for further evolution in 2025.