Pennsylvania’s gaming industry is still displaying annual revenue growth despite its maturity as revenue hit $476.7m in April. However, this marks a significant decline from the record-setting figures posted in March.
Data from the Pennsylvania Gaming Control Board displayed that the revenue of $476.7m represents a 3.3% growth rate year-over-year, yet the monthly drop off in turnover was 7.5%, with the $515.3m raked in March being a monthly record.
The largest generator of revenue during April was retail slot games, which brought in $213m in revenue, although this was down 2.2% YoY. Instead the fastest growth was witnessed on the online slots side of the industry, with revenue jumping 34.7% YoY to $95.6m.
Retail table games generated $84.4m in revenue, down nearly 8% YoY, giving land-based casinos a revenue figure of $297.4m. Meanwhile, online casino table games yielded $38.9m – up 16% YoY. including online poker revenues, online casino generated $137.2m in April.
Breaking down online casino per operator, Hollywood Casino at Penn National was the market leader, generating $58.5m in revenue during April, marking 29.3% growth.
Meanwhile, Valley Forge Casino turned over $31.2m in April, up 45.2% YoY, while Rivers Casino Philadelphia generated $26.1m, down 9.4% YoY. No other operator generated more than $5.5m in April, though Parx Casino did grow 129% YoY to $4.9m.
With an effective tax rate of 54% on online casino revenue in Pennsylvania, operators paid out $58.3m to the state, county, and local shares last month.
Sports betting grows 10% annually but noticeable drop off from March
April isn’t typically a successful month for sports betting and, from the most state figures published this month, there is a noticeable drop off from March betting where March Madness dominated the sporting calendar.
Yet, Pennsylvania’s sports betting market benefited from a strong hold rate last month, with revenue improving by 10% on an annual basis.
Sportsbooks handled $572.2m in April 2023, flat on last year’s performance. This is some way off the $723.5m handled in March. Yet taxable revenue was $34.5m, up 10% YoY thanks to a stronger hold rate than it experienced in April 2022.
Operators’ hold rate of 6% is usually a weak hold rate, yet marks an increase from April 2022 when players enjoyed favorable results.
What is noticeable is that Pennsylvania’s sports betting market in terms of handle is remaining fairly stagnant in 2023, perhaps indicating that the market, one of the first to open post-PASPA, is reaching a maturity point.
FanDuel reins supreme in the Keystone State
FanDuel remains king in Pennsylvania in terms of handle, taking $225.6m in bets during April. DraftKings remains in second place, taking $157.8m in wagers last month.
Here are the rest of the top five operators in terms of handle:
Barstool Sportsbook: $26.3m
FanDuel also took the top spot with revenue, too, with the US market leader taking $28m in revenue during April. DraftKings was second, taking $11.3m in April, which represents enormous growth YoY as it chases down its fierce competitor.
Here are the remaining top five operators’ revenue numbers:
These revenue figures include the tax-deductible promotional credit which, in April, added up to $14.8m. This left sportsbook operators with $37m in taxable revenue.
With a 36% tax rate in Pennsylvania, operators paid out $13.3m in taxes to the state and local shares in April.