Pennsylvania reports record $6.4 billion in gambling revenue

The Pennsylvania Gaming Control Board reported a record $6.4 billion in revenue during the fiscal year that ended in June, crediting online gaming for most of the gains at the state's casinos.

The revenue figures reported Monday include a combination of traditional casino slot machines and table games, internet-based gambling games, sports wagering and video gaming terminals. Total gambling revenue increased by about 8.5% over the prior fiscal year, when the state reported revenue of $5.9 million. Revenue is up around 135% from the 2019-2020 fiscal year.

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Online gaming covers any betting activity that's done over the internet, including everything from online poker and blackjack to sports bets placed with casinos using their licensed third-party apps.

The state only began officially tallying and reporting online gambling revenue figures in 2020. The category has grown from about $240 million that year to nearly $2.5 billion in the last fiscal year. Internet games and online sports betting accounted for nearly 40% of the state's total gambling revenue in the most recent fiscal, the gaming control board said, and it was up by about 27% annually.

Valley Forge Casino Resort's $675 million in online gambling revenue marked nearly a 40% increase over the previous year, while Live! Casino Philadelphia's $54.2 million was up about 35%. Rivers Casino Philadelphia reported about $412 million in online gambling revenue, up more than 15% annually, and Harrah's Philadelphia's $116 million in revenue from online gambling was up around 14%.

Hollywood Casino at Penn National Race Course in Dauphin County led the pack with $936 million in online gambling revenue for an annual increase of nearly 25%.

Despite the massive gains in online gambling, other categories were either down or stayed roughly the same.

Table game revenue at state casinos dropped 3.4% across the board, generating $929 million. Only a handful of casinos reported gains in that category, and the state's $2.4 billion in reported slot machine revenue amounted to an annual increase of less than 1%. Sports wagering revenue from bets placed inside casinos increased by less than 1% to $488 million.

With $2.8 billion in tax revenue from all gambling categories, Pennsylvania beat its previous high of $2.54 billion last year. The state's tax rate for online sports gambling is 36%, which is among the highest rates in the country. Sports betting became legal in Pennsylvania in 2018.

Gambling tax revenue is spent on a range of initiatives, including school property tax reductions for primary residences and economic development projects statewide. It also contributes to the state's agricultural sector and goes into Pennsylvania's general fund balance.