Pennsylvania's gaming industry sees new record fiscal year with $5.5B in revenue for FY22/23
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The Pennsylvania Gaming Control Board (PGCB) has announced a landmark achievement for the state's gambling industry, as gross gaming revenue (GGR) from all regulated verticals soared to an unprecedented $5,513,729,520 during the 2022/2023 fiscal year. The record-high revenue is also the second time the state eclipses the $5 billion mark and helps solidify Pennsylvania's position as the second-richest gaming state behind only Nevada.
This figure represents a remarkable increase of over 9% compared to the previous fiscal year, underscoring the robust growth of Pennsylvania's gaming sector. The record-breaking revenue has also resulted in asubstantial tax benefit for both the state and local governments, with gaming interests contributing nearly $2.37 billion in taxes, up about $316.6 million from the previous fiscal year.
Throughout the fiscal year 2022/2023, most of Pennsylvania's various gaming verticals showcased impressive growth. Gross revenue from slot machines at the casinos amounted to $2.4 billion, representing a 1.74% increase compared to the previous fiscal year.
Despite the slight increase, this figure stands as thesecond-highest slot machine revenue in a fiscal year, trailing only behind the revenue generated in 2011/12. Slot machines have remained a perennial favorite among casino-goers, contributing the most to the state's overall gaming revenue.
In contrast, retail table games revenue experienced a decline, with GGR totaling $974 million, a 4.11% decrease compared to the fiscal year 2021/22. It was the only segment to post a drop, along with fantasy contests revenue, which experienced a decline of 24.32%, with a revenue of $20.7 million.
One of the most significant drivers of the record revenue was therise of iGaming revenue. In the fiscal year 2022/23, revenue from online gaming reached an impressive $1.5 billion, marking a substantial 24.38% increase compared to the previous year.
Similarly, sports wagering revenue also witnessed growth, totaling almost $492 million, a remarkable 55.82% increase compared to the $315.7 million the vertical generated in the fiscal year 2021/22. For their part, Video Gaming Terminals (VGTs) at truck stops experienced a more modest increase in revenue, with GGR amounting to $42.1 million, a 1.28% rise compared to the fiscal year 2021/22.
Pennsylvania's gaming industry's tremendous growth can be partly attributed to thestate's expansion of its gaming offerings in recent years. The authorization in 2017 of so-called mini-casinos, sports betting, iGaming, DFS, and VGTs at certain truck stops has significantly contributed to the industry's success.
Penn Entertainment positioned itself as the top gaming operator in its home state during the 2022/23 year, with GGR over the past 12 months totaling more than $1.36 billion. Its iGaming operations delivered $648.1 million in revenue, while its four casinos won about $536.3 million from slots and tables. The remaining revenue came from its sports betting and VGTs operations across the commonwealth.
As for individual casinos, Parx Casino led slot machine revenue at $389.9 million, while Wind Creek Bethlehem dominated retail table games at $236.7 million. For its part, Hollywood Casino at Penn National Race Course brought the most iGaming revenue at $648.1 million.
Going forward, the market might be poised for further growth as truck stops continue to apply for VGTs, and a fifth mini-casino is in the works for State College near Penn State University.
