Pennsylvania Gaming Revenue Report: A Mixed Bag for September 2024
Posted on: October 18, 2024, 09:42h
Last updated on: October 18, 2024, 10:00h
The Pennsylvania Gaming Control Board (PGCB) recently released its September data report, revealing a noticeable slowdown in brick-and-mortar casino play compared to the previous year. This decline in physical casino revenue, however, was more than compensated for by a significant uptick in online gaming activities.
Declining In-Person Casino Revenue
According to the PGCB, gross gaming revenue (GGR) from retail slot machines reached just under $197 million in September 2024, marking a 1.5% decrease from September 2023. Table games also saw a downturn, with revenue totaling $73.4 million, a decline of approximately 2.3%. When combined, the in-person casino gambling revenue amounted to $270.4 million, reflecting a 1.7% drop, which translates to a $4.7 million loss compared to the same month last year.
This trend mirrors the situation in New Jersey, where Atlantic City casinos also reported a decrease in in-person revenue. Analysts noted that September 2024 was a challenging month for comparisons, as September 2023 benefited from an extra Friday and Saturday—typically the busiest days for casinos.
Online Gaming: The Bright Spot
While brick-and-mortar casinos faced revenue declines, the online gaming sector flourished, effectively bridging the gap left by physical casinos. The GGR from online slots and interactive table games (excluding poker rake) soared to $174.5 million, representing an impressive 11% year-over-year increase, or about $17.4 million more than the previous year. This surge was primarily driven by the popularity of internet slots.
Moreover, sports betting revenue, predominantly generated through mobile wagering apps, reached $53.5 million, a staggering 46% increase. The commencement of the NFL season played a pivotal role in this growth, as bettors flocked to sportsbooks, resulting in a windfall for operators.
Additionally, slot-like video gaming terminals (VGTs) located in diesel truck stops contributed around $3.4 million to the overall state gaming revenue, marking a 3.6% increase. However, not all sectors thrived; online poker rake fell to $2.2 million, a 7% decline, and fantasy sports fees dipped to $1.9 million, nearly a 5% drop.
In total, the Pennsylvania gaming industry reported a robust $505.87 million in winnings from gamblers in September, reflecting a growth of 6.2% overall.
Parx Casino: A Leader in the Market
Among the 17 brick-and-mortar casinos in Pennsylvania, Parx Casino, located just 20 minutes north of Philadelphia, continues to lead the pack. Notably, Parx is one of only two smoke-free casinos in the state, which has attracted a loyal customer base seeking a cleaner indoor environment.
In September, Parx Casino generated $30.2 million from its slot machines, outperforming all other casinos in the state. Wind Creek Bethlehem followed in a distant second with $24.2 million. On the table games front, Parx ranked second again, earning $15.5 million, while Wind Creek took the lead with nearly $18 million.
In the realm of online gaming, Penn Entertainment, which operates through its online Hollywood Casino and ESPN Bet sportsbook, reported a commanding GGR of $47.2 million. Boyd Gaming’s FanDuel iGaming operation, in partnership with Valley Forge Casino Resort, came in second with $33.7 million.
When it comes to sports betting, Valley Forge’s FanDuel Sportsbook led the market, generating a total revenue of $27.3 million, with over $26.6 million coming from its online operations. Hollywood’s ESPN Bet followed closely behind, with combined retail and mobile revenue of $18.8 million.
The Future of Gaming in Pennsylvania
As the gaming landscape in Pennsylvania continues to evolve, the contrasting fortunes of brick-and-mortar casinos and online gaming platforms highlight a significant shift in consumer preferences. While traditional casinos face challenges, the online sector’s growth suggests that players are increasingly drawn to the convenience and variety offered by digital platforms. As the state navigates this changing environment, it will be interesting to see how operators adapt and innovate to meet the demands of modern gamblers.