The $113.3 million in revenue reported by Pennsylvania’s 18 iCasinos in May wasn’t a record – they raised nearly $5 million more in March – but it highlighted the stability now common for this integral part of the state’s gambling industry.
While May’s revenue was almost identical to the $113.1 million reported in April, it was the sixth consecutive month and the seventh of the last eight in which online casino games collectively topped $100 million. for state operators. The figure was also $12 million higher than May 2021, which was the first month since iGaming began in 2019 that the $100 million threshold was reached.
In the first five months of 2022, iCasinos claimed a total of $555.2 million from players, or about $110 million per month. It’s also about $20 million more per month than the January-May 2021 average.
This difference is of particular significance, as online casinos represent the primary growth area of the commercial gambling industry in Pennsylvania. Retail casinos themselves generate significantly more revenue, but that year-over-year total is basically stable. And although sports betting attracts more public attention, the revenue it generates is much lower than that of iCasinos and is also subject to much more seasonal and monthly variation, depending on the sports calendar and skill. bettors to choose the winners.
On track for $1.3 billion out of $5 billion
In 2021, when the state’s gambling industry totaled a record $4.73 billion in revenue, online casinos were responsible for $1.11 billion – less than half the amount. retail slots, but more than the total of retail table games and more than three times as much as sports betting.
Now the state is on track to generate $5 billion in gambling revenue in 2022, and most of that increase will come from those who use their phones or computers to play slots, table games or online poker. If the trend of early 2022 continues, digital gamers will lose over $1.3 billion to operators by the end of the year.
What’s critical to the state and its taxpayers isn’t just the gaming companies seeing the profits from online gaming. Thanks to a mixed tax rate that amounts to around 41% for the various online options, the state’s share of revenue is expected to exceed $540 million in 2022. That’s a pretty hefty sum for which the State budget planners would have had to somehow find a different source if the 2017 legislation hadn’t made Pennsylvania one of the few states in the country to legalize online casino gambling. .
Revenues of individual operators are not made public
While it’s easy to compare the performance of individual sports betting operators in the state each month, the Pennsylvania Gaming Control Board’s public revenue reports don’t allow it with iCasinos. Various licensees have partnerships with multiple online gaming operators, all of whose revenues are aggregated for reporting purposes under the name of the licensee.
Consistently, Hollywood Casino, Rivers Casino Philadelphia, and Valley Forge Casino Resort are by far the top monthly revenue generators as licensees, but all have multiple online sites connected to them through their various financial partnerships, in which revenues are shared. In May, sites using Penn National Gaming’s Hollywood Casino license generated $45.5 million in revenue, those using Rush Street Gaming’s Rivers Casino generated $26.9 million, and those using Boyd’s Valley Forge license Gaming made $21.2 million.
In most cases, successful iCasino sites share the platform of major sports betting operators, with companies such as FanDuel, DraftKings and BetMGM making much of their money from sports bettors who can easily use their same online wallet to play blackjack or a favorite slot game, and vice versa.
Just like in physical casinos, most of the money comes from slot machine games. To account for May’s $113.3 million in revenue, $78.2 million came from slots, $32.3 million from table games such as blackjack and roulette, and $2.8 million poker dollars.
In another distinctive aspect of the state’s public reporting method for online casinos, monthly gaming commission figures show what operators earned after subtracting for promotional credits given to players for bonuses. registration and other gaming incentives. As of May, these credits totaled $23.5 million, with operators’ gross earnings collectively totaling $136.8 million.
Unlike the $113.3 million officially reported by iGaming State, this $136.8 million last month would be higher than the $136 million reported by New Jersey or the $127.4 million reported by operators in Michigan, which are the other two largest states to have legalized online casinos.