The U.S. online gaming industry is a hot topic right now, especially after experiencing a banner year that brought in a GGR (Gross Gaming Revenue) of $52.99 billion across all verticals, including online casinos, sports betting and iGaming. Many states have liberalized online gambling laws over the past few years, leading to major iGaming companies chomping at the bit to get a piece of the action.
However, while a strong performance was still expected as revenues increased month on month, it was Pennsylvania’s online casino performance in 2021 that really caught the eye. Well, that performance continued in the same vein at the start of 2022 after the state recorded another banner month for January.
Thanks to the state’s legalization of many forms of online gambling, such as online casino games and sports betting, in 2017, Pennsylvania was one of the top performing states throughout 2021, and online casino games were a big reason for that. In terms of gross gaming revenue, Pennsylvania was second to Nevada and just ahead of New Jersey with a GGR of $4.83 billion, an increase of just over 79% year over year. former. Online casino games accounted for almost a quarter of this GGR.
Much of this revenue comes from the casino’s strategic marketing and website owners creating informative sites that allow players to view and register for the best online casinos in Pennsylvania in websites such as online-casinos.com and avoid the risk of signing up with unregulated casinos. As a result, players in the Keystone State have contributed a combined online casino GGR for 2021 of $1.3 billion. This figure increased by 91.1% compared to the previous year. In addition to being great news for operators in the state, Pennsylvania itself will also approve the $466.4 million in gaming taxes that these revenues have earned them throughout 2021.
PA starts 2022 in the same vein
With records broken in 2021, many analysts believed this would continue into 2022 and so far, that has proven more than true. In fact, online gambling performance in January 2022 erased the performance recorded in the same month last year by 26%. All PA gaming verticals totaled $393.1 million for the month, according to the Pennsylvania Gaming Control Board (PGCB).
Again, much of the revenue was contributed by online casinos in the state, including Barstool, BetMGM, Fanduel, Borgata, and Parx Casino, which are each operated by numerous land-based casinos in Pennsylvania. Between them, the operators generated online revenue of $129,993,032 through the first month of 2022. This broke the previous record of $127.6 million set the previous month. This figure was also up 42.5% from the $91.2 million posted in January 2021.
Online Casinos Generate More Revenue Than Sports Betting in Pennsylvania
In comparison, revenue generated from sports betting was less than half of what online casino games brought in. revenue was $53.4 million, an 8.3% improvement in January 2021.
Online casino revenue for January 2022 by operator
- Hollywood Penn National – $53,243,158
- Philadelphia Rivers – $33,538,309
- Forge of the Valley – $20,981,100
- Mount Airy – $7,490,245
- Parx – $4,174,506
- Harrah’s Philadelphia, $3,832,400
- Philadelphia Live – $3,477,831
- Mohegan Sun Pocono – $2,284,725
- Almost Isle – $1,555,138
- Wind Stream – $1,415,620
Again, it’s the big three that make up the vast majority of this GGR. Between them, Hollywood Penn National, Rivers Philadelphia and Valley Forge have an 81.3% market share, which is not surprising as they have some of the biggest online casino brands under their licenses. Hollywood Penn National, for example, owns Barstool, BetMGM and Draftkings, while Valley Forge operates Fanduel under its license.
Over 70% of online casino GGR is generated by video slots
Online casinos in Pennsylvania offer poker, virtual and live table games, and video slots, but it is the latter that attract the greatest volume of bets. In fact, slot games accounted for 71.9% of online casino revenue in January. The total Video Slot GGR was $93,518,436 for the month.
Table games such as roulette, blackjack, baccarat and craps, both virtual and live, brought in $33,084,504, while online casino poker rooms generated revenue totaling $3,390,093.
Will the records continue to break throughout 2022?
It goes without saying that the iGaming industry in the United States is booming, especially in states such as Pennsylvania, Nevada, and New Jersey. However, can this revenue growth continue throughout the year?
It’s hard to suggest that it won’t, as many markets are still young and have plenty of room to grow. New brands continue to enter the state markets while existing platforms continue to grow adding bigger and better iGaming developers such as Evolution, Playtech, Greentube and Yggdrasil.
Additionally, with the pandemic seemingly behind us, tourism rebounding to pre-pandemic levels, and lives returning to normal, we can only assume that 2022 will prove to be another banner year for online casinos in Pennsylvania.
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