Pennsylvania Sports Betting Revenue Drops
Author:
Muhammad Gregory
In August, sports betting revenue in Pennsylvania registered a year-on-year decrease of 35.1%. However, the state managed to report an overall increase in gambling revenue, with a total of $457.2 million, marking a 7.5% rise compared to August 2022. This figure was 2.1% lower than the $467 million recorded in July of the same year.
In August 2023, sports betting revenue in Pennsylvania saw a significant year-on-year decrease of 35.1%, though the state still managed to experience an overall increase in total gambling revenue.
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Retail Gaming Remains Primary Source of Income Revenue
In Pennsylvania, sports betting revenue experienced a notable 35.1% year-on-year decline in August, even as the state reported an overall increase in gambling revenue. The total gambling revenue for Pennsylvania reached $457.2 million in August, marking a 7.5% increase compared to the same month last year when it stood at $425.4 million. However, this figure represented a slight dip of 2.1% from the $467 million recorded in July of this year.
Retail slots continued to be the primary source of gambling revenue in the state, bringing in $203.2 million, which is a 1.0% increase from the previous year. Retail table games also saw a significant uptick of 5.4%, reaching $82.7 million.
Online casino gambling displayed robust growth, generating $145.0 million in total revenue, reflecting a substantial increase of 35.3%. Internet slots revenue experienced a remarkable surge of 39.0%, reaching $105.3 million, while revenue from iGaming tables also jumped by 29.8% to $37.3 million. However, online poker revenue dipped by 10.9% to $2.4 million.
Hollywood Casino at Penn National retained its top position in the online gaming market, amassing revenue of $60.3 million. Valley Forge Casino Resort secured the second position with $32.4 million in revenue, followed by Rivers Casino Philadelphia with $28.1 million.
Sports Betting Market Surprisingly Struggled in PA During August 2023
In contrast to the thriving iGaming sector, the sports betting market faced significant challenges in August, reporting a 35.1% year-on-year decline in revenue, which amounted to $22.0 million. Of this total, $19.3 million stemmed from online sports betting, while retail wagering contributed $2.7 million. Interestingly, despite the revenue downturn, the handle showed a positive trajectory, increasing by 8.3% to reach $393.0 million during the same month.
Hollywood Casino at the Meadows and Barstool claimed the top position in the sports betting arena, amassing $7.4 million in revenue. This propelled them past former market leaders Valley Forge and FanDuel, who secured the second spot with $5.5 million. Hollywood Casino Morgantown and Barstool followed in third place with $1.8 million.
Elsewhere in Pennsylvania’s gambling landscape, video gaming terminal revenue faced a slight dip of 5.4%, totaling $3.5 million for the month of August. Fantasy sports revenue also saw a decrease of 5.8%, settling at $792,206.
Evolution Launched Product in Pennsylvania in June 2023
The online gambling landscape in Pennsylvania continues to evolve as Evolution, a prominent online casino solutions provider, established a strategic partnership with Caesars Digital in the state back in June 2023.
This collaboration focuses on bringing Evolution’s highly acclaimed live casino products to Tropicana Online Casino and Caesars Sportsbook & Casino, enriching the gaming offerings for players in the Keystone State. Additionally, the agreement extends access to Evolution’s online slots to iGaming operators NetEnt and Red Tiger.
Evolution’s live dealer games will be seamlessly integrated into the platforms of these operators, delivered via live streaming from Evolution’s cutting-edge studios. Currently, Evolution’s portfolio encompasses a variety of popular titles, including American and European Roulette, classic and Infinite Blackjack, Baccarat, Craps, Ultimate Texas Hold’em, and Three Card Poker.
Another noteworthy aspect of the partnership is the introduction of ‘first person’ games, which represent premium 3D animated RNG (Random Number Generator) versions of Evolution’s live games. These immersive offerings are scheduled for launch later in 2023, adding an exciting dimension to the online gaming experience for Pennsylvania players.
In response to the significant partnership between Evolution and Caesars Digital, Jeff Millar, Chief Commercial Officer at Evolution, expressed his satisfaction with the deal, emphasizing the commitment to delivering top-quality gaming products to players:
“We are delighted to be helping Caesars Digital expand their reach in Pennsylvania and to be part of this exciting journey. We have been working closely with Caesars for some time and we’re proud to be their live casino provider and to ensure they have the best games at their disposal for their players. We look forward to continuing this relationship and to seeing what new exciting developments come out of this latest expansion.”– Jeff Millar, Chief Commercial Officer, Evolution, Press Release
NeoGames Stepped into Pennsylvania Market in July 2023
In a strategic move to elevate its online gaming offerings, PlayLive! announced in July 2023 the transition to NeoGames’ suite of advanced products, including Player Account Management (PAM), Customer Relationship Management (CRM), aggregation, and data analytics by 2024. This significant shift marks a departure from PlayLive!’s initial partnership with California-based iGaming supplier GAN, which provided the casino’s initial online gaming solutions.
A notable aspect of this collaboration is the adoption of the AspireEngage CRM system, a move NeoGames believes will substantially improve the player journey and overall customer satisfaction compared to the previous offering. Additionally, PlayLive! will integrate with the Pariplay Fusion aggregation platform, further enhancing its capabilities and expanding its range of offerings. This strategic decision underscores NeoGames’ dedication to leveraging state-of-the-art technology and comprehensive solutions to provide an enhanced online gaming experience for PlayLive! customers.
As PlayLive! prepares to transition to NeoGames’ suite of products, players can anticipate a more immersive and tailored online gaming experience, thanks to the advanced CRM system and broader game selection provided by the Pariplay Fusion aggregation platform.
Tsachi Maimon, President and Head of iGaming at NeoGames, has voiced his excitement regarding the partnership with PlayLive! Casino and the prospects it presents for enhancing iGaming services in Pennsylvania:
“We are incredibly excited to commence our partnership with PlayLive! Casino and take its Pennsylvanian iGaming offering to the next level. With this complete migration onto our iGaming products and services, it truly reinforces the strength of NeoGames and our overall proposition following the acquisition of Aspire Global. The teams are thoroughly looking forward to working closely with PlayLive! Casino and expect a seamless cut-over to our technology and content early next year.”
