The Pennsylvania Gaming Control Board (PGCB) has recently published its annual revenue reported for 2018/19. As seen in the report, the previous fiscal year saw the nascent but rapidly growing gambling sector contribute significantly to the state’s economy. To put this into perspective, the gambling industry employed a whopping 16,000, delivering total annual expenditure of $500 million as well as generating $1.4 billion in tax revenue.
In total, the state’s 12 casinos generated a combined revenue of $3.2 billion in the 2018-19 fiscal year. Out of that amount, slot machines brought in $2.38 billion while tables games accounted for 885.6 million.
Big Boost from Sports Betting
The Keystone State’s sports betting industry just recently took off and already it is a significant contributor to the state’s gambling sector. Sports betting go off to a pretty impressive start in November last year with the launch of a retail sportsbook Hollywood Casino at Penn National Race Course. This was followed by the launch of 10 other retail sportsbooks as well as the recent debut of five online sportsbooks.
Sports betting brought in a $21.7 million with tax revenue from the gaming vertical clocking in at $7.8 million. Though the amount recorded for the sector is rather subtle compared to other forms of casino gambling, it is expected to grow even further in the near future. A number of gambling operators have now set their sights on Pennsylvania’s gaming industry. Once they go live they will significantly boost the industry once they go live with their products and offerings.
Also, worth mentioning is Pennsylvania’s daily fantasy sports (DFS) sector which launched in May 2018. The sector generated a total of $23.5 million with tax revenue of about $3.5 million. DraftKings which has plans of launching a retail sportsbook in the state topped the DFS sector. It generated $12.0 million in the 2018-19 fiscal year. It was closely followed by FanDuel, its biggest competitor, which brought in $10.9 million.
Initial VGT Revenues Posted
The Pennsylvania Gaming Control Board also posted the initial reports of the revenue generated by the Video Gaming Terminals (VGTs) that were recently installed at some of the truck stops. As it stands, two operators have installed the VGTs at a total of seven truck stop establishments. The first of these officially launched on August 16, 2019.
Marquee by Penn or Commonwealth Gaming, the two VGT operators, generated a combined $3,448,881 in wagers in August and September. This is definitely a great start for the VGT sector. While the revenue report does not offer much insight into what the future holds, the vertical is set to experience massive growth.