WASHINGTON (TNS) — Pennsylvania’s casinos took in $5.9 billion in revenue last year, almost 10% more than the year before and still the second most of the 50 states.
The increase of 9.8% over 2022 was just shy of the national average of 10% and represented a new high in revenues, according to figures released Tuesday by American Gaming Association, the casinos’ industry group. Pennsylvania is the second largest casino market among the 50 states in terms of revenue, behind only Nevada.
Nationally, casino revenues increased from $60.5 billion in 2022 to $66.5 billion in 2023, according to the trade group. The figures do not include Native American casinos.
“From the traditional casino experience to online options, American adults’ demand for gaming is at an all-time high,” said Bill Miller, the association’s president and CEO.
He said people kept gambling as inflation dropped and a threatened economic downturn did not happen.
As proof that gambling has entered the mainstream, Miller cited the Super Bowl, which was held in Las Vegas earlier this month. “We are broadly embraced by the public,” he said.
Pennsylvania has 17 casinos that support 64,933 jobs and put $14.7 billion into the state’s economy, the industry said.
While brick and mortar casinos still provide most of the revenue, sports betting and online gambling were the biggest growth areas in Pennsylvania.
Revenue from traditional casinos rose less than 2% in the Keystone State, while sports betting grew by 15%. The state’s 2023 sports betting revenue of $686.9 million was fifth largest in the country.
And online gambling in the state — one of only six that allow it — reached $1.7 billion, behind only Michigan and New Jersey. Those three states account for 90% of all online gambling revenue, according to David Forman, the association’s vice president, research.
One issue of concern, association officials said, was the proliferation in Pennsylvania of what are known as “skill games,” which play like slots but the manufacturers say require an element of skill. These machines are found in convenience stores, bars and other small businesses, and are not subject to the same regulations and taxes as casino slots.
“There’s really no distinction between them and the regulated slot machines,” said Chris Cylke, senior vice president, government relations. “Pennsylvania is one of the beachheads for this debate.”
At a 2020 state House Democratic Policy Committee hearing, Pace-O-Matic, which dominates the skill games industry, said it had about 15,000 machines in the state.
The Commonwealth Court ruled last year that these games were legal, and Gov. Josh Shapiro this year proposed regulating and taxing them. Legislation to do just that has been introduced in Harrisburg.
