With official December gaming revenue numbers for PA due out later this week, one key number has been released. Officials at Wednesday’s Pennsylvania Gaming Control Board (PGCB) meeting shared the unofficial number of $3.27 billion for total gross gaming revenue (GGR) for 2019.
This approximated top-line figure makes 2019 the highest ever for gaming revenue in the state. Comparing to previous years and considering overall industry growth, though, the number may be on the lower end of expectations.
PA gaming continues year-over-year growth
With the addition of so many verticals and operators to PA online gambling in 2019, an increase in revenues was mostly a given. The real question was by how much would they beat the previous year’s totals.
In 2018, gross slots revenue came out to $2.37 billion while gross table games revenue was $878.8 million. Pennsylvania sports betting launched in November of 2018 and brought in $2.5 million in revenue during its first two months. Combined, GGR for 2018 was $3.25 billion.
All told, there was a $16 million bump in overall revenues from 2018 to 2019, looking at slots, table games and sports betting, live and online.
Looking at revenue change over the five years prior to 2019, the increase from 2018-19 seems on par.
| Year | Gross slot revenue | Gross table games revenue | Gross total gaming revenue | Change from previous year |
|---|---|---|---|---|
| 2014 | $2,319,534,380 | $749,543,217 | $3,069,077,597 | -$44,850,993 |
| 2015 | $2,365,651,659 | $808,137,112 | $3,173,788,771 | $104,711,174 |
| 2016 | $2,360,184,122 | $853,238,055 | $3,213,422,177 | $39,633,406 |
| 2017 | $2,336,212,902 | $890,697,914 | $3,226,910,816 | $13,488,639 |
| 2018 | $2,369,885,203 | $878,796,174 | $3,248,681,377 | $21,770,561 |
However, upon closer look, it may paint a bit of a different picture.
Despite growth, slots and table games show declines
A lot happened in terms of growing PA’s gambling industry in 2019. Sports betting growth exploded with the addition of PA online betting apps beginning in May. The addition of online casinos in July also added to the state’s gaming revenue flows.
The above figures are only for slots and table games, with sports betting excluded. Through November 2019, PA sports betting revenue stood at $71.5 million. Once December’s revenue is added, the total sports betting revenue number for the year will be in the ballpark of $90 million.
Taking that figure out of the top-line number will show a decline in revenue for slots and table games from 2018 to 2019, even as online casino picks up steam.
Perhaps no need to worry about PA gaming revenue
Periodic dips for certain operators, both brick-and-mortar and online, could be contributing to that decline. Normal variance in slot revenue could also be a large factor.
For PGCB director of communications Doug Harbach, the steady overall growth PA gaming has experienced in recent years is a good sign. Harbach told Play Pennsylvania:
We continue to see growth within the brick-and-mortar casinos and some of that has to do with bringing in new customers for types of gambling specifically sports wagering in almost all the casinos. We’ve seen a continued ramp-up of the numbers over the past few years. There continues to be a build up of the customer base at brick-and-mortar casinos and I think with the interjection of online games it’s spurring more individuals to participate in whatever form of gambling they like, whether it’s online or at the casinos.
Whatever the reasons for declines in certain verticals, the growing number of gambling options in the state should continue to drive increased revenues. The complete numbers, once available, should give a more clear picture of the breakdown.
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