Pennsylvania’s igaming industry will close out 2021 with a revenue record

Pennsylvania’s igaming industry will close out 2021 with a revenue record

Pennsylvania’s online casino and poker rooms set new records through December while betting volume at digital and retail sportsbooks remained around all-time highs. 

Pennsylvania sets record to wrap up 2021

The former generated $127.6 million in gross gaming revenue for the month, surpassing its previous high of $117 million set in October and representing a 17% year-on-year increase from $108.5 million.

This generated $102.1 million in taxable revenue, which resulted in $42.5 million in state and local taxes and assessments. Online casino wagering increased to $4.3 billion in December, up from $3.8 billion in November. Pennsylvania’s online casinos earned $1.3 million in gross income from online casino games and poker rooms last year, increasing 91.1 percent from $680.2 million in 2020; they also earned $466.4 million in state taxes.

The Keystone State’s sportsbooks took in $750.4 million in wagers throughout the month, the third-largest monthly total on record and a 36.8 percent increase year over year from $548.6 million. However, experts estimate that bettors won “at a far faster rate” than a month before, with November income increasing to $84.9 million.

December’s total revenue for sportsbooks was $38 million, down 16.3 percent from December 2020s $45.3 million. Online sportsbooks collected $693.3 million in wagers, accounting for 92.4 percent of the state’s total transactions. FanDuel dominated the online betting industry, accounting for $246.8 million in wagers, or 32.9 percent of the total.

After spending $19.1 million on promotional activities, sportsbooks ended the month with $18.8 million in taxable income, generating $6.8 million in state and local taxes and share assessments. For the year, Pennsylvania’s retail and online sportsbooks generated $6.5 billion in wagers, an increase of 83% from $3.6 billion in 2020; $505.5 million in gross revenue, an increase of 87.3 percent from $269.9 million in 2020; and $122.5 million in state taxes and local share assessments, an increase of 79.4 percent from $68.3 million in 2020.

Quotes from the Press Release

“The expansion of online casino gambling appears to be practically limitless,” Katie Kohler, an analyst with PlayPennsylvania, said.

“Online casino income nearly doubled year over year, a substantial increase from 2020, when individuals were confined to their homes due to a global pandemic. Growth should moderate slightly in the coming year, although internet casinos have not yet reached their peak.

“If the carrot for legislators is to generate a sustainable and constant revenue stream for the state, no state has been more successful than Pennsylvania,” stated Dustin Gouker, an analyst with PlayUSA.

“While Pennsylvania’s relatively high tax rate appears to contribute to slower overall growth, this appears to be a reasonable trade-off that has benefited the state overall.”

Avatar

About Lou De Aguila

Lou Ramon Aguila is a contributor for Golden Casino News. He has a degree in BSBA Legal Management with great interest in high-profile legal cases involving sports personalities. An ultimate sports junkie, he covers just about everything in the sporting world with an emphasis on the NBA, NFL, and MLB. In his past time, Lou loves to read manga, watch anime and critique pro-wrestling matches.