Online Casinos

Pennsylvania Maintains Position as Second Largest US Online Casino Market in 2023

·January 10, 2024

Pennsylvania's online casino (iGaming) market continued to be the second largest in the United States in 2023, with the Pennsylvania Gaming Control Board's monthly reports reflecting consistent gross gaming revenue across a large roster of licensed operators in one of America's most mature and competitive regulated iGaming markets.

Key Takeaways

Pennsylvania is consistently the second largest US online casino market after New Jersey
Pennsylvania launched iGaming in July 2019 — the second US state to legalise online casino gambling after New Jersey
The Pennsylvania Gaming Control Board (PGCB) publishes monthly iGaming revenue data for all licensed operators
Pennsylvania has one of the largest rosters of licensed online casino operators of any US state
Major operators include BetMGM, DraftKings Casino, FanDuel Casino, Caesars Casino, Hollywood Casino (Penn Entertainment), Parx Casino, and others
Pennsylvania iGaming GGR is taxed at 54% for online slots and 16% for online table games

Why It Matters — Players

Pennsylvania online casino players benefit from one of the most competitive iGaming markets in the country — with more licensed operators competing for customers than almost any other state. This competition drives strong game variety (often hundreds or thousands of slot and table game titles available), competitive welcome bonuses, and regular promotional offers. Pennsylvania also offers licensed online poker. The PGCB's monthly transparency reporting means the regulatory environment is stable and well-documented, and the PGCB has established consumer protection standards that all licensed operators must meet.

Why It Matters — Operators

Pennsylvania's scale — second only to New Jersey in iGaming revenue — makes it one of the most commercially important US iGaming markets despite its high slots tax rate. The large number of licensed operators reflects both the size of the opportunity and the competitive intensity of the market. Operators with strong Pennsylvania performance have a significant advantage in the overall US iGaming competitive landscape. Pennsylvania's established iGaming framework is also often used as a reference point in legislative debates about iGaming expansion in other large states.

Pennsylvania's online casino market — one of the most mature in the United States — maintained its position as the country's second largest iGaming market in 2023, with consistently strong gross gaming revenue reported monthly by the Pennsylvania Gaming Control Board (PGCB). Pennsylvania launched regulated online casino gambling in July 2019, becoming the second US state to legalise iGaming after New Jersey, and has since developed one of the most competitive and operator-diverse online casino markets in the country.

Pennsylvania iGaming Background

Pennsylvania enacted comprehensive gambling legislation in October 2017 (Act 42) that included authorisation for online casino gaming, online poker, and sports betting. The PGCB began issuing interactive gaming licences and the first online casinos launched in July 2019. Pennsylvania's iGaming rollout was notable for its large number of eligible licence holders — Pennsylvania has 17 licensed casino properties, each of which can apply for an interactive gaming manufacturer and operator licence, creating the potential for numerous competing online casino platforms.

Market Competition

By 2023, Pennsylvania had one of the largest numbers of licensed online casino operators of any US state. Major platforms operating in Pennsylvania included BetMGM (MGM Resorts / Roar Digital), DraftKings Casino, FanDuel Casino, Caesars Casino Online, Hollywood Casino by Penn Interactive (Penn Entertainment), Parx Casino Online, SugarHouse/BetRivers (Rush Street Interactive), PokerStars PA, and others. This multi-operator environment creates strong competition for players on game selection, bonus offers, and promotions.

Pennsylvania licenses both online casino games and online poker. The state's large population (approximately 13 million) and its position in the Northeast corridor near major markets including Philadelphia and Pittsburgh make it a strategically important iGaming market.

Tax Framework

Pennsylvania's iGaming tax rates are among the highest in the US: online slots are taxed at 54% GGR, while online table games are taxed at 16% GGR. The slots rate in particular has been noted by operators as high compared to other iGaming states, though the large player market compensates for the higher tax burden.

National Market Context

Together with New Jersey and Michigan, Pennsylvania forms the core of the licensed US online casino market. The combined performance of these three states is consistently cited by the American Gaming Association and iGaming expansion advocates as evidence of the economic benefits of regulated online casino gaming.

Source Attribution

Source:: Pennsylvania Gaming Control Board
Published:: January 10, 2024
Original Article:: View Source

This article is an editorial summary of the source publication listed above. iGamingNavigator does not reproduce third-party content. All analysis is original.

Pennsylvania Maintains Position as Second Largest US Online Casino Market in 2023

Key Takeaways

Why It Matters — Players

Why It Matters — Operators

More Articles