New data from the Pennsylvania Gaming Control Board (PGCB) reveals mixed results for the state’s gambling industry in February 2025. Total revenue dropped by 4.3% year-over-year, landing at $477.2 million, primarily driven by declines in traditional casino gaming and sports wagering. However, the iGaming sector surged, mitigating some of the overall losses and reinforcing its growing importance to the state’s gambling market. Developments in other verticals, including skill games and the state lottery, signal potential shifts that could reshape industry dynamics.
Divergent Casino Performance
Among Pennsylvania’s top casino performers, results varied significantly:
- Hollywood Casino at Penn National Race Course: Maintained its position as the top-earning venue, generating $89.5 million in revenue. However, this marked a 2.9% decline from February 2024.
- Valley Forge Casino Resort: Experienced impressive growth, posting $81.4 million, a 9.9% increase, suggesting a potential challenge for the top spot if its momentum continues.
- Rivers Casino Philadelphia: Saw 5% growth, with revenues reaching $51.2 million.
- Parx Casino Philadelphia: Reported a 2.7% decline, bringing in $49.9 million. Despite this dip, Parx retained its dominance in slot revenue, leading all operators with $28.9 million.
Statewide, slot revenue suffered the sharpest decline, falling 8.1% to $186.3 million, reflecting changing consumer preferences and contributing significantly to the overall revenue drop.
iGaming Surges to Offset Losses
The digital gaming sector delivered strong results, reinforcing its role as a vital driver of the Pennsylvania gambling market. iGaming revenue climbed 12.3% year-over-year, buoyed by robust performances from key operators:
- Hollywood Casino at Penn National: Led the iGaming sector with $77.6 million in revenue.
- Valley Forge Casino Resort: Posted one of the most dramatic surges, with revenues skyrocketing 26.5%.
- Rivers Casino Philadelphia: Continued its solid performance, generating $34.2 million from its digital operations.
These results underscore the growing dominance of online gaming, which continues to outperform traditional casino gaming in year-over-year growth metrics.
Sports Wagering Struggles After Super Bowl Payouts
February was a challenging month for Pennsylvania’s sports wagering sector, which generated a total handle of $756.92 million but saw revenues collapse to $7.5 million. This sharp decline was partly attributed to the Philadelphia Eagles’ Super Bowl victory, which triggered significant payouts to bettors.
Key highlights include:
- Only two operators surpassed the $1 million gross revenue threshold.
- Valley Forge Casino Resort emerged as the top performer, generating $13.7 million in sports betting revenue.
- Conversely, 11 operators reported losses, reflecting the intensely competitive nature of the sports betting landscape.
Lottery Advocates for Legislative Overhaul
Beyond casino and online gaming, the Pennsylvania Lottery is advocating for legislative changes to boost its revenue-generating potential:
- Currently, a 20% minimum profit margin is mandated for traditional lottery games, limiting the flexibility of payouts.
- This restriction does not apply to online lottery offerings, creating disparities in competitiveness.
- The Lottery argues that removing this restriction would lead to higher payouts, attracting more players and enhancing overall profitability.
Shifting Consumer Behavior and Policy Considerations
Despite the revenue dip in February, Pennsylvania’s gambling industry remains robust, bolstered by the rising popularity of iGaming. However, declining slot and sports betting revenues reveal shifts in consumer behavior, which could necessitate policy adjustments to sustain the brick-and-mortar casino segment.
Policymakers are also deliberating potential reforms to the controversial skill game sector, including introducing a 52% revenue tax. If enacted, this measure could provide additional revenue streams while reshaping the competitive landscape across the state.
Pennsylvania’s gambling market is at a pivotal juncture. While the sector faces headwinds in traditional gaming and sports wagering, the growth of iGaming and potential legislative changes offer opportunities for renewed momentum. The coming months will reveal how the state balances these shifts to maintain its position as one of the nation’s leading gambling markets.
