Penn. Reports Strong iGaming Growth in May, $1 Billion Online Slots Managed
Posted: June 21, 2020, 1:04 a.m.
Last update: June 21, 2020, 11:54 a.m.
Pennsylvania’s growing online gambling industry hasn’t completely filled the void left by the closure of physical casinos. But mobile slots and table games are providing the state with revenue as the COVID-19 crisis continues.
May figures from the Pennsylvania Gaming Control Board (PGCB) were released last Tuesday, and online slots management topped $1 billion for the first time. The $1.06 billion bet in the state last month was more than $300 million higher than April’s total. Table games generated $778.5 million in action last month, an increase of nearly $150 million from April.
According to data from the PGCB, the state collected nearly $24 million from slot machines and interactive tables.
The significant increase in online gambling during the COVID-19 closure of casinos is the significant increase in revenue in just two months,” the PGCB said in a statement. “Online casino-like revenue of $55.8 million in May was more than double the revenue generated from these games in March, when revenue was $24.9 million.”
These numbers are still just fractions of what retail casinos in the state produced in May 2019. Slots generated gross revenue of $209.6 million and tables generated $76.6 million. of dollars. This allowed the state to raise $120 million in taxes for the month.
Yet iGaming has enabled Pennsylvania, along with neighboring New Jersey and Delaware, to do something no other gambling state could – generate revenue through gambling while casinos are closed.
Pennsylvania sports betting begins to rebound in May
Meanwhile, sports betting has started to climb again. The return of competition in May saw the state’s online sports betting apps earn $77.5 million in bets. That’s a 68.5% increase from the $46 million in bets taken by the books in April.
These bets generated $4.8 million in gross revenue, which, in turn, created $1.6 million in state taxes.
Pennsylvania doesn’t break down the grip by sport. But May featured the first live sporting events to take place since COVID-19 forced cancellations and postponements across the country. The main sports that resumed play in May were the UFC, which held three cards in a week in Jacksonville, Fla., and NASCAR, which moved from virtual racing to live product on May 17.
FanDuel and DraftKings once again dominated the market as the two combined to own two-thirds of the sports betting business in Pennsylvania. FanDuel handled $29.6 million in wagers, with DraftKings returning a handful of $21.8 million.
Reopening of physical casinos
Earlier this month, land-based casinos in the state began to reopen. Unlike most gambling states, where – with some exceptions based on local guidelines – state gambling commissions have set a date for venues to resume operations in limited capacities, Pennsylvania does not allow reopening casinos only when their counties reach the “green phase” upon reopening. plan.
By the end of the coming week, half of the 12 retail casinos are expected to reopen. This includes the Mount Airy Resort Casino in the northeast corner of the state. The casino released a statement last week announcing plans to open Monday at noon ET.
Thanks to a state tax of 34%, Pennsylvania generates more money from gambling than any other state in the country. However, the COVID-19 crisis which has closed physical casinos will have a significant effect on the Keystone State budget.
For the 2018-2019 fiscal year, Pennsylvania received $808.8 million in state taxes on slot machines alone. With just June left in the 2019-20 fiscal year, the state only generated $556.1 million, thanks to no taxes in April or May.