Taxable sports betting revenue for December 2024 dropped significantly, according to the Pennsylvania Gaming Control Board (PGCB). Across the state, sportsbook operators saw revenue declines. It was the steepest year-over-year decline for the sports betting market in Pennsylvania.
None of the 17 active operators managed to improve revenue from the previous month. Only 10 of them saw year-over-year revenue increases. Despite this poor performance, Pennsylvania is still an important player in the U.S. sports betting and iGaming arena.
Higher growth in online gaming than expected
The total betting handle in December from retail and online wagers was just over $893 million which was a 4.5% decrease from November’s revenue. December saw a 3.5% year-on-year decline compared with December 2023. Online sports betting revenue may have dropped by about $50 million throughout the state but online gaming saw an increase.
The increase of $59M for online gaming was higher than anticipated. This is why an operator of a Pennsylvania online casino may not have been as concerned about the drop in sports betting revenue. The operator could benefit from recycled winnings that did not need to be paid out in a less successful sportsbook.
iGaming revenue keeps increasing
The American Gaming Association (AGA) has a gaming revenue tracker that gives state-by-state and cumulative insight into the performance of the commercial gaming industry. Across states where it is legal, iGaming is setting new records.
PGCB reported early this year that 2024 combined gaming revenue in Pennsylvania achieved a record high. It crossed the $6 billion mark for the first time in a calendar year. This figure represented the combined revenue from slot machines, table games, sports watering, iGaming, VGTs, and fantasy contests.
Tax revenue benefits
There has been consistent year-over-year growth in internet gaming for the past few years and continued growth is expected. It may not reach quite as high as it has in some months, but it will still be substantial.
The tax revenue in 2024 was over $2.5 billion, and this goes to fund public services, such as schools, roads, and police. The state government uses tax revenue to carry out specific activities through various funds. Some of this taxation revenue is beneficial for homeowners in Pennsylvania as it is used to reduce property taxes.
What can casinos do improve their revenues?
Gaming operators in Pennsylvania strive to improve their revenue streams with new ideas, mostly targeted towards improving customer experience and offering better gaming options. Here are some of the steps casinos in Penn have taken or are taking to achieve their revenue goals:
Strengthening player engagement
To maintain and grow market share, it is crucial to strengthen casino offerings to increase player engagement. This is particularly the case as more US states consider legalizing online gaming.
Preserving classic formats but offering new ways to engage
Many casinos are bridging tradition and technology to create more engaging and accessible experiences. By preserving the essence of classic formats and introducing new ways to engage, they can appeal to wide audiences. Games like slots can stay rooted in tradition and yet incorporate intuitive interfaces and other modern design elements. Mobile compatibility in casino games is also essential in the contemporary world.
Increasing game selection
iGaming operators who can attract players and encourage them to keep coming back will be able to succeed in a competitive market. Online operators need to increase their selection of games to cater to all types of players. Players also want to see a wide range of variants of games such as blackjack and slots with many different themes.
Making sure of game quality
No player will keep going back to a platform with a poor selection of games or games of inferior quality. Players shouldn’t have to struggle with poor audio quality or unclear graphics.
Offering attractive bonuses and promotions
Online gaming operators can personalize their offerings to players by segmenting them according to their interests and preferences. With data from past promotions, loyalty programs, etc. it isn’t difficult for iGaming brands to create relevant bonuses and exclusive promotional events. They should combine tried-and-tested strategies such as deposit bonuses and free spins with new tactics such as real-time or niche campaigns.