In January 2024, Pennsylvania casinos experienced a significant decrease in physical floor revenue compared to January 2023. The Keystone State’s problems at the start of the year are similar to those in much of the country, as the retail industry slumps.
This week, the PGCB revealed that retail slot machine sales at the state’s 17 land-based casinos totaled $179.5 million, down more than 11% from a year ago. He won $72.6 million in winnings from table games, a decrease of 13%.
All things considered, GGR was approximately $252.1 million, down $33.9 million from January 2023, a decrease of more than 12%.
Sportsbook and iGaming gains from other gambling industries in Pennsylvania offset losses at the state’s land-based casinos.
iGaming GGR increased by more than 12% thanks to $149.5 million from interactive tables and online slots. Bookmakers retained approximately $70 million of the $858.1 million wagered, giving oddsmakers a profit of more than 78%.
The Philadelphia Eagles, who were favored to win the Super Bowl last season, suffered two losses in January, including a humiliating 32-9 come-from-behind loss to the Tampa Bay Bucs in the NFC Wild Card Game. The Pittsburgh Steelers lost to the Buffalo Bills 31-17, resulting in an early exit from the NFL playoffs.
Revenue from casinos, sports betting, and iGaming totaled $477.1 million, plus $2.5 million from fantasy sports and $3.0 million from truckstop gaming machines. This is an increase of 2.8% compared to the previous year.
Economic Headwinds
Pennsylvania’s January gaming report provides further evidence that players across the U.S. are cutting back on in-person gambling. In addition to Pennsylvania, New York, Michigan, Louisiana, Mississippi, Indiana and Maryland saw revenue from live casinos decline in January compared to 2023.
Revenue from Truckstop’s video gambling terminals fell 9% to $3 million, and revenue from fantasy sports fell more than 7%.
Even though sports betting and iGaming have helped offset losses elsewhere, statistics from January show players aren’t gambling as much money at traditional casinos. A number of factors can be attributed to this, including persistent inflation, the end of government stimulus measures and a tight labor market.
In 2024, the economic rally will likely slow as monetary policy effects become more widespread and post-pandemic tailwinds weaken. JPMorgan’s 2024 Economic Outlook report predicts that real GDP growth will experience a “soft landing”, or hover between modest increases and contractions, for much of next year. We forecast that real GDP growth will increase by 2.8% in 2023, followed by below-trend real GDP growth of 0.7% in 2024.
After three years of record growth in the United States, 2024 could mark the first year of decline in land-based casino revenue since recovering from the COVID-19 pandemic.
state penalties
The PGCB has announced that it has fined the gambling license holder $212,500 for violating the rules.
Penn was fined $97,500 for enabling the creation of fictitious Internet accounts for sports betting and iGaming. Additionally, Penn’s Hollywood Casino York was fined $50,000 for allowing minors into its gaming area.
Rivers Philadelphia was fined $65,000 for failing to maintain required minimum staffing levels and failing to report thefts that occurred on casino property to the PGCB.
Three others were also banned by authorities for leaving young people unsupervised in their cars outside casinos.
