Gambling in the USA
PlayPennsylvania.com: Sports betting slows again, but still hits $5 billion for fiscal year
Wagering at Pennsylvania’s online and retail sportsbooks fell modestly in May, but still pushed the state past $5 billion in wagering through fiscal year 2020-21. But as sports betting continues its summer slowdown, Pennsylvania’s online casinos and poker rooms racked up more than $110 million in gross revenue to solidify their position as the state’s most dependable gaming revenue generator, according to PlayPennsylvania, which tracks the state’s regulated online gaming and sports betting market.
“The seasonal slowdown will continue to be a factor until bettors can place bets on Eagles, Steelers, and Penn State football games,” said Dustin Gouker, lead analyst for the PlayUSA.com network, which includes PlayPennsylania.com. “And with the popularity of online casinos holding even as retail casino customers return, the state’s gaming industry is in relatively good shape.”
Pennsylvania’s online and retail sportsbooks accepted $447.5 million in wagers in May, down 6.7% from $479.4 million in April, according to official data released Thursday. Through 11 months of the fiscal year, sportsbooks have accepted $5.2 billion in bets.
Sportsbooks won $37.4 million off May’s wagers, up 3.8% from $36 million in April, which produced $27.7 million in taxable revenue. The month yielded $9.4 million in state taxes and $554,930 in local share assessments. Betting volume was up 477.3% in May from $77.5 million in May 2020, a month still marred by the pandemic-related shutdowns of major U.S. sports. The win jumped 532.2% from $5.9 million.
Sports betting tends to tail off from April through August, and Pennsylvania is not immune. The Keystone State’s month-over-month decline from April is steeper than the comparable states that have already reported May data, including New Jersey (up 8.9%), Indiana (up 7.6%), Iowa (down 2.9%), and Michigan (down 4.9%). But in April, betting volume in Pennsylvania was down 14.4% from March, one of the mildest month-over-month declines in the U.S.
The states that have fared the best this spring tend to be the beneficiaries of surging interest in local professional teams. A contending 76ers team, and to a lesser extent the one-series playoff appearance of the Penguins, helped the cause of Pennsylvania’s sportsbooks. But not enough to outperform other states.
“Without a national betting holiday like the Super Bowl or the NCAA Tournament, the summer months are dictated more by local interests,” said Valerie Cross, analyst for PlayPennsylvania.com. “Pennsylvania’s sportsbooks are still well-positioned this summer, especially if the Sixers can figure a way past Atlanta, because they are less reliant on college sports than some other major markets.”
Online betting accounted for 91%, or $407.4 million, of May’s handle. FanDuel/Valley Forge was the online market leader again with $160.9 million in online wagering, down from $167.6 million in April. Gross revenue rose to $17.6 million from $13.8 million in April, producing $14.2 million in taxable revenue. DraftKings/The Meadows tallied $100.0 million in bets, down from $105.7 million in April. DraftKings won $5.0 million on those bets, down from $6.4 million in April.
Penn National’s Barstool-branded app attracted $43.6 million in May, down from $57.2 million in April. Those bets yielded $2.8 million in gross revenue, up from $2.6 million in April.
The online leaders were followed by:
BetMGM/Hollywood Morgantown ($32.4 million handle, down from $33 million; $2.2 million in gross revenue, down from $2.5 million)
BetRivers/Rivers-Pittsburgh ($19.1 million handle, up from $18.8 million; $1.2 million revenue, down from $1.8 million)
Fox Bet/Mount Airy ($14.2 million handle, down from $15.2 million; $964,405 revenue, down from $1.1 million)
PlaySugarHouse/Rivers-Philadelphia ($12.2 million handle, down from $13.4 million; $832,368 in revenue, down from $995,423)
Parx Casino ($11.1 million handle, down from $14.2 million; $1.1 million revenue, down from $1.7 million)
Unibet/Mohegan Sun Pocono ($5.5 million handle, down from $7.2 million; $390,170 revenue, down from $436,595)
TwinSpires/Presque Isle ($3.2 million handle, up from $2.1 million; $120,582 revenue, up from $33,622)
Caesars/Harrah’s ($2.7 million handle, up from $2.1 million; -$65,823 revenue, up from -$75,375)
Betfred/Wind Creek ($2.5 million handle, down from $2.7 million; $101,781 revenue, up from $49,074)
With capacity limits at Pennsylvania casinos now lifted, retail sportsbooks took in $40.1 million in handle in May, down slightly from $40.3 million in April. Those bets yielded $5.2 million in gross revenue, up from $4.8 million in April. Rivers-Philadelphia led the retail market with $6.7 million in bets, edging Parx Casino’s $6.4 million handle.
“The retail market is returning to relative health,” Gouker said. “What we’re really seeing in Pennsylvania, as well as other markets, is normalization. Nothing could be more welcome after such a difficult year.”
Online casinos and poker
Online casinos and poker rooms surged to a near-record $110.8 million in gross gaming revenue in May. That was up 54.6% from $71.6 million in May 2020 but fell just short of the record $111.6 million set in March.
Wagering on online casino games reached $3.3 billion in May, up from $1.8 billion in May 2020 and up from $3.2 billion in April. May’s revenue produced $41.7 million in state and local taxes.
Since online casinos launched in 2019, they have generated a whopping $1.3 billion in revenue from slots, table games, and poker, yielding $432.7 million in taxes. By contrast, online and retail sports betting has produced $581.1 million in revenue and $147.6 million in taxes even though it launched in 2018.
“Online casino revenue continues to dwarf revenue from sports betting, and that gap should only grow over the summer months,” Cross said. “Even as customers return to brick-and-mortar casinos, the gains in revenue at online casinos and poker rooms made over the last year should hold. It has become a revenue-generating powerhouse for the gaming industry and for the state.”
Other highlights from May:
Online casino and poker rooms generated $3.6 million per day in gross gaming revenue over the 31 days in May, up from $3.5 million per day in April.
Penn National, which includes the DraftKings, BetMGM, and Hollywood casinos, topped the market with $43.5 million in revenue. Rivers-Philadelphia, which includes PlaySugarHouse and BetRivers casinos, was second with $30.7 million in revenue.
Poker revenue rose to $2.6 million from $2.3 million. Mount Airy/PokerStars accounted for $2.3 million of May’s revenue.
For more information on the revenue generated by Pennsylvania, visit www.playpennsylvania.com/revenue.
About the PlayUSA.com Network:
The PlayUSA.com Network is a leading source for news, analysis, and research related to the market for regulated online gaming in the United States. With a presence in over a dozen states, PlayUSA.com and its state-focused branches produce daily original reporting, publish in-depth research, and offer player advocacy tools related to the advancement of safe, licensed, and legal online gaming options for consumers. Based in Las Vegas, the PlayUSA Network is independently owned and operated, with no affiliations to any casino — commercial, tribal, online, or otherwise.
Gambling in the USA
Zula Casino Kicks Off its Spectacular 1-Year “Zula-versary” with a Month of Events and Promotions
Zula Casino launched its online social casino in the US exactly a year ago delivering more. More games. More rewards. More free-to-play entertainment through a personalized experience. Zula Casino marked its one-year launch by crossing the 1000 casino-game threshold – a milestone that positions it among the top platforms nationwide.
The month-long birthday bash intends to go over the top to give back to its amazing player community that helped make this first year so incredible. With its advent calendar format, players can unlock a special surprise each day ranging from a “Win-a-Vacation” event, a carnival event, free spins and new exclusive games, and a prize pool of over 25 billion Gold Coins (GC) plus 150,000 Sweeps Coins (SC) to be given out throughout the month. Over this period, Zula Casino will run other special events, including surprise happy hours with special coupons, various social media contests, and special giveaways.
“We’re incredibly proud of the player experience we’ve built over the last 12 months. The platform has garnered a substantial and loyal pool of players, and it’s not just because we offer one of the largest game selections from leading global providers, but also the exclusive experiences we’re providing, and the platform’s continued evolution with enhanced promotions, personalization, and seamless user experience,” said Tamar Laypan, Program Manager of Zula Casino.
Zula Casino has added over 1000 games across all categories over the past 12 months, including slots, jackpots, fish, table, plinko, megaways, crash, hold and win, tumble games, and more. These additions include top games like Big Bass Vegas and Fire Stampede, as well as branded exclusives like Gold Gold Gold 5000, supplied by Booming Games, and Sweet Bonanza 1000 by Pragmatic Play. With recent additions, Zula Casino now boasts 25 game providers, including Relax Gaming, Habanero, Evoplay, Pragmatic Play, RubyPlay, Gamzix, Let Us Entertain You Inc., to name a few.
Zula Casino flourished in a tough and highly competitive market, launching its proprietary-integrated platform in September of last year. With an average TrustPilot score of 4.6 and almost 9K reviews, the online social casino is among the highest-rated free-to-play sites in the market.
Zula Casino was also previously shortlisted for the prestigious Global SBC Awards in the category of “Rising Star in Casino”.
NCPG has announced the appointment of Diana Goode to the National Council on Problem Gambling’s Board of Directors. Diana, who has served as the Executive Director of the Connecticut Council on Problem Gambling (CCPG) since May 2018, brings over 25 years of nonprofit leadership experience to this role.
In her time with CCPG, Diana has championed initiatives that address problem gambling and promote responsible gaming across Connecticut. Additionally, she has played an active role on the NCPG Affiliates Committee, contributing valuable insights from her years of experience.
Before joining CCPG, Diana held executive roles in nonprofits focusing on poverty alleviation and financial literacy in Connecticut. Her academic credentials include a degree from Dartmouth College and an MBA in Finance and Marketing from the University of Connecticut. She resides in the Greater Hartford area, where she remains deeply engaged in her community.
Diana will serve an interim appointment in the Affiliates seat on the NCPG Board of Directors until Spring 2025.
Gambling in the USA
Gaming Executives Positive on Current Business Conditions, Cautious on Future Growth Expectations
Overall Balance Sheet Health, Access to Credit Continue to Improve
In the face of slowing revenue expansion, gaming industry leaders continue to hold an overall positive view of the current business situation, with a notable improvement in credit conditions, according to the latest American Gaming Association (AGA) Gaming Industry Outlook.
The majority of respondents (88%) view the current state of the gaming industry as either good or satisfactory. Meanwhile, executives have a more conservative outlook on future business conditions, with respondents split on whether they expect conditions to improve over the next three-to-six months (3% net positive) and many expecting a decrease in customer activity (28% net negative).
“After years of very strong consumer gaming spending growth, expectations around customer activity over the next three to six months have cooled considerably,” said AGA Vice President of Research David Forman. “Still, gaming businesses remain well positioned, with executives touting strong balance sheets and more viewing access to credit as easy than restrictive for the first time in two years.”
Gaming Executive Panel
Since Q1, gaming executives’ sentiment has shifted, with a greater number of respondents now expecting a decline in customer activity over the next three to six months (28% net negative, up from 4% net negative in Q1). Despite this, panelists foresee improvements in overall balance sheet health (34% net positive).
Additionally, more executives reported access to credit as easy (19%) rather than restrictive (3%) for the first time in two years, and fewer cite interest rates as a major limiting factor than in the spring.
Hotel (56%) and food and beverage facilities (56%) continue to be the main and growing focus of capital investment among operators, followed by live entertainment (28%) and casino floor slots (22%).
Meanwhile, gaming equipment suppliers now believe their pace of capital investment and game sales will decelerate (13% net negative).
These expectations are impacted by evolving macroeconomic challenges, with uncertainty of the economic environment vaulting to the top of executive concerns (56%, up from 34% in Q1), followed by state regulatory concerns (31%), and inflationary or interest rate concerns and geopolitical risk (both 34%).
The Current Conditions Index
The Current Conditions Index for Q3 2024 was 97.3, which is consistent with real annualized contraction of 2.7 percent. The Current Conditions Index measures real economic activity in the industry, as measured by gaming revenue, employment and employee wages and salaries.
The Future Conditions Index
The Future Conditions Index, a leading indicator of changes in industry conditions, measured 98.9 in Q3. This indicates an environment in which real economic activity in the gaming sector, after controlling for underlying inflation, is expected to moderately decrease over the next six months (1.1% annualized rate).
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