Pennsylvania Casino Revenue Falls 12%, Matches Nationwide Trend

Pennsylvania casinos won far less money on their brick-and-mortar floors in January 2024 than they did in January 2023. The Keystone State s woes to begin the new year mirror much of the nation where retail play slowed.

The Pennsylvania Gaming Control Board (PGCB) reported this week that retail slots at the state s 17 physical casinos totaled $179.5 million, a more than 11% year-over-year plunge. Table games won $72.6 million, a 13% decline.

Combined, the legacy (GGR) of approximately $252.1 million was nearly 12% lower, or $33.9 million less than January 2023.

Pennsylvania s other gaming verticals, specifically iGaming and sports betting, offset the land-based casino losses.

iGaming GGR continued to grow, with online slots and interactive tables winning $149.5 million an increase of over 12%. Oddsmakers won 78% more money, with sportsbooks retaining nearly $70 million of the $858.1 million bet.

The , once the Super Bowl favorite last season, lost twice in January, including an embarrassing 32-9 performance in the NFC wild-card game against the Tampa Bay Buccaneers. The Pittsburgh Steelers also made an early exit in the NFL Playoffs with a 31-17 loss at the Buffalo Bills.

Total revenue from casinos, iGaming, and sports betting, plus $3 million from gaming machines inside truck stops and $2.5 million from fantasy sports, totaled $477.1 million. That s a 2.8% year-over-year improvement.

Pennsylvania s January gaming report provides further evidence that are reining in their in-person play. Along with Pennsylvania, in-person casino revenue in January was down from 2023 in New York, Mississippi, Louisiana, Indiana, Michigan, and Maryland.

The $3 million in truck stop video gaming terminal revenue represents a 9% drop, and fantasy sports income dropped over 7%.

Though iGaming and sports betting offset the losses elsewhere, the January filing demonstrates that gamblers aren t risking as much money on legacy outlets. A host of reasons could explain why, including ongoing inflation, the end of government stimuli, and a tightening labor market.

Economic growth is likely to decelerate in 2024 as the effects of monetary policy take a broader toll and post-pandemic tailwinds fade, JP Morgan s 2024 Economic Outlook report read. We expect real GDP growth to walk the line between a slight expansion and contraction for much of next year, also known as a soft landing. After tracking to a better-than-expected 2.8% real GDP growth in 2023, we forecast a below-trend 0.7% pace of expansion in 2024.

After three years of record growth in the , 2024 could be the first brick-and-mortar casino revenue setback since the nation exited the COVID-19 pandemic.

In related news, the PGCB said it levied $212,500 in fines against gaming licensees for regulatory violations.

Penn Entertainment was fined $97,500 for allowing fraudulent online accounts to be created for iGaming and sports betting purposes. Penn s Hollywood Casino York was also fined $50K for allowing underage people access to the gaming floor.

Rivers Philadelphia was fined $65K for failing to meet minimum staffing requirements and failing to notify the PGCB about a theft that occurred on the casino floor.

The state additionally banned three more adults for in their vehicles outside casinos.