Pennsylvania’s gambling sector continues to demonstrate robust growth. Despite a slight dip from a recent peak, the state’s gambling revenue remained strong in April. The state collected nearly $505 million, marking an increase of almost 6 percent compared to the same period last year.
The Pennsylvania Gaming Control Board (PGCB) reported tax revenue of approximately $210 million, slightly behind March’s record month of almost $230 million in tax revenue from a total revenue of $555 million. This represents a 7.6 percent growth from March 2023. The year-over-year totals for 2024 have consistently outpaced those of 2023, with increases of 2.7 percent and 9 percent recorded for January and February, respectively.
The commonwealth has increasingly relied on the additional tax revenue generated by the expansion of gambling in recent years. In 2023, the PGCB reported a record-high revenue of $5.7 billion, a 9.3 percent increase from 2022, which generated $2.3 billion in tax revenue. However, some legislators have cautioned that dependence on industries like gambling can have negative consequences, where “mission creep” leads to further expansions and concessions to the industry to ensure more revenue growth.
The most recent form of expansion has been sports gambling, which is now legal in 38 states since 2018, including every state that borders Pennsylvania. Tax revenue from sports gambling in Pennsylvania grew 14.5 percent in April 2024, reaching $42 million.
Another area of growth in the commonwealth has been skill games, which could further boost tax revenue. However, casino owners have strongly opposed this, labeling them as an “existential threat”. The debate over the legality and regulation of skill games continues, with court rulings and legislative efforts shaping the future of this sector.
As Pennsylvania navigates the complexities of gambling expansion, the state continues to balance the potential economic benefits with the need for responsible regulation and oversight. The ongoing growth in this sector underscores the evolving nature of the gambling landscape in Pennsylvania and the broader implications for the state’s economy and regulatory framework.