The online gambling sector in Pennsylvania has achieved a significant milestone, surpassing the revenue generated by traditional casino games and slot machines for the first time in the state's history during the Fiscal Year 2025/26.
For this record-setting year, the regulated online gambling market in Pennsylvania produced revenue exceeding that of the state's casinos, with iGaming and sports betting contributing more than half of the total regulated gaming revenue.
The combined revenue from iGaming and sports betting reached approximately $3.60 billion, accounting for 51.3% of all regulated gaming revenue, a notable increase from 46.4% in the previous fiscal year. In contrast, retail slot machines and table games collectively generated around $3.35 billion.
This achievement coincided with a record fiscal year, as reported by the Pennsylvania Gaming Control Board (PGCB), which indicated that total gaming revenue for the year was $7.01 billion, an increase from $6.39 billion the prior year. The state also set a record by collecting $3.10 billion in taxes.
While land-based casinos in Pennsylvania continued to thrive, the majority of the state's annual growth in gaming revenue was driven by the online sectors of iGaming and sports betting.
iGaming's Rapid Growth in Pennsylvania
Online casino gaming has emerged as the fastest-growing segment within Pennsylvania's gaming industry. In Fiscal Year 2025/26, iGaming revenue surged by 18.4% compared to the previous year, totaling $2.93 billion, thus establishing a new annual record.
The iGaming sector has expanded rapidly since its inception in Pennsylvania in 2019, when it generated only $240.9 million in revenue during the Fiscal Year 2019/20. Now, six years later, annual iGaming revenue has skyrocketed to nearly $2.93 billion, reflecting an impressive growth of approximately 1,118%. This positions Pennsylvania as the largest regulated online casino market in the United States.
Hollywood Casino at Penn National Race Course, which operates DraftKings Casino and BetMGM Casino, continues to lead as Pennsylvania's largest iGaming operator with $1.13 billion in revenue. Valley Forge Casino Resort, home to FanDuel Casino, ranks second with $811.80 million, followed by Rivers Casino Philadelphia with $464.30 million.
Several operators have significantly outperformed the statewide growth rate. Harrah’s Philadelphia, partnered with Caesars Palace Online Casino, reported a remarkable 40.3% growth. Mohegan Pennsylvania saw a 51.2% increase, while Presque Isle Downs, associated with bet365, more than doubled its online revenue with a staggering 124.0% increase.
Conversely, some operators experienced declines. Live! Casino Philadelphia, partnered with PlayLive! Casino, reported a 52.8% drop in iGaming revenue, while Mount Airy Casino Resort, whose partner PokerStars transitioned to FanDuel, experienced a 47.5% decrease from the previous fiscal year.
Sports Betting Revenue Increases Despite Lower Wagering
Sports betting also had a record fiscal year, even though the overall amount wagered by bettors decreased. Gross sports wagering revenue increased by 35.9% year-over-year to $662.90 million, despite the handle dropping from $8.72 billion to $8.45 billion.
Valley Forge Casino Resort remains the top sportsbook in Pennsylvania by revenue, generating $272.60 million, followed by Hollywood Casino at the Meadows with $189.90 million. Hollywood Casino York, partnered with ESPN Bet/theScore Bet, recorded one of the highest percentage increases in sports betting revenue, soaring by 287.6% year-over-year, albeit from a smaller revenue base.
These impressive figures in sportsbook revenue come amidst concerns that the rapid growth of prediction markets may impact traditional sports betting.
While Pennsylvania has not taken legal action against operators like Kalshi, the PGCB has provided comments to the CFTC regarding public comments on prediction market regulations, urging the CFTC to ban sports event contracts due to their potential conflict with state-regulated sports betting.
Retail Casino Revenue Stabilizes
The record fiscal year also highlighted the stabilization of retail casino revenue, indicating a shift in the gaming landscape.