Pennsylvania Gambling Revenue Hits $535.8 Million as Online Play Surges
Pennsylvania’s regulated gambling market expanded in September, led by surging online play.
LISTEN TO THIS ARTICLE:The Pennsylvania Gaming Control Board reported total gaming revenue of $535.8 million for September 2025, a 5.9% rise from $505.9 million in the same month a year earlier. While the figure fell about 8% from August’s record $582.3 million – a typical post-summer dip – regulators and industry executives said the underlying trends remain favorable, driven primarily by rapid iGaming growth and sustained sports-betting activity.
Online Surge Keeps Market Momentum Strong
Online casino games accounted for the single largest year-on-year gain, with iGaming revenue jumping more than 32% to $233.4 million. That online haul generated roughly $106 million in tax receipts for the state, underscoring how digital channels have gone from niche to cornerstone for state operators such as leading online casino sites in Pennsylvania, including DraftKings, FanDuel, and Penn Entertainment.
Retail slot machines retained their role as the biggest single vertical but showed modest erosion. Retail slot revenue totaled $193.9 million, down 1.5% from September 2024, and the number of active slot units edged down to 24,331 from 24,558. Table games were steady at $73.4 million, while video gaming terminals at licensed truck stops produced $3.34 million. Fantasy contests contributed $1.96 million, up 5.4% year-on-year.
Sports betting remained sizable in scale, with a September handle of $850.5 million – nearly a 5% increase from the year prior – but taxable sports wagering revenue plunged 44% to $29.7 million. The decline in wagering revenue was attributed to lower hold percentages and elevated promotional spending by operators ahead of the NFL season, which compressed taxable wins even as turnover rose. Tax revenue from sports betting for the month was approximately $10.7 million.
Overall, state and local governments collected $227.9 million in gaming taxes and fees in September, keeping gambling a major contributor to Pennsylvania’s fiscal picture.
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Lawmakers Watch Industry Moves Closely
Kevin F. O’Toole, executive director of the Pennsylvania Gaming Control Board, warned lawmakers about emerging risks from new product types. "Sports prediction markets represent a substantial threat to the integrity of our regulatory framework and could upend consumer protections if left unchecked", O’Toole said, highlighting the regulator’s interest in closing regulatory gaps before products reach consumers.
Industry analysts say operators are balancing aggressive customer-acquisition tactics with scrutiny from regulators and lawmakers. "Operators are investing heavily in mobile platforms and promotional offers to capture market share, but that strategy pushes down hold and depresses taxable revenue in the short term", said Laura Bennett, senior analyst at PlayFair Analytics. "How companies manage promotional intensity heading into marquee sports calendars will determine margin recovery and tax receipts over the next two quarters."
Lawmakers in Harrisburg are also weighing separate proposals that would affect casinos, including past efforts to curb indoor smoking and ongoing discussions about the scope of permissible wagering products and taxation structures. Major operators with large Pennsylvania footprints – including Rivers, Mount Airy, and Parx – are watching regulatory developments closely, recognizing that legislative changes could shift consumer behaviour and operating economics.
For now, the data point to a market in transition: digital channels are growing rapidly, brick-and-mortar play is stable but mature, and promotional dynamics in sports betting are creating short-term volatility in taxable revenue even as total wagered amounts rise.
Indicators to Watch in Pennsylvania’s Market
Market watchers will be tracking October results for signs that online momentum sustains through the NFL and into the holiday season, as well as any legislative action on prediction markets or smoking rules. The PGCB’s monthly releases will continue to offer the clearest near-term view of how operator strategies and regulatory shifts translate into revenue and tax flows for Pennsylvania.
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