Pennsylvania Online Gambling Exceeds Casino Floors for First Time as iGaming Hits $2.93 Billion in Record $7.01 Billion Fiscal Year

Key Takeaways

• Online surpasses retail: Combined iGaming and sports betting revenue reached $3.60 billion or 51.3% of total regulated gaming revenue in Fiscal Year 2025/26.
• Record totals: Pennsylvania Gaming Control Board reported $7.01 billion in total gaming revenue up from $6.39 billion the prior year with $3.10 billion in taxes collected.
• iGaming leads: The vertical grew 18.4% year over year to $2.93 billion cementing Pennsylvania as the largest regulated online casino market in the US.
• Sports betting revenue rose 35.9%: Gross revenue hit $662.90 million even as handle fell from $8.72 billion to $8.45 billion.

Pennsylvania’s regulated online gambling market generated more revenue than the state’s casino floors for the first time during Fiscal Year 2025/26. Gambling Insider reported that iGaming and sports betting accounted for more than half of all regulated gaming revenue.

Combined revenue from iGaming and sports betting totaled approximately $3.60 billion representing 51.3% of all regulated gaming revenue. This is up from 46.4% in the previous fiscal year. By comparison retail slot machines and table games generated a combined $3.35 billion.

The milestone came during a record fiscal year. The Pennsylvania Gaming Control Board reported total gaming revenue of $7.01 billion during Fiscal Year 2025/26 up from $6.39 billion in the previous year. The state collected a record $3.10 billion in taxes. SportsHandle corroborated these figures noting the precise total reached $7,005,987,435 with more than $3.09 billion returned to the state.

Nearly all of the state’s annual gaming growth came from iGaming and sports betting. This data point lands with force for anyone who has built platforms or infrastructure on the supplier side.

iGaming Continues to Drive Pennsylvania’s Growth

Online casino gaming remained Pennsylvania’s fastest-growing major gaming vertical. Fiscal Year 2025/26 iGaming revenue increased 18.4% year over year to $2.93 billion setting another annual record.

The segment has experienced rapid expansion since Pennsylvania launched iGaming in 2019. During Fiscal Year 2019/20 iGaming generated just $240.9 million in revenue. Six years later annual iGaming revenue has climbed to nearly $2.93 billion an increase of approximately 1,118%.

These results cement Pennsylvania as the largest regulated online casino market in the US. Hollywood Casino at Penn National Race Course whose license hosts DraftKings Casino and BetMGM Casino remained the largest iGaming operator with $1.13 billion in revenue.

Valley Forge Casino Resort home to FanDuel Casino ranked second with $811.80 million. Rivers Casino Philadelphia followed with $464.30 million.

Several operators significantly outpaced the statewide growth rate. Harrah’s Philadelphia whose online partners include Caesars Palace Online Casino reported 40.3% yearly growth. Mohegan Pennsylvania increased 51.2% while Presque Isle Downs home to bet365 more than doubled its online revenue with a 124.0% increase.

Others moved in the opposite direction. Live! Casino Philadelphia with partner PlayLive! Casino reported a 52.8% decline in iGaming revenue. Mount Airy Casino Resort whose partner PokerStars was migrated into FanDuel fell 47.5% from the previous fiscal year.

From the supplier side this kind of operator divergence shows up clearly in the data. Platforms that deliver seamless mobile access and varied game content capture disproportionate share while others lag.

Sports Betting Revenue Climbs Despite Lower Handle

Sports betting also posted a record fiscal year although the increase came despite bettors wagering less overall. Gross sports wagering revenue rose 35.9% year over year to $662.90 million. However the handle declined from $8.72 billion to $8.45 billion.

Valley Forge Casino Resort remained Pennsylvania’s largest sportsbook by revenue with $272.60 million. Hollywood Casino at the Meadows followed at $189.90 million. Hollywood Casino York with partner ESPN Bet recorded one of the largest percentage increases jumping 287.6% year over year from a smaller base.

The strong sportsbook revenue figures arrive amid concerns that the rapid growth of prediction markets could cannibalize the sector. Pennsylvania is not among the states that have pursued enforcement or legal action against operators such as Kalshi.

However the PGCB submitted comments to the CFTC in response to the agency’s request for public comments on prediction market regulations. The regulator urged the CFTC to prohibit sports event contracts arguing they conflict with state-regulated sports betting and fall outside Pennsylvania’s gaming framework.

This regulatory posture is worth watching. In my experience across European regulated markets operators price in this kind of overhead quickly but the uncertainty stalls certain commercial deals.

Retail Casino Revenue Levels Off

The record fiscal year also reinforced the longer-term trend in Pennsylvania’s land-based casino market. Retail slot machine revenue remained relatively flat increasing just 0.02% to $2.44 billion.

Table games revenue declined for a fourth straight year after a post-pandemic peak of more than $1 billion in Fiscal Year 2021/22. Table games reported $908.90 million in revenue a 2.15% yearly decline according to the PGCB report.

The fiscal year results suggest Pennsylvania’s next phase of gaming growth will likely continue to be driven by digital products. For the first time online gambling has generated the majority of regulated gaming revenue in one of the nation’s largest gambling markets.

What Combined Coverage Underemphasizes

Gambling Insider and SportsHandle deliver thorough numbers on the shift from retail to online. Yet the combined coverage underemphasizes the operational realities operators face in reallocating resources toward digital infrastructure and real-time data pipelines.

From eighteen years across iGaming and sportsbook operations on the supplier and data infrastructure side the acceleration demands faster platform integrations and sharper risk models. The PGCB’s CFTC comments signal a defensive stance on sports betting tax revenue that could shape how prediction markets interact with established operators in the state.

This is not abstract. Suppliers and operators must now stress-test assumptions around channel cannibalization and cross-promotion budgets with greater precision.

Where the Risk Lies

The impressive growth carries specific risks. Sports betting revenue grew 35.9% while handle contracted which raises questions about margin sustainability if promotional intensity escalates.

Several iGaming operators posted declines of 47.5% and 52.8% showing that migration and competitive pressure can erase gains quickly. Prediction market encroachment remains an open variable given the PGCB position.

Retail stagnation at 0.02% growth for slots cannot be ignored either. Operators with heavy brick-and-mortar exposure face a structural headwind that digital revenue must offset without eroding overall profitability.

The Strategic Shift Ahead for Operators

Pennsylvania has crossed a clear threshold. Online now drives the majority of growth in a mature $7.01 billion market. Operators and suppliers should treat this as a forcing function to prioritize mobile-first product roadmaps direct API connections and unified customer data layers.

The PGCB’s regulatory comments add a layer of complexity around prediction markets that warrants close monitoring. Those who adapt fastest to the digital majority while navigating these boundaries will set the pace for other states following the same curve.