Pennsylvania Gaming Revenue Tops $555 Million as Major Changes Set to Unfold

Pennsylvania’s gaming industry continues to show resilience heading into the fall, with revenue up 4.1% to just over $555 million. But while the top line remains healthy, the coming months will bring significant changes to the state’s gambling market. 

Online casinos are increasingly challenging land-based counterparts for market share, table-game revenue is struggling both online and at physical casinos, and sportsbooks are taking fewer and fewer wagers despite higher revenue. 

Meanwhile, an October court deadline and the legislature's missed opportunity to step in mean an abrupt end to tens of thousands of unlicensed skill games across the Keystone State. This could move billions of dollars in annual gaming activity, though it’s too early to pick winners and losers. 

Online Slots Close the Gap

Pennsylvania’s online casinos produced nearly $249 million in iGaming revenue during September. That’s up 6.8% from 2025. In the first nine months of this year, they contributed $2.23 billion, up 10.3%.

While growth in a tightening economy is good, the pace has slowed considerably from the 27% gain in the full twelve months of 2025.

Online slots remain the primary driver, generating $197 million for the month and narrowly beating brick-and-mortar slots, which posted $196 million in revenue. It’s not the first time online has beaten physical slots, but it’s a reminder of how close the two segments are now, unlike in New Jersey, where online casino gaming regularly surpasses Atlantic City properties except during the busiest summer months.  

Online tables continued to struggle this month. Revenue from games like baccarat, blackjack, and craps fell slightly, 0.6%, to nearly $50 million, marking the third consecutive month of YOY declines. Online poker also continued its downward trend, falling 1.8% to just $2.3 million. 

That’s of particular interest as online table games have long been a source of growth in this market, but has tapered off in 2026. Whether that weakness reflects changes in player behavior, overall promotional activity, or the natural volatility of table games remains hard to read. 

Pennsylvania’s decision to publish iGaming revenue by licensee, rather than by operator, compounds this, making comparisons between individual online brands difficult. Still, September's numbers show online slots are driving all of the state’s iGaming growth virtually.

Retail Table Games Face Stiff New Competition

Pennsylvania’s land based table games had yet another difficult month in September, with revenue falling 18% to just over $60 million. That’s down $13 million from this time last year. 

Just two of the state’s largest table games operators were responsible for most of that decline. Wind Creek Bethlehem reported $14 million in table games revenue, a substantial decline of 24%, while Parx Casino generated almost $12 million, a drop of 29%. 

And while a single month’s reporting in table games can be highly volatile, it’s worth noting that Wind Creek’s weakness has persisted all summer with revenue falling 43% in June, 29% in July and 49% in August. The most reasonable explanation lies a few hours east in Queens, New York. 

Resorts World introduced live table games in late April, giving New York gamblers a much closer alternative to casinos in Eastern PA or even Atlantic City. The Bethlehem property has traditionally drawn large numbers of its customers, especially high-end baccarat players, from that same metropolitan area. 

Of course, table games revenue is heavily influenced by hold percentages, not just drop, or amount customers bought in, so it can be difficult to determine how much of a decline is guests taking their business elsewhere. And even Rivers Casino Pittsburgh, far from any competitive pressure in the New York area, saw a decline in table games revenue of more than 45%.

Still, with Resorts World finally opening their long awaited high limit area, The International Room, with 48 tables in October, the competitive pressure in Pennsylvania’s eastern casinos may only just be getting started. 

Skill Games Scuttled?

Pennsylvania has long had a grey market slot problem. Somewhere between 70,000 and a hundred thousand so-called skill machines line gas stations, restaurants and fraternal organizations throughout the state. After a long fought court battle, the State Supreme Court set a hard deadline of 14 October for removal of these machines. 

While this could adversely affect thousands of small businesses statewide, state legislators could not agree on several introduced bills that might have saved these machines through licensing and taxation. 

Just extrapolating from 70,000 machines and comparable revenue in other markets, analysts from the State’s Independent Fiscal Office believe that the total revenue from these machines may exceed three billion a year. Which is just an astonishingly large number to go untaxed and unregulated for so long. 

With these machines ordered removed by the Pennsylvania State Police last week, some of that money will almost certainly find its way into licensed retail casinos or online gambling platforms. Even a modest 50% showing up in the state’s gaming revenue numbers has the potential to add more than a billion a year, and hundreds of millions in increased tax generation.

We should have our first idea of how this massive shift in gaming spend will play out when the November revenue numbers are released, but the fact that this money may help operators facing increased table games competition from NYC shouldn’t be overlooked. 

Books Do More With Less

Pennsylvania’s sportsbooks had a bit better luck than both the other gaming verticals and their customers last month. Taxable revenue jumped a very impressive 50% up to $44.7 million despite another dip in handle, or total amount wagered.

Handle declined 6% to $798 million, down from $850 million in September 2025. But, due to some unfortunate player bets and props with hometown favorites like the Eagles and Steelers, books kept a much larger share of those wagers, which helped to cover some of the sting in declining wagers. 

It’s too early to tell if prediction markets, like Kalshi, are playing a role in this decline, though it’s the question everyone is asking: Are Pennsylvania sports bettors betting less, or have they moved some of their action elsewhere? 

New Day Dawns?

September’s $555 million in gaming revenue suggests Pennsylvania’s gambling industry is in good health. And with potentially billions in new revenue entering the regulated market, those numbers may climb considerably higher. 

But between new competition from New York, online slots overtaking their retail counterparts and prediction markets continuing to challenge traditional sportsbooks, the industry is going to be seeing changes unlike anything we’ve seen in years. And it’s important to remember that despite the adage, a rising tide in this case, does not necessarily lift all boats.

And when we finally see November's numbers in a couple months, we may discover that the biggest winners are playing a very different game than they were just a few short months past.