Pennsylvania iGaming Growth Slows as Gambling Market Faces Major Changes

Pennsylvania’s online casino industry managed meager growth in August. For a market accustomed to double-digit gains, the 6.25% year-over-year (YOY) increase has many asking: what exactly happened?

While iGaming revenue - driven by the best online casinos in Pennsylvania - did reach $245.7 million for the month, this modest bump follows just 9% growth in July. Two consecutive months of single-digit gains stand in stark contrast to a market that grew by more than 27% in 2025 and has historically made 20% gains look tame.

iGaming wasn't the only sector having a difficult end to the summer. Total gaming revenue fell by more than 2% to $569.7 million, with other verticals struggling as well:

• Retail Slots: Down 1.3%.

• Sports Betting Handle: Down 3.3%.

• Brick-and-Mortar Table Games: Plummeted 18%.

Beneath these numbers lies a shifting landscape: a Goliath rising across the Hudson, prediction markets battling traditional sportsbooks, and an uncertain legal future for 70,000 gray-market casino machines. Pennsylvania’s gaming market may look fundamentally different in just a few months.

The New York Threat to Retail Tables

The apocalyptic retail table game numbers are primarily the story of new competition from New York. Resorts World Queens continues to take a growing bite out of eastern Pennsylvania's table games as it expands its offerings just minutes from Manhattan.

One number requiring little detective work is the 18% plunge in retail tables statewide. Wind Creek Bethlehem, sitting directly in the firing line of New York’s expansion, saw table revenue cut in half from this time last year, dropping to $11.7 million.

But this is not isolated to Wind Creek:

• Valley Forge: Table revenue fell 22.5%.

• Rivers Philadelphia: Down nearly 22%.

• Parx Casino: Lost more than 19%.

While the bloodshed cannot be entirely blamed on Resorts World just yet, a clear geographic pattern is emerging. Millions of potential customers are now a ten-minute subway trip away from their favorite baccarat or blackjack tables, rather than a two-hour bus ride.

A Top-Heavy iGaming Market

State gaming reports often mask nuanced trends by grouping data. Within iGaming, slots continue to grow while table games weaken:

• iSlots: Grew nearly 9% YOY.

• iTable Games (including live dealer): Fell 2.5%.

• iPoker: Fell 5.1%.

Like most mature markets, Pennsylvania’s iGaming landscape is extremely top-heavy. Just three licenses and their attached skins account for over 80% of the state's online casino market:

1. Hollywood Casino at Penn National (DraftKings, BetMGM, Hollywood): Generated over $95 million (up 11.6%).

2. Valley Forge (FanDuel): Remained flat at $67.5 million.

3. Rivers Philadelphia (BetRivers): Added 9% to reach nearly $40 million.

Because the market is so concentrated, slight weakness from just one giant, like Valley Forge stalling, can easily drag down statewide growth. (Additionally, Mount Airy exited the online casino business this summer, removing $2.7 million from the YOY comparison).

Sports Betting and the Rise of Prediction Markets

Sports betting offers another interesting wrinkle. During the summer doldrums of August, Pennsylvania's best sportsbooks took in $498.5 million in wagers, down just over 3% from last year. Yet, actual revenue fell almost 20% to $39.4 million.

While revenue naturally fluctuates based on game outcomes (like the hometown Eagles covering the spread), the drop in handle is harder to explain, especially since July handle was up nearly 23%.

However, best prediction markets are becoming impossible to ignore. Pennsylvania bettors can now access sports event contracts on platforms like Kalshi. This means a portion of the sports betting wallet is actively being fought over by competitors that do not yet appear on the Gaming Control Board’s ledger.

The Gray Market Wildcard

Perhaps the biggest wildcard in the state’s gaming landscape currently sits with the legislature. Earlier this summer, the Pennsylvania Supreme Court ruled that machines are still classified as slot machines even if "skill predominates." This ruling effectively pulls the estimated 70,000 gray-market skill games under the jurisdiction of the Gaming Act and Crimes Code.

The court stayed its decision for 120 days to allow the legislature time to enact new laws. Unsurprisingly, time has nearly run out as the October 13th deadline approaches. The State Police have stated that, absent new legislation, they want all unregulated machines unplugged and removed - and will seize any that remain.

The state’s Independent Fiscal Office estimates these machines currently produce around $2.35 billion a year in unregulated, untaxed Gross Terminal Revenue. Should the vast majority of these machines go dark, an enormous amount of gambling spend will be up for grabs. While some players may return to brick-and-mortar casinos or stop playing altogether, Pennsylvania’s online casinos will suddenly become the most convenient legal option.

What's Next?

Has something changed in Pennsylvania? Almost certainly. Online growth is slowing, New York is reshaping the retail landscape, prediction markets are poaching sports bettors, and tens of thousands of gray-market machines may soon vanish.

Pennsylvania gaming isn’t simply shrinking; it is being fundamentally rearranged. Where those gambling dollars ultimately land will be a much bigger story than a minor August decline.