Pennsylvania Gaming Industry Exceeds $7bn for FY26/27, With Sports Wagering a Strong Performer Despite Live In-Game Betting Restriction Concerns

Pennsylvania’s regulated gaming industry crossed the $7 billion mark for the first time in fiscal year 2025/26, with the Pennsylvania Gaming Control Board reporting combined gross revenue of $7,005,987,435 for the 12 months ended June 30. That figure represents a jump from $6.39 billion the prior year, marking a fifth straight year of record annual gaming revenue for the state.

Online casino play, commonly known as iGaming, drove most of the growth for the second consecutive year, while sports wagering posted one of its strongest performances yet even as state lawmakers weigh new restrictions on how bettors can wager during live games.

iGaming and Sports Betting Lead the Surge

iGaming revenue climbed 18.4% to a record $2.93 billion, up from $2.48 billion the year before, cementing its status as the fastest-growing vertical in Pennsylvania’s gaming market. Hollywood Casino at Penn National led all iGaming operators with $1.13 billion in revenue, followed by Valley Forge Casino Resort at $811.8 million.

Sports wagering revenue also hit a fiscal-year high, rising 35.95% to $662.9 million, even though the statewide betting handle actually declined slightly, from $8.72 billion to $8.45 billion. That combination points to sportsbooks holding a larger share of every dollar wagered rather than simply attracting more volume. Bettors comparing DraftKings promo code offers and other welcome bonuses have helped fuel that engagement across the state’s mobile platforms.

Valley Forge Casino Resort topped the sports wagering leaderboard with $272.6 million, while Hollywood Casino at the Meadows brought in $189.9 million. The biggest mover, though, was Hollywood Casino York, which saw its sports betting revenue surge nearly 287.55% year over year.

Land-Based Segments Hold Steady

While the digital side of the business grew sharply, Pennsylvania’s traditional casino floors were essentially flat. Retail slot machine revenue, still the state’s largest land-based gaming segment, edged up just 0.02% to $2.44 billion. Parx Casino remained the top slot performer at $375.1 million despite a slight year-on-year dip.

Table games revenue actually fell 2.15% to $908.9 million, with Wind Creek Bethlehem leading that category at $239.9 million, followed by Parx Casino at $196.4 million. Video gaming terminals at truck stops posted modest growth, up 0.55% to $41.6 million, as the number of active VGT locations grew from 73 to 75. Fantasy sports contests were the lone outright decliner, dropping 5.79% to $18.0 million, with DraftKings ($12.48 million) and FanDuel ($3.08 million) as the two largest operators in that space.

Altogether, the results show a market where digital wagering, both casino and sports, is doing the heavy lifting while retail floors hold steady rather than expand.

Record Tax Haul Amid Scrutiny of In-Game Betting

The state collected a record $3.09 billion in taxes and fees from regulated gaming activity during the fiscal year, including $110 million in slot machine license operation fees that fund local share accounts. The Pennsylvania Gaming Control Board noted the figures remain subject to adjustment by the state’s Department of Revenue. Tax revenue from gaming supports school property tax relief, economic development projects, public safety programs, agricultural initiatives including horse racing, and grants for municipalities across the commonwealth.

The milestone arrives just as Pennsylvania’s Joint State Government Commission, a bipartisan research body, published a report recommending potential restrictions on live in-game wagering and related advertising. The commission’s stated goal is curbing problem gambling and shielding younger audiences from a growing volume of in-play betting promotions. Live, or in-game, wagering allows bettors to place bets on outcomes within a contest as it unfolds, a format that has become one of the fastest-growing products across the industry alongside microbetting options offered by many operators.

Whether any of the commission’s recommendations translate into actual legislative action remains to be seen, but the timing is notable: sports wagering just posted its best fiscal year on record in the state even as handle declined, suggesting operators are already adapting their product mix in ways that could be affected by future rules on in-game markets.

With Pennsylvania now standing alongside Nevada as one of the only states to clear $7 billion in commercial gaming revenue in a single fiscal year, the market’s next chapter will likely hinge on how regulators balance continued growth in digital wagering against mounting concerns about the pace and format of in-play sports betting.