Pennsylvania’s Online Gambling Surpasses Casino Floors for First Time in Record Fiscal Year

Pennsylvania’s regulated online gambling market generated more revenue than the state’s casino floors for the first time during Fiscal Year 2025/26, with iGaming and sports betting accounting 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, 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 (PGCB) 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.

While Pennsylvania’s land-based casinos continued to generate billions in revenue, nearly all of the state’s annual gaming growth came from iGaming and sports betting.

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 a 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%. The results cement Pennsylvania as the largest regulated online casino market in the U.S.

Hollywood Casino at Penn National Race Course, whose license hosts DraftKings Casino and BetMGM Casino, remained Pennsylvania’s largest iGaming operator with $1.13 billion in revenue. Valley Forge Casino Resort, home to FanDuel Casino, ranked second with $811.80 million, followed by Rivers Casino Philadelphia with $464.30 million.

Several operators significantly outpaced the statewide growth rate.

Harrah’s Philadelphia, whose online partners include Caesars Palace Online Casino, reported a 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 a partner PlayLive! Casino, reported a 52.8% decline in iGaming revenue. Meanwhile, Mount Airy Casino Resort, whose partner PokerStars was migrated into FanDuel, fell 47.5% from the previous fiscal year.

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, followed by Hollywood Casino at the Meadows at $189.90 million. Hollywood Casino York (with a partner, ESPN Bet/theScore Bet) recorded one of the largest percentage increases. The sports betting revenue jumpled 287.6% year over year, albeit 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.

Retail Casino Revenue Levels Off

The record fiscal year also reinforced the longer-term trend in Pennsylvania’s land-based casino market.

As in the previous fiscal year, retail slot machine revenue remained relatively flat, increasing just 0.02% to $2.44 billion.

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

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.