Even though it was predicted that gambling revenues, especially iGaming revenues, will experience a drop after a spectacular 2020 run, growth of the industry doesn’t seem to drop. Pennsylvania online casino revenue continues to rise in the first part of 2021 even with the openings of casino and racino resorts in the state.
Currently, three aspects are attributed to the continuous growth of both the nominal number of active players as well as the total revenue from the market:
Somewhat counter intuitively, the economic hardship experienced by many of the residents of Pennsylvania is positively contributing to the increase of the player base. People still need entertainment and online options are a much cheaper alternative to brick and mortar.
In the end, it seems that the cross-section of the customers frequenting casino resorts and online gambling websites is not as large as was previously accessed. Those preferring physical options are more inclined towards leisure while online the biggest focus in entertainment and accessibility.
And, if we go through the best PA online casino sites at casinos.us we can notice that while the number of operators has consolidated, the number of games and options is increasing. This shows the maturity of the industry with the growing demand from the market.
Stabilization and Maturity
If we are looking at the complete Q1 for the iGaming sector compared to 2020 we can notice a staggering rise of 293%, as the underlying factors that led to the jump in users has not yet occurred. But, for March alone the difference is only 11%.
For investors, this is a good sign of maturity with examples of future demand. While many might be disappointed that profits won’t be as high as those experienced by early adopters, online casino providers have become a more stable option for those carefully considering their portfolio.
Gambling Revenues for Q1 2021
In February 2021 the daily average for online gambling was $2,778,159, which surpassed the previous month by slightly under $200,000 and is significantly more than December 2020. While such gains are lower than what we have seen during 2020, they are still significant for any investor.
Additionally, improved legislation and wider acceptance from the public has removed the stigma of online gambling being troublesome for the younger population, as data proves that accounts of minors gaining access to legitimate platforms is negligible.
The only issue persisting in front of Pennsylvania authorities now is educating the public about how to find good domestic options and not to look at doggy websites online. This goes hand in hand with the attempts to prevent online investment scams, which have also proven to be a problem.
Betting Revenues for Q1 2021
While the increase here was expected, the $29M total revenue in March 2021 was 326% more than the same period last year. This is predicted to grow further as restrictions on sports events in PA are subsiding gradually.
Additionally, the biggest winners when it comes to sports betting are the brick and mortar casino resorts such as the Valley Forge Casino Resort that reported a $10M in sports betting revenue.
The same resort also had a 4.3% increase in table revenue over February and 6.9% increase in revenue on slots, which are excellent numbers for traditional gambling options.
Rise Driven by iGaming
There is no question that gambling revenues in PA are driven by online casino gambling both nominally and by the virtue of the number of players. But, we should also recognize that the simple rise in awareness and acceptance of entertainment gambling is benefiting the market.
One of the factors proposed is the increase in frequency of pseudo-gambling (loot boxes, lotteries, and similar) aspects in regular games which are targeted towards children and teenagers. In this context, the regulated iGaming market seems more appropriate for young adults.
Finally, with the combination of bonuses and other benefits allowed by operators, the expense of gambling can be less than what one would spend on an average video game. Combined with better accessibility and the potential to even gain money, some users report online gambling as the reasonable choice for quick and easy entertainment.
The Return of Land-Based Options
While it is apparent that the opening of casino resorts and racino venues will impact parts of the online gambling market, this has proven to be less significant than first thought. Those who frequent such destinations are usually more inclined to search for leisure and live shows than to focus on gambling exclusively.
And for investors in land-based casinos this is not bad news, as their target customer audience is very clear about their demands and it is expected from them to comply if they wish to stay relevant in the new market.