Key Moments:
- Pennsylvania’s January gaming revenue climbed to $590.6 million, marking an 11.6% increase year-over-year
- Sports betting revenue soared by 38.6%, even as the overall handle declined 10.4% from last year
- Total tax revenue generated reached $249.9 million, fueling state funding for education and local initiatives
Strong Start to the Year for Pennsylvania Gaming
Pennsylvania’s gambling sector kicked off the new year with a remarkable revenue boost, as reported by the Pennsylvania Gaming Control Board (PGCB). January’s total reached $590.6 million, reflecting an 11.6% increase compared to the same month in the previous year. Despite this annual growth, the total slipped 4.2% from December’s record-breaking performance. These results emphasize Pennsylvania’s enduring position as a premier destination for betting activity. Online channels have become increasingly dominant, although a slowdown following December’s surge was noted. Nonetheless, the year-over-year gains remain substantial.
Sports Betting Delivers Unusual Revenue Dynamics
The sports wagering segment was particularly noteworthy. January’s sports betting revenue climbed 38.6% to $71.4 million. Interestingly, this surge came as the total amount wagered, or “handle,” decreased by 10.4%, with $782.4 million in bets placed. The sector’s improved profitability has been attributed to sportsbooks retaining 9.13% of wagers, allowing for higher income despite fewer bets overall. FanDuel and Valley Forge Casino led in this category, earning $27.7 million, while DraftKings alongside Hollywood Casino followed with $22.7 million.
| Sportsbook | Revenue |
|---|---|
| FanDuel + Valley Forge Casino | $27.7 million |
| DraftKings + Hollywood Casino | $22.7 million |
Online Casinos Approach Peak Performance
Online casino operations have maintained their role as the top revenue source, bringing in $249.3 million for January. This signifies an 18.6% improvement from the prior year and came close to the December 2025 peak. Online slot games led with $194.8 million generated, making them the largest single income contributor in Pennsylvania’s gaming landscape. Internet table games expanded by 6.2%, while online poker earnings declined 3.6% to $2.5 million. Hollywood Casino at Penn National secured the digital lead by partnering on $96.2 million in receipts.
| iGaming Revenue Segment | Revenue |
|---|---|
| Online Slots | $194.8 million |
| Internet Table Games | +6.2% year-over-year |
| Online Poker | $2.5 million (-3.6%) |
| Hollywood Casino at Penn National (Partners) | $96.2 million |
Physical Casinos Retain a Strong Presence
Despite the shift toward digital platforms, traditional casinos in Pennsylvania continue to deliver steady results. Brick-and-mortar slot revenues totaled $189.1 million, and live table games generated $75.8 million in January. These stable numbers underscore the ongoing appeal of in-person gaming experiences. Ancillary segments had varied outcomes: video gaming terminals at truck stops reported flat results, while fantasy sports contests experienced a steep 29.9% year-over-year decrease.
| Category | Revenue |
|---|---|
| Retail Slots | $189.1 million |
| Live Table Games | $75.8 million |
| Fantasy Sports Contests | -29.9% |
Tax Revenue Powers State Funding
Pennsylvania’s state treasury emerged as the principal beneficiary, with total tax proceeds from gaming reaching $249.9 million. These funds actively support educational initiatives, local government projects, and property tax relief. The iGaming category led tax contributions with $113.9 million, followed by retail slots at $95.6 million. Despite a modest decline from the prior month, state revenues remain robust.
January’s Performance Signals Strength for 2026
This comprehensive data paints a picture of an industry that has matured while still managing impressive expansion. Pennsylvania’s gaming operators have adeptly harmonized new technological advances with established gaming venues. There is a clear movement toward operational efficiency, in addition to volume, bolstering profitability for both operators and the state. As the year unfolds, the sector appears well-positioned for future growth, reinforcing Pennsylvania’s reputation as a leader in generating public funds through regulated gaming.
- Author
Daniel Williams
