After a banner year in 2021, the Pennsylvania gambling market will be getting a new operator soon. Officials from PointsBet announced they received licenses to operate their online casino and sportsbook in the Keystone State. PointsBet has not yet announced a launch date for its online platform in Pennsylvania. When it launches, PointsBet will have to compete with several highly rated online casinos in Pennsylvania.
Pennsylvania’s gaming market reached new heights in 2021. iGaming revenue in the Keystone State topped $1 billion. Operators also broke the record for yearly sports betting handle. In December alone, the sports betting handle was up nearly 37% from the year before.
Sports betting was not the only part of the gaming industry to experience an end-of-year surge. Video gaming terminals more than tripled revenues from December 2020. Retail table games and slot machines also rebounded from a down year in 2020. The growth of the gaming industry brought good news for the Commonwealth as well. Pennsylvania collected a record revenue from taxes on legal gaming operations.
What is PointsBet?
PointsBet started as an Australian-based sports betting company but has quickly made a name for itself among online sportsbooks. In addition to Australia, PointsBet also has operations in the UK and the US. Currently, the company is headquartered in Denver, CO. The sportsbook operator is the official sports betting partner of NBC Sports. PointsBet is also partnered with teams across the four major American sports.
The US gaming industry has been growing rapidly since 2018. Companies like PointsBet have been able to take advantage by moving into new markets as they legalize more types of gambling. Part of the company’s success is due to owning its own technology for gaming operations.
Players in the Quaker State should be able to take full advantage of PointsBet’s online services. Both the online sportsbook and casino will be available to residents when the operation launches. Customers will also be able to use a mobile app to access the gaming operator’s services. PointsBet offers traditional fixed sports betting odds, as well as its own unique PointsBetting style of wagering.
December was a Big Month for PA Gambling
Gaming operators in Pennsylvania experienced huge success to end 2021. According to the latest report from the Pennsylvania Gaming Control Board (PGCB), December’s sports betting revenue was over $34 million. That is an increase of more than 80% from December 2020. There was also an increase in sports betting handle in December. Reportedly, December’s sports betting handle was $750.4 million, an increase of 36.8% compared to last December.
Other areas of the gaming industry also experienced success in December. Decreased pandemic restrictions allowed for increased success of retail games. Revenue from retail slot machines and games both increased by over 300% compared to December 2020.
Pennsylvania is one of the few states that allow for Video Gaming Terminals (VGTs). Last month, VGTs tripled their revenue from December 2020. In total, VGTs across the Keystone State generated a total revenue of $3.4 million last month. Despite the widespread success, there was one type of revenue that decreased last December. Sports wager revenue was reported to be $18.8 million, down 44.75% from the previous December.
2021 Was a Record-Setting Year for PA Gaming
The success across most sectors in December embodied the success of Pennsylvania’s gambling industry in 2021. Not only did the gaming sector recover from the pandemic, but it also broke several pre-pandemic records. The strong end of the year will also hopefully set up the state for another big year in 2022.
Pennsylvania’s iGaming sector experienced huge growth throughout the year. Revenue from iGaming nearly doubled from 2020. In total, iGaming operations generated $1.11 billion in revenue last year.
Operators’ total sports betting handle also increased greatly from the end of 2020 to the end of 2021. Operators brought in a sports betting handle of $6.55 billion last year, breaking the previous record set in 2018. Compared to 2020, the sports betting handle in 2021 increased by 83%.
The jump in revenues was great news for the commonwealth’s coffers. In total, Pennsylvania collected $4.73 billion in tax revenue from gambling operators. The tax revenue shattered the previous record of $3.41 billion set in 2019. It was also an increase of 78.5% from the total tax revenue in 2020.
PointsBet is looking to continue its expansion into the US gaming market by setting up operations in Pennsylvania. Officials from PointsBet announced they were approved for licenses for both an online casino and sports betting in PA. The Keystone State will be the tenth state with PointsBet operations.
Setting up shop in Pennsylvania makes a lot of sense for PointsBet. Gaming revenue in the Oil State reached new heights in 2021. Pennsylvania gaming operators also ended the year on a high note, setting the industry up for even more growth in 2022. The addition PointsBet operations will also help the commonwealth which benefits greatly from taxing gaming revenues.