Even though both the NFL and the NBA, two of the traditional big hitters in the American sports betting calendar, are both in their off-season periods, the success of online sports betting continues to impress in the state of Pennsylvania.
Indeed for 2022, the revenue generated by the gaming industry in PA is set to break the magical $5 billion barrier and has shown a great rebound following the pandemic. Clearly, the majority of that figure relates to PA online casino action but don’t underestimate the importance of the legal sports market, which was made legal in the state back in 2019.
For those who govern the state, the big plus, of course, comes in the form of tax revenue which is set to reach around $2 billion, and that’s a huge amount though some experts are urging caution when considering just where the market is going.
Frank Gamrat, executive director of the Allegheny Institute, is quick to point out that the money earned through taxation is by no means a given, especially if the economy as a whole starts to stagnate;
“Things seem to be moving along,”
“The economy’s not improving, but it’s not degrading either.”
“One thing to consider is that it’s the discretionary money that (people) are using to gamble with. As long as they have discretionary money, they’ll keep gambling,” Gamrat added.
And that’s a key point. Disposable income is crucial to the gaming market as it is what essentially feeds the machine. In other words, if folk don’t have spare money to back their entertainment, in this instance being the online casino or sports betting market, then the well could definitely start to dry up.
Over the period of the pandemic, there were competing factors that are no longer relevant; while there was an impact on people’s incomes and situations, there were also a lot of people stuck at home with little else to do, hence the fact that revenue from gaming didn’t nosedive like other industries during the COVID-19 outbreak.
Now that the sports markets are back in full flow, without the disruption caused by the coronavirus pandemic, the revenue from sports gambling has skyrocketed. Revenue moved from around $4 million a month in 2019 up to upwards of $30 million in 2022; that’s quite a jump.
Other factors will have a part to play, including the legalization of online gambling in neighboring states. Previously residents of Ohio or New Jersey might have traveled to Pennsylvania to enjoy the activity, but now they don’t have to.
Gamrat also points out that the residual benefits that come from brick-and-mortar establishments are also lacking;
“The gaming industry does not have the spinoff effects as does a factory, as does an office building,”
“Those casinos are designed for you to go there as a destination. You’re going there to spend your money in the casino, and you’re not looking for restaurants around the casino.”
So the overwhelming sentiment regarding the continued success of the gaming industry is one of cautious optimism.