Record-breaking revenues for the gaming industry in 2017!

2017 saw a lot of changes in the law. First, as you know, the Senate approve the legalization of gambling. And Second, many projects started all over the Keystone State. All and All we’d say 2017 was a great year for the industry. Even if the gaming legislation received the seal of approval in 2017. The changes have very little to do with the record. In fact, this record news comes with both a positive and a negative side. Let’s look at the numbers to understand what we mean by that.Record-breaking revenues for the gaming industry in 2017!

On a positive note

Every January, the Gaming Control Board of Pennsylvania compiled the revenues for the previous year and write a report about it. This year the report was especially interesting since it brought good news. Indeed, 2017’s total revenues reached $3.226 billion. Its the first time the betting industry surpass the 3 billion mark in terms of revenues.

A sad YOY jump

Yes, the 3 billion figure is impressive and we should be happy about that. But the growth percentage is not. In fact 2017, only saw a small 0.4% jump from last year ‘s figure. Whilst the previous year (2016- 2017) saw a 1.2% growth. The poor statistic is a mere reflection of the reality that brick and mortar casinos faced under the previous legislation. Some speculated that the decrease in % was directly linked with the lack of investment casinos made due to the high tax they have to pay. It’s worth knowing that the tax on gaming revenues in Pa is set at 56%. Which is the highest gaming tax in the country.

Too little too late for 2017

Sure, 2017 was a good financial year! But we think the changes don’t affect the figures. Luckily, as of next year, we’ll notice the impact a bit more on the figures. We think the brick and mortar casinos revenue share will increase since many removed their membership fees, which was mandatory before the legislation change. Perhaps the newfound accessibility will get new crowds to the casinos’ doors. At the moment, the rumor is that online gambling is set to enter into the equation at the end of Q4. Of course, we expect a drastic revenue increase as it was the case for NJ. But, given the time frame imposed by the PGCB its likely that 2018 revenue will have to make due without the much anticipated online gambling figures.