The Keystone State’s digital betting market is experiencing a surge in 2023.
A recent analysis by Penn State University uncovered that 16.0% of grown-ups in Pennsylvania engaged in betting activities over the past 12 months, a 5.0% jump from the prior year.
Home > Games > Pennsylvania Digital Gambling Expands 5% in 2023
Pennsylvania Digital Gambling Expands 5% in 2023
The latest study, titled “Pennsylvania Interactive Gambling Evaluation: 2023 Online Gambling Report,” gathered information from over 1,800 adults across the commonwealth over three years. It aims to comprehend the effect of digital betting on the state’s inhabitants since its authorization in 2017.
The research was carried out by the Penn State University Center for the Study of Criminal Justice in cooperation with the Pennsylvania Department of Drug and Alcohol Programs (DDAP).
Participation rates reached 16.0% in the 2022-23 fiscal year, a 5.0% rise from the previous year’s 11%. This figure also signifies a 4.9% increase compared to the 2021 report.
The study reveals that digital gambling income in the 2022-23 fiscal year expanded to $2.1 billion (£1.7 billion/€2 billion), an increase of almost 27% from the previous year.
This study aims to assist Pennsylvania in comprehending the possible effects of internet gambling on individuals, families, and society as internet gambling revenue and promotion expand. The study reveals that individuals who engage in both online and offline gambling (dual-mode) typically gamble once a week. Those who exclusively gamble online do so two to three times a month, while those who solely gamble offline gamble about once a month.
Dual-mode gamblers average 14.88 hours of gambling each month, compared to 5.3 hours for online-only gamblers and 1.47 hours for offline-only gamblers.
Dual-mode gamblers also lead in gambling expenditures, averaging $708 per month. In contrast, online-only gamblers spend an average of $617 per month, while offline-only gamblers spend the least, averaging $103 per month.
The study found that dual-mode gamblers are most likely to exhibit problematic gambling behavior. On the brief problem gambling screen, 50.7% of those who gambled both online and offline showed at least one potential problem gambling indicator, highlighting the presence of potential gambling-related issues.
This percentage is higher than the 40.7% of online-only gamblers. Meanwhile, only 16% of offline-only gamblers showed problem gambling indicators.
An investigation discovered that a small percentage, four percent, of individuals who engage in offline gaming exhibited at least one indicator of potential gambling difficulties. These indicators included participation in gambling loyalty programs and the utilization of gambling as a primary means of relaxation or stress reduction.
The researcher responsible for the study underscored their dedication to tracking problem gambling, emphasizing the potential rise in issues as online gambling gains wider acceptance.
In Pennsylvania, sports betting reigns supreme as the most popular form of online gambling. Roughly seven percent of adults in the state engaged in sports betting within the past year, followed by fantasy sports at a rate of 3.4 percent.
When it comes to offline betting, the lottery takes the lead, with over half, 50.5 percent, of Pennsylvania adults participating. Meanwhile, a significant portion, 40.9 percent, of respondents purchased instant lottery tickets offline in the previous year.
Those who engage in both online and offline betting, known as dual-mode players, exhibit a preference for electronic slot machines. A notable 3.7 percent of adults utilize both methods for betting, while 3.4 percent engage in both online and offline instant lottery ticket purchases.
Despite the legalization of online gambling in Pennsylvania, illegal online gambling persists. As one of only seven states in the US to legalize online gambling, Pennsylvania boasts one of the most comprehensive product offerings in the nation.
However, the report acknowledges that illegal gambling remains a contributing factor. A small percentage, 3.2 percent, of respondents admitted to participating in some form of illegal online gambling in the past year. Additionally, another 2.1 percent engaged in some form of unregulated online gambling.
This investigation indicates that this could be attributed to the unclear distinction between legitimate and illegitimate online gambling platforms. The document also references research from the American Gaming Association (AGA) which discovered that a majority of individuals who engage in gambling with offshore operators believe they are participating with a lawful operator.
Does market saturation exist in Pennsylvania?
The potential for online gambling to negatively impact traditional casinos was previously cited as a reason to oppose the legalization of online gambling. Pennsylvania’s most recent report reveals that while online gambling experienced a growth of 5%, participation in offline gambling also declined by 5% to 62.5%.
This contradicts a report prepared by the gaming consultancy firm Eilers and Krejcik Gaming (EKG), which argues that the introduction of online casinos has a beneficial effect on the revenue of traditional casinos.
The report analyzed the quarterly compound growth rate (CQGR) of total gaming revenue (GGR) before and after the launch of online casinos. The study found that all six states experienced a positive change in their quarterly growth rate following the introduction of online gambling.
As part of the report, EKG also conducted a survey of online and traditional casino operators. The EKG report asserts, “The feedback from participants was consistent: there is no market saturation.”
Inquired about the effect of internet gambling establishments on the earnings of brick-and-mortar casinos, a portion of respondents indicated a “moderate rise.” Nevertheless, the majority, a substantial 80%, declared it “stayed fundamentally the same.”
Sign up for the iGaming newsletter.