Pennsylvania Sets New Monthly Online Casino Revenue Record

The digital felt is red hot in the Keystone State, as Pennsylvania’s online gaming operators have once again demonstrated their formidable market strength, setting a new monthly revenue record in May. This impressive performance wasn't an isolated incident, with fellow heavyweights New Jersey and Michigan also reporting substantial gains in their respective online gaming sectors. However, amidst this digital gold rush, one segment continues to show a concerning trend: online poker, which experienced a downturn across these key markets.

According to the Pennsylvania Gaming Control Board, the Keystone State recorded an unprecedented $625.5 million from all forms of gaming in May, marking a robust 3.9% year-over-year increase. This figure not only represents a significant leap but also comfortably surpassed the previous record of $623.1 million, which was established in January 2025. This financial boom translated into a hefty $269.9 million in tax revenue for the state, underscoring the vital economic contribution of the burgeoning online industry.

The online gaming segment itself was a major catalyst for this record-breaking month, with revenue climbing 9.4% to $254.8 million. A closer look at the breakdown reveals fascinating shifts within the digital landscape. Online slots proved to be the powerhouse, surging 14.3% to $202.5 million. In contrast, online table games experienced a slight dip of 5.8%, settling at $49.9 million. Unfortunately for poker enthusiasts, online poker continued its downward trajectory, dropping 9.7% to a modest $2.5 million for the month.

These online gaming activities alone generated a substantial $117.7 million in tax revenue. Beyond the casino floor, sports wagering also contributed significantly, with a total handle reaching $595.6 million, an encouraging 9.1% jump. However, the taxable revenue from sports betting showed a slight contraction, falling 11.4% compared to May 2025, settling at $52.6 million.

Moving eastward, the Garden State's nine casinos reported $265.6 million in May, a marginal 0.1% increase from the same period in 2025, as detailed by the New Jersey Division of Gaming Enforcement. For the year to date, casino revenue has reached $1.15 billion, reflecting a healthy 3% growth. Notably, online gaming once again outstripped traditional brick-and-mortar casino revenue, highlighting the ongoing shift in player preferences.

New Jersey's online sector saw an impressive 11.9% growth, generating $276.3 million. Year-to-date figures paint an even stronger picture, with online revenue soaring 14.4% to $1.32 billion. Yet, much like Pennsylvania, online poker in New Jersey mirrored the national trend, declining 6.4% to $2.5 million. There's a glimmer of hope for a reversal, however, with the World Series of Poker offering major online tournaments throughout the summer, potentially boosting June's figures.

Sports betting in New Jersey experienced a downturn, with operators reporting gross revenue of $85.2 million in May, a 16.9% decrease. Year-to-date gross revenue has also slid 1% to $455.7 million. Despite this, total revenue from all forms of gaming in the state reached $627.1 million, a 2% increase. Operators contributed $87.4 million in taxes for the month, with year-to-date payments totaling $419.5 million. This dynamic landscape is further complicated by New York's recent approval of three downstate casino licenses and ongoing discussions among New Jersey lawmakers regarding potential casino expansion beyond Atlantic City.

Further west, Michigan's gaming market also showcased robust online performance. The Michigan Gaming Control Board reported that online gaming and online sports betting gross receipts combined for $382.5 million in May, a 3.1% increase from April. Online casino receipts were particularly strong at $305.8 million, while sports betting accounted for $76.7 million. Combined adjusted gross receipts (AGR) stood at $316.72 million, with iGaming contributing $293.45 million and online sports betting $23.27 million.

Year-over-year, Michigan's iGaming AGR surged an impressive 24.2%, while online sports betting AGR saw a significant 34.6% decrease. Online sports betting handle also fell 0.7% from April to $457.6 million. While Michigan does not delineate online poker numbers separately, it's reasonable to infer a similar performance to its eastern counterparts. Operators contributed $64.2 million in taxes and payments to the state, including $61.5 million from online gaming and $2.7 million from online sports betting. Additionally, Detroit's three casinos paid $14.6 million in wagering taxes, and tribal operators contributed $8.4 million to governing bodies. The overall picture across these major markets paints a vivid portrait of a thriving online gaming industry, with online casinos leading the charge, even as online poker struggles to find its footing.