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Gaming continues to grow in popularity, alongside calls for more regulation

Gaming revenues in Pa. set new records in 2023, as lawmakers push to regulate Pennsylvania Skill Games.

HARRISBURG, Pa. — It’s a safe bet to say Pennsylvania is cashing in on the popularity of wagers and winnings. 

Gaming brought in more than $2.34 billion in tax revenue to the commonwealth last year, a 10.4% increase from a record-breaking 2022.

Doug Harbach with the State Gaming Control Board says it's not mere luck, pointing to the legalization and growth of both sports and online betting.

"We're seeing [more than] 90% of the wagering being done online, rather than [at] a physical sports book," Harbach said.

Still, more wagers mean less worrying for lawmakers when it comes to state money.

"It does ease the burden at budget time, on creating and making sure that the budget is sufficiently funded," Harbach added.

The boom in gambling is creating a great deal of discussion in one gray area: Pennsylvania Skill Games.

"They look, talk and quack like a duck or a slot machine," Pennsylvanians Against Gambling Expansion (PAGE) spokesperson Pete Shelly said. "They should be regulated by the Pennsylvania Gaming Control Board."

PAGE believes regulating skills games would provide a fair hand.

"[There are] 65,000 machines that are untaxed, unregulated [and] unsupervised. Something has got to be done about them," Shelly continued.

Governor Josh Shapiro proposed a 42% tax on skill games in his budget proposal, while legislation in the Pa. Senate proposes a much lower tax of 16%. Currently, casinos in the commonwealth are taxed at 54%.

"Regulatory parity is very important to the industry," Shelly said. "It should be important to all Pennsylvanians."

Though state lawmakers want to move the line on gaming, Harbach says the odds are hard to measure.

"It's hard to say what's going to be available, and what the legislature might do in regards to allowing some other types of gambling to produce lawful revenue," Harbach said.

Credit: WPMT/Logan Perrone

Over the last 10 years, the gaming industry has grown in Pa. by the billions.

In 2013, the Pa. Gaming Control Board reported a total gaming revenue of $3.1 billion. Last year, that number was just shy of $5.7 billion. Roughly 40 percent of that number was from forms of gaming including online casinos and sports wagering, which were introduced in Pa. within the last five to six years.

However, the increase in participation and revenue comes with some additional risks. Harbach spoke to FOX43 about the safeguards the state has in place to protect Pennsylvanians:

Download the FOX43 app here.

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