The Keystone State witnessed a notable surge in internet-based wagering during the past year.
A recent study conducted by the prestigious Penn State University indicates that a significant portion of adults in Pennsylvania engaged in gambling activities within the preceding twelve months, marking a substantial increase from the previous year.
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Pennsylvania Online Gambling Increased by 5% in 2023
This latest study, titled “Pennsylvania Interactive Gambling Assessment: 2023 Online Gambling Report,” provides a comprehensive analysis of data gathered from over 1,800 adults across the state over a three-year period. The study aims to gain a deeper understanding of the impact of online gambling on the state’s population since its legalization in 2017.
The survey was conducted by the Penn State University Center for the Study of Criminal Justice and the Pennsylvania Department of Drug and Alcohol Programs (DDAP).
The participation rate for the 2022-23 fiscal year reached 16.0%, representing a 5.0% increase from the 11% recorded in the preceding year. This also reflects a 4.9% increase compared to the 2021 report.
The study reveals that internet-based gambling revenue climbed to $2.1 billion (£1.7 billion/€2 billion) in the 2022-23 fiscal year. This represents a significant increase of almost 27% compared to the previous year.
This document offers Pennsylvania a means to comprehend the potential influence of internet gambling income and promotion on individuals, households, and neighborhoods,” stated Glenn Sterner, assistant professor of criminal justice at Penn State Abington and primary author of the document.
The document discovered that those who wager both online and offline (dual-mode) gamble roughly once a week. Solely internet bettors wager 2 to 3 times a month, while solely offline bettors wager around once a month.
Dual-mode gamblers average 14.88 hours of gambling each month, in comparison to 5.3 hours for internet-only bettors and 1.47 hours for offline-only gamblers.
Dual-mode gamblers also lead in gambling expenditures, averaging $708 each month. Meanwhile, internet-only bettors stake $617 each month, while offline-only gamblers have the lowest average spending at $103 each month.
The document found that dual-mode gamblers are most likely to exhibit problematic gambling behavior. In a brief problematic gambling screening, 50.7% of online and offline gamblers displayed at least one potential problematic gambling indicator, highlighting the existence of potential issues associated with gambling.
This is higher than the 40.7% of internet-only monthly gamblers. Meanwhile, only 16% of offline-only gamblers showed signs of problematic gambling.
In the realm of offline gambling, a small percentage, approximately 4%, display signs of potential gambling issues. These signs include joining rewards programs associated with gambling and using relaxation or stress relief as the primary reason for engaging in gambling activities.
Steiner emphasized his commitment to ongoing monitoring of problem gambling, acknowledging the potential for increased issues as online gambling gains popularity.
Sports Dominate Online Gambling
In the state of Pennsylvania, sports betting reigns supreme among online gambling participants. Over the past year, roughly 7% of adults have engaged in sports betting, surpassing fantasy sports, which garnered a participation rate of 3.4%.
When considering offline gambling, the lottery takes the lead among Pennsylvania adults, boasting a participation rate of 50.5%. Simultaneously, 40.9% of survey respondents participated in offline scratch-off ticket games within the past year.
Those who engage in both online and offline gambling methods favor electronic gambling machines. Approximately 3.7% of adults utilize both online and offline methods for betting, while 3.4% participate in both online and offline scratch-off ticket betting.
Unlawful Online Gambling Persists in Pennsylvania
As one of only seven states in the US to legalize online gaming, Pennsylvania offers the most extensive selection of gaming products in the nation.
However, the report indicates that illegal gambling remains a factor. During the past 12 months, 3.2% of respondents engaged in some form of illegal online gambling. Additionally, 2.1% participated in some form of unregulated online gambling.
This investigation proposes that the occurrence might be attributed to a deficiency in clarity concerning which internet gambling platforms are lawful and which are not. The document also references research from the American Gaming Association (AGA) which discovered that 55% of individuals who wager with offshore operators believe they are engaging in legal gambling activities.
Is there a reduction in the market share in Pennsylvania?
Previously, a decline in market share stemming from internet gambling for brick-and-mortar casinos was cited as a justification to oppose the legalization of online gambling. The most recent report from Pennsylvania indicates that while internet gambling expanded by 5%, offline gambling involvement also diminished by 5%, decreasing to 62.5%.
This contradicts a document authored by gaming consulting firm Eilers and Krejcik Gaming (EKG) which contends that the introduction of online casinos has a beneficial effect on land-based casino revenue.
The document analyzed the quarterly compound growth rate (CQGR) of total gaming revenue (GGR) prior to and following the launch of online casinos. The study determined that all six states examined experienced a positive shift in the quarterly growth rate subsequent to the implementation of online gambling.
As part of the document, EKG also conducted a survey of online and land-based casino operators. The EKG document asserts, “The feedback from participants was consistent: there was no market erosion.”
Inquired about the effect of virtual gaming establishments on the earnings of traditional casinos, a fifth of respondents stated it led to a moderate rise. Simultaneously, the remaining four-fifths asserted it had virtually no influence.
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