An Interview Exclusive With Carl Mansson on the Rise of Pennsylvania's Gambling Revenue

Pennsylvania's gambling market reached new highs in November, as record revenues from sports betting and iGaming pushed the total to an all-time high of $562.4 million. This really shows how fast the growth has been and how the dynamics have changed in the state's gambling industry. Time to sit down with Industry expert, Carl Mansson, to talk about a recently published article, "Record sports betting, iGaming drive Pennsylvania revenue to all-time high in November," and discuss in-depth this great accomplishment, what was behind it and how it's going to shape the future direction of the industry.

Carl, what do you think were the major reasons for Pennsylvania's gambling market hitting an all-time high this November?

Carl Mansson: A number of factors culminated in that record month. Online gambling as a whole continues to gain favor; strategic marketing pushes from a number of prominent operators are well underway and convenience and variety via sportsbook apps; all have had a great bearing on its success. Progress in both sports and iGaming attracted an audience from far and wide. Perhaps most importantly: an ability to get products into this market in line with evolving customer preferences, moving faster than other new markets so far has shown adept at matching supply with demand. There has been a tremendous surge in revenues generated by the wagering activities on sports.

What do you think could be a reason for such massive growth in one year, perhaps a 498.4% surge in gross revenues?

Carl M: The record-low hold rate set last year greatly skews the year-over-year comparison, but otherwise, there is a definite rise in betting activity. This might be because of better promotional considerations such as these PA no deposit casino bonuses, a better user experience on the wagering platforms, or maybe just more events attracting bettors. More significant activity could also come from more sophisticated marketing campaigns and/or growing confidence among bettors in the online systems. 

What does a shift to online platforms mean for the future of the gambling industry in Pennsylvania?

Carl M: The move to online has opened up the industry and made it far more accessible. Obviously, players can now sit at home and place bets, which has grown the overall engagement. It's this convenience and variety now offered online that has been the driver behind the significant growth in online betting revenues. The advent of mobile technology then brought about live betting and the ability to personalize the user experience, taking things even further. 

What do you feel is a strategic direction or an innovation that the operators have enjoyed in keeping these operators' reign of dominance in Pennsylvania? 

Carl M: In fact, top operators previously invested in friendly user functionality, enticing promotions and strong brand marketing. Their ability to offer competitive odds, novelties such as same-game parlays and a seamless betting experience has placed them in the leading positions. Additionally, collaboration with major sports leagues and other strategic partnerships have given them exclusive insights and an edge over their competitors in this very dynamic market.

The iGaming sector also reached record revenues. Kindly elaborate on the drivers, especially for online slots and table games.

According to Carl M, the success of the iGaming sector depends on the deeper level of familiarity attained regarding online gambling and the recent developments of its platforms with greater exposure to interactive, more varieties of games. Online slot machines, too, have the edge in visual displays and themes, therefore attracting huge crowds.

Adding to that, the popularity has grown further where the accessibility to playing table games without necessarily being in a casino has become easier and more apparent. The development of innovative games that will be developed in the future, plus the addition of modern technologies such as virtual reality, is likely to continue driving a wide variety of players.

Despite the iGaming growth, land-based slots still outperformed online slots in revenue. What challenges does iGaming face to outdo land-based gaming in Pennsylvania?

As one of the biggest challenges of iGaming right now, Carl M identifies overcoming entrenched customer bases with land-based casinos, as many still enjoy the social and tactile experience of physical slot machines. Also, their ability to reach a wider demographic base, people in the older generation, for instance, who might feel less comfortable with online gaming, serves to bolster the revenues of land-based casinos. iGaming faces the challenge of building confidence and familiarity in such groups, although further improvements are being made.

At such a rapid growth of revenues, what would be your prediction for the impact on the economy of Pennsylvania and its citizens in terms of state tax revenue and job creation?

Carl M: The additional gaming revenue substantially raises state collections of taxes that could be reinvested in public services, infrastructure and community programs. Growth like this will continue to provide support for job creation, not just in casinos and gaming companies but also in tech support, marketing and hospitality-allied industries. It trickles down the economic benefit to the local level through increased tourism and associated spending, which could, in turn, stimulate economic growth throughout the state. 

Looking ahead, what do you see regarding trends or changes in Pennsylvania's gambling market for the next year and how they could affect overall revenue?

Carl M: What's more, you, my friend, are going to continue seeing greater growth in gambling online, further increased by more technology and perhaps by the introduction of new formats in games. With more operators in the market, the field of competition may increase, driving innovation at higher levels and offering better options for consumers, which in turn would lead to higher revenues. The future of this industry is likely to be shaped significantly by the incoming trends of emerging technologies such as artificial intelligence and machine learning in personalizing user experiences.