Spike in iGaming Raises Concerns in Pennsylvania

Pennsylvania is among the states that currently offer a wide range of gambling activities. Visitors and guests of the state who are 21 or older can engage in slot gambling, poker and betting on sports.

Besides more than three dozen retail outlets, there are 13 different licensed online betting providers with the list including leaders such as FanDuel, DraftKings, Caesars, BetMGM and ESPNB Bet, to name a few, offering sports betting.

After PASPA’s repeal, Pennsylvania launched retail wagering on sports in November 2018, while the opening of the online market was completed at the end of May the next year. Since then, the state solidified its position as a leading betting market for the country.

Yet, fears about the impact of wagering rise, especially considering recent data that pointed to a notable increase in the participation of online gambling and calls about problem gambling. According to the Pennsylvania Interactive Gaming Assessment: Online Gambling Report, while online gambling participation was at 11% in 2021 and 2022, in 2023, participation increased to 16%.

The increase in online gambling participation also impacted the gambling revenue derived from such activities. In 2023 alone, Pennsylvania recorded $2.1 billion in online gambling revenue, a figure that pointed to a 27% increase year-over-year.

Concerningly, the number of calls related to online gambling problems also marked an uptick, as suggested by a report from City & State. In 2021 and 2022, 20% of the calls to the state’s gambling helpline were related to iGaming activities. In contrast, the number of calls related to online gambling issues in 2023 soared to 34%.

Younger Demographics Are Most Affected by Online Gambling

The lead author of the Pennsylvania Interactive Gaming Assessment: Online Gambling Report, Glenn Sterner, an assistant professor of criminal justice with Penn State Abington, who was interviewed by the publication, spoke about the importance of gambling ads for iGaming activities.

Besides TV ads, he said that social media platforms also promote online gambling. “It makes sense that we saw that increase from 11% to 16% in that third year. We’re curious to see what the numbers will be for this fourth year of the report – there is an early indication that we might even see some additional increases,” added Sterner.

Not unexpectedly, the younger demographic was found to be more susceptible to online gambling, according to the report. Gillian Russell, a co-author of the report and an assistant research professor at Penn State Abington, explained that the easy access to gambling activities and lack of education may ultimately result in issues for the 21- to 30-year-old group.

The expansion of online gambling hasn’t boosted the gambling helpline calls only in Pennsylvania. Other states, including Illinois, and Ohio have also reported an uptick in the number of calls for help. While the increase in popularity helps generate more tax revenue, it causes concerns as oftentimes gambling harm doesn’t only affect a single person but may bring unnecessary burdens or even destroy entire families.