Pennsylvania Sees Rise in Online Gambling and Rising Associated Risks in 2023

A comprehensive study titled “Pennsylvania Interactive Gaming Assessment: Online Gambling Report 2023” has shed light on the growth and associated challenges of online gambling in Pennsylvania since its legalization in 2017.

Pennsylvania

Conducted by Penn State’s Criminal Justice Research Center and funded by the Pennsylvania Department of Drug and Alcohol Programs (DDAP), the report analyzes three years of data collected from over 1,800 residents across the state.

Key Insights and Trends

The report presents a notable increase in online gambling participation, which rose to 16% in 2023, up from 11% in the previous two years.

This lift has catapulted Pennsylvania into one of the top three states in the nation for online gambling revenue, which reached more than $2.1 billion in 2023—a nearly 27% increase from the year before.

A concerning finding from the study is that approximately half of the online gamblers in Pennsylvania reported experiencing gambling-related problems.

Factors such as increased gambling frequency, longer hours spent gambling, participation in multiple gambling formats, higher spending, and gambling motivated by stress relief were all linked to these issues.

Dual-Mode vs. Offline Gambling Behaviors

The report differentiates between “dual-mode” gamblers—who engage in both online and offline gambling—and those who exclusively gamble offline.

Dual-mode gamblers typically gamble weekly and spend almost 15 hours per month on this activity, with average monthly gambling expenses amounting to $708. In contrast, offline gamblers gamble two to three times per month, spending about 1.5 hours and $103 monthly.

Dual-mode gamblers tend to be younger, with an average age of 37 and are more likely to have completed a bachelor’s degree and be employed.

Additionally, about one-quarter of these gamblers earn less than $50,000 annually and engage in a higher number of gambling formats.

Implications and Recommendations

Glenn Sterner, the lead author of the report, emphasized the importance of understanding the impact of increased online gambling on individuals and communities.

The DDAP Secretary, Latika Davis-Jones, also noted that these insights would assist the department in addressing compulsive and problem gambling behaviors.

The researchers recommend enhancing awareness and access to treatment and resources, suggesting that information on responsible gambling should be widely disseminated through digital media, including social media and streaming platforms.

Funding for the research was sourced from revenues generated by interactive gaming licensees, as stipulated by Pennsylvania Act 42 of 2017.

The findings of the report will be disseminated to community partners, state and county constituents, and treatment experts. Plans are also underway to develop a webinar to further analyze the survey results and an online gaming dashboard by the Penn State Criminal Justice Research Center.