The online casino sector has recently grown significantly, particularly in Pennsylvania. Since 2022, several new operators have successfully joined the Keystone State.
Steve Ruddock, an industry analyst and author of the Straight To The Point newsletter, says another well-known online casino operator is ready to expand and should focus on the Pennsylvania online casino sector.
Hard Rock Could be the Next to Expand into the Keystone State
Hard Rock Digital is a well-known entertainment company that operates both in the retail and internet sectors. The company just purchased the assets of Sports Illustrated’s web brand, 888, according to a news release. Sports Illustrated had been operating in Michigan for roughly a year.
The move by Hard Rock is a clear indicator that the operator intends to increase its online presence. Ruddock mentioned Pennsylvania as a Hard Rock location. He stated in his newsletter on Thursday:
“After its strategic review, 888 announced that it is selling its US B2C business to Hard Rock Digital, giving the latter access to the online casino states of Pennsylvania and Michigan.”
Hard Rock is close to Pennsylvania, to begin with. In August 2023, it started an online casino in New Jersey, its neighboring state. It also operates an online sportsbook in Garden State and Florida. It went live earlier this year as the sole platform.
Pennsylvania has no limit on the number of casino operators joining the state. Because Hard Rock does not have a retail site in Pennsylvania, it would need to partner with another land-based alternative or register as a Qualified Gaming Entity (QGE).
Newest Keystone State Online Casinos Achieving Success
Since the start of 2022, five online casino operators have entered the Pennsylvania market. They include:
- Golden Nugget Casino
- Ballys Casino
- Tropicana Casino
- Jackpot City Casino
- Fanatics Casino
Every operator has achieved success, albeit to varied degrees. Tropicana, another Caesars’ skin, has teamed with Harrah’s Philadelphia and generated $10 million or more in revenue in two of the last three months. Harrah’s Philadelphia is becoming a leading licensee in the state.
Since its inception in late August, Golden Nugget has earned more than $32 million in lifetime earnings, or $4.6 million monthly. After merging with DraftKings in 2022, Golden Nugget is expected to be a successful operator for the foreseeable future.
Bally’s went live in Pennsylvania shortly before Golden Nugget. The operator had its most excellent months in January and February, earning $3.4 million and $3.9 million, respectively.
In February, Fanatics partnered with Hollywood Penn National to assist the licensee in increasing monthly revenue by over 30%. The new operator already has a strong brand awareness for its products and expects to expand its gambling presence.
If all of the above operators succeed, there’s no reason why Hard Rock can’t and shouldn’t consider entering the Pennsylvania market.