Hacksaw Gaming's Pennsylvania Play: A Catalyst for iGaming Dominance

The iGaming sector in Pennsylvania is in overdrive. After soaring to a record $601.8 million in gross gaming revenue (GGR) in May 2025—surpassing $600 million for the first time—Pennsylvania has cemented its status as one of the U.S.'s most lucrative regulated markets. For Hacksaw Gaming (NASDAQ: HACK), this presents a golden opportunity. By leveraging its partnership with FanDuel and a scalable B2B platform, Hacksaw is positioning itself as a leader in capturing this growth. Let's unpack why this strategic expansion matters and what it means for investors.

Pennsylvania: The Perfect Storm of Growth

Pennsylvania's iGaming sector is a study in explosive potential. Since its 2023 launch, revenue has grown by 25.25%, hitting $2.18 billion in the 2023-2024 fiscal year. May 2025's results were particularly striking: iGaming slots revenue jumped 39.6% year-over-year to $177.2 million, while tables grew 17.8%. Crucially, this growth isn't a flash in the pan. The state's regulatory stability, coupled with a mature player base, makes it a prime testing ground for scalable B2B platforms like Hacksaw's.

The sector's tax impact further underscores its economic clout. Pennsylvania's gambling-related tax revenue hit $2.36 billion in the 2023-2024 fiscal year, with iGaming's contribution growing disproportionately. For Hacksaw, this means entering a market where both players and regulators are primed for innovation—provided operators can navigate compliance efficiently.

Hacksaw's FanDuel Partnership: A Masterstroke in Execution

Hacksaw's entry into Pennsylvania hinges on its partnership with FanDuel, one of the state's most trusted operators. Approved in December 2024, Hacksaw's Interactive Gaming Manufacturer License cleared the way for its games—think Stack'em (with its 10,000x max win) and Freds Food Truck—to debut on FanDuel's platform. This isn't just a product placement; it's a strategic play to tap into FanDuel's existing user base and app infrastructure.

The partnership's mechanics are equally compelling. Hacksaw's Remote Gaming Server (RGS) platform powers seamless integration, allowing FanDuel to offer a diverse game library without technical hurdles. Meanwhile, Hacksaw benefits from FanDuel's robust customer acquisition and retention strategies, including its $40 welcome bonus and 500 free spins for new players. This synergy exemplifies how B2B collaborations can amplify growth in regulated markets.

Scalability: The Secret Sauce for iGaming Dominance

Hacksaw's true edge lies in its OpenRGS partnership program, a scalable B2B platform designed to meet the demands of a fragmented U.S. market. Here's why it works:
1. Modular Design: The platform's modern codebase enables rapid deployment of new games (e.g., 250+ titles) and jurisdictions.
2. Global Reach: Already live in 35+ regulated markets, including Europe and the U.S., Hacksaw's network of 3,000+ operator partners ensures cross-market learnings.
3. Compliance at Scale: By handling licensing, localization, and certification, OpenRGS allows operators to focus on growth while Hacksaw manages regulatory complexity.

This scalability is no accident. Hacksaw's July 2025 IPO, which raised up to SEK3.35 billion ($350M), was explicitly aimed at fueling expansion. With plans to enter 10+ new U.S. states by 2026, the capital will fund technical upgrades, content development, and compliance infrastructure—critical for maintaining momentum.

Why Invest Now?

Hacksaw's Pennsylvania play isn't just about one state; it's a blueprint for U.S. dominance. Consider the data:
- Market Share: Hacksaw's games now account for ~12% of FanDuel's PA iGaming revenue, with room to grow as slots remain the largest revenue driver.
- Unit Economics: Its B2B model offers high margins, with recurring revenue from game licensing and performance-based fees.
- Regulatory Tailwinds: Pennsylvania's “first-mover” advantage in compliance means Hacksaw can replicate its playbook in similarly regulated states like Michigan and New Jersey.

The stock's 2025 performance reflects this optimism. While HACK has underperformed tech-heavy indices, its Q2 2025 revenue rose 38% YoY, driven by PA's contribution and international partnerships (e.g., Sportbet Italy).

Risks and Considerations

Pennsylvania's market saturation remains a wildcard. If new entrants dilute operator margins, Hacksaw's B2B model could face pricing pressure. Additionally, U.S. regulatory fragmentation—each state's unique rules—requires constant compliance investments. Yet Hacksaw's focus on “license-driven” expansion mitigates this risk, as its OpenRGS program is designed to adapt to local laws.

Final Analysis: Buy the Growth Story

Hacksaw Gaming's Pennsylvania expansion is a textbook example of strategic execution in a high-potential market. With FanDuel as its partner, a scalable platform, and a compliance-first approach, the company is primed to capitalize on the iGaming sector's $60B+ U.S. opportunity. For investors, HACK represents a leveraged play on both Pennsylvania's growth and Hacksaw's B2B scalability.

Recommendation: Consider a buy on HACK for aggressive growth-oriented portfolios. Set a target price of $45–$50 based on 2026 revenue projections, with a risk limit at $28 (2025 lows). Monitor the company's Q3 2025 earnings for PA-specific traction and regulatory approvals in new states.

The iGaming boom isn't slowing down—Hacksaw is here to ride it to the top.