Pennsylvania Slot Machine Win Inches Up In September

Posted on October 5, 2016

[toc]The Pennsylvania Gaming Control Board on Tuesday announced statewide slot revenue for September.

Gross revenue from slot machines at the 12 Keystone State casinos was $192.2 million during the month, which reflects a 2.4-percent increase year-over-year. Slot revenue was $187.6 million in September 2015.

Tax revenue from this September was $102.6 million.

The state said that the average number of slot machines in operation on a daily basis was 26,632 during September 2016, up from 26,229 machines during the same month last year.

Here’s a look at slot machine revenue by operator with year-over-year change:

Parx Casino: $31.8 million / +6.05%
Sands Casino Resort Bethlehem: $24.8 million / -0.55%
Rivers Casino: $20.9 million / -0.54%
The Meadows Racetrack and Casino: $18 million / +2.61%
Mohegan Sun Pocono: $17.9 million / +1.01%
Hollywood Casino at Penn National Race Course: $16.7 million / -3.20%
Harrah’s Philadelphia Casino and Racetrack: $16.6 million / +1.42%
SugarHouse Casino: $14.5 million / +12.21%
Mount Airy Casino Resort: $12.1 million / +3.85%
Presque Isle Downs and Casino: $9.9 million / +0.16%
Valley Forge Casino Resort: $6.6 million / +10.81%
Lady Luck Casino Nemacolin: $2.5 million / -0.42%

How does PA slot revenue compare to Nevada?

Pennsylvania is the second largest commercial casino market in America behind Nevada.

In the Silver State, there are about 145,000 slot machines. They generate about $600 million in revenue a month.

Table game revenue not calculated yet

While Pennsylvania is able to release slot machine revenue from the previous month pretty quickly, it takes an additional 2-3 weeks before table game results are calculated and made public.

Slot results follow significant court ruling on PA casino taxes

The machines were the subject of a recent Pennsylvania Supreme Court ruling that struck down the tax revenue that municipalities with a casino receive from slots. The court said that the tax hasn’t been applied evenly to Keystone State casinos because they pay the greater of two percent of slot revenue or $10 million.

Basically, the smaller casinos in terms of revenue pay a higher rate. That’s unconstitutional, the court said, because the tax rate depends on the size of the gambling facility.

Lawmakers are now tasked with correcting the 2004 casino law. A new bill could alter the tax code.

In addition to the two percent to the municipality, another two percent of the local tax goes to the host county. The county share is also under threat thanks to the court ruling.

An online casino gambling bill passed the House in June and sits in the Senate for consideration. This gambling reform package designed to increase tax revenue and bolster the Pennsylvania casino industry could be a vehicle to change the local tax situation.

The gambling reform bill would also allow slot machines in airports and at off-track betting locations.

The Senate is in session for just six more days this year, so online gambling has a small window of opportunity left in 2016.

Pennsylvania’s casino industry won a record $3.17 billion from gamblers in 2015, but that followed year-over-year gaming revenue declines in 2014 and 2013.

When will Pennsylvania have a 13th casino?

The gaming license for the planned Live! Hotel & Casino Philadelphia is still under review by state gaming regulators. There’s no known timetable for when the process will be complete.

In March, the Pennsylvania Supreme Court said that the Gaming Control Board needed to take another look at the project’s ownership structure.

The $450 million casino plan comes from Cordish Cos. of Baltimore and Greenwood Gaming & Entertainment, the owner of Philadelphia-area Parx Casino. By law, an owner of Parx can’t own more than a third of Live! Hotel & Casino Philadelphia.

If built, the new casino would add 2,000 slot machines to Pennsylvania.

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Brian Pempus

Brian Pempus writes for a number of industry publications centered around the regulated US online gambling industry. He is a graduate of Penn State. Brian lives in Ohio and has been involved in the gambling industry since 2009.

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