Pennsylvania Slots Revenue Down 9.2% To $196m In FebruaryMarch 7, 2013 12:49 pm
There are worrying signs for Pennsylvania’s slots market after the state released its latest figures for February revealing a 9.2% fall in revenue to $195.9 million compared to $215.7 million for the same month last year.
Not only do the results represent three straight month of monthly slots revenue decline, but it is also the first time ever that every casino has showed a decline in revenue during the same month.
Pennsylvania opened its first casino back in 2006 and with the opening of the Valley Forge Casino Resort in March, 2012, now has 11 casinos located throughout the state. Excluding the $5 million in slots revenue generated by Pennsylvania’s newest casino the financials results were even worse and showed a decline of 11.5% during the month.
In much the same way that Pennsylvania has taken business away from Atlantic City over the past 7 years, at the heart of the state’s problems would seem to be increased competition from near-by states, such as Maryland, New York, Ohio and Delaware. Parx Casino and Harrah’s Philadelphia, for instance, now faces competition from a new casino across the border in Ohio, and in February saw their revenues plummet 11.5% and 12.2% respectively. Sugarhouse Casino in Philadelphia was also down by 9.7%.
Presque Isle Downs Casino in Erie provided the starkest evidence of falling revenues due to increased competition and the casino saw its figures fall by 28% year-on-year to $10 million, as a newly opened casino in Cleveland ate into its business.
Other factors contributing to Pennsylvania’s declining slots revenues is an ailing US economy, and as RBC Capital Markets analyst John Kempf, explains: “The bottom line is, I think the economy is soft. We’ve reached a level where we have a decent amount of play, but I think consumers are holding back a little bit.”
Across the state, Pennsylvania collected $105.1 million in slots tax revenue during February.