Eight Is Enough? Pennsylvania Slot Machine Revenues Continue Eight-Month Slide
Pennsylvania slot machine revenues declined for the eighth straight month in May.
The Pennsylvania Gaming Control Board released gross revenue figures from slot machines for the month of May at the 12 casino properties in PA late last week.
The combined gross revenue was $203,248,176. This represented a 2.68 percent dip from the same month last year. May 2016 gross revenue from slot machines at the state’s 12 casinos was $208,852,793.
Table game revenues saving the day for PA casinos
After five straight months of year-over-year declines, total Pennsylvania casino gaming revenues turned around in March. However, it was table game revenues that made the difference as slot revenues continued to decline. In fact, the same held true in April, when table game revenues and total gaming revenues increased, but slot revenues dipped.
The Pennsylvania Gaming Control Board has yet to release table game and total revenue figures for May 2017.
There are actually 10 standalone and racetrack casinos, and two smaller resort casinos with slot machines in Pennsylvania. The average number of slot machines operating in the state in May 2017 was 26,092, compared to 26,634 in May 2016.
Smaller Pennsylvania casinos see slot machine revenues rise
Three of the state’s 12 gambling operations actually saw an increase in slot revenues in May. These properties included:
- Mount Airy Casino Resort (Up 3.31% to $12,975,298.07)
- Valley Forge Casino Resort (Up 2.69% to $7,121,096.23)
- Lady Luck Casino Nemacolin (Up 4.41% to $2,696,693.81)
In the meantime, Mohegan Sun Pocono saw the biggest drop in slot machine revenue, down 6.66 percent to $17,774,997.48.
Harrah’s Philadelphia Casino and Racetrack saw the next biggest drop, with revenues falling 5.69 percent to $17,186,343.40. Plus, one of the highest grossing casinos in the state, Sands Casino Resort Bethlehem, saw slot machine revenues decline 5.09 percent to $26,506,236.36.
Parx slot machine revenues set the pace
Parx Casino in Philadelphia continued to set the pace in terms of slot machine revenue, posting an industry leading $34,086,162.45. However, this number decreased 1.32 percent from the $34,540,943.58 Parx posted in May 2016.
Thanks to a 54 percent tax rate on slots, the highest on casino operations in the country, the state continued to be the biggest beneficiary of slot machine revenues in Pennsylvania. In fact, the Pennsylvania Gaming Control Board reported tax revenue from slot machines in May of this year was $107,671,693.
The 54 percent tax rate is the same one being proposed for PA online casino games in gaming expansion legislation passed by the Pennsylvania Senate in May. In fact, this legislation is currently being considered by the House.
However, the same legislation proposes only a 16 percent tax on Pennsylvania online poker revenues.