Pennsylvania casino operators nearly lost hope this July after a brutal decline in revenue. August’s numbers, however, report that the state’s 12 casinos are officially out of the slump.
While profits from table games in PA continue to drop over the years, it seems August was a really good month for the slots. Slot machines alone are responsible for a 3% rise in casino revenue to a total of $275 million.
Here are the exact numbers:
The trends were not looking good for slot revenue in PA Casinos, but following a year-long decay that started back in 2016, Executives have reason to feel optimistic about the future.
In five out of the last six months, casinos have come out profitable concerning slot revenue and if we get an even wider perspective of the numbers, we’ll see that’s true for eight of the last 12 months.
Not all 12 PA casinos had a good run in August but the majority did. Seven of them reported gains and five of those had revenue growth over 6%!
The numbers look even better when you consider that out of the five PA casinos that did report a decline in the past 12 months, no one was down by more than 5.5 %.
If we’re talking market share of the Pennsylvania casino business, it’s again Parx Casino on top with nearly a fifth - an impressive 19%. Next is Sands with 16.2% and Rivers with 10.9%.
The rest are as follows:
What used to be an edge-of-your-seat fight for the title of number one casino in Pennsylvania, now there’s only one competitor left. We’re talking about Parx Casino and Sands - Parx has widened the market share gap between them and has claimed itself the winner. And the numbers support this claim.
August was a good example of this, with Parx’s continued expansion and what’s best left for Sands.
Apart from those two, it looks like Valley Forge is really close to breaking away from the role of a middling casino to become a major player, much like SugarHouse did once. Valley Forge has reported a steady revenue growth in the past 10 months with a record 25.18% rise in May 2018! The only month that messed with their statistics was April when the casino reported a 5.64% drop.
If we follow the crumbs, it’s evident that what started Valley Forge’s financial growth is the gaming reform law from October 2017. One of the ways the reform improved the casino’s game, is it removed the amenity fee requirement which was practically a very off-putting door charge for non-guests.
It took a million-dollar fee for Valley Forge to remove it, but from what we’ve seen in the past year, it was money well spent.
After another round of online gambling licensing has completed, Pennsylvania now has online gaming licenses to spare.
Only two of the 13 casinos eligible to get one didn’t apply - Meadows and Lady Luck. Presque Isle also didn’t apply for an online poker license. It all adds up to two available online slots, two online table games licenses, and one online poker license available.
Another round of online gambling licensing has concluded in Pennsylvania, and when all was said and done the state has a small surplus of online gaming licenses.
The process of handing out the licenses will be overseen by the Pennsylvania Gaming Control Board but will also allow qualified outside-of-PA entities to participate.
In fact, the rules of the licensing process aren’t all in favor of the casino companies. Firstly, winners will be drawn at random out of all the companies that applied. Next, the different kinds of licenses won’t get separate drawings, but rather when one of the applicants gets picked, they will get all the licenses they asked for. As you can guess, that can quickly reduce the number of available licenses for the rest of applicants.
Also, if a company asked for a slot license but gets drawn when there are only poker licenses available, they will be looked over. Similarly, if they asked for all three licenses but get picked for a slot license, they only have the choice to accept or decline it and there’s little they can do about it.