2018 casino revenue rises slightly to new state high
Pennsylvania’s 12 casinos reached a record high in slots and table game revenue for the fourth straight year in 2018, though the increases have been so small as to virtually represent flat-lining of gambling in the state.
Gross gambling revenue at the casinos — the amount equivalent to what patrons lose — totaled $3,248,681,377 in 2018, up $21.8 million from the year before, the Pennsylvania Gaming Control Board reported Wednesday. That’s an increase of 0.00675 percent.
The state’s tax revenue from the casinos’ wins amounted to $1,377,254,368, which is allocated toward homeowner property tax relief, economic development projects, support for the state’s horse racing industry and other purposes.
The numbers do not reflect any revenue boost from the state’s broad new gaming expansion, as the effects of that are expected to be seen in 2019 with millions in new revenue from internetbased casino games and sports betting.
Five new mini-casinos are also to provide additional revenue, though possibly not until 2020. The state is on pace to collect more than $300 million in licensing-related fees, however, from those new forms of gambling. Additionally, more revenue will likely be generated in 2020 from another large casino under development in Philadelphia.
Chris Grove, a managing director for Eilers & Krejcik Gaming, a gaming industry consulting and research firm, noted that casino saturation in recent years has inhibited growth of gambling revenue in many parts of the country.
“I don’t think it’s unexpected in Pennsylvania,” he said. “No one went into 2018 expecting incredible increases in land-based revenue, and that was part of the justification behind the gaming expansion bill … in trying to attract people who otherwise would not be visiting the casino or would be doing so far less frequently.”
The 2018 figures reflect how slot machines continue to be the dominant driver of patrons and finances for casinos, representing 73 percent of gambling revenue. The machines brought in $2.37 billion for Pennsylvania casinos last year vs. $878.8 million from table games. Slot revenue was up slightly in 2018 from the year before, with table games experiencing a small drop.
Among area properties, the Rivers Casino on the North Shore gained in both types of revenue in 2018, reaching $281,405,007 from slots and $76,043,050 from table games, for a total of $357,448,057.
The Meadows Racetrack and Casino in Washington County dipped slightly in both forms of gambling, to $211,098,502 from slots and $35,776,680 from tables, a total of $246,875,182.
Lady Luck Casino Nemacolin, a much smaller “resort” casino in Fayette County, also declined in both forms of revenue, to $28,264,639 from slots and $4,033,544 from table games, a total of $32,298,183.