Persistent Slot Slump Drags Down Overall Pennsylvania Casino Revenue
Online Poker Report

Nine-Month Slot Revenue Slide Leads To PA’s Second-Ever FY Casino Revenue Decline

casino PA slots revenue decline
Pennsylvania casinos posted a small decline in FY 2016-17 (July 2016 through June 2017) due to an ongoing slot revenue decline that reached its ninth straight month in June.

According to the Pennsylvania Gaming Control Board (PGCB), slot revenue in fiscal year 2016-17 was down 2.2 percent compared to FY 2015-16. On the opposite side of the ledger, table game revenue grew by 3.25 percent in FY 2016-17.

The result was a small decline in total casino revenue of less than one percent.

This was the first fiscal year-over-year decline in total casino revenue since 2013-14, and only the second in Pennsylvania casino history.

All of this is occurring while a comprehensive gaming reform package that would bolster the state’s casino revenue remains in legislative limbo.

Top line numbers for FY 2016-17

Here’s a look at the top-line FY 2016-17 numbers:

  • Slot machine revenue FY 2016-17: $2,336,152,508 (-2.2%)
  • Table game revenue FY 2016-17: $866,467,940 (+3.25%)
  • Total gaming revenue FY 2016-17: $3,202,620,448 (-0.78%)

The big takeaway: Nine months and counting

Pennsylvania’s run of consecutive months with declining slot revenue now stands at nine. And there is no end in sight.

  • October 2016 slot machine revenue: $191,850,596.41 (-3.04%)
  • November 2016 slot machine revenue: $179,399,603.94 (-4.34%)
  • December 2016 slot machine revenue: $185,349,872.22 (-6.17%)
  • January 2017 slot machine revenue: $180,304,669.91 (-2.44%)
  • February 2017 slot machine revenue: $192,268,470 (-3.95%*)
  • March 2017 slot machine revenue: $209,984,146.94 (-0.6%)
  • April 2017 slot machine revenue: $205,702,752.11 (-1.58%)
  • May 2017 slot machine revenue: $203,248,175.70 (-2.68%)
  • June 2017 slot machine revenue: $188,520,750 (-0.77%)

*Accounting for the leap year in 2016, the normalized numbers in February show slot revenue down just 0.5 percent YoY.

Individual winners and losers in FY 2016-17

Only three casinos managed to increase slot revenue in FY 2016-17.

They were:

  • Valley Forge Casino Resort, which grew slot revenue from $77,305,871 to $80,228,728. It’s an increase of 3.78 percent.
  • SugarHouse Casino, which saw slot revenue increase just over one percent (1.06 percent to be exact), growing from $177,035,574 to $178,910,324.
  • Lady Luck Casino Nemacolin, the state’s smallest casino, posted a revenue increase of 0.76 percent, thanks to slot revenue of $30,170,007 in FY 2016-17 compared to $29,942,945 in FY 2015-16.

The remaining nine casinos all saw slot revenue decline in FY 2016-17. Some had it worse than others.

A few casinos saw slot revenue tick down ever so slightly:

  • Sands Casino Resort Bethlehem slot revenue fell from $305,361,023 to $304,160,285, a decrease of -0.39 percent.
  • Parx Casino’s slot revenue dropped from $388,338,380 to $386,589,505, a decline of -0.45 percent.
  • Mount Airy Casino Resort slot revenue was also down less than one percent (-0.95 percent) falling from $143,588,437 to $142,220,078.

Three other casinos managed to keep their slot revenue decline at modest levels:

  • Hollywood Casino at Penn National Race Course saw slot revenue fall by two percent to $209,682,586, compared to FY 2015-16’s total of $213,980,486.
  • Rivers Casino slipped from $272,033,348 to $265,345,39, a decline of -2.46 percent.
  • Meadows Casino’s numbers fell even further, tallying $225,970,692 in FY 2015-16 and $217,910,016 in FY 2016-17. That’s a decline of -3.57 percent.

The final three casinos all suffered slot revenue declines of five percent or more.

  • Presque Isle Downs and Casino’s slot revenue fell by 5.3 percent, from $118,272,624 to $112,001,403.
  • Mohegan Sun Pocono’s slot decline was nearly six percent (-5.94 percent), dropping from $221,730,498 to $208,562,173.
  • Harrah’s Philadelphia Casino and Racetrack was the worst performer in FY 2016-17. Slot revenue fell from $215,098,673 to $200,372,009, a decline of -6.85 percent.

Table games bolster many properties

The story is a bit more cheerful on the table game side of the ledger. Here’s a look at the results from best to worst.

  • SugarHouse Casino posted a double-digit increase of 13.26 percent.
  • Parx Casino’s table game revenue was up 9.71 percent.
  • Hollywood Casino at Penn National Race Course grew table game revenue by 7.87 percent.
  • Presque Isle Downs and Casino’s table game revenue increased by 6.83 percent.
  • Sands Casino Resort Bethlehem posted a gain of 3.06 percent.
  • Mount Airy Casino Resort increased table game revenue by 2.29 percent.
  • The Meadows Casino was relatively static, with a slight increase of 0.17 percent.
  • Harrah’s Philadelphia Casino and Racetrack saw table game revenue fall by -3.20 percent.
  • Mohegan Sun Pocono posted a table game revenue decline of -4.99 percent.
  • Valley Forge Casino Resort’s table game revenue fell by -7.01 percent.
  • Rivers Casino took a hit of -7.43 percent to its table game revenue.
  • Lady Luck Casino Nemacolin posted a troubling -20.32 decrease in table game revenue.

PA casino-by-casino analysis for June 2017

Parx Casino

  • Slot revenue: $31,574,323 (+2.24%)
  • Table game revenue: $14,039,603 (+14.87%)

Sands Bethlehem

  • Slot revenue: $23,976,542 (-0.36%)
  • Table game revenue: $17,569,463 (-7.98%)

Rivers Casino

  • Slot revenue: $21,447,379 (+2.94%)
  • Table game revenue: $4,790,475 (-11.03%)

SugarHouse Casino

  • Slot revenue: $14,014,673 (-6.1%)
  • Table game revenue: $9,900,149 (-2.42%)

Harrah’s Philadelphia

  • Slot revenue: $16,066,563 (-2.51%)
  • Table game revenue: $5,531,640 (+7.51%)

Hollywood Casino at Penn National

  • Slot revenue: $17,120,703 (+.53%)
  • Table game revenue: $3,164,439 (+20.75%)

The Meadows Casino

  • Slot revenue: $17,022,395 (-4.86%)
  • Table game revenue: $2,647,382 (+19.72%)

Mohegan Sun at Pocono Downs

  • Slot revenue: $16,711,709 (-4.96%)
  • Table game revenue: $3,470,592 (-4.53%)

Mount Airy Casino Resort

  • Slot revenue: $12,172,906 (+4.3%)
  • Table game revenue: $4,141,890 (+34.73%)

Presque Isle Downs and Casino

  • Slot revenue: $9,363,604 (-6.88%)
  • Table game revenue: $1,341,612 (-2.40%)

Valley Forge Casino Resort

  • Slot revenue: $6,398,590 (+5.53%)
  • Table game revenue: $3,057,518 (+2.82%)

Lady Luck Casino Nemacolin

  • Slot revenue: $2,651,365 (+6.23%)
  • Table game revenue: $295,673 (-47.72%)

Historical look at casino revenue in Pennsylvania

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Steve Ruddock
- Steve covers nearly every angle of online poker in his job as a full-time freelance poker writer. His primary focus for OPR is the developing legal and legislative picture for regulated US online poker and gambling.