A shocking bit of news is doing the rounds. The casinos of Pennsylvania have been incurring incessant losses in their business since the last year. Over the months, more casino operators have entered into the casino industry and have posed to be a great competition to the already existing ones. However, it is believed that the numbers of casino is not the problem behind lagging of the collections. However, it is the way in which the state is taxing the gambling halls aggressively.
The news revealed that the casino here have posted their worst revenues in the past two years. They have confessed that right from November 2009, they have been only witnessing profits going down. In fact, the Pennsylvania Gaming Control Board has stated that the slot machines of the state have matched only to the total of the prior year twice in the past 7 months.
Sean Sullivan’s Take on Decline in Revenues
Sean Sullivan, general manager of The Meadows Racetrack and Casino in Washington County mentioned in an interview that out of past four months, three have been really soft for the industry. It has been seen that the slots were able to gather around $179 million in the month of November. However, this amount has come down by 23 percent as compared to the month of March 2012, when the digits were not satisfactory.
The Opening of New Casinos and its Connection to Decline in Revenues
It is know that all the states that share border with Pennsylvania are today offering slots casinos. In fact, non-American Indian casinos are also going to boost up in New York in the coming months while Ohio’s began to establish four years back only. In addition to this, Maryland has also witnessed opening of four casinos since the month of July 2012. In the recent week only, casino named MGM has opened in the city of Baltimore.
According to the reports of American Gaming Association, it is not only the state of Pennsylvania that has been confronting the competition and pressure from their counterparts. The casinos in Pennsylvania started operating in the year 2006 but today, it is struggling to retain its strong customer base and to keep its reputation intact. On the other hand, the cities of Rhode Island and West Virginia are worried to witness a great fall in their casinos’ revenues. The casinos in these areas are fearful of the cutthroat competition in the casino industry, which is making them hard to survive.
Sara Rayme, Senior Vice President of Public Affairs, AGA Speaks Openly About Decline in Revenues
Sara has made it clear by saying that there is hardly any clear indication of such decline in the casino revenue. She accepts that such tight situations raise questions about the stability of the casino market but the analysis of the same is still under process. She also noted that some of the well-established urban centers of New York do not operate any casinos at all. She stated that it is highly important for the legislators to evaluate the amount of tax wagers, as this only will help Pennsylvania in supporting the casinos to compete. She acknowledged the fact Pennsylvania should hold good amount of money in hand if it has paid less taxes. The state can use this amount to captivate the attention of more customers through promotions and other ads.
The Bottom Line
According to John Pappas, executive director of the Pennsylvania Poker Players Alliance, the players playing poker are younger as compared to the ones who play throng slot games like Starburst Slot. As a result, casinos must encourage online poker in the state. And when Pennsylvania is concerned, it should focus on developing more casino opportunities for the people.