EmailEmail
PrintPrint
Slots revenue keeps growing in Pa.
Tuesday, December 02, 2008

HARRISBURG -- The revenue-producing performance of Pennsylvania casinos keeps improving.

Last month, the six Keystone State casinos that had been open for at least a year generated $114.6 million in "gross terminal revenue,'' a term for the money that remains after winners are paid. That figure compares to $101.5 million in gross terminal revenue produced by the same six casinos in November 2007. It's a year-over-year increase of almost 13 percent.

Comparing this October to October 2007, the month-over-month results were less impressive, a gain of 3 percent, but it was still better than casino revenue declines in Nevada and New Jersey.

The October results in Pennsylvania included revenues from only five casinos. A sixth casino, Mt. Airy in the Poconos, wasn't operational for a full month until November 2007.

Of the gross terminal revenues from slots, 55 percent goes to the state (for reducing property taxes, improving horse breeding and funding development projects), while 45 percent goes to the casino owners.

Pennsylvania Gaming Control Board officials caution that slots are still a new industry in Pennsylvania -- the first casino having opened in November 2006 -- and they aren't yet sure how casino revenues will do in the long run.

One reason why November 2008 revenues were up so significantly over the previous November is that there were 1,860 more slot machines in play in November 2008, said board spokesman Richard McGarvey.

The main reason for the increase is that Mohegan Sun at Pocono Downs, near Wilkes-Barre, has opened its new, permanent casino and increased its number of slot machines.

Currently, there are seven casinos operating in Pennsylvania, the most recent being Hollywood Casino at Penn National racetrack, which opened in February near Harrisburg.

Next year three more casinos will open, and thus more slot machines will be in use. These will include the permanent casino being built at The Meadows; the casino being built on Pittsburgh's North Shore; and a casino to open in Bethlehem.

First published on December 2, 2008 at 3:22 pm
Featured Homes
Featured Rentals