Unlicensed, unregulated so-called “skill games” in non-casino locations across Pennsylvania are hurting demand for casino slot machines, two casino executives told the state Gaming Control Board.
Two Mount Airy casino executives testified at a gaming board hearing that the unlicensed machines, estimated at more than 20,000 in Pennsylvania and located in pizza parlors, convenience stores and other non-casino locations, are a major reason Mount Airy has eliminated 130 older and less-used slot machines.
Mount Airy COO Frank Leone told the board the cost to casino slot revenues due to unregulated machines in the state “can range from $20,000 to $50,000 across the commonwealth,” according to the Play Pennsylvania website. “There’s no question in my mind it has a negative impact on land-based slot revenue.”
Mount Airy is one of four Pennsylvania casinos that have requested approval this year to remove machines from slot floors.
While there have been pledges from the legislature to ban the unregulated machines, no bill has been introduced. “There’s a lot of behind-the-scenes conversations; nothing is scheduled yet,” state Senator Wayne Fontana told Play Pennsylvania. “But the door is open. And the Republicans have their own battles (over how best to proceed with legislation). My impression though is the horse is out of the barn.”
Fontana said while there is a bipartisan consensus for “regulation and oversight” of the unlicensed games, he said regulation alone doesn’t address fairness. “I’m not sure that’s good enough. There’s a difference. I don’t know how you legalize the machines without matching the taxes.” Regulated casinos pay a total of 54 percent of slot revenues in state and local taxes.
