Pennsylvania Slot Revenues in First Decline

Annual revenue from slot machines in Pennsylvania have declined for the first time since the state’s gaming industry began in 2006.

After six years, it’s Pennsylvania’s turn.

Since the first Pennsylvania casino opened in late 2006, the state has experienced nothing but year-on-year increases in slot revenue. Until this year. Saturation of the Pennsylvania casino market and increasing competition from New York, Ohio and Maryland resulted in the first year-on-year decline in gross slot revenue for Pennsylvania casinos.

Slot revenues in Pennsylvania, which several years ago surpassed New Jersey as the second-largest revenue-producing jurisdiction in the industry, declined 3.5 percent in 2013, to less than $2.4 billion. Table games, first introduced in July 2010, still demonstrated strong growth in 2013, increasing year-on-year for nine of the first 11 months of 2013.

“There continues to be increased casino competition from all of Pennsylvania’s bordering states, and that certainly is affecting year-over-year revenue,” said Doug Harbach, spokesman for the Pennsylvania Gaming Control Board.