By
Jane Shaw
Senior Editor Updated: 03/06/2024
We count on Jane to inform our readers about the latest slot games in the US market. With her passion for video games and a degree in engineering, she’s our gambling tech expert. Jane’s also active in our blog section, where she tackles the curiosities and changes in the industry.
Pennsylvania Sees Drop in Casino Revenue
It has been reported that Pennsylvania’s brick-and-mortar casinos experienced a significant drop in revenue in January compared to the same period in 2023. This mirrors a trend that has been seen across much of the nation as retail gambling slows down.
According to the Pennsylvania Gaming Control Board, revenue from slots at the state’s 17 land-based casinos amounted to $179.5 million, marking a significant drop of over 11 percent compared to January of the previous year.
Similarly, revenue from table games saw a decline of 13 percent, totaling $72.6 million. Combined, the gross gaming revenue amounted to approximately $252.1 million, representing a drop of close to 12 percent, which equates to a $33.9 million drop compared to January 2023.
The losses experienced in terms of brick-and-mortar casino revenues were partially offset by gains in other gaming areas, such as iGaming and sports betting. Revenue from iGaming continued to rise, with online slots and interactive table games generating $149.5 million.
This reflects an increase of over 12 percent compared to the previous year. Sportsbooks also saw significant growth, with a 78 percent increase in revenue, retaining nearly $70 million from the $858.1 million wagered.
Taking into consideration revenue from all gaming sources, including casinos, iGaming, sports betting, gaming machines in truck stops, and fantasy sports, Pennsylvania saw a total revenue of $477.1 million in January. This reflected a modest year-on-year improvement of 2.8 percent.
The economic challenges currently being faced by Pennsylvania echo those being experienced in other states across the country. A number of other states have also reported declines when it comes to in-person casino revenue compared to the previous year. States including New York, Mississippi, Louisiana, Indiana, Michigan, and Maryland all saw decreases in January 2024.
The decline in revenue from gaming machines in truck stops and fantasy sports reflects a broader trend of reduced gambling activity in traditional outlets. This has been put down to a variety of factors, including ongoing inflation, the end of government stimulus measures, and a tightening labor market, all of which may have adversely affected discretionary spending among consumers.
A report from JP Morgan read:
Economic growth is likely to decelerate in 2024 as the effects of monetary policy take a broader toll and post-pandemic tailwinds fade.
Increased living costs seen across the country have had a huge impact on consumer spending, which has affected many industries.
Many households are struggling to make ends meet financially and have had to focus on essential costs rather than spending on luxuries such as gambling and entertainment. This has undoubtedly had a huge negative impact on industries such as gaming and hospitality, among others.
The drop in revenue at brick-and-mortar casinos in January 2024 is seen as a potential setback for the US commercial gaming industry. The market saw three years of record growth following the COVID-19 pandemic. This decline highlights the challenges faced by the industry as it adapts to changing consumer behavior and economic issues.
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