[toc]Pennsylvania slot revenues dipped two percent over the past year, the Pennsylvania Gaming Control Board revealed last week.
In fact, with the fiscal year ending June 30, the gaming board tallied up the numbers and found slot machine revenue declined a total of 2.2 percent compared to the previous fiscal year.
Slot machine revenues actually declined in 10 of the past 12 months. However, total slot revenues at Pennsylvania’s 12 casino properties did manage to pass $2.3 billion for the seventh straight fiscal year.
PA slot taxes top $1.2 billion
Total slot revenues reached $2,336,152,508 compared to $2,388,658,549 during the 2015/2016 fiscal year. As a result, tax revenue produced by Pennsylvania slot machines topped $1.2 billion during the 2016/2017 fiscal year.
The state pulled in a total of $1,236,670,146 in tax revenue from slot machines across the state.
Pennsylvania slot revenues reach $22 billion total
Slot machine revenue has reached $22.4 billion, generating $12.1 billion in taxes paid since the state legalized casino gambling and casinos began operating in November 2006.
The gaming board says table game revenue numbers will be released later this month. It also estimates there are approximately 25,685 slots in operation across the state.
Parx and Sands on top
The state’s top grossing slot machines were at Parx Casino in Bensalem, Pennsylvania. Parx generated $386,589,505 in slot machine revenue, down just 0.45 percent from the $388,338,380 Parx slot machines posted in the previous fiscal year.
Sands Casino Resort Bethlehem was next as the only other casino to report over $300 million in slot machine revenue. Sands generated $304,160,285 in slot machine revenue, down just 0.39 percent from the $305,361,023 it posted in the 2015/2016 fiscal year.
The gaming board says Pennsylvania’s 10 standalone and racetrack casinos and two smaller resort casinos generate approximately $1.4 billion in tax revenue from slot machine and table games annually.
However, with slot machine revenues declining, the state has been considering gaming expansion initiatives aimed at increasing tax revenues from gaming.
Gambling expansion in Pennsylvania
The PA Legislature is currently considering a comprehensive gambling expansion bill that would legalize, regulate and tax:
- online casinos in PA
- PA online poker rooms
- daily fantasy sports
- video gaming terminals at liquor licensed establishments; and
- tablet gaming at certain airports across the state.
Proposed tax rates for online casinos and video gaming terminals have become sticking points for the legislation.
The PA Senate originally passed legislation including a 54 percent proposed tax rate on online casino games. This mirrors the 54 percent tax land-based casinos pay on slot machine revenue.
However, the PA House amended the bill to include a proposed tax rate of 16 percent across the board on online gambling operations, including online poker operators. Plus, the House added the video gaming terminal plan. The bill was passed by the PA House including these amendments and it is now back before the Senate.
Earlier this month, the PA Legislature approved spending levels on a $32 billion budget. However, the question of how the state will pay for it, including tax revenue from gambling expansion, remains unanswered.
A decision is expected this week.