PA Table Game Revenue Increases While Total Gaming Revenue Slumps
January 17, 2015
Topping the list was Sands Bethlehem, raking in $20,926,257 on its 206 tables over the $14,194,356 it made in the previous year. Parx Casino took the second spot, banking $11,597,102 over the $10,180,171 it made in December 2013.
Some casinos saw a dip in table revenue, including Harrah’s Philadelphia, which dropped from $7,089,634 to $4,979,712 this December. Mohegan Sun and Presque Isle Downs also saw a decrease in profits compared with last year.
Total gaming revenue decreases
Total gaming revenue dipped in 2014, with casinos taking $3,069,077,597 overall, compared with $3,113,928,590 in 2013, for a 1.44% contraction. This marks the second year in which revenues have decreased. In the run up to 2013, Pennsylvania saw an unprecedented six year growth in total gaming revenue.
The slump will increase the anxieties of Pennsylvania’s existing casinos which fear competition from newly licensed projects. Casino executives have spoken out against the Live! Hotel & Casino joint venture in particular, which they believe will cannibalize their own businesseses.
Greenwood Gaming & Entertainment and Cordish Cos. plan to build the casino in the Stadium District and leverage traffic from the area’s many events.
Opponents of the project have turned to the state Supreme Court urging that the license be rescinded. They claim that owners of Parx Casino are also involved in the Live! venture, a situation which should prohibit them from legally receiving the coveted Philadelphia gaming license.
Analysts believe that the PA gambling market is already oversaturated and that adding a new casino to the mix will only hurt existing businesses. Industry observer Andrew Zarnett believes that the new project will be a “significant negative” for current operators. “All they’ve done is create a monopoly for Parx, with one in Bucks County and one in South Philly, which will squeeze out SugarHouse,” said competitor Bart Blatstein.