Slots revenue down at Pennsylvania casinos in September

Slot machine revenue in Pennsylvania's casinos dipped about 4 percent in September compared to what they brought in during the same month last year, according to figures the Pennsylvania Gaming Control Board released Friday.
The casinos collected $180 million in gross revenue from slot machines in September, down from $188 million in September 2013.
According to the gaming control board, 10 of the state's 12 casinos experienced a decline in slots revenue, including The Meadows, which led the state with a 12.5 percent decrease. Rivers Casino on the North Shore saw a 2.5 percent decrease.
A gaming trade show in Las Vegas prevented the general manager of Rivers Casino from being available for comment, a spokeswoman said. No one from The Meadows or the gaming control board returned calls.
North Strabane received $2.77 million as the host municipality of The Meadows last year. This year, the township expects about $2.55 million.
“Just look at the competition in this area. You've got five or six different casinos within 100 miles. That's got to cut into the amounts,” said Brian Spicer, chairman of North Strabane's board of supervisors.
Nonetheless, “We have not had a tax increase in over 20 years, and the casino has had a lot to do with that over the last five or six.”
Pennsylvania's two smallest casinos, Valley Forge Casino Resort in Montgomery County and Lady Luck Casino Nemacolin in Fayette County, bucked the statewide trend with 13.5 percent and 14.5 percent gains, respectively.
Joseph Weinert, executive vice president of Spectrum Gaming Group, a New Jersey-based research firm, said the decline in slot machine revenue is due in part to new casinos in the region.
“There are about 975 casinos in 41 states, and you can only slice up that pie so many ways before certain markets and properties become impacted,” Weinert said. “Just as Pennsylvania benefitted from New Jersey, New York, Ohio and Maryland, so, too, are some of those states benefitting from Pennsylvania residents.”
Slots revenue for Pennsylvania's casinos peaked during the 2011-12 fiscal year, when the machines grossed $2.47 billion. For the 2013-14 fiscal year, the gross dropped to $2.32 billion, according to the gaming control board.
Weinert attributed part of the “leveling off” of revenue in Pennsylvania to Ohio legalizing casinos in 2012. The first casino in Ohio — Horseshoe Casino in Cleveland — opened in May 2012. Ten others have opened since.
“Some of those are going to compete for customers in Western Pennsylvania and the northern part of West Virginia,” Weinert said. “Gamblers, all other things being equal, will play where it's most convenient. A Wheel of Fortune slot machine in Ohio is going to play the same as a Wheel of Fortune slot machine in Pittsburgh.”