Pennsylvania Casino Revenue Falls For First Time Ever
Pennsylvania has had a pretty good run of luck since they opened their first casino back in 2006. The state has saw year after year increases in gaming revenue at the casinos for every year since 2006, until 2013.
Last year, Pennsylvania experienced their first revenue decline in history. The casinos are far from struggling, but after adding a few new casinos the previous year, the numbers dipped to $3.11 billion. That figure represented a decline of $44.4 million.
"It was going to be virtually impossible to keep up the pace from 2012," said Gaming Analyst Trevor Sams. "The competition is growing in the Northeast, and the Pennsylvania casinos experienced the loss of the excitement that came from new casinos in 2012. It was a perfect storm for a revenue decrease."
Pennsylvania still remained comfortably as the second largest gaming market in the US. The state took that distinction away from New Jersey several years ago, and has yet to relinquish the title. Nevada is the only state that currently brings in more gaming revenue from their casinos than Pennsylvania.
The biggest competition moving forward for Pennsylvania appears to be New York and Massachusetts. The latter has already authorized new casinos, while New York, one of the most populated places in the world, is expected to add new gaming options in 2014.
New Jersey is also expected to rebound from the slump that has occurred since the 2008 economic recession. New Jersey is fighting federally to add sports books at their Atlantic City casinos, and the state has already added online casinos to its repertoire late in 2012.
"It is going to be interesting to watch the gaming market on the East Coast unfold over the next several years," said Sams. "Not only are the Northeast states getting involved, but if Florida lawmakers decide to alter their laws, that could create the biggest competition for Pennsylvania over the next decade."