Friday, May 24, 2024

Pennsylvania’s Gambling Industry Is Facing Two Huge Nemesis

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The gambling industry in Pennsylvania has reached an all-time high, with PA online casinos and land based ones bringing in record revenues throughout 2023. However, the industry in general could soon be facing two huge challenges, according to a report by Frank Gamrat, Executive Director of the Allegheny Institute for Public Policy. Skill games and a declining population could soon see gambling figures across the Keystone State reach a saturation port, the economist warned.

Skill Games May Make a Dent in Retail Slot Revenue

Gamrat sounded the alarm in a three-page policy brief focusing on the state of gambling in Pennsylvania. The report acknowledged that the sector at first glance appears to be set to continue growing, before going on to draw a comparison with other states across the US and to delve into the issues of skill games and an ageing population.

The report states that there are an estimated 15,000 skill games across Pennsylvania, while there are an estimated 25,000 retail slot machines at sanctioned casinos, and that “skill games may start to make a dent in the retail slot figures”.

An analysis of the population trends across Pennsylvania follows, detailing how figures went down by around 10,400 since 2020. The trend is particularly visible in larger counties like Philadelphia and Allegheny, the report notes.

Concluding that the gaming industry in Pennsylvania is nearly 20 years old, Gamrat added that “state and local governments have gotten used to the steady stream of revenues. Gaming money bailed out the Allegheny County Airport Authority as it helped retire the debt on the current terminal and is helping to fund the next terminal,”, before warning of the dangers of over-reliance on gambling revenue.

Be that as it may, the outlook right now for gambling across the Keystone State is looking pretty sunny, with 2023 setting a new gambling revenue record of $5.69 billion and the first three months of the year pointing towards even further growth.

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