Frank Gamrat, Executive Director of the Allegheny Institute for Public Policy, has published a three-page policy brief on the state of gambling in Pennsylvania.
Gamrat highlighted two issues that he believes may threaten Pennsylvania’s gaming industry: the proliferation of skill games in neighborhoods around the commonwealth; and the state’s declining population, particularly in the largest counties of Philadelphia and Allegheny.
It is not unusual to see conflicting views on skill games, and many lawmakers believe that there is not enough protection for consumers and that it diverts business from both land-based and online casinos.
“There are an estimated 15,000 skill games across the state while there are an estimated 25,000 retail slot machines at sanctioned casinos. Skill games may start to make a dent in the retail slot figures,” wrote Gamrat.
At the same time, Pennsylvania Governor Josh Shapiro aims to increase state revenue by taxing and regulating skill games. In his FY 2024/2025 budget, Shapiro announced that he plans to regulate skill games in July.
“Gaming money should not be so heavily relied upon. Policymakers in the Pittsburgh area and in Harrisburg must do a better job of making Pennsylvania a more business-friendly state to encourage jobs and real economic growth,” commented Gamrat.
In 2023 Pennsylvania set a new gambling revenue record, reaching $5.69 billion, up 9.3% from 2022.
Internet gaming revenue rose 27.7% to $1.74 billion, and retail slot machines generated $2.46 billion in revenue, the highest total ever recorded by the Pennsylvania Gaming Control Board (PGCB). Gaming taxes collected were $2.34 billion in 2023, up 10% from 2022.
