The COVID-19 pandemic has shaken businesses across the U.S., including commercial and tribal casinos. In Pennsylvania, however, some of the gaming revenue lost due to the state-mandated casino closings starting in mid-March was mitigated because of igaming.
“We were very fortunate in Pennsylvania because of the decision by the legislature in 2017 to allow internet casino-type games,” says Doug Harbach, communications director for the Pennsylvania Gaming Control Board, which recently released its 2019-20 Fiscal Year Annual Report.
Noting that Pennsylvania is only one of three states, including Delaware and New Jersey, to legalize online casino games, Harbach said igaming options, “allows casino operators to offer gaming to their customer base if they chose to do it in that manner. (It) allows Pennsylvania to continue to pull in some significant tax revenue, although nothing as close to what we would have normally seen with the retail operations open.”
For the 2019-20 fiscal year, igaming revenues totaled $240.9 million, with internet slot games accounting for $153.6 million; internet table games, $62.6 million; and online poker, $24.6 million. The total figure accounted for roughly 4.8% of Pennsylvania’s total $5.8 billion in gaming revenues casinos collected during the reporting period.
According to Parx Casino Chief Marketing Officer Marc Oppenheimer, igaming through the property’s website helped to stem losses during the nearly three months the Philadelphia casino was closed.
“It did not make up for the closed casino,” Oppenheimer said. “It did not come close to equaling the magnitude of the casino business. But it definitely grew and was a help.”
The spreading coronavirus forced all 12 casinos in the state to close. According to the gaming commission’s report, the outbreak, including closures of casinos, retail sportsbooks, and video gaming terminals, resulted in a decline of 18% in gaming revenue, and a loss of $265 million in anticipated tax revenue during the three-month closure.
Pennsylvania casinos began reopening in early June. By July 17, all 12 casinos were operational, with strict attention paid to health, safety, and cleaning protocols established by the commonwealth.
“As the challenges of 2020 persist, our top priority continues to be the health and wellbeing of our team members, guests, and the community,” says Bill Keena, general manager of Rivers Casino Pittsburgh.
Along with ongoing property-wide gaming promotions, Rivers Casino Pittsburgh recently expanded restaurant capacity to 50%, consistent with state guidelines. According to Keena, DJs will be added to the casino’s BetRivers Sportsbook on weekends in October.
At Mount Airy Casino Resort in Mt. Pocono, vice president of marketing Glenn Cademartori says that “record numbers” of patrons showed up when the casino reopened June 22.
“We continued to engage with our guests during the shutdown period, which enabled us to solidify their loyalty upon return,” Cademartori says. “Since then, we have still enjoyed very strong numbers. It is encouraging to see that even at the 50% capacity level, we are still seeing improved numbers year over year.”
One of the largest growth areas in Pennsylvania gaming properties has been sports betting. Since the legalization in November 2018, sports wagering has been a popular option with Pennsylvania gamblers. Total wagers were more than $2.28 billion for the most recent fiscal year. Wagers placed in retail sportsbooks were more than $308.9 million, with online sports betting seeing more than $1.97 billion in wagers.
Harbach said the Pennsylvania lawmakers, soon after the May 2018 Supreme Court ruling that allowed states to legalize sports betting, pushed through legislation allowing casinos to offer the activity.
“We not only have seen popularity in the retail outlets, but because we also were allowed to offer it online, which is something a lot of states have not allowed, we were able to build a revenue base, and the operators have built a customer base,” Harbach said. “About 80% (of sports wagering) has been done online, even when retail operations were open.”
Oppenheimer expects sports betting at Parx to continue to grow, despite restrictions put in place at the casino’s sportsbook because of the pandemic.
“People can sit there and watch games, but it’s distanced, and people have to have masks on,” Oppenheimer said. “There’s no beverage service. But the flip side is the volume in online sports betting continues to grow since sports have returned.”
Other highlights from the 2019-20 annual report:
- Pennsylvania currently has 140 video game terminals at 28 truck stops in 18 counties. Total revenues for the 2019-20 fiscal year was almost $6.8 million
- Fantasy sports contests accounted for $202.8 million in fees. DraftKings was the top site, with almost $102.8 million in fees.
The Gaming Commission continued efforts to address problem gambling through its voluntary self-exclusion program saw 1,489 join, up from 1,389 compared to 2018. As of June, another 382 had joined in the first six months of 2020.
