Is Inflation Beginning to Affect Pennsylvania Casinos?

Inflation can affect a on line casino in some ways, from the price of manufacturing and delivering slot machines to the meals bought within the meals courtroom. How a lot have distributors handed these rising prices right down to Pennsylvania casinos, and the way is it impacting on line casino clients?

Rising prices, inflation at Pennsylvania casinos

Justin Moore, Normal Supervisor for Rivers On line casino Philadelphia, stated distributors have handed lots of their rising prices on to the gaming facility.

“Provide chain disruptions have equated to rising prices on particular person objects, elements for repairs, and backlogs in manufacturing as a consequence of labor shortages,” stated Moore. The rising prices of producing slot machines have had no affect on friends at Rivers On line casino Philadelphia. We’ve skilled occasional delays within the arrival of recent slot machines.”

Moore stated as a consequence of elevated meals costs they proceed to replace menu alternatives and pricing based mostly on the day by day fluctuation in meats and dairy product prices.

Sean Sullivan, common supervisor at Stay! On line casino Pittsburgh, added that like all companies, they’ve skilled elevated prices.

“Nonetheless, we stay targeted on offering our friends with an inexpensive and memorable leisure expertise,”

Valley Forge On line casino and Stay! On line casino Philly declined to remark for this story.

Provide chain points an enormous concern for gaming execs

The American Gaming Affiliation CEO Outlook Index surveyed gaming executives’ prime issues.

Right here’s how they responded:

• 75%: provide chain points
• 63% rate of interest issues
• 54%: labor shortages

Parx On line casino has seen a drop in slot play, not tables

On line casino Replace host Tino Magnatta interviewed Marc Oppenheimer, CMO of Parx On line casino. This time final yr, Oppenheimer stated it was “absolute peak enterprise” for the Bensalem on line casino. Now, they’re beginning to see the affect of inflation. Parx isn’t essentially seeing a drop in guests, however they discover much less mid-week spending, particularly on the slots.

“The core slot participant who’s a bit of older nonetheless desires the leisure however they aren’t spending as a lot after they are available.”

By way of percentages, Oppenheimer stated Parx is down 5-7% for slot income and so they have seen spend-per–journey for some gamers lower 20-25%.

Parx has not seen any points on the desk sport facet of their enterprise.

“Desk video games are typically a extra VIP revenue-driven enterprise, a youthful clientele,” stated Oppenheimer. “These are those who aren’t impacted as a lot by this.”

Of 14 Pennsylvania casinos that had been additionally open in April 2021, six noticed retail slot income lower YoY. Six additionally had declines in desk video games income. Parx noticed declines in each with slot income down 4.8% and desk video games income down simply 2.4%.

Pennsylvania casinos good wager for shut journey

Since Pennsylvania is crammed with largely “commuter casinos” which are simple for a lot of within the state to drive to, they might profit from elevated enterprise from native residents. With rising prices, residents could also be extra inclined to not journey lengthy distances to gamble. Occupancies might possible be up at casinos which have lodges.

Lead picture by Katie Kohler