On-line Slots, Sports activities Betting Progress Carries PA Gaming Income in Could

The summer season sports activities slowdown is upon us, as is the best US inflation price in 40 years, however Pennsylvania gaming income expenses on.

In Could, general PA playing income totaled $447.8 million, a 3.0% lower month over month (MoM) and an improve of 8.4% 12 months over 12 months (YoY) in comparison with Could 2021, in line with numbers launched by the PGCB.

All playing verticals aside from each day fantasy sports activities noticed year-over-year will increase, however that doesn’t inform the entire story.

For one, this Could’s numbers had been skewed by the addition of two casinos that weren’t but open final Could. Hollywood On line casino York (opened Aug. 12, 2021) and Hollywood Morgantown (opened Dec. 22, 2021) present income streams Penn Nationwide didn’t have a 12 months in the past.

And though income is up YoY throughout the board, progress has not been evenly distributed. Whereas PA on-line gaming income continues a sizzling tempo of YoY progress, retail casinos are dealing with numerous challenges exterior of their management. And a few are faring a lot better than others within the present financial downturn.

Yr over 12 months features pushed by sports activities betting, on-line slots

Solely three gaming verticals noticed double-digit YoY progress in Could. They had been:

  • Sports activities betting (up 26.2%)
  • On-line slots (up 16.3%)
  • Retail desk video games (14.7%)

One other vital issue for sustained YoY progress is stability from the most important gaming income driver in PA, retail slots. Slot machine income rose 2.1% YoY, from $201.4 million in Could 2021 to $205.7 million this Could.

With 15.6% extra slots in motion (variety of slots elevated from 22,496 to 26,004), one may anticipate the income leap to be increased.

Nevertheless, eight of PA’s retail casinos noticed YoY declines in slot income, with two casinos (Hollywood at Penn Nationwide and Mount Ethereal On line casino) seeing double-digit drops.

PA On line casino Could 2022 Slot Income Could 2021 Slot Income % Change
Parx On line casino $34.3 million $37.8 million -9.2%
Wind Creek Bethlehem $25.0 million $22.8 million 9.3%
Rivers On line casino Pittsburgh $22.2 million $21.8 million 2.0 %
Mohegan Solar Pocono $15.7 million $15.1 million 4.2%
Hollywood On line casino on the Meadows $13.5 million $13.9 million -2.9%
Hollywood On line casino at Penn Nationwide $13.2 million $16.5 million -19.9%
Harrah’s Philadelphia $12.3 million $12.6 million -2.1%
Mount Ethereal On line casino Resort $12.0 million $13.6 million -11.8%
Rivers On line casino Philadelphia $10.5 million $10.8 million -2.0%
Dwell! On line casino Philadelphia $10.5 million $11.5 million -9.0%
Presque Isle Downs and On line casino $8.2 million $8.5 million -2.9%
Valley Forge On line casino Resort $8.9 million $7.6 million 17.4%
Dwell! On line casino Pittsburgh $8.2 million $7.2 million 13.0%
Hollywood On line casino York $5.6 million n/a n/a
Hollywood On line casino Morgantown $3.7 million n/a n/a

What’s behind the slot income drop at some PA casinos?

Many PA casinos have opted to reconfigure the gaming flooring to incorporate fewer slots in recent times. Wind Creek On line casino is the newest to suggest a slot discount. Their representatives requested a minimize from 2,973 to 2,318 slot machines at this month’s PGCB assembly. The plan additionally contains investing $7 million in newer slots to exchange older, underperforming video games.

Wind Creek cited low occupancy charges as the principle purpose for decreasing the entire variety of slots. Different developments main to fit reductions embody:

  • Common measurement of slot machines drastically growing.
  • Patrons opting to keep away from sitting within the “center seat” the place there are three or extra slots facet by facet.

On-line playing income spurs progress, helps retail

Whereas retail slots will stay the dominant income for the foreseeable future, on-line verticals together with slots, desk video games and sports activities betting have gotten extra essential for gaming firm income progress. With the omni-channel strategy that fashionable gaming firms are following, all these verticals work collectively to elevate one another.

Cross-sell is robust throughout sports activities betting, poker and desk video games (reside and on-line). Sports activities and poker gamers additionally cross-sell to iGaming verticals like on-line slots and desk video games.

Just lately, operators have mentioned the pattern of cross-sell from retail sportsbooks to retail desk video games. Retail sportsbooks herald a youthful demographic that helps enhance desk video games income and meals and beverage spend.

Whereas these different verticals proceed to point out sturdy progress, retail slot income stays regular. This isn’t all that shocking contemplating the demographics of the totally different video games.

Sports activities betting, iGaming and on-line poker tends to draw a youthful demographic than that of the standard retail slot buyer base. And whereas the retail slot trade continues to innovate with new video games (themes, graphics, options) and the machines develop in bodily measurement, the demographic is unlikely to drastically change.

Buyer spend, nevertheless, has already taken a flip.

Financial downturn results in much less on line casino buyer spend

With inflation and fuel costs at file highs, casinos are discovering that their prospects are spending much less. Playing is a well-liked type of leisure, particularly in PA, however that additionally means it requires discretionary revenue. When all of the payments are paid and the tank is stuffed, Individuals are discovering much less left over for the gambles.

Much less spend per slot participant brings us to the anticipated results of slower YoY progress in retail slot income, regardless of two extra casinos and extra machines in operation.

It’s additionally potential that fuel costs are main extra slot gamers to think about on-line play. Logically, this may have a better impression on extra distant casinos that rely upon a buyer base that has to driver longer distances to recreation.

Massive losers, huge winners in PA income for Could 2022

As already talked about, gaming income progress in PA is just not evenly distributed. These had been the massive winners for Could, adopted by operators who took YoY hits.

High 5 on line casino operators for YoY progress in Could 2022

  1. Wind Creek Bethlehem: 31.5%
  2. Valley Forge On line casino: 25.3%
  3. Hollywood On line casino on the Meadows 14.5%
  4. Dwell! On line casino Philadelphia: 13.6%
  5. Dwell! On line casino Pittsburgh: 11.9%

On line casino operators with YoY income drop for Could 2022

  1. Mount Ethereal On line casino Resort (-15.5%)
  2. Parx On line casino (-7.0%)
  3. Rivers On line casino Philadelphia (-1.4%)
  4. Harrah’s Philadelphia (-1.2%)
  5. Presque Isle Downs (-.3%)
  6. Hollywood On line casino at Penn Nationwide (-.2%)

PA on-line casinos and poker income breakdown Could 2022

Licensee Complete Income Slots Tables Poker Promos Taxes
Hollywood Penn Nationwide $55,769,727 $40,464,056 $15,050,552 $255,120 $10,293,833 $16,623,134
Rivers Philadelphia $33,156,169 $29,567,430 $3,505,438 $83,300 $6,208,358 $11,550,577
Valley Forge $22,430,606 $12,766,738 $9,663,869 $0 $1,249,447 $6,959,345
Mount Ethereal $6,968,593 $4,020,482 $1,213,442 $1,734,668 $1,758,754 $1,526,952
Parx $6,361,433 $5,520,141 $841,291 $0 $2,276,161 $1,659,277
Dwell Philadelphia $3,496,342 $2,823,837 $672,506 $0 $316,584 $1,286,010
Harrah’s Philadelphia $3,193,092 $2,038,137 $416,377 $738,578 $334,278 $970,240
Mohegan Solar Pocono $2,529,975 $1,970,481 $559,495 $0 $328,812 $861,103
Wind Creek $1,953,255 $1,843,409 $109,846 $0 $675,512 $566,487
Presque Isle Downs $893,613 $643,679 $249,934 $0 $5,128 $340,108
Complete $136,752,806 $101,658,388 $32,282,751 $2,811,666 $23,446,867 $42,343,233

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