There are nearly 20 gambling venues spread around the state of Pennsylvania. Some of these are stand-alone casinos offering a wide range of different gambling options. Others are racinos, offering casino games inside horse race tracks. Unfortunately, the shutdown of Pennsylvania’s casino industry cost the state a massive amount of revenue over the past few months.
Casinos here are slowly getting back on track. Things are far from normal, though. Today, we’re going to look at how much money was lost due to the shutdown of casinos here. We’ll also talk about how these revenue losses may rebound.
Let’s get into it!
Most of Pennsylvania’s Casinos Have Now Reopened
Pennsylvania has a large and successful casino industry. In March, state leaders here ordered all of their gambling venues to completely shut down. It wasn’t surprising news. All other states around the country ordered their casinos to close down, as well.
Casino companies here immediately expressed their concern. Initially, it was unclear how long it would take for casinos to reopen. The months went on and all of this state’s casinos remained closed down to the public.
As many already know, Pennsylvania is one of the few states with legal online casinos. These casino gambling platforms grew extremely popular during the casino shutdown. Many residents here continued to call for land-based restrictions to be lifted, though.
Fortunately, most casinos in PA are now open. In May, state leaders began allowing casinos to accept guests again. Intense safety measures remain set in place inside all of these venues. That includes separating players at table games and requiring masks.
Gambling fans in this state are happy to see this change. Casino revenue has been slowly increasing since casinos started opening in May and June. Now, many analysts are looking back at the impact keeping casinos closed had on the state.
Many are surprised to see how much money the state lost due to the casino closures.
The Shutdown of Pennsylvania’s Casino Industry Cost Hundreds of Millions
The land-based casino took a tremendous hit over the past six months. Even now, the vast majority of casinos around the country are seeing major dips in revenue earnings. Pennsylvania’s casino industry is struggling to stay afloat.
Recently, reports surfaced that show how much money was lost once casinos were shut down. The casinos themselves missed out on an estimated $968.8 million. It’s being said that the state lost out on an incredible $424 million via taxes from this industry.
Pennsylvania is known for having extremely high tax rates on casinos. Analysts within The Allegheny Institute, who published this report, shed light on how internet casinos managed to bring the state some much-needed revenue.
“Call it intuition or just plain luck that internet gaming made its debut in Pennsylvania casinos in July 2019,” the report states. “While not all casinos in Pennsylvania offer online gaming options, for those that do, total internet gaming revenue (including online table games, internet slot machines and online poker) jumped from $13.9 million in January 2020 to $50 million in June, an increase of 258.6 percent.”
State leaders are guaranteed to take notice of this revenue loss. It seems that many failed to realize how important the casino industry really was for the state. Fortunately, revenue is increasing now that casinos here have begun accepting guests again.
Will more states begin looking into the legalization of online casino gambling now?
Online Casino Regulation Can Bring States Valuable Revenue
Prior to the shutdown in March, the US gambling industry was thriving. Casinos continued to see their earnings increase. States with regulated sports betting options saw revenue from this industry surging, as well.
As casinos started shutting down, states realized how important these venues really are. Obviously, casinos employ a huge number of state residents. They also bring the state and local communities large amounts of money every month.
Only a few states have regulated online casino options right now. That seems likely to change soon. State leaders across the country are seeing how much revenue a regulated internet casino industry can bring in.
Some feel that Nevada needs to begin allowing online casino gambling. Casinos here started to reopen in June. Cities like Las Vegas are now back up and running, yet casino revenue remains significantly lower than it was in 2019.
The regulation of online casinos can help to turn things around. We’ll need to wait and see how state officials here move forward with online gambling plans over the next six months.
Are you surprised to see how much money Pennsylvania’s casino industry lost this year? Let us know in the comments section below!