This is another move that demonstrates the power of online casinos.
The gaming industry in Pennsylvania is on the brink of witnessing a significant shift with the Senate's recent approval of Senate Bill 840.
This piece of legislation aims to modernize the state's approach to casino gaming, reflecting the evolving market dynamics and customer preferences for online casinos in the Keystone State.
Senate Bill 840 proposes reducing the minimum number of required slot machines at Category 1 and Category 2 casinos from 1,500 to 1,000.
This change is a response to the current landscape where casinos face increased competition from neighboring states and online gaming platforms. The current 1,500-machine minimum was established nearly two decades ago as part of the state’s original gaming legislation.
By adjusting the minimum slot machine requirements, casinos can reconfigure their floor spaces to better match current market demands, focusing on more profitable and engaging areas such as sportsbooks and live table games.
No Immediate Impact on Jobs or Tax Revenue
The legislation retains the oversight role of the Pennsylvania Gaming Control Board, which is tasked with reviewing and approving any changes to a casino's slot machine count. This provision ensures that while casinos have more flexibility, a layer of accountability remains to safeguard tax revenues and employment tied to the industry.
Lawmakers emphasize that the proposed reduction in slot machine requirements is not expected to negatively affect jobs or state tax revenue. Instead, it provides casinos with the opportunity to utilize their space more efficiently, potentially reducing maintenance costs and enhancing the customer experience in other areas.
Background and Justification for the Change
When Pennsylvania first welcomed casinos, the state was somewhat of a pioneer in the region.
At that time, neighboring states had not yet developed their gaming sectors.
Fast forward to today, many of these states now have established casinos, and the rapid rise of online gambling platforms has transformed how people engage with games of chance. Players are increasingly drawn to the convenience and variety offered by digital platforms, reducing the demand for traditional slot machines.
What's Next for SB 840 in Pennsylvania?
The legislation, led by State Sen. Dan Laughlin, is part of broader efforts to help Pennsylvania’s casinos remain competitive and sustain the local economic benefits they provide.
“When Pennsylvania first legalized gaming, surrounding states like Ohio and New York didn’t have casinos. That’s no longer the case,” Laughlin said in a statement. “Facilities like Presque Isle Downs & Casino in Erie are facing growing competition from out-of-state casinos and online gaming platforms. Reducing the slot machine requirement gives these businesses the flexibility to adapt while preserving jobs and tax revenue.”
Presque Isle is also fighting the legalization of skill games, which its operators say has led to their explosion around the Keystone State and is pulling players away.
After passing the Senate with a tight 26-24 vote, the bill will be presented to the Pennsylvania House of Representatives. If approved, it will require the governor’s signature before becoming law.
