The future of Presque Isle Downs & Casino appears to be at a crossroads.
In an interview with WJET-TV, Gary Hendricks, Vice President and General Manager of Presque Isle, said the legalization of skill games has led to their explosion around The Keystone State, and they're pulling players away. Skill games resemble slot machines, but evade state regulation, which has created unexpected challenges for established casinos like Presque Isle.
Virginia is also balancing where skill games fit into the gambling puzzle. In Kentucky, they're often called "Gray Machines" because their legality falls in a gray area.
On top of the skills games battle, Hendricks said that despite paying one of the highest gaming taxes in the country (roughly 64%), Presque Isle casino is seeing dwindling demand. In contrast, nearby states like New York and Ohio have considerably lower gaming taxes, 25-30% and 33-43% respectively, allowing them to offer more attractive incentives to players.
The Economic and Social Impact on Erie
According to the WJET-TV report, when Presque Isle Downs & Casino first opened its doors back in 2007, it wasn't met with universal enthusiasm.
Over time, however, it grew into a valuable part of the local community and a bustling tourist hotspot. Its presence in Erie had a notably positive impact, offering entertainment, employment and a boost to the local economy.
The influence of Presque Isle Casino goes far beyond gambling. As WJET-TV reports, the casino plays a critical role in providing financial relief and supporting community projects throughout Erie County.
Perry Wood, of the Erie County Gaming Revenue Authority (ECGRA), notes that the casino contributed $18.6 million in property tax relief just last year, benefiting schools, emergency services and local cultural organizations.
Without this revenue, residents could face increased taxes, and community programs might suffer. Jack Lee, Summit Township supervisor, fears the absence of gaming revenue would significantly affect the county, with cultural institutions like the Erie Playhouse and Erie Philharmonic confronting budget shortfalls.
Seeking Solutions for Presque Isle and Calling for Action
Gary Hendricks isn't remaining silent about these challenges. For over three years, he's been warning lawmakers in Harrisburg, advocating for greater regulation and taxation of skill games to level the playing field.
Though Erie’s House Delegation is engaged, the pace of legislative change is slow, and existing bills to support Presque Isle have struggled to gain traction.
Despite efforts to cut costs, such as scaling back restaurant services and reducing staff, Hendricks remains concerned about the long-term viability of the casino. He's urging lawmakers, especially those representing Erie County, to actively support the casino’s interests.
Online Casinos Reshaping the Future of Gaming in Pennsylvania
As Presque Isle Downs & Casino navigates the challenges posed by skill games and competitive tax rates, the landscape of gaming in Pennsylvania is evolving rapidly, particularly with the rise of online casinos.
As one of the few states in the U.S. where online gambling is legal, Pennsylvania offers its residents a unique opportunity to experience casino games from the comfort of their homes.
Players can access a wide variety of games, from classic slots to live dealer experiences, all available around the clock on multiple devices. This flexibility has contributed to the growing popularity of online gambling in the state.
While the convenience factor is undeniable, online casinos could also complement traditional casinos like Presque Isle Downs. By coordinating promotions and player reward programs across both platforms, casinos can create seamless experiences that encourage online players to visit physical locations for special events or exclusive in-person experiences.
The legalization of online casinos has also introduced a new stream of revenue for Pennsylvania, and the Keystone State recently joined a multi-state pact for poker.
What Lies Ahead for Presque Isle and Erie?
The future of Presque Isle Downs & Casino is more than just a business concern; it's a community issue. As local stakeholders express their worries over the potential fallout, the broader Erie community must consider how to support this vital economic engine.
Residents, lawmakers and casino operators are going to have to find ways to collaborate to sustain the benefits and minimize the challenges in order to keep Presque Isle casino from being forced to shut its doors.
