Rivers Casino Philadelphia was the last of Pennsylvania's 12 casinos to reopen after COVID-19 shutdowns, finally getting a restart July 17, and now it will be the first to close again since then. The city of Philadelphia on Monday afternoon announced a Department of Public Health order that imposes many. Download News Break APP. Pennsylvania governor Tom Wolf has ordered the closure of various businesses including casinos in an effort to slow down the out-of-control spread of the coronavirus in the Keystone state. The closure is set to take effect on Saturday, December 12, 2020, at 12:01 a.m. And will end on January 4, 2021, at 8:00 a.m.
Pennsylvania governor Tom Wolf has ordered the closure of various businesses including casinos in an effort to slow down the out-of-control spread of the coronavirus in the Keystone state.
The closure is set to take effect on Saturday, December 12, 2020, at 12:01 a.m. and will end on January 4, 2021, at 8:00 a.m. The orders are the most drastic since Wolf shut down all non-essential businesses last March at the onset of the pandemic. Aside from casinos, the order also covers indoor restaurant dining, sports activities, gyms, museums, bowling alleys, theaters and other entertainments venues. Likewise, all businesses serving the public will be limited to 50% capacity only.
In a statement, Wolf said:
'With these measures in place, we hope to accomplish three goals. First, stop the devastating spread of COVID-19 in the Commonwealth. Second, keep our hospitals and healthcare workers from becoming overwhelmed. And third, help Pennsylvanians get through the holiday season — and closer to a widely available vaccine — as safely as possible.'
COVID-19 Spread
As in the case with many other states in the U.S., Pennsylvania is experiencing a surge in COVID-19 cases. With its shutdown, Pennsylvania becomes the third state to declare full casino shutdown. Last November 18, Michigan closed all casinos in a move that was first said to be good for three months but now has been changed to indefinitely. Two days after the Wolverine state, Illinois also declared an indefinite shutdown.
One of the fears in Pennsylvania is that the hospitals and health care workers could get overwhelmed. As of Thursday noon,there were a total of 5,877 people hospitalized with COVID-19, the most since the pandemic started. Gov. Wolf is hoping that the three-week shutdown of will slow down the numbers.
Pennsylvania Gaming Was Doing Well
Pennsylvania gaming were doing well despite the earlier restrictions. During the third quarter of 2020, the gross gaming revenue (GGR) from land-based casinos, online casinos, and brick-and-mortar sports betting shops totaled $891.3M which is 3% more than the July-September 2019 figures. Requiring them to shut down again will affect whatever gains they had.
There are a total of 12 Pennsylvania casinos and racinos with a total gaming revenue of $3.38B in 2019. The Philadelphia gaming market ranked 7th among the United States gaming industry's top markets, per the American Gaming Association's 2019 State of the States report. Rivers Casino, the only casino within the Philadelphia limits, has been closed since November 20. With the governor's new orders, the other Philadelphia area casinos including Parx and Harrah's Philadelphia will now be closed as well.
The coronavirus pandemic closed casinos in Pennsylvania for three months, some longer. Slot machines were turned off, tables emptied and most of the state's 17,000 casino employees were furloughed.
For half of March, and all of April and May, brick-and-mortar casinos sat empty. The only source of gamingrevenue, and subsequently tax dollars, came from sports betting, fantasy sports, and record-breaking numbers from PA online casinos.
Online slots with paypal. It's hard to pinpoint an exact dollar figure on total revenue lost by casinos since year-over-year growth may have been different due to the arrival of iGaming in Pennsylvania. However, by looking at reports released by the Pennsylvania Gaming Control Board, the numbers show unprecedented losses and a severe impact on taxes collected by the state from casinos.
By comparing the taxes collected last year in March, April and May to this year's numbers for those months, the state brought in $315 million less in taxes from casinos.
PA casino taxes collected during COVID closures
This table shows the amount of taxes through all forms of gaming in 2019 vs. 2020.
| 2019 | 2020 | Difference | |
|---|---|---|---|
| March | $120,539,162 | $62,183,897 | -$58,355,265 |
| April | $118,514,264 | $18,334,503 | -$100,179,761 |
| May | $121,811,136 | $25,762,836 | -96,048,300 |
| June | $119,330,550 | 59,087,956 | -$60,242,594 |
Pennsylvania casino taxes
Pennsylvania taxes slots at 54% and table games at 16%. It's a much higher rate than New Jersey that taxes at a rate of 8% for both. Also, at 36%, Pennsylvania's sports betting tax is one of the highest in the country.
Where do taxes collected from Pennsylvania casinos go?
For every dollar produced as revenue from slots, 54 cents is returned to Pennsylvanians. According to the Pennsylvania Gaming Control Board, most is used to fund general school property tax reduction or wage tax reduction.
- 34%: Property tax relief
- 11%: horse racing industry
- 5%: Economic development and tourism fund
- 4%: Local and county government share
The 16% tax rate for table games is lower due to the overhead cost. The majority of the tax revenue collected from table games goes to state and local governments' general funds.
In an interview with Play Pennsylvania in June, American Gaming Association SVP of strategic communications Casey Clark said of the prolonged casino closures:
'The tax implications are massive. Communities across the state will feel the shortfall in gaming revenue. It's not just going to be in the areas around the casinos. The impact is going to be far-reaching. It will have a long and lasting impact on our industry and the people who rely on us.'
March begins the slide
March 2019 was a banner month for brick-and-mortar casinos in Pennsylvania. PGCB reported revenue from slot machines and table games reached an all-time monthly high of $309 million. The number was fueled by the biggest month ever for table games earnings ($82.5 million) and the third-highest ever for slots ($226.5 million).
One year later, things were much different. All 12 casinos were closed by March 17 to slow the spread of coronavirus. Total gaming revenue from March 2019 ($316 million) plunged to $153 million.
March 2019 vs. March 2020 Pennsylvania gaming revenue
| 2019 | 2020 | % difference | |
|---|---|---|---|
| Slots | $226,597,681 | $82,527,450 | -63% |
| Table games | $82,527,450 | $33,105,591 | -60% |
| Sports betting | $5,519,340 | $6,889,255 | +25% |
| Fantasy | $1,634,845 | $732,942 | -55% |
| iGaming | n/a | $24,265,820 | |
| VGTs | n/a | $934,004 |
April and May bring more fiscal pain
In April 2020, PA land-based casinos posted zero revenue for slots and table games for the first time in history. As a result, overall gaming numbers dropped a whopping 84% compared to the previous April.
April 2019 vs. April 2020 Pennsylvania gaming revenue
| 2019 | 2020 | % difference | |
|---|---|---|---|
| Slots | $200,359,402 | 0 | -100% |
| Table games | $77,448,426 | 0 | -100% |
| Sports betting | $4,221,482 | $2,883,471 | -31.7% |
| Fantasy | $1,852,551 | $167,254 | -91 |
| iGaming | n/a | $24,265,820 | |
| VGTs | n/a | 0 |
In May, casinos remained closed and again posted no revenue for land-based slots and table games. Good news came in the form of PA online casinos which saw a 30% month-over-month revenue increase for a record-breaking $55.8 million.
Online slots with paypal. It's hard to pinpoint an exact dollar figure on total revenue lost by casinos since year-over-year growth may have been different due to the arrival of iGaming in Pennsylvania. However, by looking at reports released by the Pennsylvania Gaming Control Board, the numbers show unprecedented losses and a severe impact on taxes collected by the state from casinos.
By comparing the taxes collected last year in March, April and May to this year's numbers for those months, the state brought in $315 million less in taxes from casinos.
PA casino taxes collected during COVID closures
This table shows the amount of taxes through all forms of gaming in 2019 vs. 2020.
| 2019 | 2020 | Difference | |
|---|---|---|---|
| March | $120,539,162 | $62,183,897 | -$58,355,265 |
| April | $118,514,264 | $18,334,503 | -$100,179,761 |
| May | $121,811,136 | $25,762,836 | -96,048,300 |
| June | $119,330,550 | 59,087,956 | -$60,242,594 |
Pennsylvania casino taxes
Pennsylvania taxes slots at 54% and table games at 16%. It's a much higher rate than New Jersey that taxes at a rate of 8% for both. Also, at 36%, Pennsylvania's sports betting tax is one of the highest in the country.
Where do taxes collected from Pennsylvania casinos go?
For every dollar produced as revenue from slots, 54 cents is returned to Pennsylvanians. According to the Pennsylvania Gaming Control Board, most is used to fund general school property tax reduction or wage tax reduction.
- 34%: Property tax relief
- 11%: horse racing industry
- 5%: Economic development and tourism fund
- 4%: Local and county government share
The 16% tax rate for table games is lower due to the overhead cost. The majority of the tax revenue collected from table games goes to state and local governments' general funds.
In an interview with Play Pennsylvania in June, American Gaming Association SVP of strategic communications Casey Clark said of the prolonged casino closures:
'The tax implications are massive. Communities across the state will feel the shortfall in gaming revenue. It's not just going to be in the areas around the casinos. The impact is going to be far-reaching. It will have a long and lasting impact on our industry and the people who rely on us.'
March begins the slide
March 2019 was a banner month for brick-and-mortar casinos in Pennsylvania. PGCB reported revenue from slot machines and table games reached an all-time monthly high of $309 million. The number was fueled by the biggest month ever for table games earnings ($82.5 million) and the third-highest ever for slots ($226.5 million).
One year later, things were much different. All 12 casinos were closed by March 17 to slow the spread of coronavirus. Total gaming revenue from March 2019 ($316 million) plunged to $153 million.
March 2019 vs. March 2020 Pennsylvania gaming revenue
| 2019 | 2020 | % difference | |
|---|---|---|---|
| Slots | $226,597,681 | $82,527,450 | -63% |
| Table games | $82,527,450 | $33,105,591 | -60% |
| Sports betting | $5,519,340 | $6,889,255 | +25% |
| Fantasy | $1,634,845 | $732,942 | -55% |
| iGaming | n/a | $24,265,820 | |
| VGTs | n/a | $934,004 |
April and May bring more fiscal pain
In April 2020, PA land-based casinos posted zero revenue for slots and table games for the first time in history. As a result, overall gaming numbers dropped a whopping 84% compared to the previous April.
April 2019 vs. April 2020 Pennsylvania gaming revenue
| 2019 | 2020 | % difference | |
|---|---|---|---|
| Slots | $200,359,402 | 0 | -100% |
| Table games | $77,448,426 | 0 | -100% |
| Sports betting | $4,221,482 | $2,883,471 | -31.7% |
| Fantasy | $1,852,551 | $167,254 | -91 |
| iGaming | n/a | $24,265,820 | |
| VGTs | n/a | 0 |
In May, casinos remained closed and again posted no revenue for land-based slots and table games. Good news came in the form of PA online casinos which saw a 30% month-over-month revenue increase for a record-breaking $55.8 million.
However, it was only a small consolation for huge losses. Overall, total earnings were down 79% from May 2019.
May 2019 vs. May 2020 Pennsylvania gaming revenue
| 2019 | 2020 | % difference | |
|---|---|---|---|
| Slots | $209,579,851 | 0 | -100% |
| Table games | $76,559,198 | 0 | -100% |
| Sports betting | $2,861,852 | $4,828,989 | +69% |
| Fantasy | $1,803,056 | $318,840 | -82 |
| iGaming | n/a | $55,838,789 | |
| VGTs | n/a | 0 |
A historic closure with lasting effects
Gaming historian David G. Schwartz, who is an author, associate vice provost for faculty affairs at UNLV and former longtime director of the Center for Gaming Research at UNLV, offered some insights in a recent interview with Play Pennsylvania.
It's safe to say the coronavirus pandemic caused casinos to close their doors for the longest amount of time in history. Now, the question is, what will be the fallout from that.
Pennsylvania is only one of six states that that legalized iGaming. Will other states look to legalize?
'Yes, I think so,' said Schwartz. 'Legislators might be more open to it because they need revenue coming in and it seems that brick-and-mortar revenue isn't going to be what is was.'
With some people leery of air travel, Pennsylvania's twelve commuter-friendly casinos might be at an advantage over other destinations. Would you agree?
'I think they are in a better situation. The people who do want to gamble might not want to hop on a plane and go to Las Vegas. The regional and local casinos could be very well supported. '
For Schwartz, the teaching moment out of the coronavirus pandemic that he would convey to students is:
'You have to expect the unexpected and be prepared for a wide-range of possibilities. It was something we should have been better prepared for but weren't. I think the casinos that survive will be the ones that are flexible and able to change very quickly. They are also going to have to have resilient capital structures to be able to stay open. '
Allegheny Institute estimates the losses are larger
The Allegheny Institute went about quantifying the losses of the state's casinos during the government shutdown. They estimated that the GTR from 2019 to 2020 would have gone up 2% for slots and 3% table games.
They calculated that from March to June, casinos in Pennsylvania missed out on $968.8 million in revenue. It would have meant $424.2 in tax dollars for the Commonwealth.
Research assistant Hannah Bowser and Executive Director Frank Gamrat said in their analysis:
'How exactly taxpayers will be affected remains to be seen, but entities that typically receive tax money from casino revenues, including school districts for property tax relief, should expect and likely will see a decrease in funding in the coming fiscal years.'
'Most difficult economic challenge' ever for casinos
By March 19, nearly all of the 465 commercial casinos and most of the tribal casinos across the country closed. The American Gaming Association believes a record start to 202o will provide a strong enough foundation to recover from a brutal second quarter.
Any Casinos Open In Pa
The AGA's new Commercial Gaming Revenue Tracker revealed that U.S. commercial gaming revenue in Q2 was $2.30 billion, a 79% drop from 2019.
AGA President and CEO Bill Millercommented in a press release:
Pa Casino Closures Today
'COVID-19 has undoubtedly posed the most difficult economic challenge the gaming industry has ever faced. Yet, gaming's record popularity prior to COVID-19, as well our resilience in the midst of such adversity, is evidence of the industry's foundation for continued success as we emerge from the pandemic.'
