Pennsylvania remains a strong market for the gaming industry but out-of-state competition, and a saturation in some in-state markets, mean the days of double-digit growth in gaming revenues are likely over, Treasurer Rob McCord recently told the Senate Community, Economic and Recreational Development Committee.
McCord based his remarks on a wide-ranging study conducted by a global gaming consulting group, the Innovation Group.
McCord said the study is the first comprehensive examination of the industry since the legalization of slots in 2004.
Overall, the study showed that revenues increased steadily since November 2007. It also showed that growth will continue but signs point to the the beginnings of a saturated market, particularly in the southeast.
In western Pennsylvania, the study showed slot machine supply is greater in relation to the gaming population than in eastern Pennsylvania. The east has both a higher overall supply of slot machines and a higher win-per-unit, which reflects the greater population density.
The state takes an effective 54 percent off the top of the gross terminal receipts. That tax has raised more than $5 billion since 2006 when the first casino opened. The revenues go towards reducing residential property taxes.