Pennsylvania Slots Casino Revenues In February Soar 14% Above Previous Year
Month Sees More Than $80 Million In Tax Revenues Returned To Commonwealth
HARRISBURG, PA: The amount of gross revenues generated in February 2009 through the play of slot machines at the six casinos that were also operating in February of the previous year rose 14.27%, according to figures received by the Pennsylvania Gaming Control Board.
The six casinos generated $125,893,412.46 in gross revenues during the recently completed month compared to $110,169,729.96 in February 2008. This increase is all the more impressive since it occurred even though there was an additional operating day last February due to leap year.
The casinos used in this comparison are Mohegan Sun at Pocono Downs, Philadelphia Park Casino and Racetrack, Harrah’s Chester Casino and Racetrack, Presque Isle Downs and Casino, The Meadows Racetrack and Casino, and Mt. Airy Resort and Casino.
Hollywood Casino at Penn National Race Course did not open until mid-February of last year, and therefore could not be used in the month over month comparison. However, the addition of figures from that facility results in a revenue increase of 21.08% for February 2009, or $145,579,665.83 in gross revenue.
Slot machine revenue in Pennsylvania is taxed at 55%, so total collections for February were $80,068,816.20 in tax revenues for the Commonwealth, an average of $2,859,601 per day. The casinos’ collective take of those monies was $65.5 million.
Comparative revenues for each of the casinos operating in both February 2008 and February 2009 are as follows:
|Casino ||February 2008 ||February 2009 ||% change |
|Mohegan Sun at Pocono Downs ||$12,425,270.45 ||$17,831,655.14 ||43.51% |
|Philadelphia Park Casino and Racetrack ||$28,549,086.33 ||$30,391,887.36 ||6.45% |
|Harrah's Chester Casino and Racetrack ||$28,482,341.05 ||$27,945,142.02 ||-1.89% |
|Presque Isle Downs and Casino ||$12,059,650.17 ||$13,921,959.37 ||15.44% |
|The Meadows Racetrack and Casino ||$17,060,317.05 ||$20,550,706.34 ||20.46% |
|Mount Airy Resort and Casino ||$11,593,064.91 ||$15,252,062.23 ||31.56% |
(Hollywood Casino at Penn National Racecourse was open only 18 days in February 2008. Revenue for that facility in February 2009 was $19,686,253.37.)
The number of operating slot machines at these facilities was 13,012 in February 2008 and 14,590 in February 2009, boosted primarily by the increase at Mohegan Sun due to its move from a temporary to a larger permanent facility.
“While Pennsylvania’s slots market has not yet reached maturity, all indications at this stage are that casinos are returning significant tax revenues to the Commonwealth in an amount above what was projected,” says Acting Executive Director Frank T. Donaghue.
Donaghue says the 55% tax on slot machine revenues in the first eight months of the 2008-09 fiscal year has returned $610 million to the Commonwealth, or an average of $2.51 million per day, in revenues to be used for property tax relief, boosting the horse racing industry, assisting in economic development and tourism, and assisting in the cost of local projects in the areas that host casinos.
During this same time period, the casino operators’ share of gross revenue was $499 million, a combined average of $2.06 million per day.
Donaghue adds that the planned expansion of two facilities, The Meadows and Philadelphia Park, along with the openings of new casinos in Bethlehem and Pittsburgh will boost that take by the Commonwealth by an estimated 40% resulting in annualized tax revenue at the start of 2010 of around $1.25 billion and annualize revenue to the casinos of approximately $1 billion. An additional five casinos are permitted to open under Pennsylvania’s Gaming Act including two that have already been licensed in the city of Philadelphia.
In addition to revenue, Donaghue says the seven casinos have thus far created approximately 6,200 full-time jobs, a number that will continue to increase in 2009.
“In these difficult economic times, the expansion of two slot facilities and the opening of two new casinos in 2009 will create an estimated 2,300 more jobs throughout Pennsylvania,” says Donaghue.
The Gaming Control Board provides weekly updates of casino revenue on its web site, www.pgcb.state.pa.us. In addition, videos and information on the operation of the PGCB, problem gambling efforts and assistance, future meeting schedules and past meeting transcripts, and a link to request a speaker are among the many items available to the public on the web site.
# # #