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A nine-month streak of year-over-year growth came to an end in June by the smallest of margins, when Pennsylvania’s casino posted a .2 percent drop in gross gaming revenue. But the downward streak has already come to an end. Following the microscopic downtick in June, the state’s 12 casinos turned things around in a big way during the month of July, with the industry as a whole up nearly three percent YoY. The latest revenue report issued by the Pennsylvania Gaming Control Board shows total casino revenue of $288,451,402 in July. Table game revenue was up 8.5 percent YoY, and slot revenue also ticked up, but by the more modest amount of 1.1 percent.
July 2016 slot machine revenue: $213,423,773.92 (+1.14%)
July 2016 table game revenue: $75,027,628 (+8.47%) A look inside the YTD revenue numbers Here is a look at the monthly year-to-date revenue tally for Pennsylvania’s casinos:
January 2016 GGR -$255,905,078 (+3.6%)
February 2016 GGR – $268,354,231 (+8.6%)
March 2016 GGR – $289,167,505 (+4.2%)
April 2016 GGR – $281,206,497 (+3.9%)
May 2016 GGR – $280,194,999 (+.80%)
June 2016 GGR – $258,423,105 (-0.2%)
July 2016 GGR – $288,451,402 (+2.95%) Historical look at casino revenue in Pennsylvania Pennsylvania is currently on pace to have its best year to date. The previous high-water mark was set last year when the state’s casinos tallied $3.17 billion.
2006: $31,567,926
2007: $1,039,030,723
2008: $1,615,565,758
2009: $1,964,570,480
2010: $2,486,408,061 (table games introduced)
2011: $3,024,772,959
2012: $3,158,317,863
2013: $3,113,928,591
2014: $3,069,077,597
2015: $3,173,787,012 A casino by casino look at the numbers Sands Bethlehem
Slot revenue, June 2016: $27,727,848.10 (+1.83%)
Table game revenue, June 2016: $21,148,923 (+11.99%) After ceding control of No. 1 to Parx for a stretch of nine months, Sands Bethlehem regained the top revenue spot in May, and has maintained its lead in both June and July. Sands saw total casino revenue rise nearly six percent in July, with table game revenue up almost 12 percent (Sands is already far and away the top casino for table games in Pennsylvania), and slot revenue up close to two percent. Parx Casino
Slot revenue, June 2016: $33,663,936.46 (+.70%)
Table game revenue, June 2016: $14,015,295 (+12%) Sands may be winning the battle for the top spot, but Parx is nipping right on its heels. Revenue at Parx was up 3.78 percent in July, with a 12-percent jump in table game revenue responsible for the bulk of the increase. SugarHouse Casino
Slot revenue, June 2016: $15,787,296.23 (+4.48%)
Table game revenue, June 2016: $9,276,205 (+33.56%) SugarHouse Casino had a terrific July. The casino saw revenues increase nearly 14 percent year-over-year, and broke through the $25 million ceiling for the first time. As impressive as those numbers were, it was the 33 percent jump in table game revenue that really catches the eye, and it looks like SugarHouse is poised to become a table-game juggernaut. A massive renovation project seems to be paying off in big ways for the Philadelphia casino, and if slot revenue continues to rise (SugarHouse has one of the lowest slot handles in the state) it could jump out of the trail pack and compete with Parx and Sands. Rivers Casino
Slot revenue, June 2016: $23,930,891.68 (-1.69%)
Table game revenue, June 2016: $5,470,591 (-4.08%) Rivers Casino in Pittsburgh is the third-highest grossing casino in the state despite a small YoY decline in total casino revenue. Slot revenue fell for the second straight month, but July’s drop-off was nowhere near the over eight percent decline the casino suffered through in June. Harrah’s Philadelphia
Slot revenue, June 2016: $18,098,428.66 (-2.3%)
Table game revenue, June 2016: $6,030,739 (+9.99%) After slipping down the revenue charts for several months, Harrah’s finally turned in a positive month in July. While it’s nothing to write home about (the casino only posted a .5 percent increase in revenue) the stabilization is a good sign for Harrah’s, considering the casino has been on a downhill trajectory ever since SugarHouse began to rise. Mohegan Sun at Pocono Downs
Slot revenue, June 2016: $19,418,825.76 (+2.13%)
Table game revenue, June 2016: $4,575,540 (-1.01%) A slight uptick in gross gaming revenue has Mohegan Sun right in the middle of the trail pack that is in constant pursuit of Parx and Sands. Mount Airy Casino Resort
Slot revenue, June 2016: $13,919,806.87 (+2.93%)
Table game revenue, June 2016: $3,518,373 (-17.04%) Table game revenue at Mount Airy has been plummeting over the past two months (down 17 percent in June and now 12 percent in July), which is certainly something to keep an eye on going forward. This seems to be a problem afflicting multiple Pennsylvania casino properties. Valley Forge Casino Resort
Slot revenue, June 2016: $6,610,723.61 (-3.42%)
Table game revenue, June 2016: $3,778,516 (+19.8%) Valley Forge put together a solid July. The small “resort” casino (which means something entirely different in Pennsylvania than it does anywhere else in the country) ticked back above the $10 million mark last month thanks to YoY growth of nearly four percent. The Meadows Casino
Slot revenue, June 2016: $20,466,041.65 (+3.02%)
Table game revenue, June 2016: $2,696,061 (-15.29%) Meadows held relatively steady in July, posting a modest YoY revenue increase of .5 percent. Interestingly, Meadows is suffering from the same malady as Mount Airy, as table-game revenue was down 13.5 percent in June and 15 percent in July. Presque Isle Downs and Casino
Slot revenue, June 2016: $11,481,979.62 (+2.76%)
Table game revenue, June 2016: $1,242,125 (+24.18%) July was a very nice month for Presque Isle thanks to a nearly 25 percent surge in table-game revenue. Coupled with a nearly three-percent increase in slot revenue, Presque Isle’s total casino revenue jumped over 4.5 percent. Hollywood Casino at Penn National
Slot revenue, June 2016: $19,204,924.61 (+1.42%)
Table game revenue, June 2016: $2,885,881 (-5.19%) Hollywood Casino posted a modest YoY increase of .5 percent. The casino continues to rely almost exclusively on slot revenue. Lady Luck Casino Nemacolin
Slot revenue, June 2016: $3,113,070.67 (+3.26%)
Table game revenue, June 2016: $389,379 (-1.23%) Revenue at Lady Luck ticked up in July, as the casino’s $3.1 million in total casino revenue represents a nearly three-percent jump over July of 2015.

Pennsylvania’s casino revenue growth trend continued in May, as the industry posted its ninth consecutive month of year-over-year growth. However, the torrid rate of growth the industry has posted throughout the first four months of 2016 slowed a bit in May, with gross gaming revenue up less than 1 percent compared to May 2015. The state is still on pace to easily surpass its best year-to-date in total casino revenue. Once again, it was table games that bolstered the revenue numbers. Table game revenue was up nearly seven percent in May, offsetting a one percent decrease in slot revenue. Of note, it was a tumultuous month, as several casinos posted huge gains in table game revenue, while several others posted huge losses. Things were a bit more stable on the slot side, however, three casinos (Harrah’s, Valley Forge, Lady Luck) did see slot revenue decreases between six percent and eight and a half percent. A look inside the YTD revenue numbers Here is a look at the year-to-date tally for Pennsylvania’s casinos:
January 2016 GGR: $255,905,078 (+3.6%)
February 2016 GGR: $268,354,231 (+8.6%)
March 2016 GGR: $289,167,505 (+4.2%)
April 2016 GGR: $281,206,497 (+3.9%)
May 2016 GGR: $280,194,999 (+.80%) Historical look at casino revenue in Pennsylvania
2006: $31,567,926
2007: $1,039,030,723
2008: $1,615,565,758
2009: $1,964,570,480
2010: $2,486,408,061 (table games introduced)
2011: $3,024,772,959
2012: $3,158,317,863
2013: $3,113,928,591
2014: $3,069,077,597
2015: $3,173,787,012 Who’s up in PA SugarHouse Casino
March 2016 revenue: $25,244,569 (2015: $23,358,038)
YoY change +8.08% SugarHouse Casino recently finished an expansion project that continues to pay dividends. In May, SugarHouse saw its current growth trend continue, this time by over 8 percent. SugarHouse also eclipsed the $25 million mark in May, and continues to look like a real contender to chase down some of the market leaders now that it has all the pieces in place to be a top-flight destination casino. SugarHouse’s rise has also thrust it ahead of nearby Harrah’s Philadelphia (actually located in Chester) for the local market lead. Sands Bethlehem
March 2016 revenue: $47,481,906 (2015: $44,826,256)
YoY change +5.92% After ceding the top spot to Parx for seven consecutive months, Sands Bethlehem reclaimed the title of Pennsylvania’s top revenue-generating casino in May, edging out Park by about $400,000. Considering the previous trend line (Parx was putting more and more distance between itself and Sands), It will be interesting to see if I oversold Parx’s rise. It could be an outlier month in the Sands/Parx rivalry. Parx Casino
March 2016 revenue: $47,081,032 (2015: $44, 862,541)
YoY change +4.95% Parx may have lost ground to Sands, but the casino still posted solid year-over-year gains, up nearly 5 percent thanks to increases in both slot revenue and table-game revenue. Valley Forge Casino Resort
March 2016 revenue: $10,920,807 (2015: $10,418,014)
YoY change +4.83% Valley Forge continued its consistent and methodical increase in gross gaming revenue in May, as the small casino nearly hit the $11 million mark in monthly revenue. The increase was on the back of a 32 percent increase in table game revenue. The Meadows Casino
March 2016 revenue: $22,370,206 (2015: $22,072,462)
YoY change +1.35% Following a terrific March and April, Meadows‘ growth slowed a bit in May, as the casino posted a trivial year-over-year increase in monthly revenue. That being said, Meadows’ table games were up over 18 percent in May. Who’s down in PA Presque Isle Downs and Casino
March 2016 revenue: $11,522,203 (2015: $11,640,688)
YoY change -1.02% Presque Isle seems destined to linger in the $10 million to $12 million range. The small racino is on the verge of being overtaken by Valley Forge in the near future. Hollywood Casino at Penn National
March 2016 revenue: $21,700,994 (2015: $22,041,202)
YoY change -1.54% Another ho-hum month for Hollywood Casino has allowed some of its competitors to put even more distance between themselves and the historic racetrack. Hollywood Casino now sits in the bottom half of the state’s 12 casinos in terms of overall monthly revenue. Harrah’s Philadelphia
March 2016 revenue: $24,038,376 (2015: $24,873,170)
YoY change -3.36% As alluded to above, SugarHouse’s gains seem to be having a direct impact on nearby Harrah’s. Revenue was down again at the Caesars Entertainment property. If things don’t turn around soon, Harrah’s could be the clear second fiddle in the Philadelphia area casino market. If this trend continues, Harrah’s could also find itself at the bottom of the trail pack in the near future. Mount Airy Casino Resort
March 2016 revenue: $16,342,852 (2015: $17,007,334)
YoY change -3.91% Mount Airy took a hit in May, as revenue dropped nearly 4 percent year-over-year. Down the road, the casino could very well jump into the second tier of casinos in Pennsylvania, provided the legislature passes a proposed gaming reform bill. That legislation would allow Category 3 casinos (like Mount Airy) to pay a one-time fee to eliminate their membership fee requirement, and to expand the number of slot machines and table games permitted on the property. Rivers Casino
March 2016 revenue: $27,854,334 (2015: $29,422,394)
YoY change -5.33% Rivers had a bad May, with revenue down over 5 percent year-over-year, largely because of a near 8 percent drop in slot revenue. Lady Luck Casino Nemacolin
March 2016 revenue: $2,893,548 (21015: $3,057,822)
YoY change -5.37% The also-ran of the Pennsylvania casino industry, the Lady Luck Casino, was also one of the biggest year-over-year losers in the market last month. The drop-off saw the casino’s monthly revenue total dip back below the $3 million mark. Mohegan Sun at Pocono Downs
March 2016 revenue: $22,744,173 (2015: $24,388,010)
YoY change -6.74% After 4 percent growth in April, Mohegan Sun came crashing back down in May, as revenue dropped almost 7 percent. Interestingly, Mohegan’s drop can be attributed to a loss in table-game revenue, not slots, a rare occurrence for such a large casino. Mohegan’s table-game revenue was down a staggering 28 percent in May, the most of any casino.

Pennsylvania’s 12 land-based casinos are on pace for another record-setting year, thanks to some very strong February revenue numbers. In February, the state’s casinos posted nearly double digit year-over-year growth in slot revenue (+9.3%) to go along with some solid growth numbers on the table game revenue front, where the industry was up 6.7%. Overall, total casino revenue in Pennsylvania was up 8.6% in February year-over-year. Helping the YoY numbers was the simple fact that February of 2016 had an extra day, but even accounting for the leap year, revenue was still up from February of 2015 by nearly 5%. 2016 revenue on pace for new record The strong numbers in February of 2016 come on the heels of a solid performance in January that saw total casino revenue up 3.6% year-over-year. Making this all the more impressive, in terms of gross gaming revenue, 2015 was the best year on record in Pennsylvania casino history, and 2016 is on pace to blow it out of the water. Here is a look at the year-to-date tally for Pennsylvania’s casinos:
January 2016 GGR -$255,905,078 (+3.6%)
February 2016 GGR – $268,354,231 (+8.6%) The industry as a whole is up 5.8% year-to-date:
2016 gross gaming revenue YTD = $524,259,309
2015 gross gaming revenue YTD = $494,180,239 With the current growth trend, the Pennsylvania gaming industry is on pace to generate $3.357 billion in 2016, which would be the most the industry has ever produced in a single calendar year.
2006: $31,567,926
2007: $1,039,030,723
2008: $1,615,565,758
2009: $1,964,570,480
2010: $2,486,408,061 (table games introduced)
2011: $3,024,772,959
2012: $3,158,317,863
2013: $3,113,928,591
2014: $3,069,077,597
2015: $3,173,787,012 Who’s up in PA Presque Isle Downs and Casino
February 2016 revenue: $10,801,447 (2015: $9,154,336)
YoY change +17.99% The biggest percentage increase in February was Presque Isle, which, if we eliminate the two resort casinos, is the state’s worst performing casino when it comes to revenue. Mount Airy Casino Resort
February 2016 revenue: $15,123,613 (2015: $12,937,613)
YoY change +16.90% Mount Airy is also on the low end of casino revenue in Pennsylvania. That being said, if Mount Airy can continue this growth trend, they could find themselves on par with Hollywood Casino and Meadows Casino. Sands Bethlehem
February 2016 revenue: $42,594,634 (2015: $37,333,797)
YoY change +14.09% The last time Sands Bethlehem could lay claim to the title of top monthly revenue generator was September of last year. Since that time Parx has not only been beating Sands, but widening its margin. Still, Sands posted a 14% gain this month compared to February of 2015, and should be quite happy with its February tally. The Meadows Casino
February 2016 revenue: $21,428,128 (2015: $18,948,730)
YoY change +13.08% A solid month for Meadows — the casino posted double-digit growth — kept the casino out of the lower tier of the state’s casinos. Meadows’ 13% growth pushed them over the $20 million mark. Parx Casino
February 2016 revenue: $46,318,857 (2015: $41,325,315)
YoY change +12.08% Parx Casino and Sands Bethlehem are the clear frontrunners in the Pennsylvania casino industry, accounting for a third of total casino revenue between the two properties. The two giants continue to jostle for the top spot, with Parx maintaining a small lead for the fifth consecutive month. Mohegan Sun at Pocono Downs
February 2016 revenue: $22,255,443 (2015: $20,038,879)
YoY change +11.06% Mohegan Sun continues to be a serious player in the trail pack, and with 11% YoY growth it was able to keep pace with SugarHouse, Rivers, and Harrah’s. Valley Forge Casino Resort
February 2016 revenue: $9,596,395 (2015: $8,667,609)
YoY change +10.72% Valley Forge has a real chance to end the narrative that the state’s resort casinos can’t compete with less-restricted standalone casinos and racinos in the state. A $9.5 million February (typically a low revenue month in PA) could signal the casino is about to pass the $10 million threshold in the coming months — a milestone Valley Forge has never reached. SugarHouse Casino
February 2016 revenue: $25,072,941 (2015: $22,983,592)
YoY change +9.09% With their expansion project now complete, SugarHouse is on the ascent in Pennsylvania, and looks destined to settle into the No. 3 spot in the coming months. Lady Luck Casino Nemacolin
February 2016 revenue: $2,712,848 (2015: $2,541,389)
YoY change +6.75% The smallest casino in the state, both in size and in terms of revenue, Lady Luck saw modest growth in February. Hollywood Casino at Penn National
February 2016 revenue: $20,503,665 (2015: $20,346,419)
YoY change +0.77% With the industry up over 8%, and many of its trail pack brethren posting double-digit growth and separating themselves from Hollywood Park, the casino is likely looking at February as a loss, even though it was up ever so slightly YoY. Who’s down in PA Rivers Casino
February 2016 revenue: $28,579,235 (2015: $28,757,661)
YoY change -0.62% Rivers‘ February revenue remained pretty steady year-over-year, allowing it to hang on to the No. 3 spot, but the Rush Street owned Rivers Casino in Pittsburgh is being chased down by another Rush Street property in the eastern part of the state, SugarHouse. Harrah’s Philadelphia
February 2016 revenue: $23,367,026 (2015: $24,084,699)
YoY change -2.98% Harrah’s was the biggest loser of the month, but everything is relative, and Harrah’s revenue only dipped 3% YoY.

Contents
1 The top line December numbers
2 A look inside the YTD revenue numbers
2.1 Historical look at casino revenue in Pennsylvania
3 SugarHouse and Parx are the clear winners in 2016
4 A casino-by-casino look at the December numbers
4.1 Sands Bethlehem
4.2 Parx Casino
4.3 SugarHouse Casino
4.4 Rivers Casino
4.5 Harrah’s Philadelphia
4.6 Mohegan Sun at Pocono Downs
4.7 Mount Airy Casino Resort
4.8 Valley Forge Casino Resort
4.9 The Meadows Casino
4.10 Presque Isle Downs and Casino
4.11 Hollywood Casino at Penn National
4.12 Lady Luck Casino Nemacolin Pennsylvania built up strong revenue tallies during the first three quarters of 2016, and following a demoralizing fourth quarter, the state needed virtually every dollar of it. Still, a sharp decline in total gaming revenue in December wasn’t enough to stop Pennsylvania casinos from posting their best year to date, as total casino revenue exceeded $3.21 billion in 2016. The previous record was set last year when the industry tallied $3.17 billion in total casino revenue. Despite setting a new revenue record, a potentially worrisome trend emerged during the last few months of 2016. Slot revenue experienced a pronounced decline, year over year:
October 2016 slot machine revenue: $191,850,596.41 (-3.04%)
November 2016 slot machine revenue: $179,399,603.94 (-4.34%)
December 2016 slot machine revenue: $185,349,872.22 (-6.17%) In addition to slot revenue falling more than six percent in December, Pennsylvania’s 12 casinos also saw table game revenue dip slightly, by about a half a percent for the month. Looking at those figures, it’s not always sunny in Philadelphia, and some state lawmakers may be regretting their decision to punt on passing the gaming reform bill from 2016. That legislation included online gambling, adding slot machines at airports, and changes to Category 3 licenses that would eliminate the restrictive “membership fee.” The legislature is expected to revisit the comprehensive gaming package once again in 2017, but even if it does pass this time around, six months after the fact, the damage has already likely been done. The state would be unlikely to reap the benefits of the additional revenue until 2018. The top line December numbers Only two casinos avoided the slot revenue decline: SugarHouse Casino in Philadelphia and Valley Forge Casino. However, both their gains can best be termed as modest.
SugarHouse Casino: +2.6%
Valley Forge Casino: +2.5% Here’s a look at the industry-wide breakdown of slot revenue and table game revenue in December:
December 2016 slot machine revenue: $185,349,872.22 (-6.17%)
December 2016 table game revenue: $71,878,290 (-0.48%)
December 2016 total gaming revenue: $257,228,162 (-4.64) A look inside the YTD revenue numbers Here is a look at the monthly year-to-date revenue tally for Pennsylvania casinos:
January 2016 GGR -$255,905,078 (+3.6%)
February 2016 GGR – $268,354,231 (+8.6%)
March 2016 GGR – $289,167,505 (+4.2%)
April 2016 GGR – $281,206,497 (+3.9%)
May 2016 GGR – $280,194,999 (+.80%)
June 2016 GGR – $258,423,105 (-0.2%)
July 2016 GGR – $288,451,402 (+2.95%)
August 2016 GGR – $260,904,471 (-4.28%)
September 2016 GGR – $260,937,476 (+2.93%)
October 2016 GGR – $263,011,981 (-0.91%)
November 2016 GGR – $249,637,268 (-1.38%)
December 2016 GGR – $3,213,422,178 (-4.64%) Historical look at casino revenue in Pennsylvania
2006: $31,567,926
2007: $1,039,030,723
2008: $1,615,565,758
2009: $1,964,570,480
2010: $2,486,408,061 (table games introduced)
2011: $3,024,772,959
2012: $3,158,317,863
2013: $3,113,928,591
2014: $3,069,077,597
2015: $3,173,787,012
2016: $3,213,422,178 SugarHouse and Parx are the clear winners in 2016 For the year, Parx, Sands Bethlehem, Meadows, SugarHouse, and Mount Airy all posted slot revenue increases. SugarHouse led the way, with a near four-percent jump in slot revenue from 2015. The casino’s growth (which also extends to table games) was spurred on in large part because of the $100 million expansion project it completed in early 2016. Parx was the second biggest gainer in the slot revenue column, at just under three percent. On the table game front, it was Sands, Parx, SugarHouse, Valley Forge, Presque Isle and Meadows that bettered their 2015 hauls. Once again, SugarHouse was the leader in the clubhouse, with an almost absurd 23-percent YoY increase. Parx was once again the runner-up, despite a solid 12-percent increase in table game revenue. A casino-by-casino look at the December numbers Sands Bethlehem
Slot revenue, December 2016: $24,878,465.50 (-0.87%)
Table game revenue, December 2016: $19,010,584 (-4.23%) With both slot revenue and table game revenue down in December, Sands Bethlehem lost even more ground to its chief rival, Parx. Fortunately for Sands, the damage was mitigated by Parx seeing revenue drop on both fronts as well, just not as steeply. Parx Casino
Slot revenue, December 2016: $32,491,477.87 (-1.45%)
Table game revenue, December 2016: $13,087,664 (-1.7%) Parx missed an opportunity to put some daylight between itself and Sands. But the casino has to feel good about its current position in the market and future outlook, considering it was the top-grossing casino for most of the year. SugarHouse Casino
Slot revenue, December 2016: $14,136,034.00 (+2.6%)
Table game revenue, December 2016: $10,165,490 (+17.59%) SugarHouse continues to buck industry trends. Even during a down month, table game revenue and slot handle soared at the Philadelphia casino. Considering the gains SugarHouse has made since completing its expansion project, I suspect other casinos are starting to look at their own reinvestment plans. Rivers Casino
Slot revenue, December 2016: $21,793,193.38 (-6.14%)
Table game revenue, December 2016: $6,162,798 (+2.33%) Like most of the casinos in Pennsylvania, Rivers Casino suffered through a really tough month on the slot floor. It did see a small uptick in table game revenue. Harrah’s Philadelphia
Slot revenue, December 2016: $15,888,020.02 (-14.71%)
Table game revenue, December 2016: $5,691,000 (-16.53%) It was yet another rough month for Harrah’s Philadelphia as the casino saw both slot and table game revenue go through double-digit declines. Mohegan Sun at Pocono Downs
Slot revenue, December 2016: $16,236,316.35 (-12.03%)
Table game revenue, December 2016: $3,948,244 (-7.62%) Mohegan Sun at Pocono Downs was one of four casinos that saw slot revenue drop by more than 10 percent year-over-year. Mount Airy Casino Resort
Slot revenue, December 2016: $9,891,824.73 (-11.02%)
Table game revenue, December 2016: $3,611,371 (-5.59%) Mount Airy saw sharp declines in slot revenue and table game revenue in December. Valley Forge Casino Resort
Slot revenue, December 2016: $6,533,471.73 (+2.48%)
Table game revenue, December 2016: $2,745,041 (+17.39%) Valley Forge had a very good December, particularly considering how the whole industry performed. For the year, Valley Forge should be content, as slot revenue was fairly static and table game revenue was up more than six percent. The casino would greatly benefit from the Category 3 license changes the state is considering, which could set it up for a strong 2017. The Meadows Casino
Slot revenue, December 2016: $17,218,203.13 (-9.73%)
Table game revenue, December 2016: $2,958,673 (+14.21%) For the second consecutive month, Meadows has seen table game revenue rise significantly. What makes this a bit of an aberration is Meadows, which is not known for table games, is doing this while the industry as a whole experiences revenue declines. Of course, the nearly ten-percent drop in slot revenue made December a bad month for Meadows. Presque Isle Downs and Casino
Slot revenue, December 2016: $7,485,692.63 (-20.88%)
Table game revenue, December 2016: $1,010,490 (-10.77%) December 2016 will go down as one of the worst months in Presque Isle’s history. The good news was table game revenue was down just 10 percent. The horrible news was slot revenue was more than 20 percent off last December’s pace. Hollywood Casino at Penn National
Slot revenue, December 2016: $16,751,442.79 (-3%)
Table game revenue, December 2016: $3,235,782 (+7.25%) With slot revenue down three percent and table game revenue up (for the second consecutive month) by more than seven percent, it was a pretty steady month for Hollywood Casino. Lady Luck Casino Nemacolin
Slot revenue, December 2016: $2,045,730.09 (-2.63%)
Table game revenue, December 2016: $251,154 (-36.52%) The state’s smallest casino in terms of revenue, Lady Luck followed up a 25-percent drop in table game revenue in November with a 36-percent drop in December.

Contents
1 The August numbers
2 A look inside the YTD revenue numbers
2.1 Historical look at casino revenue in Pennsylvania
3 A casino by casino look at the numbers
3.1 Sands Bethlehem
3.2 Parx Casino
3.3 SugarHouse Casino
3.4 Rivers Casino
3.5 Harrah’s Philadelphia
3.6 Mohegan Sun at Pocono Downs
3.7 Mount Airy Casino Resort
3.8 Valley Forge Casino Resort
3.9 The Meadows Casino
3.10 Presque Isle Downs and Casino
3.11 Hollywood Casino at Penn National
3.12 Lady Luck Casino Nemacolin Any way you slice it, Pennsylvania’s casino industry had a dismal August. Revenues were down almost across the board: Table games, slots, individual operators, year-over-year, and month-over-month. Adding insult to injury, the August decline put an end to a nearly year-long streak of growth. From September 2015 to May 2016, Pennsylvania’s casino industry posted year-over-year revenue gains each and every month. The streak came to a semi-halt in June, after the industry posted a microscopic decline of .02 percent. July saw revenues back in the black, with revenue growth of 2.95 percent. And then August happened. If you’re looking for a silver lining, the declining revenue may help push a gambling expansion bill across the finish line. The latest numbers show the Pennsylvania casino industry isn’t immune to the cannibalization and receding revenue other jurisdictions are seeing. The bill would, among other things, legalize PA online casinos and daily fantasy sports, and make some structural changes to Category 3 license holders that would allow them to increase their land-based gambling footprint. The August numbers The August revenue reports issued by the Pennsylvania Gaming Control Board puts total casino revenue at $260,904,471 in August. Table game revenue was down 3.7 percent YoY. Slot revenue was down 4.5 percent. Eleven of the state’s 12 casinos saw revenue decline YoY (the only exception was SugarHouse Casino). Only a single casino, Valley Forge, posted a YoY increase in slot handle.
August 2016 slot machine revenue: $193,949,366.66 (-4.47%)
August 2016 table game revenue: $66,955,105 (-3.73%) A look inside the YTD revenue numbers Here is a look at the monthly year-to-date revenue tally for Pennsylvania’s casinos:
January 2016 GGR -$255,905,078 (+3.6%)
February 2016 GGR – $268,354,231 (+8.6%)
March 2016 GGR – $289,167,505 (+4.2%)
April 2016 GGR – $281,206,497 (+3.9%)
May 2016 GGR – $280,194,999 (+.80%)
June 2016 GGR – $258,423,105 (-0.2%)
July 2016 GGR – $288,451,402 (+2.95%)
August 2016 GGR – $260,904,471 (-4.28%) Historical look at casino revenue in Pennsylvania Despite the August setback, Pennsylvania is still on pace to have its best year to date. The previous high-water mark was set last year when the state’s casinos tallied $3.17 billion.
2006: $31,567,926
2007: $1,039,030,723
2008: $1,615,565,758
2009: $1,964,570,480
2010: $2,486,408,061 (table games introduced)
2011: $3,024,772,959
2012: $3,158,317,863
2013: $3,113,928,591
2014: $3,069,077,597
2015: $3,173,787,012 A casino by casino look at the numbers Sands Bethlehem
Slot revenue, June 2016: $24,788,628.16 (-2.8%)
Table game revenue, June 2016: $19,334,469 (-1.02%) Even though Sands Bethlehem experienced only modest declines in slot and table game revenue during one of the worst months in recent history, it was still enough to cede its tenuous position as the top revenue generating casino in Pennsylvania back to Parx. As noted above, online gambling could soon be legalized in Pennsylvania. If the state does legalize online gambling Sands is expected to forego launching an online gambling site. That would likely mean Parx will be able to cement its place as the top revenue-generating casino in the state with the addition of a new revenue stream. Parx Casino
Slot revenue, June 2016: $31,988,404.99 (-.28%)
Table game revenue, June 2016: $12,938,984 (+.71%) Parx not only eclipsed its rival Sands Bethlehem, but the casino managed to buck the downward trend, as revenue was virtually flat year-over-year. SugarHouse Casino
Slot revenue, June 2016: $14,030,492.80 (-.18%)
Table game revenue, June 2016: $8,509,687 (+21.94%) SugarHouse has been on a tear of late (thanks to a massive expansion project that the property wrapped up earlier this year). August was far from the property’s best month during this run from a numbers perspective. However, it could very well be its best month, considering SugarHouse was the only casino to post YoY gains in August. Table games continue to be where SugarHouse hangs its hat, as the casino has clearly separated itself from all of the state’s casinos not named Parx and Sands when it comes to monthly table game revenue. Rivers Casino
Slot revenue, June 2016: $21,884,335.87 (-7.66%)
Table game revenue, June 2016: $5,404,034 (-17.59%) The Pittsburgh-based Rivers Casino continues to be the third-highest grossing casino in the state. Unlike its sister casino in Philadelphia, SugarHouse, (both properties are owned by Rush Street Gaming) Rivers is going in the wrong direction. Rivers was down nearly 10 percent YoY, with both slot and table game revenues undergoing a significant decline. Harrah’s Philadelphia
Slot revenue, June 2016: $16,265,982.01 (-8.99%)
Table game revenue, June 2016: $5,757,736 (+10.25%) All in all, August wasn’t too bad for Harrah’s, which is doubly important considering Harrah’s has been bearing the brunt of nearby SugarHouse’s gains. Revenues slipped less than five percent YoY, and Harrah’s continues to run neck-and-neck with SugarHouse for the No. 4 spot on the state’s monthly revenue list. Mohegan Sun at Pocono Downs
Slot revenue, June 2016: $17,899,498.69 (-6.18%)
Table game revenue, June 2016: $3,002,410 (-17.61%) Mohegan Sun had a similar month to Rivers, as there’s little positive news for the casino in this month’s revenue reports. Mount Airy Casino Resort
Slot revenue, June 2016: $12,385,625.81 (-6.06%)
Table game revenue, June 2016: $3,283,432 (-29.24%) Once again, table game revenue at Mount Airy fell off a cliff. This trend has been going on for three months now, with table game revenue down 17 percent in June, 12 percent in July, and a whopping 29 percent in August. Mount Airy was one of two casinos (Meadows being the other) that experienced a double digit decline in YoY revenue. Valley Forge Casino Resort
Slot revenue, June 2016: $6,526,640.14 (+2.89%)
Table game revenue, June 2016: $2,792,677 (-8.14%) Valley Forge is one of the few casinos that will likely be content with its August numbers. Revenue was virtually flat at the small casino, with a slight uptick in slot revenue offsetting the casino’s declining table game revenue. In fact, Valley Forge was the only Pennsylvania casino that saw slot revenue increase YoY in August. The Meadows Casino
Slot revenue, June 2016: $18,323,551.37 (-5.7%)
Table game revenue, June 2016: $1,625,299 (-46.77%) Table game revenue was down significantly at a number of casinos in August, but nowhere near the drop-off Meadows saw. The nearly 50 percent drop in slot revenue YoY might be explained by a significant jackpot being hit. Also of note, the PGCB recently approved the conversion of Meadows operator license from Washington Trotting Association to Pinnacle Entertainment. Pinnacle will take over day to day operation of the property, with WTA leasing the property to them. Presque Isle Downs and Casino
Slot revenue, June 2016: $10,217,083.27 (-4.34%)
Table game revenue, June 2016: $1,167,941 (+11.59%) Like most Pennsylvania casinos, Presque Isle saw its slot revenue drop significantly. Unlike most of the other casinos, Presque Isle was able to mitigate the slot decline with solid table game revenue numbers. Hollywood Casino at Penn National
Slot revenue, June 2016: $16,976,162.84 (-7.06%)
Table game revenue, June 2016: $2,786,057 (+12.16%) Even a 12 percent increase in table game revenue was unable to put much of a dent in the declining slot revenue at Hollywood Casino of over seven percent — the third worst in the state in August. Overall, revenue dipped nearly five percent YoY for the storied racetrack and casino. Lady Luck Casino Nemacolin
Slot revenue, June 2016: $2,662,960.71 (-5.95%)
Table game revenue, June 2016: $352,378 (-29.91%) Lady Luck is on the verge of falling below the $3 million mark in monthly revenue. The casino’s revenues often fluctuate due to its size and volume of play (making it a victim of variance) but Lady Luck’s table games and slot revenues took a bath in August.

Contents
1 A look inside the YTD revenue numbers
1.1 Historical look at casino revenue in Pennsylvania
2 Who’s up in PA?
2.1 Parx Casino
2.2 Sands Bethlehem
2.3 Valley Forge Casino Resort
2.4 The Meadows Casino
2.5 SugarHouse Casino
2.6 Harrah’s Philadelphia
2.7 Mount Airy Casino Resort
2.8 Mohegan Sun at Pocono Downs
3 Who’s down in PA?
3.1 Lady Luck Casino Nemacolin
3.2 Rivers Casino
3.3 Presque Isle Downs and Casino
3.4 Hollywood Casino at Penn National Pennsylvania’s 12 land-based casinos posted their best month to date in March. The gains were thanks in large part to a near 12 percent increase in table game revenue compared to March of 2015. Overall the industry’s casino revenue (slots and table games) was up over 4 percent year-over-year. Unlike most other locales, from Connecticut to Atlantic City to Las Vegas, Pennsylvania’s casino industry has thus far avoided the over saturation that has afflicted these other markets. After two consecutive years (2013 and 2014) of trivial revenue declines, Pennsylvania bounced back with a record-setting 2015, and is on pace for a second straight year of record revenue in 2016. Interestingly, and likely not a coincidence, the Pennsylvania Legislature is one of the more proactive when it comes to keeping its casino industry healthy. This is evidenced by the number of reforms it is considering, including online gaming and the addition of VLT’s at designated airports and off-track-betting parlors. These reforms and expansions are designed to further bolster the current operators. A look inside the YTD revenue numbers With revenue on the rise in January, February, and March, the Pennsylvania casino industry is on pace to tally $3.34 billion in CY2016, a number that would shatter last year’s all-time revenue record of $3.17 billion. Here is a look at the year-to-date tally for Pennsylvania’s casinos:
January 2016 GGR: $255,905,078 (+3.6%)
February 2016 GGR: $268,354,231 (+8.6%)
March 2016 GGR: $289,167,505 (+4.2%) Year-over-year, the industry as a whole is up 5.4 percent year-to-date:
2016 gross gaming revenue YTD = $813,426,814
2015 gross gaming revenue YTD = $771,663,075 Historical look at casino revenue in Pennsylvania
2006: $31,567,926
2007: $1,039,030,723
2008: $1,615,565,758
2009: $1,964,570,480
2010: $2,486,408,061 (table games introduced)
2011: $3,024,772,959
2012: $3,158,317,863
2013: $3,113,928,591
2014: $3,069,077,597
2015: $3,173,787,012
2016 [on pace for]: $3,345,171,510 Who’s up in PA? Parx Casino
March 2016 revenue: $49,994,112 (2015: $44,682,526)
YoY change: +11.89% In the race to the top, Parx out-pipped Sands Bethlehem for the sixth consecutive month, and its lead appears to be widening. Falling just short of $50 million in revenue, Parx also posted the largest YoY gain of any of the state’s 12 casinos in March, thanks in large part to an incredible 28 percent increase in table game revenue. Sands Bethlehem
March 2016 revenue: $46,918,830 (2015: $43,344,923)
YoY change: +8.25% Sands Bethlehem had a terrific month, with slot revenue up 4 percent and table game revenue up 15 percent. But even with these gains, they slipped further behind Parx. Valley Forge Casino Resort
March 2016 revenue: $10,031,452 (2015: $9,434,213)
YoY change: +6.33% Valley Forge did it! For the first time in the casino’s history, it eclipsed the $10 million mark in monthly revenue, something I predicted would occur in last month’s column. The “resort” casino (visitors must be staying at the hotel or purchase a yearly membership in order to gamble) achieved $10 million in monthly revenue despite a slight YoY dip in slot revenue, thanks to a 28 percent increase in table game revenue. The Meadows Casino
March 2016 revenue: $22,949,317 (2015: $21,703,239)
YoY change: +5.74% Evidenced by a nearly 6 percent increase in YoY revenue, Meadows Casino continues to make progress in the market. Even though Meadows may only be producing about half as much monthly revenue as Parx and Sands, the casino’s continued growth has allowed it to keep pace with the increasingly crowded trail pack of SugarHouse, Harrah’s, Penn National, Mohegan Sun, and Rivers Casino. SugarHouse Casino
March 2016 revenue: $26,519,098 (2015: $25,461,527)
YoY change: +4.15% With its expansion efforts wrapped up, including the opening of its Poker Night in America poker room, SugarHouse Casino continues to make gains in the market. March saw SugarHouse pass Harrah’s in revenue, and the casino now ranks fourth in the market, behind Parx, Sands, and its sister casino (both are owned by Rush Street Gaming) in Pittsburgh, Rivers. Harrah’s Philadelphia
March 2016 revenue: $26,129,301 (2015: $25,606,034)
YoY change: +2.04% After a poor February (when it was the only casino to post a significant decline), Harrah’s bounced back with a solid March, posting 2 percent YoY growth, largely due to a 20 percent jump in table game revenue. Mount Airy Casino Resort
March 2016 revenue: $16,285,829 (2015: $15,996,923)
YoY change: +1.81% Mount Airy continues to creep up towards the crowded trail pack I alluded to above. Growth slowed to just under 2 percent in March, but growth is growth, and a number of casinos did worse. Mohegan Sun at Pocono Downs
March 2016 revenue: $23,529,527 (2015: $23,346,717)
YoY change: +.78% Compared to March of 2015, March of 2016 was basically a wash for Mohegan Sun at Pocono Downs, as table game revenue bucked the industry trend (Mohegan’s table game revenue was down 20 percent), but this was offset by a 5 percent gain in slot revenue. Who’s down in PA? Lady Luck Casino Nemacolin
March 2016 revenue: $3,037,311 (21015: $3,048,461)
YoY change: -.37% Lady Luck remains an also-ran in the PA casino industry, hovering around the $3 million mark in monthly revenue after March revenue remained largely unchanged YoY. Rivers Casino
March 2016 revenue: $30,241,006 (2015: $30,460,711)
YoY change: -0.72% Rivers’ revenue remained pretty much unchanged in March, as it posted another $30 million month. Still, the casino continues to be the closest competitor to Parx and Sands. Presque Isle Downs and Casino
March 2016 revenue: $11,517,348 (2015: $11,806,003)
YoY change: -2.44% After a terrific February, Presque Isle fell back to earth in March… and then some. In February, the small casino was the top gainer when it came to percentage YoY growth, but it gave a little of that back in March, posting a near 2.5 percent YoY decrease. Hollywood Casino at Penn National
March 2016 revenue: $22,014,374 (2015: $22,591,559)
YoY change: -2.55% After a second consecutive month that can best be classified as the casino underperforming, Hollywood Casino continues to slip to the back of the Pennsylvania casino market. If the current trends continue, it could find itself falling out of the trail pack in the not-so-distant future.

Coming off a record-setting month in March, the Pennsylvania casino industry showed no signs of slowing down in April. Total casino revenue was up nearly 4% for the month per the monthly revenue reports issued by the Pennsylvania Gaming Control Board. April’s gains were largely on the back of table game revenue, which rose over 11 percent year-over-year. Slot revenue also rose YoY, but only by a modest amount compared to table games — 1.5 percent. Overall, there weren’t any big gains or losses by the individual operators (the largest YoY increase was just over nine percent, while the largest decline was just over two percent), with most of the state’s 12 casinos posting small gains or losses. With revenue continuing to rise, Pennsylvania is proving to be the exception to the rule in the U.S. casino market. The state is on an upward trajectory, and heading towards its best year to date. Meanwhile the legislature is still mulling over a bill that would further strengthen the industry and increase revenue numbers. The measure being considered, HB 649, would among other things, allow video lottery terminals at select locations and authorize PA online casinos. A look inside the YTD revenue numbers April marks the eighth consecutive month the Pennsylvania casino industry posted year-over-year gains, and as noted above, the industry is on its way to its best year to date. Here is a look at the year-to-date tally for Pennsylvania’s casinos:
January 2016 gross gaming revenue – $255,905,078 (+3.6%)
February 2016 GGR – $268,354,231 (+8.6%)
March 2016 GGR – $289,167,505 (+4.2%)
April 2016 GGR – $281,206,497 (+3.9%) Year-over-year, the industry as a whole is up 4.8% year-to-date:
2016 gross gaming revenue YTD = $1,094,633,311
2015 gross gaming revenue YTD = $1,042,241,985 Historical look at casino revenue in Pennsylvania
2006: $31,567,926
2007: $1,039,030,723
2008: $1,615,565,758
2009: $1,964,570,480
2010: $2,486,408,061 (table games introduced)
2011: $3,024,772,959
2012: $3,158,317,863
2013: $3,113,928,591
2014: $3,069,077,597
2015: $3,173,787,012
2016 [on pace for]: $3,326,128,788 Who’s up in PA Parx Casino March 2016 revenue: $48,531,262 (2015: $44,452,844)
YoY change +9.17 Parx had the best month of any Pennsylvania casino. The casino not only generated more revenue than any of its competitors, it also posted the largest year-over-year gain, 9.17 percent, and extended its lead over the No. 2 casino in the state, Sands Bethlehem. Parx has topped the state’s revenue charts for seven consecutive months and beat Sands by 10% in April. SugarHouse Casino
March 2016 revenue: $26,299,934 (2015: $24,127,134)
YoY change +9.01% SugarHouse Casino has been one of the industry’s real success stories. The casino has gone from being in the bottom of the trail pack that is perpetually chasing Parx and Sands, to nearly leading it. In April the casino saw its revenue rise over nine percent, and this trend could continue for quite some time, considering SugarHouse just recently put the finishing touches on a massive expansion project. The Meadows Casino
March 2016 revenue: $22,095,921 (2015: $20,283,534)
YoY change +8.94% Meadows followed up an impressive March, with an even more impressive April. After seeing GGR increase some six percent in March the casino posted a nine percent increase in April. Meadows slot revenue was up nearly five percent for the month, the highest percentage increase of any operator in the state. Yet this pales in comparison to its table game revenue increasing an astounding 48%, also the highest percentage increase in the state. Mount Airy Casino Resort
March 2016 revenue: $15,862,020 (2015: $15,157,092)
YoY change +4.65% Mount Airy‘s ascent in the Pennsylvania casino hierarchy continued in April. The casino is proving it can compete in the market despite the restrictions imposed on it by its category 3 resort casino license. Mohegan Sun at Pocono Downs
March 2016 revenue: $23,461,903 (2015: $22,619,834)
YoY change +3.72% Mohegan Sun had a strong showing in April, with GGR up nearly four percent for the month. Most of the gains came from a nearly 14 percent increase in table game revenue, although slot revenue was also up, but by less than two percent. Mohegan Sun is now on the verge of overtaking Harrah’s, a potential achievement that seemed unlikely just a year ago. Sands Bethlehem
March 2016 revenue: $43,877,133 (2015: $42,920,508)
YoY change +2.23% Sands Bethlehem posted modest gains in April, which wasn’t enough to keep the casino from losing even more ground to Parx. What used to be a two-horse-race to be the top revenue generator in the state (a race often won by Sands) has turned into a case of a clear cut No. 1, Parx, and a No. 1a, Sands Bethlehem. Rivers Casino
March 2016 revenue: $30,574,515 (2015: $30,016,628)
YoY change +1.86% Rivers remains one of the more consistent performers in the market, evidenced by its uncanny ability to generate about $30 million in total GGR each and every month. This is something Rivers accomplished in March of 2015 and 2016, as well as in April of 2015 and 2016. Presque Isle Downs and Casino
March 2016 revenue: $11,451,714 (2015: $11,268,063)
YoY change +1.63% Presque Isle Downs had an April like many of its competitors: fairly nondescript. Presque Isle’s slot revenue was static in April, but it did see a nice increase, 14 percent, in table game revenue YoY. Lady Luck Casino Nemacolin
March2016 revenue: $3,111,694 (21015: $3,065,834)
YoY change +1.50% Lady Luck continues to lag behind the rest of the Pennsylvania casino industry, posting just over $3 million in revenue for the month, which means Lady Luck accounts for a mere one percent of the state’s monthly revenue tally. On a positive note, the small casino has been consistently hovering around the $3 million mark and may have simply settled into its place in the market. Who’s down in PA Hollywood Casino at Penn National
March 2016 revenue: $22,027,271 (2015: $22,068,278)
YoY change -.19% April was a relatively stagnant month for Hollywood Casino. The casino’s table game and slot revenue were both down incrementally, but were basically a wash. Harrah’s Philadelphia
March 2016 revenue: $24,218,245 (2015: $24,703,433)
YoY change -1.97% Harrah’s Philadelphia appears to be the victim of SugarHouse’s success, as the two casinos are relatively close to one another. Following the completion of SugarHouse’s expansion project, Harrah’s revenue has been consistently ticking down. If this trend continues, Harrah’s could find itself at the bottom of the trail pack in the near future. Valley Forge Casino Resort
March 2016 revenue: $9,694,886 (2015: $9,894,730)
YoY change -2.02% After bursting through the $10 million mark for the first time in the casino’s history, Valley Forge saw its monthly revenue dip back under $10 million in April. More troubling for the Category 3 resort casino is that revenue fell just over two percent YoY. This occurred on the heels of Valley Forge’s strong March, when the casino posted six percent growth.

Cannibalization? Who thinks there’s cannibalization? Certainly not Pennsylvania’s casino industry, considering it not only rebounded after two straight years of declining casino revenue, but was able to shoot past 2012’s record-setting tally and post its best year to date in terms of revenue. The state’s 12 casinos are proving to be a strong source of revenue for the state, as the state’s cut of casino revenue in 2015 reached $1.3 billion, and more importantly, all of the state’s casinos appear to be on solid financial footing moving forward. Inside the PA casino numbers 2015 saw casino revenue jump to $3.173 billion, a 3 percent year-over-year increase in revenue, and just a whisker above the previous high water mark set in 2012, when the industry posted $3.158 billion in grass gaming revenue. A historical look at Pennsylvania casino revenue from 2006-2015:
2006: $31,567,926
2007: $1,039,030,723
2008: $1,615,565,758
2009: $1,964,570,480
2010: $2,486,408,061 (table games introduced)
2011: $3,024,772,959
2012: $3,158,317,863
2013: $3,113,928,591
2014: $3,069,077,597
2015: $3,173,787,012 Overall, the state’s casinos have been extremely consistent since 2011. Revenue over the past five years has varied only 5 percent. Who were the big gainers? Pennsylvania’s top two casinos were two of the biggest gainers in 2015, as Parx Casino saw YoY revenue increase seven percent, while Sands Bethlehem Casino posted nine percent YoY growth. Interestingly, the state’s two “resort” casinos (a misnomer in the gaming industry as Pennsylvania’s “resort” designation is for resorts with strict limits on gaming), were also among the biggest gainers, as Lady Luck Casino posted an 11 percent YoY increase and Valley Forge Casino a six percent gain. The remaining casinos saw minimal YoY changes. Where did the revenue come from? Table game revenue was up nearly 8 percent YoY, as the state’s casinos totaled $808,135,353 in 2015, compared to the $749,543,217 they generated in 2014. Meadows Casino, Parx Casino, and Sands Casino all saw table game revenue rise at least 10 percent, while Harrah’s Philadelphia was the only casino in the state to see table game revenue drop YoY, but it should be noted that the drop was just 1.1 percent. Slot machine revenue was up 2 percent YoY, and outside of four casinos, was pretty much flat across the board. The four casinos that posted gains were the same four that posted the largest total revenue gains, as slot revenue at Sands (6.6 percent), Parx (5 percent), Valley Forge (6.2 percent), and Lady Luck (12.2 percent) all went up in 2015. Contrasting Pennsylvania gambling with Atlantic City Pennsylvania’s strong 2015 revenue is challenging the notion that cannibalization and over saturation will destroy casino markets. Since Pennsylvania’s casinos opened their doors in 2006, Atlantic City has struggled. After 27 consecutive years of growth, the AC casino industry experienced its ninth straight year of decline in 2015. Gross gaming revenue fell another 6.5 percent in 2015, to $2.56 billion, a number that is less than half its tally from 2006, when the city’s casinos pulled in over $5.2 billion.
2006: $5.2 billion
2007: $4.9 billion
2008: $4.5 billion
2009: $3.9 billion
2010: $3.6 billion
2011: $3.3 billion
2012: $3 billion
2013: $2.9 billion
2014: $2.7 billion
2015: $2.6 billion But Pennsylvania has avoided Atlantic City-like declines despite new competition in Ohio and Maryland. As Richard McGarvey, a Pennsylvania Gaming Control Board spokesman told the Morning Call, while there was some trepidation over the recent revenue declines in 2013 and 2014, “When you look at it, we never really fell that far. It was nothing like what happened to Atlantic City, so it was a lot easier to come back from.” Increased competition will certainly make things more difficult (New York and Massachusetts are opening new casinos, and there is serious talk of a North Jersey casino in the near future), but Pennsylvania’s continued success is certainly making people reconsider why casinos are cannibalized beyond competition and over saturation, and perhaps making the case that new casinos – or reinvestment into existing casinos – are the best forms of medicine, as they force current operators to either up their game or call it a day. Gaming reform bill The Pennsylvania casino industry could get another boost in the coming months, if the legislature can pass a sweeping gaming reform bill it is currently considering. If the proposed gaming reform package is implemented, it should lead to even greater revenues for the state’s casinos, as most of the gaming expansion is thought to be non-cannibalistic and runs through the state’s current casinos. Chief among these reforms are:
The legalization of online gambling;
The addition of slot machines (provided by current casinos) in secured, post-check-in locations at the six international airports in PA;
Allowing resort casinos to buy-out from their membership requirements and increase the number of slot machines and table games for a one-time fee;
The addition of video game terminals at off-track-betting parlors provided they are 50 miles from a casino;
Potential fantasy sports legalization and regulation, which would be run through the state’s casinos.

Contents
1 The top-line numbers for Pennsylvania casinos
2 Trending downward for PA casinos
3 Winners and losers in January for PA casinos Overall gaming revenue in Pennsylvania was down for the fourth straight month, the continuation of a concerning trend for PA casinos. The top-line numbers for Pennsylvania casinos The Pennsylvania Gaming Control Board released full-month revenue for the state in January on Thursday. The good news? Gross revenue from table games was up 2.1 percent from January of last year. In terms of real dollars, that represents an increase of about $1.5 million, to $72.6 million. The bad news? Table games didn’t make up for the poor performance of slot machines, which were down about $4 million year over year. Overall gaming revenue fell about 1.2 percent, or about $3 million, to $255.9 million total. Trending downward for PA casinos In a vacuum, the numbers being down for a month aren’t so bad. Indeed, gaming revenue for all of 2016 was up. But here’s a look at the previous five months for total gaming revenue.
August 2016 – $260,904,471 (-4.28%)
September 2016 – $260,937,476 (+2.93%)
October 2016 – $263,011,981 (-0.91%)
November 2016 – $249,637,268 (-1.38%)
December 2016: $257,228,162 (-4.64%) Including January, that’s the longest sustained period of gaming revenue decline since the state introduced casino gaming more than a decade ago. While gains in table game revenues have mitigated the losses, slot machines have steadily been in decline in PA in terms of revenue. And there’s not much sign that that trend will abate, without changes from the legislature on gambling. The state is considering a number of changes to its gambling laws, including the regulation of PA online casinos. Winners and losers in January for PA casinos The news was bad for two-thirds of the state’s casinos, which experiences losses, YoY:
Hardest hit, as it had been for much of 2016, was Harrah’s Philadelphia. Revenue was down more than seven percent to $20.4 million. It continues to shed revenue while the other Philadelphia-area casinos experience upticks.
The biggest surprise might have been Sands Bethlehem. The casino usually vies for the No. 1 position in terms of revenue. But it no badly trails Parx Casino, partly because of a drop in revenue to $42.1 million (five percent drop, $2.3 million.)
Mohegan Sun Pocono had a poor month as well, down five percent. The good news was mostly centered in Philly:
The aforementioned Parx was up nearly seven percent, and now easily leads all casinos in terms of monthly revenue ($46.5 million).
The news wasn’t quite as good at SugarHouse, but it still bucked the trend of declining revenue, posting gains of about half a million.
Lady Luck Nemacolin and Hollywood Casino at Penn National were the only other casinos that were up YoY.

Contents
1 PA casino revenue for March 2017
2 Winners and losers for PA casinos
3 Are changes coming to PA gaming? Pennsylvania casinos escaped their sixth straight month of declining revenue — barely. PA casino revenue for March 2017 Gross gaming revenue for the state’s 12 casinos ticked up .1 percent last month or about $360,000, when compared to March of 2016. Revenue clocked in at $289.5 million for the month, according to the Pennsylvania Gaming Control Board. That came after five straight months of YoY decreases at PA casinos, although we’re pretty sure no one is throwing a ticker-tape parade for a flat month. The slight upward shift came from table games, which were up two percent YoY, from $77.9 million to $79.5 million. Slot machines, however, saw another month of declining revenue, as those numbers were released earlier. Winners and losers for PA casinos Casinos were all over the map in March. Revenue was up at both big casinos (SugarHouse, +4.5 percent to $27.7 million) and small ones (Valley Forge, +4.4 percent to $10.5 million; Lady Luck Nemacolin, +4.2 percent to $3.2 million). The biggest winner was Hollywood Casino at Penn National. The mid-state facility saw gaming revenue tick upwards 5.8 percent, or $1.3 million, to $23.3 million. The big two in the state, Sands Bethlehem and Parx, fell in the middle of the pack. Sands had a good month, up three percent ($1.5 million). Parx was relatively flat, down just about $300,000. Mohegan Sun and Presque Isle took the biggest hits, both down about seven percent. Here’s a look at all the casinos for the month: Are changes coming to PA gaming? While casino revenues are flat to declining, the state is in the middle of discussions to change gambling law in the state. Options include legalization of PA online casinos and the authorization of video gaming terminals in private establishments. It seems unlikely the state is going to see improvements to gaming revenue without some sort of changes coming from the legislature. The state government has promised new money to the budget from gaming changes. But, to date, we still have no idea what those changes will encompass.