Despite the rather impressive resurgence in gambling revenue that the state of Pennsylvania recorded in the past month, the overall impact on gaming revenue since the pandemic hit has been quite devastating, to say the least. The state’s casino remained closed for about three months and this was enough time for about $424 million in taxes to be lost.
According to a recent revenue report, close to $1 billion in gross gaming revenue (GGR) was lost due to no action at brick-and-mortar table games and the slot machines. This was obviously going to have a profound effect on the tax revenue that would have gone to state coffers. To put this into context, land-based casino operators in the Keystone State contribute 54 percent of their slot gaming revenue and 16 percent of table game revenue with the state.
With such a huge drop in tax revenue, it is still unclear how this will affect taxpayers. There has already been some effort with regards to ensuring there are other revenue streams but it will certainly take a bit of time before things eventually stabilize.
“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.”Allegheny Institute for Public Policy.
Also related to tax revenue, there has been a notable number of layoffs in many of the gambling venues across the state. The number of furloughed workers is also set to significantly impact tax revenue.
Capitalizing on Online Gambling
As mentioned earlier, the state recorded a resurgence in casino in the month of July, something that came about due to the reopening of some casino venues in the state. However, things have been a little shaky despite all that. There are still concerns regarding infections and even reports of some casino workers getting infected. That said, the idea of capitalizing on online gambling is still on track.
Like in many other parts of the world, a surge in online gambling was recorded when land-based casinos shut down. Thankfully, Pennsylvania is one of the states where online gambling activities have been legalized. Moreover, a number of popular gaming operators are already live and they have been performing quite well.
Many gaming operators are doubling on their efforts to launch online offerings which is an indicator of just important the sector has proven to be. Online and mobile wagering are set to be a huge part of the future casino and thus cannot be ignored by any gaming company that hopes to stay competitive.