Pennsylvania’s gaming industry is on the verge of a significant shift as Senate Bill 840 moves closer to becoming law. The bill, which recently passed in the state Senate, proposes reducing the mandatory minimum number of slot machines at Category 1 and 2 casinos from 1,500 to 1,000, offering operators much-needed flexibility to stay competitive in a rapidly evolving gambling landscape.
This legislative move comes in response to the mounting pressure casinos face from the growth of online gaming and expanding competition from neighboring states. Industry leaders believe that this adjustment will help traditional casinos better align their operations with current market demands without compromising revenue generation or jobs.
Supporters of the bill argue that the current requirement, set nearly two decades ago when Pennsylvania first legalized casino gambling, is no longer practical. At that time, nearby states like Ohio and New York did not have casinos, giving Pennsylvania operators a strong regional advantage.
However, with the gambling landscape shifting dramatically, Pennsylvania casinos are now contending with an influx of competition from out-of-state venues and a surge in online betting platforms. Lawmakers explained that casinos like Presque Isle Downs & Casino in Erie, which is in Senator Dan Laughlin’s district, have struggled under these conditions. The venue was even recently fined $50,000 for operating with fewer than the required 1,500 slot machines.
Senator Laughlin stated that the goal of the bill is to give regional casinos the operational flexibility to remain viable in a competitive market while safeguarding local jobs and sustaining tax contributions to the state. He emphasized that modernizing the law was essential for casinos like Presque Isle Downs, which are feeling the economic pressure from both digital gambling trends and changing consumer preferences.
Pushing to Preserve Regulatory Safeguards
While the bill offers operational relief, it does not compromise the oversight powers of the Pennsylvania Gaming Control Board (PGCB). The legislation stipulates that the PGCB will continue to review and approve any requests for slot machine reductions. Furthermore, it sets clear minimum thresholds. First, no Category 1 or 2 casino can operate fewer than 1,000 slot machines, and second, Category 3 casinos cannot drop below 250 machines.
To prevent sudden drastic reductions, the bill also includes a provision that limits any single reduction to no more than 2% of the casino’s total slot machines without additional regulatory approval. This ensures that while casinos are granted flexibility, player experience and state revenue streams are not jeopardized.
Following the Senate’s approval, Senate Bill 840 now heads to the House of Representatives for consideration. If the House approves the measure, it will move on to Governor Josh Shapiro for signing into law.