As competition emerges in neighboring states
The impact could grow with a greater “partnership” between policy makers and the industry, the group's top executive says.
“As competition emerges in neighboring states, it forces Pennsylvania to look at all policies it has in place,” AGA President and CEO Geoff Freeman says during a conference call Nov. 5, the day after Massachusetts voters soundly rejected a proposal to repeal a 2011 law allowing three casinos in the state. “Tax policy is one element of that; so too are regulatory policies, the shipping rules with machines, the types of games that can be played. All of those are things that need to be considered in this highly competitive marketplace.”
The state takes 55 percent of gross slot-machine revenue from the 12 casinos. While that's not the highest rate in the country, it helps Pennsylvania raise more money from gambling taxes than any other state, including Nevada.
In 2013, Pennsylvania casinos made almost $3.4 billion, all but about $200 million of that from gambling winnings, according to an Oxford Economics study released Oct. 30. That puts Pennsylvania behind only Nevada in gambling revenue.
Oxford Economics, an arm of Oxford University in England, did a nationwide study for the AGA about the casino industry's economic impact as part of a “Get to Know Gaming” campaign. The Pennsylvania breakdown is the first for an individual state; findings for other states will be released later.