The success and acceptance of skill-based gaming in Pennsylvania, combined with continued dwindling casino slot revenues, forced the hands of executives at Hollywood Casino in Grantville to slash the number of slot machines in operation.
A report by G3 Newswire states that Hollywood Casino officials confirmed taking 169 slot machines off the Grantville casino floor, reducing the number in operation to 1,532.
A Category 1 (brick-and-mortar) casino must have a minimum of 1,500 slot machines in play to keep its gaming license, according to Pennsylvania Gaming Control Board statutes. The PGCB approved the reduction, according to the report.
Executives at Hollywood Casino were not immediately available for comment Friday afternoon.
However, Tony Frabbiele, vice-president and general manager of Hollywood Casino’s four Pennsylvania properties, confirmed the reduction in slot machines to G3 Newswire.
“We specifically left our count at 1,532 to address that, so we can stay above the cap. What we find is successful is when customers are comfortable at a game and the game is getting the right amount of occupancy in play, it’s a better experience for our customers,” Frabbiele said.
John Finamore, senior vice president of regional operations at Wyomissing-based Penn Entertainment, the parent company of Hollywood Casino, told G3 Newswire of plans to install skill-based games as part of its gambling offerings.
“It’s no secret that skill-based games are on the rise, and we have seen a steady increase in their popularity among our customers. As a result, we have made the difficult decision to remove 169 slot machines from our casinos in order to make room for more skill-based games that are attracting a younger, more tech-savvy demographic,” Finamore told G3.
“We believe that by embracing the trend towards skill-based games, we will be able to appeal to a wider range of players and stay ahead of the curve in an ever-evolving industry. While it’s always difficult to say goodbye to old favorites, we are confident that this move will position us for success in the future,” Finamore added.
Casino executives were not available to comment on what type of skill games are planned and when they would begin offering them. There is also no immediate word on whether slot machine reductions or the additions of skill-based games are planned at Hollywood Casino locations in York, Morgantown and Washington.
The issue of the legality of Pennsylvania skill-based games to operate in taverns, restaurants and bars without being subject to taxation similar to that of casino slot machines, is scheduled to be heard by the state’s Supreme Court.
Skill-based games continue to operate without regulation and aren’t classified as gambling games in the places where they are currently operational. It’s unclear how skill-based games would operate in a casino setting under PCGB regulation.
The state Supreme Court will hear an appeal from the attorney general’s office in response to a lower-court decision ruling that success at skill-based games are based on a player’s ability and not on chance.
Critics argue the cash-paying electronic games circumvent state gaming laws. The state’s casinos and their lobbyists and the Pennsylvania Lottery have been particularly strident on the subject.
Earlier this month, PENN Entertainment chief executive officer Jay Snowden said that skill-based games “look, sound and smell” like a slot machine during an investor conference call.
Earlier this week, the Pennsylvania Gaming Control Board reported that casino from all-sources topped the $500 million mark in July.
Hollywood Grantville topped all casinos in the state, posting more than $79 million in revenue for the month, but it’s slot machine revenue of $11.6 million was a 3.7% year-over-year decrease.
The current state tax on slot machine revenue is 54%. In July, the PCGB reported more than $207.7 million in tax revenue was garnered from slot machines.
Legislation sponsored by State Sen. Gene Yaw (R-23rd District) and State Rep. Danilo Burgos (D-197th District) that will regulate and tax skill games is still pending. The bill would tax skill games at 16%
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