Friday, September 17, 2010

Winter comes early

I feel like a broken record.   OK, I am a broken record.  But again, remember all the hype over how much the new gaming industry in Pennsylvania needed table games to survive and how good it will be for all aspects of their business model, for tax revenues and for us?  I thought it was supposed to be a win-win-win scenatio from all that I read when this was all being (briefly) debated. That or the hype when table games actually started here. The predictions had been fulfilled you would have thunk. 

That darn reality.

Well, here is the trend, with the latest update of slots revenues at the two regional casinos.  I'll summarize. For both casinos the revenues are not only not up since table games began, but have shrunk pretty continuously to the point that they are now as low as they were at during some of the worst of winter. At the Rivers Casino slots revenues are now at their lowest since the first week of February.  I believe that was literally snowmageddon week. But who is noticing?  I bet the ratings agencies on their debt, and the Detroit Municipal Pension System, if nobody else. 

So the Labor Day weekend was not of much help and summer is now virtually over. Will fall produce some rebound?  How about winter?

So maybe the casinos have made up some of their gross revenues from table games, but what has it all meant for tax revenues?  Remember the rate of tax on table games is a fraction of tax on slots. So even if there was a 1-1 tradeoff from slots to table games, it might be ok for the casinos, but a big loss for tax revenue.  Anyone want to compare the casinos projected revenue generated for the county with what is budgeted.


Anonymous MH said...

Slot machines are for old ladies and people from boring places like Canada or Cranberry. No wonder tables games have taken the business.

Friday, September 17, 2010 9:01:00 AM  
Anonymous BrianTH said...

I'd be interested to see someone try to correlate those numbers with something like a consumer sentiment (or similar) index.

Friday, September 17, 2010 2:45:00 PM  
Anonymous MH said...

Would you expect a positive or negative relationship?

Saturday, September 18, 2010 9:59:00 AM  
Anonymous BrianTH said...

Just knowing what I know about recent trends, positive.

Monday, September 20, 2010 9:02:00 AM  

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