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Pennsylvania Gaming Summary

Background

Pennsylvania has a state lottery, pari-mutuel betting on horse-racing, and wagering on slot machines at racetracks and slot parlors.

Casino Gaming

Development: Casino gaming was enabled in Pennsylvania by the Racehorse Development and Gaming Act of 2004, which sought to boost revenues to counties and municipalities that host gaming facilities, create jobs, and fund property tax relief. The legislation authorized as many as 61,000 slot machines to be sited at 14 locations: 7 racetrack casinos, 5 slot parlors, and 2 casino resorts.

Regulation: The state's gaming industry is overseen by the Pennsylvania Gaming Control Board, a seven-member appointed body. Legislative appointees (4) are appointed for two year terms. Governor's appointees are appointed for three year terms.

Taxation: 55% effective rate, including State Tax (34%), Local Share Assessment (4%), Economic Development and Tourism Fund (5%), Pennsylvania Race Horse Development Fund (approx. 12%)

Currently, there are 9 licensed slot operators in the state: Mohegan Sun, Philadelphia Park, Harrah's Chester Downs, Presque Isle, The Meadows, Mount Airy, Penn National, Sands Bethlehem, and The Rivers.

Lottery

Development: The Pennsylvania Lottery was created by the legislature in 1971 to to generate funds to benefit programs for the Commonwealth's older residents.

Beneficiaries: Since 1972, when its first game went on sale, the Pennsylvania Lottery has contributed more than 19.2 billion to a wide variety of programs, including: Property Tax/Rent Rebate, Mass Transit Program for older residents, PACE, PACENET and PACE Plus Medicare, the nation's most comprehensive prescription program for older adults, Long-Term Care Services administered by the Department of Public Welfare, and 52 Area Agencies on Aging throughout the Commonwealth, comprising more than 600 full- and part-time senior community centers. The Pennsylvania Lottery remains the only lottery in the nation that exclusively targets all of its proceeds to programs for older residents

In 2008, the Pennsylvania Lottery had annual revenues of more than 3.1 billion.

For more information:

Pennsylvania Lottery 

Pennsylvania Racing Commission

Pennsylvania Gaming Control Board

Casino Revenue Data (Calendar Year)
Year
Slots
Tables
Total
2006
31,567,925.76
0
31,567,925.76
2007
1,039,030,722.62
0
1,039,030,722.62
2008
1,615,565,757.56
0
1,615,565,757.56
2009
1,964,570,480.15
0
1,964,570,480.15
2010
2,273,934,190.47
212,473,870
2,486,408,060.78
2011
2,405,867,897.01
619,180,827
3,025,048,724.01
2012
2,470,935,317.00
687,382,546
3,158,317,863
2013
2,384,098,225
729,830,366
3,113,928,591

 

Slot Revenue Data (Fiscal Year)
Year
Operators
Slots
Wagers
Payouts
Revenue
Hold%
2007
6
12,740
167,257,764.39
153,851,601.53
13,406,162.86
8.01%
2008
7
16,831
22,343,898,069.13
20,382,294,848.25
1,859,332,894.87
8.32%
2009
8
21,725
22,395,284,883.90
20,429,334,101.09
1,745,491,895.25
7.79%
2010
9
24,090
29,308,239,022.06
26,741,959,790.40
2,164,839,765.25
7.38%
2011
10
26,930
29,759,096,846.79
26,911,459,112.39
2,346,641,868.90
7.89%
2012
11
26,938
31,164,547,147.56
28,122,248,554.61
2,476,775,316.80
7.94%
2013
12
26,801
30,819,486,036.35
27,778,710,112.98
2,428,887,429.81
7.88%
2014
12
26,400
29,422,425,486.37
26,516,485,214.42
2,319,890,598.48
8.74%

This chart has information on the number of licensed operators at the fiscal year's end, total number of slot machines as of the fiscal year's end, total amount wagered (slot drop), total payouts to winners, gross slot revenues, and the average hold percentage.

Lottery Revenue Data (Fiscal Year)

 

Year
Total Sales
Total Revenue
Prize Liabilities
Prize %
Net Revenue
Net %
2002
1,934,163,882
1,946,949,810
1,002,460,735
51.49%
786,256,395
40.38%
2003
2,132,980,838
2,143,124,945
1,124,598,020
52.47%
844,412,261
39.40%
2004
2,352,071,452
2,370,324,921
1,305,859,367
55.52%
874,753,159
36.90%
2005
2,644,856,379
2,662,704,766
1,529,443,530
57.83%
915,218,772
34.37%
2006
3,070,268,288
3,099,693,945
1,804,893,266
58.78%
1,036,590,151
33.76%
2007
3,076,339,109
3,109,306,727
1,832,626,704
59.57%
1,023,912,977
32.93%
2008
3,089,188,213
3,089,188,213
1,845,395,879
59.74%
995,632,660
32.23%
2009
3,088,162,243
3,088,162,243
1,852,498,580
59.99%
1,011,860,520
32.77%
2010
3,065,717,410
3,065,717,410
1,867,081,059
60.90%
991,553,742
32.34%
2011
3,207,908,050
3,207,908,050
1,958,432,018
61.05%
1,028,495,037
32.06%
2012
3,480,900,689
3,480,900,689
2,120,499,549
60.92%
1,120,161,010
32.18%
2013
3,699,665,694
3,699,665,694
2,299,005,529
62.14%
1,142,256,891
30.87%

Total sales reflects all money wagered on the lottery in the fiscal year in question. Total revenue is total sales plus interest earned on the lottery fund balance and miscellaneous revenue sources . Prize liability is the total amount of prize money paid back to winners. Net Revenue (before operating expenses) is the total revenue minus vendor and retailer commissions and prize payouts. Prize and net revenue percentages are taken from the total revenues.

Pennsylvania Gaming Timeline

1967: State Horse Racing Law creats the Pennsylvania State Horse Racing Commission, which provides general jurisdiction of all pari-mutuel thoroughbred horse racing activities in the commonwealth and all the corporations engaged in the industry

1971: Pennsylvania legislature creates a state lottery

1972: Pennsylvania Lottery begins operation

1972: Penn National Race Course in Grantville opens

1974: Philadelphia Park in Bensalem opens

1977: Daily Numbers game begins

1982: Pennsylvania Lotto begins

2002: Pennsylvania joins the Multi-State Lottery Association, begins participating in Powerball

2004: Racehorse Development and Gaming Act passes, sets stage for creation of racetrack casinos, slot parlors, and casino resorts

2006: Mohegan Sun at Pocono Downs opens (November 14)

2006: Philadelphia Park Casino adn Racetrack opens (December 19)

2007: Harrah's Chester Casino and Racetrack opens (January 23)

2007: Presque Isle Downs and Casino opens (February 28)

2007: The Meadows Racetrack and Casino opens (June 11)

2007: Mount Airy Casino Resort opens (October 22)

2008: Hollywood Casino at Penn National opens (February 12)

2009: Sands Bethlehem opens (May 22)

2009: The Rivers casino opens (August 9)

2010: In July, table gaming begins


This project was made possible by a grant from the UNLV Libaries Advisory Board. For information about how to contribute to UNLV Center for Gaming Research and Special Collections development efforts, go here.


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Last modified Monday, 21-Jul-2014 15:17:44 PDT