A group of my friends have created an online NL Hold em tournament available to anyone at 8pm on Thursday night. It is run through Pokerstars under the home game section. We jump on Zoom and it’s been a fun time. Comment if you’d like to play.
With that promo out of the way, let’s take a look at how the Pennsylvania is doing with its quarantine gambling revenue vs January when life was normal.
The January ’20 revenue totals $300 million vs $45 million in April. Remember that is revenue and will still be taxed.
Slots bring in $190 million a month. That is staggering and should make you feel bad for anyone that plays. This quarantine could be one positive that at least the casino is not getting this money.
The smaller amounts are worth looking at as you can see a rise of 20 million in online slots which is true degeneracy. Online table games is on the rise which is another sure fire loss. Also, the sports betting will come back as more sports start playing again. The bottom line is that casino’s are feeling the burn.
Did You Know?
There are 12 casinos in PA. Knowing that slots are the main source of revenue, who makes the most money? Spreadsheet
Parx is far and away the leaders of slots making $35 million on a good month. The next pack is Wind Creek in Bethlehem, Rivers Pittsburgh, Meadows, Mohegan Sun, Penn National, Harrahs, and Rivers Philadelphia. They average between $15-20 million per month. Parx has 3,000 machines whereas Rivers Philadelphia has 1,500 for reference.
Table Games are lead by Wind Creek (~20m a month) and Parx (16-17). Rivers Philadelphia takes 3rd with about 10-15 million a month. It’s funny how Harrah’s takes in more revenue in slots than Rivers Philly, but 10 million less in table games. You can tell the type of crowd it draws based off that. Old people.
The Sports Betting section was by far the most interesting with online wagering taking place. Rivers Philadelphia has taken the lead over Parx, but Valley Forge takes the cake. They most have had some serious promotions because they made 12 million in January when the next closest competitor only made 3. Their online book brought in 154 million of bets in January. I can only think of the Super Bowl and some promotion with Fanduel. Rivers and Parx bring around 25 million of wagers per month online.
Of Rivers Philadelphia’s roughly 40 million in wagers on sports betting, 75% is done online. Compare this to Harrah’s, whose average monthly revenue is 3 million, and 0 is done online. Being late to this would be inexplicable. Funnier, Harrah’s is the only casino I saw that posting a losing month dropping 64k in February.
How Rich Are Casinos?
Let’s look at PA’s biggest casino, Parx. In January, Parx made 35 million dollars in revenue from slots. There is a 34% State tax, 2% Local Share Assessment, 6% Economic Development Tourism Fund, and a bit for some horse fund. Parx will net roughly 17 million on slots. They bring in 17 million in revenue from table games which will net roughly 13 million. They net about 1-2 million from Sports betting. On a given month, Parx makes 30 million dollars AFTER TAXES…A MONTH.
I’m not even sure if that’s a lot because I don’t believe that would include paying employees. I read the PA gambling industry has about 20,000 employees, so let’s say Parx has 2,000 of that. They would be able to pay each employee $15,000 a month. The average employee probably makes 3k a month. You do the math. That’s a lot of leftover money for management and investments. I’ll be the first to add that I have no idea how accurate that works.
With being closed down for quarantine, you know there are some antsy people in the casino industry. Oddly enough, the people are the ones who are not losing their money which should be good for society. Maybe… This would take a much deeper look into the people who actually lose the money.
Slots are no doubt the grandma’s of the world. But who knows if they can afford to lose where as the table game action may come from a few dozen whales who lose big and not feel it in their wallet. I have no doubt casinos will make a comeback. The only question is when?