Gambling in the USA
Pennsylvania Skill: VGTs benefit out-of-state corporations, harm skill games market and casinos
VGTs will hurt small businesses, social clubs and veterans’ organizations in the state, along with the marketplace for legal skill games, said Pennsylvania Skill’s spokesman following a Senate hearing today. Pace-O-Matic powers Pennsylvania Skill.
Pennsylvania Skill, made up of amusement and gaming small business owners across the state, questioned why legislative support for video gaming terminals, or VGTs, exists given their history in other states. The comments were based on out-of-state VGT companies testifying at a Senate Community, Economic and Recreational Development Committee hearing.
“VGTs have consistently overpromised the amount of revenue they would generate for Pennsylvania and minimized their impact on lottery and casino revenues,” said Mike Barley, spokesman for Pennsylvania Skill. “We don’t want to see a repeat of what has happened in other states.
In Illinois, VGTs were legalized in 2009. At the time, companies predicted they could generate funds to support a $31 billion building program to create jobs and upgrade the state’s infrastructure. In 2017, eight years after the legalization of VGTs, the state had collected less than $1 billion. Illinois lawmakers also were disappointed to find the projected $2.5 billion in state revenue did not materialize.
In addition, regulatory expenses for video gambling proved far higher than anticipated, forcing the state to divert $83 million from casino taxes to support the work of the Illinois Gaming Board.
Barley added that thousands of illegal VGTs are operating in the Commonwealth without a court ruling, and Pennsylvania Skill supports efforts to crack down on those games through regulation and enforcement.
Pennsylvania Skill has been ruled a predominant game of skill by a Court of Common Pleas. That case was never appealed by the Pennsylvania State Police. In order to further cement its legal status, Pennsylvania Skill has filed a lawsuit in Commonwealth Court.
Locations across the state depend on skill game revenue. At Sprankle’s Neighborhood Markets in western Pennsylvania, the owners have been able to offer health benefits to employees for the first time thanks to the money they receive from the skill games located in their grocery stores. They also provide daily free lunches to staff thanks to game revenue.
“Lawmakers need to understand what location owners do with their skill game revenue,” said Ryan Sprankle, an owner of one of the three Sprankle’s Neighborhood Markets. “The money has made a huge difference for our employees â we could not afford health insurance for them without it. They can stay healthier, and we are better able to keep good staff.”
Barley said Pennsylvania Skill hears stories like the Sprankles’ all the time. Many businesses and organizations count on this revenue. He wants to see legislation pass that would provide regulation of legal skill games as a way for the industry to continue to help locations and pay a steady stream of $250 million in tax revenue for the state each year. In addition to that, Pennsylvania Skill already pays tens of millions of dollars in taxes annually.
“A true skill game cannot set payout levels because the results are based on a player’s skill,” Barley explained. “After analyzing Pennsylvania Skill data, on average, 90 percent of players win. With that said, there are many illegal VGTs masquerading as skill games that are proliferating in the Commonwealth, and they do have set payout levels. That is why there is a clear need for regulation.”
Pennsylvania Skill games, which are manufactured in Williamsport, provide family-sustaining jobs in manufacturing and for small businesses that operate the games. The industry provides a needed financial lift for fraternal clubs and veterans’ groups, restaurants and bars.
The industry also provides charitable giving of over $1 million a year that supports Pennsylvania communities.
The three Detroit casinos reported $101.98 million in monthly aggregate revenue (AGR) for the month of September 2024, of which $101.23 million was generated from table games and slots, and $755,519 from retail sports betting.
The September market shares were:
⢠MGM, 47%
⢠MotorCity, 31%
⢠Hollywood Casino at Greektown, 22%
Monthly Table Games, Slot Revenue, and Taxes
The casinosâ revenue for table games and slots for the month of September 2024 increased 1.2% when compared to the same month last year. Septemberâs monthly revenue was 8.6% lower when compared to the previous month, August 2024. From Jan. 1 through Sept. 30, the Detroit casinosâ table games and slots revenue increased by 1.0% compared to the same period last year.
The casinosâ monthly gaming revenue results were mixed compared to September 2023:
⢠MGM, up 6.6% to $47.68 million
⢠MotorCity, up 0.5% to $31.17 million
⢠Hollywood Casino at Greektown, down 7.8% to $22.38 million
In September 2024, the three Detroit casinos paid $8.2 million in gaming taxes to the State of Michigan. They paid $8.1 million for the same month last year. The casinos also reported submitting $12.5 million in wagering taxes and development agreement payments to the City of Detroit in September.
Monthly Retail Sports Betting Revenue and Taxes
The three Detroit casinos reported $22.02 million in total retail sports betting handle, and total gross receipts were $771,751 for the month of September. Retail sports betting qualified adjusted gross receipts (QAGR) were down by 52.0% in September when compared to September 2023, and down by 55.4% when compared to August 2024.
September QAGR by casino was:
⢠MGM: $601,794
⢠MotorCity: $11,817
⢠Hollywood Casino at Greektown: $141,908
During September, the casinos paid $28,559 in gaming taxes to the state and reported submitting $34,905 in wagering taxes to the City of Detroit based on their retail sports betting revenue.
Fantasy Contests
For August 2024, fantasy contest operators reported total adjusted revenues of $613,448 and paid taxes of $51,530.
Gambling in the USA
Zula Casino Kicks Off its Spectacular 1-Year âZula-versaryâ with a Month of Events and Promotions
Zula Casino launched its online social casino in the US exactly a year ago delivering more. More games. More rewards. More free-to-play entertainment through a personalized experience. Zula Casino marked its one-year launch by crossing the 1000 casino-game threshold â a milestone that positions it among the top platforms nationwide.
The month-long birthday bash intends to go over the top to give back to its amazing player community that helped make this first year so incredible. With its advent calendar format, players can unlock a special surprise each day ranging from a âWin-a-Vacationâ event, a carnival event, free spins and new exclusive games, and a prize pool of over 25 billion Gold Coins (GC) plus 150,000 Sweeps Coins (SC) to be given out throughout the month. Over this period, Zula Casino will run other special events, including surprise happy hours with special coupons, various social media contests, and special giveaways.
âWeâre incredibly proud of the player experience weâve built over the last 12 months. The platform has garnered a substantial and loyal pool of players, and itâs not just because we offer one of the largest game selections from leading global providers, but also the exclusive experiences weâre providing, and the platformâs continued evolution with enhanced promotions, personalization, and seamless user experience,â said Tamar Laypan, Program Manager of Zula Casino.
Zula Casino has added over 1000 games across all categories over the past 12 months, including slots, jackpots, fish, table, plinko, megaways, crash, hold and win, tumble games, and more. These additions include top games like Big Bass Vegas and Fire Stampede, as well as branded exclusives like Gold Gold Gold 5000, supplied by Booming Games, and Sweet Bonanza 1000 by Pragmatic Play. With recent additions, Zula Casino now boasts 25 game providers, including Relax Gaming, Habanero, Evoplay, Pragmatic Play, RubyPlay, Gamzix, Let Us Entertain You Inc., to name a few.
Zula Casino flourished in a tough and highly competitive market, launching its proprietary-integrated platform in September of last year. With an average TrustPilot score of 4.6 and almost 9K reviews, the online social casino is among the highest-rated free-to-play sites in the market.
Zula Casino was also previously shortlisted for the prestigious Global SBC Awards in the category of âRising Star in Casinoâ.
NCPG has announced the appointment of Diana Goode to the National Council on Problem Gamblingâs Board of Directors. Diana, who has served as the Executive Director of the Connecticut Council on Problem Gambling (CCPG) since May 2018, brings over 25 years of nonprofit leadership experience to this role.
In her time with CCPG, Diana has championed initiatives that address problem gambling and promote responsible gaming across Connecticut. Additionally, she has played an active role on the NCPG Affiliates Committee, contributing valuable insights from her years of experience.
Before joining CCPG, Diana held executive roles in nonprofits focusing on poverty alleviation and financial literacy in Connecticut. Her academic credentials include a degree from Dartmouth College and an MBA in Finance and Marketing from the University of Connecticut. She resides in the Greater Hartford area, where she remains deeply engaged in her community.
Diana will serve an interim appointment in the Affiliates seat on the NCPG Board of Directors until Spring 2025.
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