The Pennsylvania Gaming Control Board has released its annual report, and it paints a bleak picture of the state’s casinos. Inflation has caused costs to rise significantly, resulting in a revenue slowdown for the industry.
This is bad news for casino employees, who are already struggling with labor shortages. Let’s take a closer look at what’s going on in the casino industry and how it is affecting workers and customers.
Drop slot play
According to slots.info, a site that offers free online slot games for PA, Parx Casino has seen a drop in slot play of about four percent. This is concerning because slots are generally the most popular form of gambling.
The decrease in play may be due to the new tax on slot machines, which went into effect in January. The tax has made playing slots more expensive for customers, and they may be choosing to gamble elsewhere.
The state’s have also seen a decline in revenue. Harrah’s Philadelphia Casino & Racetrack saw a drop of nearly seven percent, while Mount Airy Resort & Casino saw a decline of almost five percent. Valley Forge Casino Resort had the biggest decline, with a drop of nearly nine percent.
These declines are troubling for casino employees, who are already facing labor shortages. Casino rely heavily on low-skilled workers to staff their operations. With the unemployment rate at a record low, it is becoming increasingly difficult to find workers. The situation is made worse by the fact that many of these jobs are not full-time positions. This makes them less attractive to workers, who may be able to find better-paying jobs with more hours elsewhere.
The decline in revenue also means that casinos are less likely to invest in new employees. They may be more likely to automate certain tasks or cut back on hours to save money. This could result in even fewer opportunities for casino workers.
The situation is not all doom and gloom, however. There are some positive signs for the industry. Table games saw an increase in revenue of nearly six percent. This is good news for casino workers, as table games generally require more skills than slots.
The increase in table game revenue may be due to the new casinos that have opened in the state. The two newest casinos, Live! Casino & Hotel and Rivers Casino, both opened their doors in 2019. They are both located in Philadelphia, which is a major market for table games.
Inflation has been a problem for Pennsylvania casinos since they opened in 2006. According to the report, costs have risen by an average of 21 percent over the past five years. This is much higher than the rate of inflation for other industries, which averaged around two percent during the same period.
The main reason for the high-cost increases is labor shortages. Casinos rely heavily on low-wage workers, and there are simply not enough of them to go around. As a result, wages have gone up significantly, which has caused operating costs to rise as well.
The labor shortage problem is only getting worse. The report found that the number of casino employees has decreased by four percent since 2014. This is due to a number of factors, including the retirement of baby boomers and the increasing popularity of online gambling.
The shrinking workforce is also causing problems for customers. Casinos are having difficulty finding enough workers to staff their operations, which is leading to longer wait times and fewer services. This is likely to result in a decline in customer satisfaction, which could further hurt revenue growth.
Supply chain issues are a big concern for gaming execs
The report notes that supply chain issues are a major concern for casino executives. Inflation has made it difficult to find and keep suppliers, which is leading to higher prices and lower quality goods.
This is a problem that is likely to continue in the future, as inflation rates are expected to rise. The situation is made even worse by the fact that many casinos are located in rural areas, where there are fewer suppliers to choose from.
All of these factors have led to a slowdown in revenue growth for Pennsylvania’s casinos. The industry is facing significant challenges, and it remains to be seen how they will overcome them. For now, workers and customers can only hope that the situation improves soon.
Why this is concerning?
The revenue slowdown is concerning for a number of reasons. First, it is a sign that the industry is not doing as well as it could be. This could lead to job losses and fewer opportunities for workers. Second, the decline in revenue may make it more difficult for casinos to invest in new employees or improve their operations.
This could have a negative impact on the quality of service that customers receive. Finally, the situation highlights the importance of inflation in the gaming industry. If costs continue to rise at such high rates, it will become increasingly difficult for casinos to stay afloat.
What can be done?
There are a few things that Pennsylvania’s casinos can do to try to turn things around. First, they can focus on attracting more high-end customers. This could help to offset the decline in revenue from lower-spending customers.
Second, they can invest in new technologies that will help to improve efficiency and reduce costs. Finally, they can try to negotiate better deals with suppliers. This could help to keep prices down and improve the quality of goods and services.
The Pennsylvania gaming industry is facing some serious challenges. Inflation and labor shortages are putting pressure on casinos, and it doesn’t look like things are going to improve anytime soon. This could lead to more closures and job losses in the future.
For now, casino employees will have to deal with lower wages and fewer hours. Customers can expect longer wait times and fewer services. It’s a tough time for everyone involved. Let’s hope things start to turn around soon.