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PA Casinos Take Bite Out of NJ Revenue

With the location of the two new casinos in PA so close to NJ, Atlantic City has seen a big drop in their slot machine revenue. They have seen an increase in table games revenue, but that isn’t enough to cover the difference. With PhiladelphiaPark Casino and Racetrack in Bensalem bringing in 2,200 slot machines, and Harrah’s Chester Casino & Racetrack in Chester bringing in 2,700 slot machines, AC is feeling the pinch.

The only difference between the Pennsylvania casinos and the Atlantic City ones, besides the beach, is the fact that PA does not allow table games, but many feel that this is just a temporary situation. Experts agree that with time comes experience, and with more experience will come table games. But just the fact that they are adding slot machines is not all that is drawing the crowds.

The location makes it much more convenient for people on the west side of New Jersey to go there, as well as those who live in PA. Also, the PA casinos have added a few perks that AC does not have – like the ability to order drinks from their slot machines, and then waitresses will bring them to them. Or the fact that you can have your car brought around before you even hit the cashier’s window – so you don’t have to stand there waiting for your car.

These are just little things, but the little things add up when you are trying to build an experience for your guests. Now, PA casinos don’t have the level of comps that AC does, allowing for free meals, free hotel rooms, free merchandise, etc. – so that give AC the edge. It seems that PA officials have gotten a little greedy when it comes to the tax that the PA casinos pay for their slot machines – it comes in at 55%. NJ only takes 9.25% of the casino’s revenue, which makes it much easier for AC casinos to offer more than the PA ones can.

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