Penn Entertainment has blamed the impact of skill-based gaming machines as the reason why it has had to reduce the number of slot machines at its Hollywood Casino at Penn National Race Course’s (PNRC) by 169 machines.
The move, which has been approved by the Pennsylvania Gaming Control Board (PGCB), will reduce the number of slot machines on the gaming floor to 1,532, just above the minimum threshold of 1,500 required for Category 1 casinos in Pennsylvania.
John Finamore, Senior Vice President of Regional Operations at Penn National Gaming, said: “It’s no secret that skill-based games are on the rise, and we have seen a steady increase in their popularity among our customers. As a result, we have made the difficult decision to remove 169 slot machines from our casinos in order to make room for more skill-based games that are attracting a younger, more tech-savvy demographic.”
We believe that by embracing the trend towards skill-based games, we will be able to appeal to a wider range of players and stay ahead of the curve in an ever-evolving industry,” he added. “While it’s always difficult to say goodbye to old favorites, we are confident that this move will position us for success in the future.”
Rivers Casino Pittsburgh has already done similarly by removing 302 slots in April. Penn highlighted that occupancy rates were just 40 per cent at their highest level, leaving many slot machines unplayed. It explained that within a 10-mile radius of the casino there were more than 325 skill games in operation across 77 locations, with three venues offering over 10 of the machines.
In June, the State Supreme Court agreed to hear the appeal of a unanimous Commonwealth Court ruling on November 30, 2023 that upheld the legality of the games. The previous Commonwealth Court ruling had agreed with the position of the skill game sector that the games offered an element of skill that differentiate them from games of pure chance as defined in state gambling laws.
Alex Hvizda, Hollywood’s Director of Regional Compliance, confirmed that unregulated skill-based machines had been negatively affecting demand for the casino’s slot machines.
Mr Hvizda said: “We believe, and submit to the Board, that this is directly affecting our business and why we’re here with this reduction today.”
Tony Frabbiele, Vice President and General Manager of Hollywood Casino at PNRC, added: “We specifically left our count at 1,532 to address that, so we can stay above the cap. What we find is successful is when customers are comfortable at a game and the game is getting the right amount of occupancy inplay, it’s a better experience for our customers.”
Penn Entertainment CEO Jay Snowden ahas earlier said:. “Our industry is very much aligned on fighting against the expansion of skill-based games, not just in Pennsylvania but around the country.”
