Hollywood Casino to Slash Its Slot Count Amid Competition from Skill Games

Having secured approval from the Pennsylvania Gaming Control Board (PGCB), Penn Entertainment will modify its Hollywood Casino gaming area at Penn National Race Course. The company is set to slash its number of slots, citing intense competition from the skill-based sector as the reason.

The Property Will Remove 169 Machines

Hollywood Casino, for context, is set to remove 169 slots from its gaming floor amid suboptimal performance. The casino has largely been unable to make use of its maximum capacity, averaging occupancy of roughly 20% during the weekend and no more than 40% during the prime time.

By taking out 169 slot machines, the property will be left with a total of 1,532 slots. Most machines are fairly old, which is in line with Hollywood Casino’s philosophy to engage players with content they love and are familiar with.

The casino’s smoking area, which takes up roughly a quarter of the gaming floor, will see 18 of its slots slashed. As a result, smokers will now have only 510 machines to choose from.

Penn Entertainment plans to spread out the remaining machines, providing players with more breathing space.

The Skill Gaming Sector Is a Challenge to Traditional Casinos

The reduction of slots was initiated by Tony Frabbiele, VP and general manager at Hollywood Casino. Additionally, Penn Entertainment executives claimed that the reduction plans had been prompted by the growth of the skill-based gaming sector.

Penn Entertainment has been facing intense competition from skill gaming operators, which have cannibalized its customer base. According to CEO Jay Snowden, the US gaming industry as a whole is currently busy fighting against the expansion of skill-based games.

According to Alex Hvizda, Hollywood Casino’s director of regional compliance, there are over 325 skill games across 77 locations within a 10-mile radius of the casino, highlighting the severity of the competition.

In any case, Penn Entertainment is optimistic that it will be able to keep its slot machine count over 1,500. For context, a property must have at least 1,500 slots to be considered a Category 1 casino.

Speaking of skill gaming, Pennsylvanian operators recently urged the government to tax skill games proportionally. For context, skill games currently are not subject to any taxes or regulations, making them a dangerous rival.

Michigan, meanwhile, recently cracked down on skill-based games, labeling them “illegal gambling.” According to the state, such products violate the state’s penal code.