Parx CEO: Skill Games Are Cannibalizing PA Slots Revenue

Parx Casino’s chief executive, Eric Hausler, has commented on the controversial skill games, alleging that the vertical’s existence is cannibalizing casino revenue in Pennsylvania. Skill machines have firmly cemented their position in the state and are enjoyed by many players.

Skill games continue to be hotly debated by industry experts as their proponents seek regulation. Pace-O-Matic, one of the leading manufacturers of such games, claims that skill games do not have an effect on the industry. Hausler, however, claims otherwise.

According to Hausler, neighboring states where skill games aren’t a factor are experiencing a more significant slot gaming growth. Whereas Pennsylvania’s slots revenue has increased only 4% since 2018, slot gaming in other states has skyrocketed.

Delaware, Maryland, New Jersey, New York and Ohio, for context, experienced slots revenue growth of 21%, 22%, 16%, 16% and 31% respectively.

Hausler argues that Pennsylvania’s slower growth is due to competition from the skill gaming sector.

Skill Games Will Not Be an Issue with Proper Regulation

According to Parx’s CEO, skill games are a huge issue in Pennsylvania and are responsible for dragging down industry growth. Since skill games are “essentially slot machines,” their existence is hurting the regulated sector, Hausler said.

Slot revenues at PA retail casinos are growing well below slot revenues in surrounding states because of unregulated and untaxed skill games.

Eric Hausler, CEO, Parx

Hausler also pointed out that Virginia, which recently banned skill games, experienced a spike in slot gaming revenue. He believes that the same thing would happen in Pennsylvania if skill games were banned. However, Parx’s CEO added that his team will also be content if skill games are properly and rigorously regulated instead.

In an earlier statement, Hausler explained that many of the skill games-related concerns could be remedied with a proper regulatory framework. However, he admitted that there is no guarantee that the legislature and the governor will be able to agree on a regulatory and tax framework.

Most industry experts doubt that Pennsylvania would take a drastic approach and ban skill games. However, many agree that the vertical’s regulation is around the corner.