Skill Games Sector Blames PA Brick-and-Mortar Slump on iGaming

Gambling facilities in Pennsylvania are losing more customers and failing to turn churn into bigger numbers, all of which, argues a skill games industry insider, can be traced back to the iGaming sector. 

Pace-O-Matic Sees Issue with Physical Casinos’ Decline in iGaming

Pennsylvania has long taken a dim view of skill games, with the state making pronounced efforts to turf this vertical out. Naturally, the industry has pushed back, with Pace-O-Matic’s chief public affairs officer, Mike Barley, recently commenting on the recent numbers presented by the Pennsylvania Gaming Control Board.

Barley noted that Pennsylvania has experienced a decline in physical customers, amid surging results for online gambling. He added that there was a clear correlation between the two trends, and pointed out that skill games had not contributed to this:

“The data makes one thing abundantly clear: brick-and-mortar casinos are losing customers to online gambling, not skill games.”

However, the gambling industry, the PGCB, and some courts have disagreed with Barley’s surmise as they have long-argued that skill games operate in a sort of legal grey area that allows such machines to appear at bars, gas stations, convenience stores, and retail spaces while not holding a proper gaming license. 

Barley, however, maintains his company line – that iGaming has contributed to the decline of physical visitors at casinos, and skill games have not had anything to do with it.

“Here we are again, congratulating the casino industry on record profits while some casino operators continue to misdirect blame toward skill games. Industry leaders know the market is changing — their own research proves it — but blaming skill games is easier than confronting the real shift happening online,” he explained.

If anything, skill games have been hailed by small business owners as important revenue additions, helping them bolster their business. 

Industry Argues Skill Games Siphon Customers Away

During the pandemic, a renewed push against skill games in Pennsylvania was underway, with small businessowners fearing that the pandemic, combined with a potential suspension of such machines, would result in bankruptcy. 

The industry is not buying it, however. Presque Isle Downs & Casino general manager Gary Hendricks has retorted that skill games have made people less likely to show up and play at the casino. 

“New Year’s Eve, the busiest day of the year for us, I still have 500 games that won’t get played,” Hendricks said. “That’s how far the demand has dropped off with all of these other games on the market. And, of course, they’re not paying a gaming tax,” he quipped.