A Surplus Of Slot Machines Is Not Something Harrah's Wants In New Era
The Pennsylvania Gaming Control Board granted Harrah's Philadelphia's request to reduce the number of slot machines. The new layout will create a more comfortable gaming environment for guests. The casino has had only 1,300 slot machine in use during the COVID reopening era. There has been “significant oversupply and underutilization of the existing slot Machines” at Harra’s.
The gaming board has an interest in the issue because it is the state's overseer of the gambling industry. The board's decision on the number of slot machines is usually taken by the executive director. Slots generate about $2.4 billion in annual revenue, 54% of which is siphoned off as government taxes. Harrah's has four slot machine machines in its southeastern Pennsylvania market. In May 2008, Harra's had 2,778 slot Machines providing $31.3 million in revenue.
The chart shows the decline in Harrah's May slots numbers every two years since 2008.
Harrah's is getting rid of 563 slot machines. Albrecht says there are some cost savings from reducing the number of machines, but no staffing reductions will accompany the removal of the 564 machines Harrah’s is planning to remove. Before COVID, 12 casinos operating in Pennsylvania had about 25,000 slot Machines available. That number was down to 15,659 last July after reopening with restrictions. By May, the total number had risen to 22,496.
