Pennsylvania Bill To Allow Fewer Slot Machines Awaits Vote In House

Pennsylvania’s gaming industry may be taking a step toward modernization in the wake of the state Senate approving legislation that would reduce the minimum slot machine requirement for certain casinos from 1,500 to 1,000 machines.

Senate Bill 840, sponsored by Sen. Dan Laughlin, applies specifically to Category 1 (racetrack) and Category 2 (stand-alone) casinos, according to the bill text and the Senate Republican Caucus press release issued after the vote in June.

“When Pennsylvania first legalized gaming, surrounding states like Ohio and New York didn’t have casinos. That’s no longer the case,” Laughlin said in the press release. “Facilities like Presque Isle Downs & Casino in Erie are facing growing competition from out-of-state casinos and online gaming platforms.”

The original 1,500-machine minimum was enacted nearly two decades ago as part of the state’s original gaming law, but the requirement has become increasingly problematic for mid-sized casinos, as reported by NorthCentralPA.com. Many of these mandated machines now sit idle while players gravitate toward sportsbooks, live table games, or online options.

Online gambling platforms don’t face the same physical constraints, allowing them to focus on extensive game libraries, faster payouts, mobile functionality, and typically more generous bonuses than land-based counterparts.

That plays out in the numbers when comparing online slots to land-based slots.

Hold versus handle

Over a 12-month period ending in June, Pennsylvania’s online operators took in nearly $49.6 billion in wagers and paid out just over $47.1 billion. Land-based slots, on the other hand, took in $31.3 billion over the same time period and paid out a little more than $28.2 billion. 

Spectrum Gaming Group noticed this discrepancy in a recent report. It showed that for a slots player, the hold percentage is nearly double in a land-based casino, giving slot players little incentive to make the trip off their couches.

That competition has been joined by other alternative gaming formats, including online sports betting, which is clearly lapping brick and mortar sports betting in Pennsylvania.

Critics of the legislation raised concerns during Senate debate about possible job losses and reduced tax revenue, according to NorthCentralPA.com. Supporters countered that the bill does not require casinos to remove machines. It simply ends the mandate to keep underutilized ones.

“This bill is about modernization and sustainability,” Laughlin said in the Senate GOP release. “It’s a commonsense reform that protects jobs, strengthens our local economy and allows our gaming industry to remain competitive in a changing market.”

The measure maintains existing oversight by the Pennsylvania Gaming Control Board, which would continue to review and approve any machine count reductions. Under SB 840, an employee of the board may approve only a reduction of up to 2% of a property’s total operating machines, and Category 1 and 2 casinos cannot go below 1,000 machines, according to the bill text.

The bill passed the Senate by a 26–24 vote and passed the House Appropriations Committee. It now awaits a vote in the House.

If enacted, the measure could allow casinos to replace unused slot rows with expanded dining, entertainment venues, more table games, or new gaming technology — changes that supporters argue will help the industry adapt to market realities.