Pennsylvania legislators approved Senate Bill 840 in June 2025, which proposes reducing the number of slot machines at Category 1 and 2 casinos from the current 1,500 to 1,000. This Bill seeks a modernization of the casino regulations in the state and is aimed at continuing to defend regional gaming locations.
Senator Dan Laughlin spearheaded the Bill and will now reach the House of Representatives for further consideration, ultimately seeking the signature of Gov Josh Shapiro to consolidate the Bill into legislation.
This may mark the start of a governmental recognition of the impact that online gaming is having on land-based casinos, which have historically been America's only form of gambling. The revolution of the iGaming industry has brought online casino platforms, sportsbook betting platforms, and even sweepstakes casinos to a lot of new states. This has, in turn, opened the floodgates for so many more Americans to partake in gambling but from the comfort of their own home, something that was simply not possible before. For many starting with online casinos and who have never gambled before, figuring out how sweepstakes casinos operate can be a great way to bridge the gap. These platforms allow the players to engage in typical slot machine games, but they are online and accessible, and do not require the player to wager any money. This allows players to practice on sweepstakes casinos before indulging in other online casinos where they would be expected to wager.
With the online casino revenue racking up around $2.2 billion in 2024, it is quickly catching up with the revenue made at land-based casinos and poses a significant threat to the long-term prosperity of land-based casinos in the state. This is a significant factor in the lawmaker's argument who will want to maintain the billion-dollar industry within the state.
However, it is not just the online industry that poses a threat to Pennsylvania casinos. Competition from other local states in recent decades has slowly infringed on the industry in the state. The likes of Ohio and New York have continued to liberalize and grow their casino industry, which, of course, disperses the once concentrated casino footfall in the area. Expansions such as the proposals in New York State are bound to have a significant impact on the prosperity of the Pennsylvania casino industry.
The Bill will modernize the regulations in the state that have quite clearly become outdated. The new Bill will not cause the instant dropping of slot machines, but rather allows for continued regulation and state oversight via the PGCB (Pennsylvania Gaming Control Board). This means that casinos that wish to maximise their floor space and get rid of unwanted slot machines that aren’t being used by more than 2% of their inventory must submit applications to the PGCB, and the regulators can assess the impacts of revenue, employment, and taxes accordingly.
These safeguards are a solid protective marker for land-based casinos during this digital boom. For some establishments, such as Presque Isle Downs and Casino in Erie, going below the mandated minimum threshold of slot machines on the floor resulted in them getting hit with a $50,000 fine. The Bill hopes to prevent this sort of thing from happening in the future and aims to protect land-based casinos within the well-constructed regulations in the state.
With the Senate Bill 840 passing in a tight vote at 26-24, the reform will head to the House next. This result in the Senate perhaps magnifies the contentious nature of the Bill across politics, but does show that despite some backlash, there is a majority looking for the change. Once at the House, should the Bill pass, it will land on Pennsylvania Governor Josh Shapiro's desk and await his signature for the bill to eventually become law.
The Bill is bound to make things slightly easier for land-based regional casinos. The reduction in compliance regulations of slot machines will make their businesses more viable and provide the government with that important, continued flow of income from the tax on these businesses.
The U.S’s clever policy of taxation on gambling allows the state governments to reap handsome sums via taxation from land-based casinos, which can be distributed back into communities. This supports local economies in the area and protects local jobs.
With more money in their pockets, the casinos will have larger amounts of disposable income for them to improve services, streamline player experience, and even try their hand at innovating online platforms for their businesses to join in the digital trend.
This Bill is reflective of a significant policy change for the Pennsylvania authorities. The regulators and lawmakers have identified that the current model is not sustainable and may result in the continued decay of a huge industry in the area. The move towards lowering the slot machine numbers on the floors in the casinos in the state is aimed at allowing for continued governmental regulation and a modernization of an outdated policy, which should promote growth in the casino industry and maintain taxation levels for the government.
