Pennsylvania Casinos Lady Luck and Hollywood Morgantown to Reduce Slot Count

Article ByDavid Weir

August 29, 2023

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Posted in: Pennsylvania Gambling News, US Casino News

Two popular Pennsylvania casinos have been granted approval to reduce the total number of slots offered on their property.

In a move that may at first raise eyebrows in a gambling world focused on growth, the Pennsylvania Gaming Control Board (PGCB) has given the nod to Hollywood Casino Morgantown and Lady Luck Casino Nemacolin to adjust the number of slots they provide to patrons.

However, both Pennsylvania brick & mortar casinos seem to expect that the reduced slot counts will actually add to their revenues. Hollywood is removing slots from its outdoor, covered gaming porch area, which it says has in the past resulted in more playtime inside.

On the other hand, Lady Luck Nemacolin is going for a slimmed down and refreshed slots collection, after recently ending its four-year deal with Kentucky-based gambling operator and racetrack Churchill Downs Inc. (CDI). The operating agreement included a selection of slots provided by Churchill Downs, which new operator Woodlands Fayette says were getting outdated.

Hollywood’s Porch Not Captivating Audience

Hollywood Casino Morgantown has secured permission to decrease its slot machine count by 30 on its gaming porch. The casino’s representatives, General Manager Marc Guastella and legal representative Michael Fabius, presented the proposed changes to the PGCB.

“The machines on the porch are generating about 75% less revenue than the machines inside the casino,” Fabius said.

This isn’t the first instance of the casino seeking a reduction in slot machines. Since it opened doors in December 2021, Hollywood Casino Morgantown has made several similar requests.

In January 2022, 17 slots were removed, followed by another 15 in December of the same year. These reductions, contrary to what one might expect, had a positive impact on the casino’s finances.

Following the initial reduction, tax revenue surged by approximately $400,000, and by March 2023, it had increased by an additional $1 million.

Despite the new reduction, which will leave the casino with a total of 117 slots, the management remains optimistic.

“Our taxable revenue continues to grow as our business continues to grow year over year. It’s a very encouraging sign and we’re very excited for the future,” Gaustella said during the meeting.

Lady Luck Nemacolin’s Refresh

Lady Luck Nemacolin is looking to revamp its gaming floor by adding several new slot games. But more are set to be removed.

The casino’s previous agreement with CDI ended in June, so management is returning those 100 slots to the Kentucky operator. It has then agreed to source 81 new machines, of which 53 will be brand-new models.

The move is part of a wider refresh after parting ways with CDI. During the four years of the deal, revenues have consistently been down year-on-year, and way down on the casino’s peak gaming revenue when it opened in 2015.

“Under prior management, the slot machines were not as refreshed. It wasn’t new slot product put out on the floor on as frequent or regular basis as much as the industry does,” said Fabius, who represented both casinos at the PCGB meeting.

“There’s a desire to replace older slot product with new slot product.”

However, relatively new Lady Luck Nemacolin general manager John Gibboni hinted at the possibility of adding more slot machines post-renovation. In addition to these changes, the casino has plans to introduce a coffee bar and an entertainment area, as well as a VIP gaming section, with no anticipated job losses among its 167-person staff.