Despite outstanding financial gains for 2024, casinos continue assault on skill games

Pace-O-Matic (POM), creator of Pennsylvania Skill games, applauds the Pennsylvania Gaming Control Board (PGCB) and state casinos, which saw a record $562,368,782 in revenue in November and have broken records every month so far this year.

The numbers for last month follow a pattern set during the rest of the year of monthly revenue surpassing records set in 2023. November’s increase was 26% higher than last November, according to the PGCB. (December figures will be released in January.)

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The revenue increases come from slot machines, table games, internet gaming, sports wagering, fantasy contests, and video gaming terminals (VGTs).

As the PGCB and casinos celebrate yet another enormous 12-month financial win, small businesses, veterans groups, volunteer fire companies, and other fraternal clubs across the state are also ending the year hailing the supplemental income they receive from operating legal skill games. Many would need to make difficult economic decisions without the revenue.

“It is outstanding that the state is ending the year on a high note with yet another month of record-breaking revenue from casinos and other gambling enterprises under the jurisdiction of the PGCB,” said Mike Barley, chief public affairs officer for Pace-O-Matic, which created legal Pennsylvania Skill games. “The end-of-the-year gaming numbers prove that ample room exists for casinos as well as small businesses, which operate skill games, to succeed. No competition exists between the two.”

Barley questioned why powerful casinos are targeting skill games when PGCB numbers show how successful they have been in 2024. For example, Hollywood Casino Morgantown saw an 85% increase in revenue compared to last November, Presque Isle Downs and Casino saw a nearly 34% increase and Parx Shippensburg Casino’s increase was 19%.

Barley said he hopes casinos will not use energy and capital to block expected legislation in 2025 that will regulate and tax skill games at a reasonable level. There has been bipartisan backing for a bill that will put guardrails around skill game operations and provide $250 million in new tax revenue for the state in the first year. The revenue could be used to address important state needs. Gov. Josh Shapiro supports taxing and regulating the games.

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That revenue, however, is generated only through a reasonable tax on skill games. Barley questioned the motives behind the casino industry’s push for a high tax rate when the current 16% tax on skill games will provide hundreds of millions of dollars in tax revenue.

“Sadly, after years of unsuccessful legislation and legal challenges seeking an outright ban of skill games, the casino industry is now working to ban them through excessive regulation and taxation,” Barley said. “Instead, they want to kill small businesses, American Legions, volunteer fire companies, Moose Lodges, and other places that count on skill games by calling for an outrageous tax rate. These locations could never afford the same tax rate that wealthy casinos pay. Casinos know that and don’t care.”

Several courts have ruled Pennsylvania Skill games are legal, including a unanimous Commonwealth Court in November 2023. In addition to providing supplemental income to small businesses, the games are manufactured in Williamsport, and 92% of the income they generate stays within the local economy or the state.

CONTACT: Jeanette Krebs
Pennsylvania Skill  
717-418-6106
[email protected]

The Dutch Gaming Authority (KSA) launched a new awareness campaign to draw attention to the gambling stop. With the campaign “Pick up your life again, take a gambling stop,” KSA is aiming to increase attention to the risks of gambling and make the Cruks register more well-known.

Insights

The campaign is a follow-up to the pilot campaign from 2023. This pilot yielded many valuable insights, for example that more people are attracted to the word gambling stop. This name is therefore used in the new campaign.

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Positive effect

The campaign focuses primarily on young adults who (possibly) no longer have their gambling under control. That is one of the reasons why the campaign is largely running via social media instead of traditional (mass) media. The focus is on the positive effect that a gambling stop has on the life of a person with gambling problems. The powerful moments of young people who pick up their lives again can be seen in online videos, social ads and social posts (Google, YouTube, Meta and Snapchat).

In a landscape dominated by established players and disruptive newcomers, ESPN’s foray into sports betting raises a compelling question: can the iconic sports media brand leverage its legacy to secure an advantage in this competitive market? As sports betting continues to grow in the U.S., fueled by the 2018 Supreme Court decision to overturn PASPA, the convergence of media and wagering has created fertile ground for innovation. ESPN, synonymous with sports entertainment for decades, seems poised to capitalize on this evolution, but its success is far from guaranteed.

ESPN’s Brand Equity: A Built-in Advantage?

ESPN’s brand recognition is unparalleled in the sports world. For millions, the network is a trusted source of news, analysis, and live sports content. This established trust is a critical asset in the betting industry, where credibility and reliability significantly influence customer choices. Unlike newer entrants, ESPN doesn’t need to build its audience from scratch—it can tap into a loyal base of sports fans who already engage with its ecosystem.

Moreover, ESPN’s ability to integrate betting content seamlessly into its broadcasts and digital platforms could offer a unique edge. From real-time odds updates during games to expert betting analysis on flagship shows, ESPN has the infrastructure to make sports betting a natural extension of its content offerings.

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Challenges in the Competitive Landscape

Despite its advantages, ESPN faces significant hurdles. The sports betting industry is fiercely competitive, with established operators like DraftKings, FanDuel, and BetMGM already commanding substantial market share. These companies have invested heavily in user acquisition, technology, and partnerships to dominate the space.

For ESPN, entering this saturated market requires more than brand strength. Success will hinge on its ability to deliver a compelling user experience, innovative features, and competitive odds. The network’s partnership with Penn Entertainment, which includes rebranding Penn’s sportsbook to ESPN Bet, is a strategic move. However, Penn’s track record in the betting space has been mixed, and its previous ventures with Barstool Sportsbook fell short of expectations.

The Role of Cross-Promotion and Content Integration

One of ESPN’s most significant advantages lies in its ability to cross-promote its betting platform across multiple channels. With a vast array of digital assets, including ESPN.com, the ESPN app, and its social media presence, the network can drive traffic to ESPN Bet in ways that few competitors can match.

Content integration also presents a unique opportunity. By embedding betting features directly into live broadcasts and digital experiences, ESPN can create a seamless journey from watching to wagering. For instance, interactive features allowing viewers to place bets on in-game events without leaving the broadcast could redefine the sports betting experience.

Trust and Responsible Gambling

In an industry often criticized for its potential to encourage problem gambling, ESPN’s reputation as a responsible and family-friendly brand will be scrutinized. The network must navigate this tension carefully, balancing the promotion of its betting platform with a commitment to responsible gambling practices. Transparent communication, robust player protection measures, and partnerships with advocacy groups will be essential to maintaining its credibility.

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The Future of Media and Sports Betting

ESPN’s venture into sports betting is part of a broader trend of media companies entering the gambling space. Competitors like FOX Bet and NBC’s partnership with PointsBet have demonstrated varying degrees of success, highlighting both the potential and pitfalls of such initiatives. For ESPN, the stakes are high. A successful entry could solidify its position as a leader in sports entertainment and open new revenue streams. Failure, however, could tarnish its legacy.

Ultimately, ESPN’s success in sports betting will depend on its ability to leverage its brand while innovating in a rapidly evolving market. By combining its unparalleled reach with strategic partnerships and a focus on responsible gambling, ESPN has the potential to redefine the sports betting experience. Whether this potential translates into market dominance remains to be seen, but one thing is clear: the intersection of media and betting is just getting started.