Pennsylvania Lottery May Flater Due to Slot Machines Introduction

The Pennsylvania Lottery is set to face the challenge of keeping its market and revenues once slot machines are introduced in the state.

Other states like Michigan and Illinois introduced new gaming facilities and subsequently experienced losses in their old games. Even states from Delaware to Iowa seem to be showing that some gambling cash is shifted from lotteries to slot machines. If this fact would be taken into account, then Pennsylvania better have reinforcement plans for its state lottery.

If lottery revenues drop in Pennsylvania, the states programs for its senior citizens will be directly affected as lottery proceeds go to such projects.

Still, Pennsylvania state officials say their annual lottery revenues increased by $1 billion over the last four years and numbers are likely to remain good even with the emergence of the slot machines in the state.

Masch is anticipating sales increases of only 1% or less in the four-year period starting July 1, 2007.

"I don't think we're in any trouble," said Michael Masch, Gov. Ed Rendell's top budget adviser.

For his part, Gregory C. Fajt, said he believes the Pennsylvania Lottery will have a different story as opposed to what happened in other state lotteries that suffered from the emergence of casinos. Fajt maintains that in Pennsylvania, the slots and the lottery each have a different segment of players.

Saturday, 26 August 2006
Theo Evans