Casinos are struggling – but skill games aren’t the reason

It has become increasingly common to blame skill games for the financial struggles facing Pennsylvania’s casino industry.That claim may be politically convenient, but it does not withstand scrutiny. 

The evidence shows that the challenges confronting brick-and-mortar casinos have far more to do with players shifting to online gambling, as well as the aftershocks of the pandemic – still being felt – than with the presence of skill games.

Skill games have operated in Pennsylvania since around 2015. If they were truly undermining casinos, signs of decline at casinos would have appeared shortly after that. Yet from 2015 through 2019, there was no pattern of casino job losses attributed to their presence. The real problem for casinos came later, when two major developments dramatically changed the gambling landscape.

First, online gambling went live in Pennsylvania in 2019. For the first time, players could place bets from their couches, on their phones, at any hour of the day or night. That convenience cannot be overstated. Online platforms eliminate travel, parking hassles, and the need to plan an outing around a casino visit.

Then, in 2020, the COVID-19 pandemic forced casinos to close their doors temporarily. Even after reopening, many customers never returned. Once people became accustomed to gambling online, they decided to stay home.

The growth of online gambling has been extraordinary. In just a few years, it has grown into a multi-billion-dollar industry in Pennsylvania. The state’s annual problem gambling report underscores this shift in behavior.

In fiscal year 2025, internet gambling accounted for 37% of all calls to the state’s problem gambling helpline – the largest single category. Traditional casino-style gambling accounted for 27%. Calls associated with skill games made up just 4% of calls. Even then, it is hard to say how many people are playing legal skill games as opposed to the illegal gambling machines masquerading as true skill games.

Consumer convenience extends beyond online betting. The Pennsylvania lottery remains one of the most popular forms of offline gambling, and lottery kiosks are widely accessible. For many consumers, purchasing a lottery ticket during routine errands is far easier than making a trip to a casino. Again, the driving force is accessibility, not competition from skill games.

Research further challenges the idea that skill games siphon customers away from casinos. An independent survey found that individuals who play skill games are more likely to visit casinos than those who do not.

Skill game players also report higher participation in lottery play and other forms of gaming. An annual survey undertaken by Penn State University has similarly indicated that skill game players tend to engage broadly across multiple gaming platforms. In other words, these consumers are not choosing one over the other; they are participating in several forms simultaneously.

Only recently have workforce reductions at individual casinos been attributed to a single factor – the presence of skill games. That simply denies reality. Location, competition from online platforms and economic challenges all play a role. For example, Nemacolin Resort in rural Fayette County announced a major layoff in 2013 – long before skill games arrived.

This is not to suggest that casinos cannot succeed. Brick-and-mortar venues have advantages that digital platforms cannot replicate: live entertainment, dining and a social experience. But success in today’s market requires adaptation – not denial.

The bottom line is clear. The pressures facing Pennsylvania’s casinos stem primarily from the rapid expansion of online gambling, pandemic-driven behavioral shifts and changing consumer expectations. Skill games, by comparison, represent a small share of the overall gaming market and coexist with many forms of gambling rather than replacing them. Lottery sales and online gambling revenue have had record-breaking years while skill games operated.

If finding solutions for the brick-and-mortar casinos is the goal, elected officials and casino leaders must focus on the real forces transforming the industry. Blaming skill games may be easy, but it does not address the deeper changes reshaping the casino industry.