SB 666: Pennsylvania considers easing slot machine mandate for casinos
Senate Bill 666 is making its way through the Pennsylvania General Assembly, and it could potentially alter the operational landscape for many of the Commonwealth’s casinos.
Spearheaded by Senator Dan Laughlin (featured on the cover image), the bill’s primary objective is to remove the long-standing mandate that Category 1 (horse racetrack casinos) and Category 2 (stand-alone casinos) facilities must operate a minimum of 1,500 slot machines.
Pennsylvania’s casino landscape includes distinct classifications: Category 1 licenses are tied to horse racetracks, while Category 2 licenses are for stand-alone casino operations. The current minimum slot machine requirement has been a fixture for these larger casino types. Senator Laughlin describes the existing mandate as an “outdated statutory requirement,” noting that the “gaming landscape has changed dramatically since 2006.“
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Why proponents say change is overdue
Senator Laughlin has spoken in favour of the need for this legislative amendment, arguing that “Competition is fierce, and rigid mandates no longer serve the industry or the public.” He presents Senate Bill 666 as a “common sense” proposal which attempts to “keep our casinos competitive without giving up oversight or revenue.” The Senator stresses that casinos are commercial enterprises and that “excessive regulation and exorbitant tax rates put them at risk“. He further contends that the state cannot afford to “hamstring these businesses with inflexible laws that don’t reflect today’s market,” given their contributions to employment and local revenue streams.
The current 1,500-slot machine rule has been criticised for potentially favouring larger, more established casino companies while posing challenges for smaller operators or those in highly competitive regional markets. Market data appears to support the notion that the existing mandate is already under pressure. In 2024 alone, the Pennsylvania Gaming Control Board (PGCB) approved requests for the removal of 471 slot machines across the state, with a total of 586 machines removed in the fiscal year 2023/2024. This trend indicates that casinos are already seeking to reduce their machine counts, suggesting the current minimum is misaligned with operational viability or market demand for some.
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Key provisions of Senate Bill 666
The core provision of Senate Bill 666 is the removal of the specific mandate requiring Category 1 and Category 2 casinos to have at least 1,500 slot machines on their floor. The bill provides instead a tiered approval system for reductions intended to strike a balance between operational convenience and regulatory supervision.
Under the proposed legislation, a PGCB employee would be authorised to approve, deny, or condition a casino’s request to decrease its number of slot machines, provided the requested decrease does not exceed 2 percent of the total number of machines currently in operation at that facility. For any proposed reduction exceeding this 2 percent threshold, casinos would be required to submit a formal application to the full Pennsylvania Gaming Control Board. The PGCB would then conduct a comprehensive review to ensure that such a reduction would not have a “negative impact on revenue, taxes, employment or surrounding communities“.
This 2 percent rule acts as a crucial balancing mechanism. Casinos won’t get an unrestricted authority to downsize. Minor adjustments, likely for operational efficiency, may be handled administratively. However, more substantial changes that could significantly affect state revenue—which is heavily reliant on gaming taxes, particularly from slots—or local employment levels will trigger a more rigorous PGCB review. This structured oversight is intended to prevent sudden, drastic reductions in slot machine numbers that could harm the Commonwealth’s finances, while still permitting sensible adjustments based on market conditions.
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The Presque Isle Downs & Casino case study
Laughlin spoke about the situation at Presque Isle Downs & Casino in his district, Erie, which serves as a pertinent example of the pressures facing some Pennsylvania casinos. The facility was fined $50,000 in 2024 for operating with fewer than the mandated 1,500 slot machines. The casino had also laid out the difficulties of maintaining its long-term operation and the prospect of shutdown and expressed this, pointing out that the number requirement for slots contributed to these.
Legislative progress and stakeholder reactions
Senate Bill 666 was formally introduced on 28 April 2025 and subsequently referred to the Senate Community, Economic and Recreational Development Committee. On 7 May 2025, the committee approved the bill with a 9-5 vote, reporting it as committed. The bill also received its first consideration in the full Senate on the same day and now awaits further deliberation by the entire chamber.
Senator Laughlin-led proponents of the bill argue that it provides for needed flexibility, enables casinos to be responsive to evolving market conditions, assures their long-term sustainability, and is a “common sense” reform. But there have been concerns expressed by critics. Some fear that the legislation has the potential to cause a slow erosion in gaming choices made available to consumers. There are also concerns regarding a possible adverse effect on gaming revenue for the state and local economies, which heavily depend upon such money. The 9-5 committee vote indicates that although more than half of the committee members favour the measure, there is significant opposition, which may propel further debate as the bill moves through the legislative process.
