Liquor Sales Get a Pick Up from Casinos
Pennsylvania, once thought of for its bucolic landscape and its role as the birthplace of American freedom, nowadays is almost as likely to be associated with land-based casino gambling as is its near-neighbor, Atlantic City.
The success of Pennsylvania’s casino industry has come with a side effect that not too many in the state anticipated, that being that liquor sales in the state are hitting new highs, this according to TribLive.com.
Large entertainment venues mean lots of imbibing
In Pennsylvania, liquor is distributed directly by the state itself, meaning that the eleven land-based casino properties in the state must place orders directly with the Pennsylvania Liquor Control Board (LCB).
That body is reporting a 4.5 percent increase in sales for the fiscal year of 2012-2013, with sales totaling almost $2.2 billion, thanks in great part to its new best customers, the casinos.
The reason behind the increased demand for wine and spirits in the Keystone State is not too hard to deduce. Casinos are large properties who not only sell a high quantity of liquor in their attendant restaurants, bars, and show venues, but they also give away free alcoholic beverages to patrons.
All of this adds up to the need for a nearly endless supply, making casinos the state’s biggest buyers when it comes to alcohol, says political analyst Chris Borick.
“Since casinos have been in play, alcohol has been an aspect of their business. Given their size and the volume of individuals that go there, it’s not a surprise at all they are on the top of the list,” said Borick.
As it turns out, wine is the most popular beverage being served at casinos around Pennsylvania. This has kept wine buyer Jeffrey Dietz, who works at Rivers Casino in the city of Pittsburgh, well-occupied.
“We’re quite busy. When people go to a casino, it’s usually a way to get away from life for a while. It’s a break to … just enjoy yourself,” Dietz was quoted as saying.
State quickly rose to be a top U.S. gambling market
Since legalizing casino gambling in 2004, Pennsylvania has quickly risen to become the second-largest gambling market in the nation. This is a title that Pennsylvania managed to steal away from Atlantic City, which is only about an hour drive away from Philadelphia, where newer casinos with more modern amenities have proven attractive to patrons.
As a result, the casino industry in New Jersey has suffered mightily, with last year’s Hurricane Sandy adding only insult to injury. Last year, New Jersey’s first-term Republican Governor, Chris Christie, signed a bill into law that will allow for those in the state to place a wide variety of online wagers in the hopes of attracting new, younger gamblers to the state.
The new iGaming law, which requires that the Internet gambling industry in New Jersey be tied to land-based Atlantic City casino properties, is expected to be a boon for the state’s gambling industry, capable of generating tens of millions of dollars in annual revenue, according to anaylsts.
New Jersey casino revenue has been falling since 2006, when it was at its peak.
Whether or not the predictions of industry experts will prove correct remains to be seen. One thing not in debate, however, is that the launch of New Jersey’s online gambling industry in late November will certainly be closely watched by industry experts, financial analysts, and fans of online gambling alike – not to mention regulators in neighboring states.
