Pennsylvania: Villanova University professor says online gambling and the pandemic are the main causes of casinos’ troubles

Peter Zaleski, a professor of economics at Villanova University, published an op-ed in which he examines the reasons behind financial difficulties and job cuts at Pennsylvania’s brick-and-mortar casinos. His core point is straightforward: blaming skill games (gaming machines whose outcome is, at least on paper, based on player skill) is “politically convenient,” but it doesn’t hold up to scrutiny. The real factors putting pressure on the industry, in the author’s view, are entirely different.

Skill games have been around for years—and there was no early “collapse”

Skill games appeared in Pennsylvania around 2015. Zaleski points to a logical inconsistency in critics’ argument: if these machines were undermining casinos, the negative effect would have shown up fairly quickly. Meanwhile, from 2015 to 2019, there was no consistent pattern of job losses that could be linked specifically to skill games. The turning point came later and was of a completely different nature.

How online betting reshaped the market in 2019

Legal online gambling launched in the state in 2019, and that became a point of no return. For the first time, players had the ability to place bets around the clock—without even getting off the couch. Various types of online entertainment quickly began to gain popularity: sports betting, slots, and roulette. Later, various gambling-style arcade games became popular. Finally, last year the strongest growth was seen in live casino games. And the data we found in the top search results here https://icefishing-game.com/ about the game Ice Fishing fully supports this.

Convenience is hard to overstate: no driving, no parking, no planning a trip. The online platform proved to be a powerful alternative to a traditional casino visit, and in just a few years the segment has grown into a multibillion-dollar industry.

The pandemic and the habit of playing from home

In 2020, COVID-19 shut casinos down indefinitely. Even after restrictions were lifted, some customers never came back. In Zaleski’s view, the logic is simple: players who were forced to move online discovered that the new format suited them, and they formed the habit of staying home.

What the hotline calls show

The state’s annual problem-gambling report offers an interesting snapshot. In fiscal year 2025, internet gambling accounted for 37% of all hotline contacts, traditional casino gambling for 27%, and skill games for just 4%. Zaleski uses these shares as an indicator of a real shift in player behavior.

At the same time, the author makes an important caveat: based on hotline contacts, it’s impossible to distinguish precisely how many cases relate to legal skill games and how many are tied to illegal slot machines that masquerade as “skill games.”

Accessibility as the broader trend

In addition to online betting, there is also an offline alternative. The Pennsylvania Lottery remains one of the most popular forms of gambling, and lottery kiosks are ubiquitous. For many, picking up a ticket “on the way” to the store is far easier than making a special trip to a casino. The underlying driver, in the professor’s view, is the same: accessibility, not competition with skill games.

Surveys don’t confirm a “shift” of players

Zaleski cites studies that refute the hypothesis of customer outflow:

• An independent survey found that skill-game players visit casinos more often than those who don’t play these machines.
• Annual Penn State University surveys indicate that skill-game players are also more active in the lottery and other forms of gambling.

The author’s conclusion: these consumers are not choosing “one instead of the other,” but are spreading their activity across several platforms at the same time.

Layoffs can’t be explained by a single factor

Zaleski insists that casino layoffs can’t honestly be blamed on a single factor. The set of reasons is much broader: a poor location, pressure from online competitors, broader economic conditions. A telling example from recent history: Nemacolin Resort in rural Fayette County announced major layoffs back in 2013, long before skill games appeared. Structural problems in the industry existed even before the current disputes.

A live experience you can’t digitize

Still, the author doesn’t paint a hopeless picture. Brick-and-mortar casinos retain advantages that digital platforms can’t offer: live shows, restaurants, the atmosphere of a social occasion. Success is still possible, but it requires adapting to the changed market.

What Zaleski says to focus on

The professor’s recommendation is aimed at both lawmakers and industry leaders. If the goal is to support brick-and-mortar casinos, the focus should be on the real forces driving the transformation: the rapid growth of the online segment, post-pandemic shifts in consumer behavior, and competition based on consumer convenience. Looking for a convenient culprit in the form of skill games, Zaleski believes, only distracts from solutions that can truly change the situation.