Big Plans for Rutter’s Video Gaming Terminals in Pennsylvania
Rutter’s is a well-known central Pennsylvania gas station and convenience store that just announced an aggressive expansion plan. The company is opening up at least 50 new locations in the next five years.
The new policy includes further video gaming terminal installations in stores. Aside from more VGT, Rutter’s will get an improved look with renovations and a broader selection of alcohol.
Currently, the company holds 82 locations in The Keystone State, Maryland, and West Virginia. As for Pennsylvania stores, video gaming terminals are present in 21 locations. In addition, Rutter’s is the most significant state-licensed gambling operator outside of casinos.
The expansion plans will reach some new locations as well. Rutter’s focus will be on the area west of Pittsburgh, north of Altoona, and near Philadelphia. They are also expanding to a few new markets like Virginia and Delaware.
Better Regulation of Video Gaming Thanks to Rutter’s
Rutter’s new locations will bring the brand to new customers, and along with the gas stations and convenience stores, they will have access to video gaming terminals.
In the press release, Company’s CEO Scott Hartman shared that food service innovation, customer experience, and large breadth of offerings are the main reasons why Rutter’s became a customer favorite.
The state Gaming Control Board (PGCB) sees gaming terminals similar to slot games that pay real money in PA casinos. They share the exact mechanism behind the game. Outcomes are determined by random generation. The state regulation set the maximum bet at $5, with the most significant potential win being $1000. Like slot machines, regulators set the minimum theoretical payout at 85%, which is the same RTP (return-to-player) as PA slot machines.
The Effect of Unregulated Skill Games on VGT Revenue
The PGCB released gaming revenue numbers for last December recently, where VGT saw a drop of 0.71% compared to December 2021. However, annual analysis shows that video gaming terminals had $42 million in gaming revenue, which is a 5.6% increase.
Three top players earn the most money in VGT. Marquee by Penn had $25 million in revenue, J&J Ventures Gaming did around $12 million, and Jango Entertainment did $4.3.
While there has been growth in VGT revenue, it underperformed, according to some experts. One disruptive factor is illegal skill games that take the players away from terminals.
Amy Christie, PA Gaming Vice President, criticized the attorney general for not engaging against unregulated skill games. Estimates speak of more than 20,000 illegal devices in Delaware County, while the number of regulated VGT and slots is under 24,000 in the entire state.
More Concerns about Skill Games
Amy Christie is not alone in her concerns about the skills games. Jay Snowden, CEO of Penn Entertainment, feels those are existential issues for the industry.
Aside from pooling players from regulated machines, skill games prevent taxation. For example, slot machines in Pennsylvania are taxed at 54%, while unregulated skill games are not taxed.
This matter came to the judicial level, where we can find several lawsuits between the skill game developers, PGCB, and the Pennsylvania Bureau of Liquor Control Enforcement.
Meanwhile, Rutter’s will bring a more regulated and taxed VGT amid its expansion plans to Pennsylvania.