Analysis: Pennsylvania Moves To Regulate Online Gambling
Inside Pennsylvania's proposed online gambling market
In partnership with OnlinePokerReport.com, PlayPennsylvania.com has produced a new white paper: “Analysis: Pennsylvania Moves To Regulate Online Gambling.” This free paper (available for download below) provides an objective look at the key points of the recently-passed online gambling bill, the revenue potential for Pennsylvania’s casinos, and the tax potential for the state.
Read and download the free white paper below:
Pennsylvania casinos gain revenue from a largely new market
The casinos spread across Pennsylvania all stand to benefit significantly from regulated online gambling. Our base case projections call for first year revenue of $154 million, increasing to $275 million annually by year 5. These projections are broadly consistent with the performance of New Jersey’s legal online casino market. Critically, numerous pieces of evidence suggest that this revenue will largely be new revenue from new customers, and not simply a reshuffling of existing casino revenue.
Projected annual revenue from PA online gambling:
Hundreds of millions in revenue flows to the state
We estimate that Pennsylvania would see over $400 million in tax revenue in the first five years. There are three primary sources of revenue from regulated online gambling for the state:
Projected license fees from online gambling:
Online poker will contribute, but faces questions
Pennsylvania is a large state, but still modest one in terms of the number of unique poker sites the market can support. If too many rooms spread that player base too thin across the state’s online poker rooms, the market at large could suffer.
Online poker is long past the point of novelty. New games and new features will be required both to allow regulated online poker sites to compete against offshore sites and to compete against other games vying for consumer spend.
Will PA join forces with other states that have legal online poker? If the player base can expand to include populations in New Jersey, Nevada, and Delaware – along with any states that follow PA – online poker in all participating states would benefit.
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