Pennsylvania Legislature has passed online casino, poker and dfs

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:

PA Online Gambling Analysis

 

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:

$275 million

 

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:

Upfront fees

Upfront license fees would immediately inject some $120 million dollars into the state budget, helping PA to balance the budget without new taxes.

Revenue tax

Revenue taxes would generate tens of millions a year, providing a steady stream of reliable revenue for the state moving forward.

Renewal fees

License renewal fees ensure that the state is receiving sufficient funding to cover the cost of regulating online casino and poker games.

Projected license fees from online gambling:

$120 million

 

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Online poker will contribute, but faces questions

Players

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.

Innovation

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.

Interstate

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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