Last updated: April 18, 2018

The new Pennsylvania gambling expansion law passed largely because the state desperately needed a new source of tax revenue. One of the biggest sources of that revenue will be the upfront licensing fees for all the new types of gambling.

For example, with 13 online gaming licenses comes $130 million in upfront license fees. That is money to the state before a site ever even launches. Now, the tax rate on actual online gaming transactions is still problematically high. But there is still plenty of time to change or amend those rates for peak profitability.

The state is not even accepting applications for that license yet. However, thanks to other elements of the new law, it is already raking in money. How much so far?


Law generates $51 million for PA in a matter of hours

In 2017, the state received two payments in the days immediately following the passage of the law. One was a $1 million payment from Valley Forge Casino to remove the amenity fee requirement on the Category 3 property. The other was a $50 million payment by Stadium Casino LLC for its Category 2 casino license. The group is in the process of building a casino in the Stadium Park area of Philadelphia.

Other sources of revenue from the law include:

  • Online lottery
  • Video gambling terminals
  • Mini-casino licenses

When it comes to the mini-casino licenses, the auctions are generating significantly more revenue than expected. The bare minimum of $7.5 million per mid meant the process would net at least $75 million. That was the worst case scenario.

Well, the process exceeded that number on just the second mini-casino auction. Here is a look at how much each mini casino cost its host property:

Mini-casino auction profits

Parent CasinoBid AmountLocationAdditional table games license?
Hollywood Casino$50,100,000Yoe in York CountyN/A
Stadium Casino LLC$40,100,005Derry in Westmoreland CountyN/A
Mount Airy Casino $21,888,888.88New Castle in Lawrence CountyN/A
Parx Casino$8,111,000South Newton in Cumberland CountyN/A
Hollywood Casino $7,500,003West Cocalico Township in Lancaster CountyN/A