Long before Pennsylvania legalized and regulated online casinos, casino operators were already preparing for the day it might happen. In fact, as soon as New Jersey online casinos in late 2013, Pennsylvania operators started paying attention. Now, with Pennsylvania online casinos and online poker expected to launch in early 2019, the PA properties are starting to gear up to log on.

PA online casino partnership tracker

Here is a look at the land-based casinos, QGEs, and their partners and application status:

CasinoExisting online partnersPotential or speculated partner Sports betting partnersInteractive application statusSports betting application status
Harrah’s888N/AScientific GamesConditionally approvedLaunched Jan. 22, online pending
Hollywood (Penn National)N/AIGTWilliam HillConditionally approvedLaunched Nov. 15, online pending
MeadowsN/AIGTWilliam HillDid not applyHas not applied
Mount Airy888 / PokerStarsN/ABetStarsConditionally approvedHas not applied
ParxGANN/AKambiConditionally approvedLaunched Jan. 10
RiversSugarHouse / Rush Street InteractiveN/AKambiDid not applyLaunched Dec. 13, online pending
Sands BethlehemN/AN/AN/AConditionally approvedHave not applied
SugarHouseRush Street Interactive / KambiN/AKambiConditionally approvedLaunched Dec. 13, online pending
Valley ForgeIGT / GANpartypoker / GVCFanDuelConditionally approvedConditionally approved, mid-March launch
Stadium Park Philly Live! CasinoN/AGANN/AConditionally approvedHave not applied
Presque Isle DownsGolden NuggetNetEntSBTech, IGTConditionally approvedApplication pending
Lady Luck NemacolinN/AN/AN/ADid not applyHave not applied
Mohegan Sun PoconoN/AKindredN/AConditionally approvedHave not applied
MGM Resortsbwin.partypartypoker / GVCN/AApproved as QGENot eligible
Golden Nugget NJNYXN/AN/AApproved as QGENot eligible

Table last updated: Jan. 24, 2019


Some casinos got on the ball early, most planned ahead, and some are still unsure if they will even take part. Given the incredibly high tax rates, unlike New Jersey, the market is not a no-brainer money maker for casinos.

The application window for casinos began in May. Casinos had 90 days to turn in an application for a comprehensive package of the three available licenses. For $10 million, casinos got the following:

  • Peer-to-peer game license to offer things like online poker
  • Online slots license
  • Online table games license

In total, eight casinos applied for the $10 million license. They are as follows:

After the period for applying for all-in-one applications closed, two more Pennsylvania casinos jumped in the fray via a la carte $4 million interactive licenses.

Presque Isle Downs applied for both online casino slots and online casino table games for a total of $8 million.

In a somewhat surprising move, Mohegan Sun Pocono applied for all three interactive licenses, costing them $12 million instead of the $10 million it would have cost had they acted earlier.

Rivers Casino initially applied for a wholesale interactive license but elected to rescind that application before it was processed. In a related move, Stadium Casino withdrew its online poker portion of its application, resulting in a $2 million refund.

That left a grand total of 11 a la carte interactive licenses.

In September 2018, the PGCB approved the process for qualified outside entities to apply for the remaining licenses. Any qualified gaming entity (QGE) can submit their company for considerating by the board, so long as they are operating in a regulated gaming market.

The window for QGEs to apply closed on Oct. 31. During that period, two big names from nearby New Jersey threw their hats into the ring. MGM Resorts used Borgata’s New Jersey casino license to apply for all three. Golden Nugget in Atlantic City also applied, but only for slots and table games, not poker.

PGCB approved the two as QGEs in January. The next step for both is to turn in their interactive license petitions.

Online casino partnerships

Long before Pennsylvania lawmakers legalized online casinos, land-based operators started teaming up with software providers and existing New Jersey online casinos. These casinos all brokered deals with potential real-money gaming providers, be it directly or indirectly with its Pennsylvania properties.

Harrah’s

As part of Caesars Entertainment, Harrah’s has been good to go online from the jump. Caesars is the only company operating online gambling products in both Nevada and New Jersey. An online casino product, as well as an online sportsbook, is expected in the Spring of 2019.

Mohegan Sun Pocono

The tribal operator gained experience operating an online casino thanks to Resorts Casino in Atlantic City. Mohegan Sun manages the day-to-day of the land-based New Jersey casino. As a result, the company has experience working with both PokerStars and software provider Nyx. Scientific Games finalized its acquisition of Nyx in January 2018.

Mount Airy Casino

Mount Airy Casino is one of the mid-tier casinos in the state. As such, it aimed to get into the online game, where it could be more competitive. The property signed a deal with 888 in 2015 and is expected to launch an online casino application in 2019.

The casino also announced an expansive partnership with The Stars Group. With the deal, not only will the company use the PokerStars brand for online poker and online casino, but it will also leverage the BetStars sports betting brand in Pennsylvania.

Parx

The Philadelphia casino Parx is the top dog of land-based casinos. When it came to online casinos though, Parx brass was less keen on passing online gambling than others. Justifiably, the casino didn’t want inferior land-based partners to gain ground because of a superior online product.

Nonetheless, Parx signed a multi-year agreement with online casino software provider GAN in 2014. GAN already launched a social casino bearing Parx’s name. An online casino is expected to launch sometime in 2019.

The property also operates a retail sportsbook which launched Jan. 10. Additionally, Parx plans to join the online sports betting market sometimes in the Spring of 2019.

Presque Isle / Churchill Downs

In January 2018, horse racing juggernaut Churchill Downs purchased the Erie, PA racino Presque Isle Downs. At the time of purchase, Churchill Downs readily admitted that gambling expansion, particularly online gambling, and sports betting, were areas the company wanted to expand into.

Presque Isle Downs has partnered with Golden Nugget for its online casino which is expected in the second half of 2019. The property is also expected to launch a retail and online sportsbook in the coming months.

Penn National

The Meadows and Hollywood Casino partnered with IGT for their PA products. Additionally, William Hill operates the casinos’ sports betting offerings which include a retail sportsbook that launched Nov. 17. An online sportsbook is expected in Spring 2019 as well as an online casino in the second half of the year.

Sands Bethlehem

At the Oct. 3, 2018 meeting discussing its interactive gaming plans, Sands Bethlehem was more than a little candid about its disdain for online gambling. However, because the sale of the property to the Poarch Band of Creek Indians (PCI), they presented and applied on behalf of the new ownership. Meanwhile, PCI cannot move forward with a gaming partnership until the sale is closer to final.

SugarHouse and Rivers

Rush Street Gaming owns and operates both Rivers in Pittsburgh and SugarHouse Casino in Philadelphia. The casino is expected to launch an online casino application sometime in 2019. The company also includes an online wing, Rush Street Interactive.

In 2016, Rush Street launched a SugarHouse-branded online casino in New Jersey, leveraging the casino’s large customer base in the Garden State. PlaySugarHouse.com operates under Golden Nugget’s online casino license. However, there are some rumors that Rush Street will up its game with a partnership with NYX/Scientific Games.

Valley Forge

The Boyd-owned property has an online casino deal in place with IGT and GAN to power its in-house online gaming offerings. The property has been conditionally approved to launch an online casino in the second half of 2019. It could also leverage its longstanding partnership with GVC/partypoker for the online poker element of its operations. Additionally, Valley Forge plans on launching a retail sportsbook in March/April 2019.

 

Our analysis of Pennsylvania online casino impact

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.

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.


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.