Rush for Pennsylvania licenses boosts official coffers

usa, licences, PENNSYLVANIA
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The Pennsylvanian gambling market has generated $385m for the government’s General Fund, since the October 2017 legislation which legalised sports and online lottery in the state.

The figure, revealed as part of a PlayUSA report which combined statistical analysis and official PGCB data, revealed online lottery alone generated $23m since legalisation.
“If the point of the expansion was to fill short-term gaps in the state’s budget, then the expansion would have to be considered a success so far,” said PlayUSA analyst Jessica Welman.
“We believe that the gambling expansion will eventually prove to be a winner for the state.”
Online-draw based games raised $19.6m, with $3.6m derived from Keno and $87,000 from virtual sports, all since Governor Tom Wolf signed the practices into law in 2017.
Despite the potential for substantial industry growth, the largest contribution to the first year figure was the $128m generated through the auction of satellite casino licences, with the $94m raised through licence fees coming in second.
Licenses for land-based casinos also posted $78m, while applications for sports betting approval contributed $60m, and the after-effects of regulation of DFS in May added a further $1.4m.
However, it is still unclear whether the potentially crippling 54 percent tax on slot revenue, expected to undermine the expansion of the market, will hinder the fledgling industry beyond the initial scramble for licenses.
The PGCB is yet to announce the date on which online gaming and sports betting will be launched across the state, though it is predicted to take place Q119.


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