Pennsylvania Casino iGaming License to Cost $10 Million

pennsylvania casinoThe state of Pennsylvania has made some amendments to the gaming regulations and gambling laws. It has now allowed the land-based casinos to apply for a bundled license which would allow them to offer the online casino games which are already available on their brick and mortar casino sites.

Pennsylvania now becomes the fourth state in the United States by the end of 2017 for legalising online poker games. The remaining three states are Delaware, New Jersey and Nevada.

The initial response was not strong because all the land-based casinos were not interested in applying for the iGaming license. They were of the opinion that the state government charges an exorbitant amount of taxes on the casino games and they would not be able to make any profit in return.

However, it is interesting to note that three land-based casinos in Pennsylvania had applied for the iGaming license just a couple of days before the July 16, 2018 deadline which was the last date to apply for online casino gaming license.

Till now, only three eastern Pennsylvanian casinos have shown interest in applying for the license of online casino, and the fourth casino is still on the fence.

It is said that the bundled iGaming license would cost approximately $10 million and has to be filed before the deadline. Hence the fourth casino does not have much time to ponder and has to make up its mind soon.

However, if the casino is unable to apply within the stipulated deadline, they are free to apply for a separate license for offering poker, table games and slots. However, the casino has to pay $4 million for an individual license. The last date for applying for a separate gaming license is valid till August 31, 2018.

If the casinos don’t apply for the iGaming license, they would not be eligible for entering the online gambling market of Pennsylvania.

It is to be noted that all the state-run 13 casinos are not excited about the online gaming because they are not interested in paying 54% gaming tax. This tax will be applicable on all the online casinos, and the operators are not ready for it.

This lack of interest from the land-based casinos is a massive blow to the hopes and aspirations of the state legislators. The legislators were hoping that the online casinos in the state would pave the way for additional income and would contribute to making the economy strong and healthy.

High Tax and License Fees are not worth the Choice

A majority of the land-based casinos in the western Pennsylvanian region like Presque Downs & Casino in Erie County and Lady Luck Casino Nemacolin in Fayette County are not interested in applying for an online gaming license.

According to some experts, they are of the opinion that huge amount of licensing fees and tax charged on the online games is not convincing the land-based casinos to apply for the iGaming license. It would be difficult for them to make a decent profit, and the state government would suck the majority of the revenue.

In a statement, Chris Grove, who is an analyst for PlayUSA website, says:

If this were an all-or-nothing deadline, then it would be a critical date, but given the dynamics in which so few may be interested in offering online poker, I don't know if the number of applications you see by Monday will be an accurate barometer of the market.

The online gaming revenue would be far less than the land-based casinos, but the casino market in Pennsylvania would grow to a great extent in the coming times. Online gaming is just one small segment of the gambling expansion of Pennsylvania and the state legislators are planning for bringing online and offline sports betting shortly.

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