Pennsylvania potentially an online casino gold mine

Published on March 9, 2017 in Industry News

Pennsylvania online casino industryPennsylvania is one of the few states that opted for legislation that would allow online gambling and generate more revenue for the state. 

In a recently published white paper report, industry analyst Robert DellaFave revealed that US casinos in Pennsylvania could generate up to $230 million (€218 million) in the first year of a proposed, legalised online gambling market.
 

"According to the report by DellaFave, casinos could collect over $360 million in online gaming revenue by the fifth year of a regulated market in the US state."

Online gambling revenue  

A legalised market could ultimately bring in $420 million in tax revenue in the first five years alone simply due to legalised online gaming activity. DellaFave stated that the numbers provided in the white paper were guided by the regulated market of New Jersey and could ultimately differ should Pennsylvania choose to opt for a different tax rate for their online gambling operations. 

New Jersey started off quite poorly in regards to the online gambling market but the revenue numbers rose rapidly with a growth margin of 60.1%, from $122.9 million in 2014 to $196.7 million in 2016. Should Pennsylvania choose to add extreme tax rates or license fees they could end up limiting their own possibilities.  

Excessive costs could scare potential online operators away as it would influence their promotions, casino games, and overall performance.