The Keystone State joins the ranks of US territories where virtual wagering is now permitted. Governor Tom Wolf has put his signature on a bill that comprehensively regulates online gambling.

This legislation, which passed both the House and Senate, paves the way for the regulation and authorization of online poker, slots, and table games across the state.

Pennsylvania’s existing brick-and-mortar casinos are now eligible to apply for online gaming licenses, enabling them to provide their services to players via desktops, mobile devices, and tablets.

The cost of obtaining a license is set at $10 million (€8.6 million). However, if some of these licenses remain unclaimed following the initial rollout, they will be offered at a reduced price of $4 million to specific groups.

Pennsylvania has established a 54% tax rate on online slots, while internet table games and poker will be subject to a 16% tax.

The state lottery is now authorized to sell lottery tickets online. Moreover, the bill opens the door for daily fantasy sports operators to begin offering their services in Pennsylvania, contingent upon Congressional approval of such activities on a national scale.

This proposed legislation would also enable the creation of ten modest gambling establishments within the state. Additionally, it would permit truck stops to operate video gaming terminals, and travelers at Pennsylvania airports would be allowed to engage in games on tablet devices.

However, this proposal has not received unanimous support within the state. Chris Sheffield, a senior executive at Penn National, a Pennsylvania casino operator, has expressed disapproval of the 54% tax levied on online slots, deeming it impractical.

Penn National holds one of the licenses for the twelve existing brick-and-mortar casinos in Pennsylvania and is eligible to obtain one of the newly issued licenses. Sheffield stated to iGaming Business that he does not foresee any potential for profitability unless operations are sustained over an extended period.

“While we are pleased to see this initiative progressing, the 54% tax rate on online slots is the highest globally,” Sheffield remarked.

“This rate is entirely unfeasible. The sole motivation behind individuals acquiring licenses is likely to actively advocate for a reduction in the tax rate to a level that enables financial gain from operations.

“We have conducted numerous calculations, and considering the license fees, initial expenses, and ongoing costs, we are unable to comprehend the financial viability.

“I genuinely struggle to envision how anyone can generate a return unless they intend to operate for an extended duration. It is probable that some early operators will cease operations at some point, as has occurred in nascent markets previously.”

Delaware, Nevada, and New Jersey are among the few states in the U.S. that permit some form of internet wagering.

Connected narratives:

Pennsylvania National Gaming condemns Pennsylvania’s online slots tax as “unfeasible”

Pennsylvania’s House of Representatives joins the Senate in passing a gambling bill

Pennsylvania’s Senate approves a bill to expand gambling

Sign up for the iGaming newsletter.