White paper reveals potential of online gaming in Pennsylvania
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Pennsylvania casinos could generate a collective $230 million (€218 million) in online gambling revenue during the first year of a proposed, legalised market, according to a new white paper.
Published by industry analyst Robert DellaFave, the report said that by year five of a regulated market in the US state, casinos could collect over $360 million in internet gaming revenue.
Pennsylvania is one of a number of states that has introduced legislation in an effort to legalise online gambling
The publication also suggests that a legalised market could generate more than $420 million in tax revenue during its first five years of legalised online gaming activities.
However, DellaFave, who used the regulated market of New Jersey as a guide for the white paper, said results may differ if Pennsylvania opts to use a different tax rate for online gambling operations.
“Much of our optimism stems from the strong performance of the New Jersey online gambling market,” DellaFave said.
“Although New Jersey initially underperformed its exaggerated expectations, the market has grown at a torrid pace, with revenue climbing from $122.9 million in 2014 to $196.7 million in 2016: a growth margin of 60.1%.
“Extraordinarily high tax rates or licence fees could change the narrative significantly, especially for prospective online poker operators, who may find the cost prohibitive and choose to opt out of Pennsylvania.
“Online casino operators too would be forced to tighten their belts, resulting in poorer promotions, tighter games, and (perhaps) fewer operators.”
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