The Pennsylvania Gaming Control Board (PGCB) announced today that it will soon begin accepting petitions from state brick-and-mortar casinos seeking to operate their own online gambling sites. The news further solidifies the timeline for the PA Internet gaming industry, and offers clues as to when such sites might open for business.
Choice of three flavors
Starting on April 16, the state’s land-based casino permit holders will have the opportunity to solicit one of 13 available Internet Gaming Certificates. Operators will have 120 days to submit their application, after which time outside entities may snap up any remaining licenses. Gaming suppliers and manufacturers, such as geolocation technology providers, can apply for approval a little earlier, on April 2.
Instead of allowing casinos to offer a full suite of gambling games for one all-inclusive price, though, regulators have opted to divide them up into three categories:
- Peer to peer games (i.e. online poker)
- Slot machines
- Table games
Casinos have the choice of purchasing a certificate to offer all three for the low-low price of $10 million, or can choose any vertical of the group for $4 million a pop.
Operators willing to pony up the cash for a bulk license will receive preference, and will be the only ones allowed to apply for a certificate within the first 90 days. After that time, and for a period of 30 days, casinos may purchase licenses for their preferred game types piecemeal.
What happens to leftover certificates?
When PA lawmakers passed online gambling legislation last year, they did so with enormous tax rates and fees attached. The high cost of operation will cause many operators to think twice about getting involved in the industry, leaving open the possibility that not all licenses will be sold.
The recent PGCB announcement addresses that potential outcome, stating that “qualified gaming entities” may purchase any leftover licenses after the initial 120-day window closes. While it’s unclear exactly which outside entities will be eligible, we suspect that land-based casinos in New Jersey, like Golden Nugget, or Garden State iGaming operators, like 888, will have a shot at picking up their own permit.
That eventuality could spell trouble for the state’s homegrown, upstart online casinos, which would be forced to compete with NJ operators who already hold years of experience in the industry.
Which casinos will get involved?
Only a handful of casinos have made public their plans for online gambling, while others are still weighing the pros and cons of getting into the game. That said, here are the operators who have confirmed that they will participate, along with their software partners:
- Parx Casino: GAN
- Mount Airy Casino Resort: 888
- SugarHouse Casino: Rush Street Interactive
- Rivers Casino: Rush Street Interactive
Estimated launch date
Today’s announcement gives us a much better idea of when we can expect PA online casinos to make their debut. Taking the initial 120-day application period into account, and adding another 90 days for PGCB approval, we estimate that state iGaming sites could be up and running by November.
The New Jersey Division of Gaming Enforcement had similar terms written into its regulations. For comparison, gaming sites there launched around nine months after the application process began.
PA will have the benefit of learning from its neighbor’s trials and tribulations, and will hopefully launch its online casinos in a smoother and more timely fashion.
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