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Online Gaming in Pennsylvania (USA)

Authored by - Hensel Grad P.C. (Last updated Dec 2022)

Overview

Open

Pennsylvania (USA) Online Gaming Overview

Regulated
The Pennsylvania Gaming Control Board oversees legalised gaming in the state. Pennsylvania offers a broad range of regulated gaming options including land-based casinos offering slots, table games and sports wagering; igaming offering slots, table games, poker, and sports wagering; fantasy contests; and video gaming terminals at truck stops. Pennsylvania’s most recent expansion of gaming was in 2017 when the state legislature amended the Race Horse Development and Gaming Act (Gaming Act) to allow online casino and sports wagering among other products.

Market size
With a population base of nearly 13 million, Pennsylvania is the fifth largest state in the U.S. It has 16 land-based casinos and has also authorised icasino (also known as interactive gaming), sports wagering, video gaming terminals at truck stops and fantasy gaming. Combined revenues for 2021 topped USD 4.7 billion.

Competitive landscape
There are numerous operators offering icasino and online sports wagering in the state.

While the igaming industry in Pennsylvania is in its infancy, it provides an excellent opportunity for both established and new igaming companies at different points in the technology stack to enter a growing market in one of the largest population states in the U.S.

Localisation
Pennsylvania’s igaming industry accepts most payment methods for players to fund their accounts. Advertising is available through traditional print and broadcast media and through digital resources including marketing affiliates.

Top Key Attractions and Challenges
Attractions

  • Pennsylvania has located its land-based casinos near population centers in the state. It allows its land-based operators to offer igaming and sports wagering via the internet using branded skins.
  • The state’s large population base and prominent professional sports teams make it an attractive place for online wagering products.

Challenges

  • Online gaming must be offered in partnership with land-based casino operators.
  • Each casino may only offer a maximum of two sports wagering branded skins – one for retail operations, the other for online operations.

Licensing & Regulation

Well-regulated / Unregulated (Open)

Pennsylvania (USA) Online Gaming Licensing & Regulation

Online casino wagering is authorised under the Pennsylvania Race Horse Development and Gaming Act. In Pennsylvania, licensing is overseen by the Pennsylvania Gaming Control Board.

Licence Triggers
Pennsylvania requires some form of licensure, certification, registration or authorization for any company interested in engaging in certain aspects of regulated gaming. This includes operators who seek to take real money wagers...

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Enforcement

Regular / Punitive

Pennsylvania (USA) Online Gaming Enforcement

Regulating bodies
The Pennsylvania Race Horse Development and Gaming Act is strictly enforced by the Pennsylvania Gaming Control Board. The enforcement and prosecution arm of the Pennsylvania Gaming Control Board is the Office of Enforcement Counsel (“OEC”). The OEC prosecutes all non-criminal enforcement actions. It works in conjunction with the Bureau of Investigations and Enforcement (BIE), which is the...

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Marketing

Permissive

Pennsylvania (USA) Online Gaming Marketing

There are limited restrictions in Pennsylvania regarding marketing. There are two requirements for any gaming advertisement in Pennsylvania that apply to all gambling advertisements: 1) no advertisement is false or misleading, and 2) any advertisement must contain a problem gambling assistance message including a toll-free telephone number. Marketing affiliates for icasino and sports wagering are required to apply to and...

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Fees

High

Pennsylvania (USA) Online Gaming Fees

Pennsylvania requires three types of licensing fees from most licensees and applicants: 1) an application fee, 2) a licensing fee, and 3) a renewal fee. All fees described are in USD.  Applicants may also be responsible for some investigation related costs.

Application fees
A schedule of Pennsylvania’s fees can be found via the GCB website.

Ongoing fees
Licenses are valid...

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Taxes

High

Pennsylvania (USA) Online Gaming Taxes

Licence taxes
Pennsylvania imposes a tax of 14% on daily gross interactive gaming revenue for peer-to-peer interactive games and non-peer to peer interactive games that simulate table games. Pennsylvania imposes a tax of 52% on daily gross interactive gaming revenue for nonpeer-to-peer interactive games which simulate slot machines. There is an additional local share tax equal to 2% of...

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Future Outlook

Positive

Pennsylvania (USA) Online Gaming Future Outlook

The outlook for gaming in Pennsylvania is generally positive. The popularity of online gaming and sports wagering continues to grow and companies continue to seek licences in the state to offer their gaming related products.

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Legal Expert

Hensel Grad P.C.

Office locations Pennsylvania, USA

Hensel Grad is a boutique gaming law firm offering counsel and advisory services to companies interested in launching or expanding business in the U.S. Hensel Grad is experienced at helping companies navigate the various U.S. gaming jurisdiction laws and regulations. From strategy to licensing to compliance, Hensel Grad is available to assist gaming companies in achieving their U.S. goals.

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Contact Pennsylvania (USA) - Hensel Grad P.C.

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