In the twelve months since a massive gaming expansion amendment was actioned in Pennsylvania the state has made more than $385m. A report from Play Pennsylvania has shed light on the positive performances which come in at almost quadruple of the initially-projected $100m figure.
The majority of this contribution to state funds came from direct licensing fees and not from revenue sharing agreements, serving to high- light the operator demand for the new offerings.
Expansion legislation allowed those already operating land-based venture to add online casino gaming, slots, lottery and sports betting to their existing portfolios although some are only now just receiving licences.
All this will be of great news to those tasked with making up the $2.2bn budget deficit Pennsylvania was facing last year especially after many in the industry voiced concern that high levels of taxation could deter uptake.
Having paid out for the licences themselves it now would seem unlikely that operators will be dissuaded by the exorbitant rates and will instead be hoping to emulate the online gaming successes already being seen in Atlantic City
“If the point of the expansion was to fill short-term gaps in the state’s budget, then the expansion would have to be considered a success so far,” said Play Pennsylvania analyst, Jessica Welman.
“We believe that the gambling expansion will eventually prove to be a winner for the state’s budget, but the long-term picture is less certain. More casinos and sportsbooks must open before we get a clear picture of whether Pennsylvania’s relatively steep tax rates and license fees will produce the desired outcome.”