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Pennsylvania Gambling Expansion Nears $400 Million for the State in First Year

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Pennsylvania Gambling Expansion Nears $400 Million for the State in First YearReading Time: 2 minutes

 

Upfront licensing fees a short-term boon for state coffers, but revenue from gamblers will still have to wait, says PlayPennsylvania.com

 

Gambling has injected more than $385 million into Pennsylvania coffers in the first year since a law was passed to expand gambling in the state, surpassing state budget estimates. Upfront licensing fees for casinos, online casinos, and sportsbooks, as well as mini-casino auction profits and tax revenue from lottery expansion and daily fantasy sports, have combined to net Pennsylvania more than $1 million a day since late 2017, according to a recent analysis by PlayPennsylvania.com.

“The most notable aspect of the significant revenue that has been generated is that this is almost completely from fees, rather than tax revenue gained from gamblers,” said Jessica Welman, analyst for PlayPennsylvania.com. “Clearly there is enough interest in Pennsylvania’s enormous market so far to generate the fees.”

The revenue estimates were tabulated by PlayPennsylvania.com using a combination of official statistics and estimates based on iLottery, keno, and virtual sports sales numbers. A detailed accounting of the revenue generated so far can be found at playpennsylvania.com/revenue.

Using return-to-player rates of the games, PlayPennsylvania estimates that the state has collected more than $23 million in revenue from online lotto games ($19.6 million), keno ($3.6 million), and virtual sports ($87,000) through October.

Other sources of revenue so far from the law include:

  • Mini-casino auction profits, $128 million
  • Interactive gaming petitions, $94 million
  • Casino licensing, $78 million
  • Sports betting petitions, $60 million
  • Daily Fantasy Sports tax revenue, $1.4 million

By comparison to the gambling expansion, the state collected $799.8 million in taxes from statewide slot revenues in fiscal 2017-18. Pennsylvania estimated in February that the state will generate more than $34 billion in general fund revenues for its 2018-19 fiscal year.

“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,” Welman said. “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.”

With the November opening of the sportsbook at Hollywood Casino at Penn National, the rollout of sports betting is just beginning in Pennsylvania. More openings are expected in December and January, too.

In addition, Pennsylvania should begin adding revenue from online gambling in early 2019, and further down the line, mini-casinos should enter the fray.

“The addition of retail sports betting should help buoy a slowing Pennsylvania casino industry,” said Dustin Gouker, lead sports betting analyst for PlayPennsylvania.com. “If New Jersey is any indication, though, the more significant revenue generator will be online sports betting. A successful rollout there should generate millions of dollars in tax revenue for the state.”

 

About The PlayUSA Network:
The PlayUSA Network and its state-focused branches (including PlayNJ.com, PlayNY.com, PlayPennsylvania.com, and PlayCA.com) is a leading source for news, analysis, and research related to the market for regulated online gaming in the U.S.

 

Source: PlayPennsylvania.com

Source: Latest News at European Gaming Media

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New partnership of EGT Interactive with the esteemed operator Videoslots

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We are delighted to announce that the high value casino operator Videoslots has integrated our well-known and preferred content. This partnership has a big importance for our company as it gives us the opportunity to strengthen our positions as a leading provider in territories with big potential. As a first step we will launch our high-quality content in the so called .com territories, covered by our new partner.

Todor Zahariev, the Managing Director of EGT Interactive, commented: “As an ambitious company we are very proud, that Videoslots put faith in our reliable and top-notch content. This partnership is a strategic step, as in accordance to our long-term development strategy to enter new markets, we are expecting our successful partnership to expand also in Sweden. Territory, which we consider as top priority. Sharing common values such as security, excellence, integrity and passion, we believe that we will be a great partner for Videoslots and will be able to deliver the ultimate experience to their dedicated players.”

What the Management of Videoslots commented: “The Videoslots team is continually striving to become the world’s biggest and best online casino and we have ensured our players have access to even more high-quality games than ever with this deal. EGT Interactive’s quality portfolio is full of exciting games blended together with immersive graphics, exciting maths models and engaging narratives. Our players are sure to love our latest editions.”

Source: Latest News at European Gaming Media
This is a Syndicated News piece. Photo credits or photo sources can be found on the source article: New partnership of EGT Interactive with the esteemed operator Videoslots

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Spain’s Ombudsman Calls for Gambling Ad Ban

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Francisco Fernández Marugán, Spain’s acting Civic Ombudsman, has recommended the Spanish government to issue a complete ban on advertising gambling products and services. Marugán addressed the recommendations to the Ministries of Finance and Health, Consumer Affairs and Social Welfare.

The ban would mean that operators would be prohibited from displaying any form of broadcast pertaining to gambling products and services before a particular time, in addition to the prohibition of celebrity endorsements and gambling signage at sporting events.

Marugán has stated that any operator found to be in contravention of the proposed ban could result in the cancellation of an operator’s license, however, this can only be justified if a total ban is imposed.

Marugán considers that the advertising of gambling and bets “should not be considered protected in the freedom of business, as it is not in products such as tobacco or addictive substances.”

Source: Latest News at European Gaming Media
This is a Syndicated News piece. Photo credits or photo sources can be found on the source article: Spain’s Ombudsman Calls for Gambling Ad Ban

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Authentic Gaming Partners with Volcanobet

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Authentic Gaming, the Malta-based gaming solutions provider, has signed a deal with Volcanobet, the leading Montenegro online sportsbook and casino provider. As per the deal, Authentic Gaming will be the exclusive provider of live casino games to Volcanobet.

Volcanobet can now access the Authentic Gaming’s full suite of games including Authentic Roulette, Blaze Roulette, Casino Floor Roulette and Live ARENA games.

“We really enjoy creating solutions for niche and emerging markets which is why I’m delighted that we can demonstrate our full capabilities to Volcanobet, a company that has proven to be a real market leader. To be the exclusive partner of Volcanobet is also a fantastic opportunity for us to help create a new trend within the Montenegro player community and we can’t wait to play such an integral role in the company’s future strategy,” Jonas Delin, CEO, Authentic Gaming said.

“We are famed within Montenegro for providing the best online betting and casino product in the market. Adding Authentic Gaming to our portfolio ensures that we are continuing our position as market leader whilst evolving our product range to provide more choice, added excitement and bespoke solutions to keep our players coming back. This is especially interesting as the Montenegrin market is very receptive to roulette, and we will now be working with a live roulette provider that offers that widest variety in the industry,” Sveta Vasiljevic, CEO, Volcanobet said.

Source: Latest News at European Gaming Media
This is a Syndicated News piece. Photo credits or photo sources can be found on the source article: Authentic Gaming Partners with Volcanobet

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