Poll: Should operators look to the US now Pennsylvania is coming online?
The Keystone state will soon become the fourth US state to regulate egaming
Pennsylvania last week passed a bill to legalise online gambling in the state, including casino, poker lottery, DFS and even sports betting should the federal ban on betting be struck down.
The state boasts a population of around 13 million people, making it larger than neighbouring New Jersey, where annual egaming revenues are expected to near $250m in 2017.
The bill also allows for the agreement of poker liquidity compacts with other states, suggesting poker revenues could be material.
It all means more operators could be looking to the US as a viable growth market. Neighbouring New York, for instance, is also rumoured to be planning an online casino and poker bill for next year, which could be spurred on if Pennsylvania and New Jersey are both reaping big tax revenues from online gaming.
However, there are also some downsides that could stop operators from targeting the US. Slots revenues, for instance, are taxed at 54%, meaning firms may have to get creative with their table games to beef up revenues.
Likewise, a licence for all of the egaming verticals will set a firm back $10m in upfront fees.
Gavin Kelleher of Goodbody noted: “It appears that it could be difficult for a profitable online market to develop in a state of 13 million people.”
With that in mind, this week we’re asking if more firms should be looking to the US now Pennsylvania is opening up, or if the size of the current market and the tax rates make it more trouble than it’s worth for now.
Have your say below:
Poll: Should operators look to the US now Pennsylvania is coming online? https://t.co/xiyTHVzTn3
— EGR Global (@EGRIntel) October 30, 2017