Pennsylvania Releases Casino Gaming Study: iGaming $184m in First Year

Kendall James May 7, 2014 1215 Reads

Pennsylvania has released The Current Condition and Future Viability of Casino Gaming in Pennsylvania, the full report can be found here. The report was commissioned on December 13, 2013 and is a long awaited study into the future of gaming in the state.

The study found that the largest potential new revenue source is iGaming. The forecast for the first year is $184 million and $307 million after that. Although, if the rollout encourages growth the study states that the first year could be as high as $307 million. It also found that the net effect would be complimentary and not cannibalize existing land based casino revenue.

Cannibalization

The study found that iGaming and offline gaming cater to different markets. It found that iGaming substitutes for other forms of home entertainment rather than traditional offline gaming. The study also mentioned that it can be “synergistic and generate an increase in casino foot- traffic” as players become more comfortable with poker.

Pennsylvania iGaming Tax

The report suggests taxing iGaming slightly more than Pennsylvania land based operators because of their lower operating costs. The study uses 20% poker and 60% for online slots as an example. Although, it suggests that they start the industry at lower rates to help with network effects and competing offshore sites..

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