Pennsylvania is reaping the rewards for legalizing sports betting. The Pennsylvania gambling expansion earned almost $400 million in 2018. Not to mention, all of it came from upfront licensing fees alone. Moreover, it doesn’t include revenues from online gamblers.
At present, only three casinos operating in the state offer sports betting. These are Hollywood Casino, SugarHouse Casino, and Rivers Casino. Among the three, only SugarHouse is gearing up to offer online sportsbook. Pennsylvania residents can expect sports betting app to show up within the year.
The revenue from Pennsylvania gambling expansion surpassed its estimates. Since late 2017, the state earned more than $1 million daily from licensing fees. It shows the state is a lucrative market for sportsbook pay per head and other online gambling services.
Pennsylvania Gambling Expansion Fills Gaps in State Budget
The gambling expansion filled short-term gaps in the state budget. However, industry insiders are still uncertain about its future. Only time can tell how sustainable it will be in the long term.
According to experts, the state charges high fees and taxes to other states. The high fees can discourage operators from investing in PA. Instead, they will go to states with lower tax rates.
On a good note, the state will begin earning from online gambling in the first quarter of 2019. According to analysts, sports betting can help sustain the sluggish casino industry. Once the state attracts more operators, it will earn more in taxes.
If New Jersey’s gambling industry is a gauge, sports betting will be the top revenue earner. However, NJ has lower taxes than PA. That’s why the former attracted more sports betting solutions. In fact, operators pay 9.75 percent on sports betting revenues. In comparison, PA operators pay 36 percent taxes.
Pennsylvania earned almost $800 million from slots. In addition, it expects more than $34 billion in revenues for the fiscal year 2018-2019. Overall, it will be a good year for the PA gambling industry. The expansion is a good move by the state.
