Pennsylvania was the fourth state to legalize online gambling in the United States. The Keystone State followed in the footsteps of Nevada, New Jersey, and Delaware.?It helps to understand how the online gambling industry in Pennsylvania compares to other US states.
Although Oklahoma and California offer more land-based casinos, Pennsylvania brings in more gambling revenue than any state other than Nevada. With the relatively recent legalization of online gambling, the state already issued licenses to several casinos to offer online gambling. More will follow. This places Pennsylvania in an enviable position to become an industry leader in online gambling.
Key Aspects Of The Bill
| Tax Rate | 54% for slots, 36% for sports betting, and 16% for table games and poker | |||
| Licensing Fee | Initially, $10 million for poker, slots, and table games; Now, $4 million for any one of the three | |||
| Products Legalized | Slot games, table games, gambling, lotteries, sports betting, and fantasy sports | |||
| Sate Signed Into Law | Passed House and Senate October 26, 2017; Governor signed into law October 30, 2017 |
Learn more in our complete?Guide To The Pennsylvania Online Gambling Bill.
Online Gambling Products Permitted Under PA Gambling Bill
Pennsylvania legalized online gambling on October 30, 2017, when Governor Tom Wolf signed House Bill 271. The bill permitted Pennsylvania residents to engage in the following:
- Online slots, table games, and poker
- Lotteries, sports betting, and fantasy sports
- Slot machines at truck stops
- Airport gaming
Comparison Of Pennsylvania To Other US States On Gambling Products Available
Several other US states permit legal online gambling. Not all of the states, though, offer the same diversity of products as Pennsylvania. New Jersey allows online casino, poker, and sports betting, but Nevada only legalized online poker and sports betting. Delaware has online poker and casinos but did not legalize online sports betting.
Other states offer even fewer online gambling options. Indiana, West Virginia, Iowa, New Hampshire, Oregon, and Rhode Island, for instance, only allow online sports betting. This might change in the future. But for now, it cuts down on options for residents of those states because poker, slots, and table games are off the table.
As such, Pennsylvania is one of the best places in terms of online legal gambling. While it may not be the first state to offer online gambling legally, it is one of the only states that offers so many choices. Only New Jersey has the same number of options as the traditional gambling choices, so Pennsylvania stands out.
Comparison Of Pennsylvania To Other States On Tax Rates And License Fees
The tax rates on online gambling in Pennsylvania vary based on the product. A 16% tax rate is levied on table games and poker. The tax rate for sports betting, however, is much higher at 36%. For slot machine gaming online, the tax rate increases even more and sits at 54% for online casinos in Pennsylvania.
Pennsylvania?s tax rates are in the middle of the road compared to others. For example, New Jersey has a tax rate of only 15%. Delaware asks for 62.5% when you include the 50% that goes to the state and the vendor fee of 12.5%. As far as sports betting goes, the same is true. Many states have tax rates as low as 6.75%, while others require 51%, 62.5%, or even 83% in Rhode Island.
When Pennsylvania initially introduced online gambling, casinos had the choice of applying for a collective license for $10 million. This collective license permitted casinos to offer poker, slots, and table games in an online format under one license. After 90 days, casinos could only apply for a single license for a single product. Single license fees increased to?$4 million for each license, which made it a total of $12 million to offer all three of these gambling options.
Is It Easy To Sign Up For An Online Gambling Account In Pennsylvania?
Some states make signing up for an online gambling account more difficult than others. For example, in Nevada, those who want to take part in sports betting online are first required to go to an in-person location to sign up. Iowa also requires participants in online sports betting to complete a registration at a partnered casino before wagering online.
This seems to be something that applies to some states, but not others. While Illinois does not have online sports betting yet, it is expected to require in-person registration during the first 18 months after it launches. On the other hand, Michigan, Colorado, and North Carolina have not mentioned these in-person requirements.
Pennsylvania is one of the more accessible states to get started with online gambling. The state launched online sports betting in May 2019, online casinos two months later, and online poker in November of the same year. There is no requirement to visit a casino in person before taking part in online sports betting, poker, slots, or table games.?Users can simply download an app or visit a website to engage in all sorts of gaming.
Who Can Offer Online Gambling In Pennsylvania?
When the online gambling bill passed in Pennsylvania, the state allocated 12 licenses to companies to offer gambling online. The state allocated these licenses for the 12 land-based casinos in Pennsylvania who could choose whether to launch online gaming operations. Also, each casino could decide to offer one type of gaming (such as sports betting) and not others. Or, they could choose a collective license that allowed online slots, table games, and poker.
The land-based Pennsylvania casinos held this right of first refusal for 120 days after the bill became a law. After 120 days, other qualified entities could apply for any remaining licenses. The state offered the remaining licenses to other qualified entities with a license fee of $4 million per segment.
The land-based casinos that were initially eligible to offer table games, poker, and slots online include the following:
- Harrah?s Philadelphia ? Racino in Chester
- Hollywood Casino at Penn National Race Course ? Racino in Grantville
- Lady Luck Casino Nemacolin ? Resort in Farmington
- Mohegan Sun Pocono ? Racino in Plains Township
- Mount Airy Casino Resort ? Stand-alone casino in Mount Pocono
- Parx Casino and Racing ? Racino in Bensalem
- Presque Isle Downs & Casino ? Racino in Erie
- Rivers Casino Philadelphia ? Stand-alone casino in Philadelphia
- Rivers Casino Pittsburgh ? Stand-alone casino in Pittsburgh
- The Meadows Racetrack and Casino ? Racino in North Strabane Township
- Valley Forge Casino Resort ? Resort in King of Prussia
- Wind Creek Bethlehem ? Stand-alone casino in Bethlehem
Pennsylvania casinos that offer gambling are welcome to partner with other brands to bring this kind of gaming to the state. Many of them have already done so. For instance, Valley Forge Casino works with GVC and PartyPoker, while Mount Airy Resort Casino is in a partnership with PokerStars. Harrah’s Philadelphia is connected to 888Poker and WSOP.com.
The Pennsylvania Gaming Control Board started to oversee and regulate all casinos in the state in 2004.?This same agency processed applications for all online casinos in the state. The agency also oversees each of them to ensure they follow all required rules and regulations.
Are DraftKings And FanDuel Active In Pennsylvania?
Both FanDuel and DraftKings are active and offer services in Pennsylvania.
DraftKings In PA
DraftKings Sportsbook started to operate in Pennsylvania in November 2019. It operates under the casino license of Penn National Gaming. These services can be accessed on computers, tablets, smartphones, and other devices.
To work with the DraftKings website or apps in Pennsylvania, gamers must be at least 21 years of age, have a valid US social security number, and be located physically in the state. DraftKings is currently partnered with The Meadows Racetrack and Casino in Pennsylvania, while other casinos have chosen alternative sports betting companies.
FanDuel In PA
FanDuel is another option for a sportsbook in Pennsylvania. It also offers fantasy sports. Just like DraftKings, there are several requirements to use FanDuel in the state of Pennsylvania to wager on sports. All users need to be located in Pennsylvania, must be at least 21 years of age, and be on a Wi-Fi-connected personal computer, laptop, or mobile device.
FanDuel is?the number one sports betting app in New Jersey. In Pennsylvania, FanDuel partnered with Valley Forge Casino Resort and Boyd Gaming to offer wagering on games in only a few clicks. Sports on offer include football, baseball, basketball, soccer, golf, and tennis.
One of the perks of FanDuel is that it offers a massive selection of payment and deposit options. This includes debit and credit cards, ACH, PayPal, and online bank transfers.
DraftKings And FanDuel In Other US States
Right now, FanDuel Sportsbook can be used in several other states. These include Indiana, Iowa, New Jersey, New York, and West Virginia. States that offer online sports betting, which FanDuel does not cover include Nevada, Rhode Island, Oregon, Illinois, Michigan, and Tennessee.
Six states, including Pennsylvania, offer sports betting through DraftKings. The other states that have access include Indiana, Iowa, New Hampshire, New Jersey, and West Virginia. That means DraftKings is not offered in several other locations, which include New York, Nevada, Rhode Island, Oregon, Illinois, Michigan, and Tennessee.
Legal Online Gambling In The US States – FAQ
What kinds of online gambling are legal in Pennsylvania?
Slot games, table games, and peer-to-peer games. In addition to these three major gambling options online, online lottery games are available, as are online and mobile fantasy sports events. Sports betting is legal online as well as betting on horse races. Pennsylvania offers one of the most robust options for online gambling compared to other US states.
What is the tax rate for online sports betting in Pennsylvania?
Thirty-six percent. The state?s expansion into online gambling and sports betting came with a requirement for sportsbooks to pay back 36% to local and state governments. However, this is less than the amount for online slots, which is 54%. This is similar to some states, but others feature lower or higher tax rates on sports betting depending on location.
What is the tax rate for online casinos in Pennsylvania?
Slot games are taxed at 54%, while table games are taxed at 16%. Online licensed gambling sites can offer online casinos, and most casinos partner with other companies to offer their online gambling options. Many choose popular brands like FanDuel, 888, and Bet365 to get things up and running.
What is the tax rate for online poker in Pennsylvania?
Sixteen percent. The taxation rate for online poker in Pennsylvania is the same as it is for table games. The rate is relatively low when you compare it to sports betting at 36% or online slot machines with a tax rate of 54%. It is somewhat middle of the road in terms of tax rates when compared to other states that offer online poker.
Who can acquire a license to run an online gaming site in Pennsylvania?
Pennsylvania casinos and other entities. These casinos need to pay $4 million for an interactive gaming license, must hold a license in the United States, and a license for a slot machine, and must not be under review or have previous violations. While the originally offered the first shot at licensing to PA casinos, licensing eventually opened up to other companies.
Does DraftKings offer sports betting in Pennsylvania?
Yes. DraftKings Sportsbook launched in Pennsylvania in November 2019 and operates under Penn National Gaming?s casino licenses. Anyone 21 or older with a valid social security number who resides in Pennsylvania can bet with the sportsbook. Signing up online is simple and easy for all state residents and does not require visiting a physical casino.
Does FanDuel offer sports betting in Pennsylvania?
Yes. FanDuel Sportsbook operates in Pennsylvania and can be accessed at land-based and online locations. Valley Forge Casino Resort in King of Prussia launched in partnership with FanDuel in March 2020. Players who wish to use the FanDuel services can sign up online through their website before making bets on sports games.