An analyst for a news portal exploring the US gambling market says that Pennsylvania has managed to generate almost $400 million in the year since Governor Tom Wolf signed a gambling expansion law. Almost $1 million a day has made its way to state coffers since October 2017, when Pennsylvania opened its doors to online lottery sales, daily fantasy sports, online gambling and sports betting.
Some of these sectors have already gone live, such as daily fantasy sports and sports betting, while online gambling is still awaiting an official launch date. Most of the $400,000 comes from licensing fees ahead of igaming, as operators bid for their rights to offer online casino games and poker. Online lottery games contributed $23 million, while the DFS industry, rolled out in May this year, contributed $1.4 million in taxes.
Much more revenue is expected to come in once online casinos go live in the Keystone Stone, although the analyst, Jessica Wellman believes that the market’s growth could be offset by Pennsylvania’s relatively high tax rates and license fees.
“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,” noted Welman. “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.”