Online Casinos in Pennsylvania could generate as much as $230 million in revenue
March 3, 2017The publication of a white paper by gambling industry expert Robert DellaFave could increase the support for legalized online gaming in Pennsylvania. The report comes as state legislators prepare to debate the issue and decide whether residents of Pennsylvania should be allowed to wager on online casino games.
According to the data published by DellaFave, casinos in Pennsylvania could generate as much as $230 million dollars in revenue during the first year of online gaming. DellaFave projects that this number could increase to more than $360 million by the fifth year of operation.
The report is optimistic for Pennsylvania, one of several states that are considering the legalization of online gambling. Under the proposed measures, live casinos in the state would be permitted to extend their operations to an online platform. Similar laws have been passed in New Jersey. The upside for Pennsylvania is that online gaming has the potential to generate millions in tax revenue for the state coffers.
DellaFave's report says that Pennsylvania could receive more than $400 million in additional tax revenue from online gambling during the first five years of legalized online betting. This could be very beneficial for a state that has endured its own economic hardships in recent years.
The white paper used online gambling in New Jersey as a model of expectations. DellaFave notes that while New Jersey failed to meet the initial expectations of analysts, online casinos in the state still managed to generate revenue of $122 million in 2014. That number grew by 60% over a two-year period to $196 million.
DellaFave contends that there is one variable which could significantly impact his projections. The white paper makes it clear that high tax rates or exorbitant licensing fees for operators could keep some casinos away.
A decision on the matter by Pennsylvania lawmakers is expected soon. Recently, the state postponed a scheduled joint hearing on online gaming. This would seem to indicate that lawmakers are ready to initiate the final debates before a vote is scheduled to approve or deny the new law.
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