The Pennsylvania Gaming Control Board (PGCB) started the new year with an open petition window for new internet gaming applicants. For two months, gambling companies can apply for licenses.
There are 12 certificates available for applicants to become a Qualified Gaming Entity (QGE) in Pennsylvania: three for online slots, three for online table games, and six for non-banked games like online poker. Just put up the $4M and you, too, can own an igaming site in the PA market.
Open Call
Just before the end of 2022, the PGCB issued an open call for new gaming entities to apply for licenses. This request is for casino operators that primarily operate outside of the state of Pennsylvania but want to participate in the Pennsylvania-only igaming market. The operators must have at least one brick-and-mortar casino and a desire to get into igaming or expand its igaming presence into PA.
To become a QGE, a company can submit a petition anytime through March 3, 2023. And they have to agree the $4M for a certificate if granted.
As of January 3, there were 12 individual certificates open for qualified applicants:
-3 for online slot machine play-3 for online table games like blackjack-6 for peer-to-peer table games like online poker
Pattern of Growth
Pennsylvania is not an endless market of igaming customers. There is a limited number of people in the state who will gamble online. However, the market does grow and has shown an upward trend almost continuously from its start in 2019.
For example, the first month of igaming in Pennsylvania was July 2019. It was the very beginning of the new industry, and just a few sites launched. They delivered $517,712 in gross gaming revenue (GGR) for online slots and $294,594 in GGR for online table games.
By December 2019, growth was evident, and online poker was in its first full month, albeit with only one poker operator – PokerStars. That month’s igaming revenue was:
-Interactive slots (Dec 2019) GGR: $5,570,585-Interactive table games (Dec 2019) GGR: $2,580,977-Online poker (Dec 2019) rake & tournament fees: $2,473,137
One year later, the growth potential was clearer:
-Interactive slots (Dec 2020) GGR: $46,246,757-Interactive table games (Dec 2020) GGR: $22,632,775-Online poker (Dec 2020) rake & tournament fees: $2,729,729
And by the end of the next year, the trajectory for gross gaming revenue remained on an incline:
-Interactive slots (Dec 2021) GGR: $68,796,264-Interactive table games (Dec 2021) GGR: $30,253,195-Online poker (Dec 2021) rake & tournament fees: $3,061,945
As it stands, the entities in Pennsylvania have obtained the licenses and launched the gaming sites they wanted. The sites in operation as of the end of 2022, per the PGCB, were:
-Harrah’s Philadelphia: Caesars online casino and sportsbook, WSOP online poker-Mohegan Sun Pocono: Unibet online casino-Parx Casino: Parx online casino-Mount Airy Casino: PokerStars online casino and online poker, FoxBet sportsbook-Hollywood Casino at Penn National: Hollywood Casino/BetMGM/DraftKings/PointsBet online casinos and sportsbooks, BetMGM online poker-Presque Isle Downs Casino: Twinspires online casino and sportsbook-Live! Casino Philadelphia: PlayLive/Betway online casinos-Rivers Casino Philadelphia: PlaySugarHouse/BorgataOnline online casinos, BetMGM online poker-Valley Force Casino: FanDuel/Stardust online casinos, FanDuel sportsbook-Wind Creek Bethlehem Casino: WindCreek online casino
Only three casinos offer online poker sites. These sites have the potential for growth if Pennsylvania will sign the Multi-State Internet Gaming Agreement (MSIGA) to allow poker operators to connect with their sites in other states for greater liquidity.
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