BULLISH FORECAST FOR PENNSYLVANIA ONLINE GAMBLING
28th March, 2017 at 19:47:54
Hundreds of millions of dollars in new tax revenue possible with legalisation.
The US state of Pennsylvania has the potential to generate hundreds of millions of dollars in new tax revenue should the state pass legislation to legalise and regulate online casino games
and poker, according to a recently released 14 page white paper by news and analytical research site PlayPennsylvania titled "Pennsylvania Online Gaming Revenue: A Billion-Dollar Opportunity."
For the five-year period from 2018 through 2022, Pennsylvania is projected to add around $426 million to state coffers from legal, regulated online casino games and poker through upfront licence fees, revenue taxes, and renewal fees, according to the report, which was authored by Robert DellaFave, Senior Analyst for PlayPennsylvania.
In all, Pennsylvania will generate some $230 million in total revenue in the first full year after legalisation and regulation. Annual revenue is projected to grow to $364 million by 2022, with the majority of the revenue will be generated by new customers rather than siphoning off revenues from existing casinos.
The findings are consistent with the performance of New Jersey's legal online casino market, bearing in mind Pennsylvania's larger population.
"Pennsylvania's casino industry is beginning to show a few chinks in the armour. Revenues are slipping," DellaFave wrote. "Online gambling in New Jersey helped Atlantic City reverse course, and will prove even more effective at facilitating the growth of the Pennsylvania market.
"Going forward, online gambling will provide the state with a reliable source of recurrent tax revenue, that will scale consistently over the next five years."
The Pennsylvania legislature has been inching closer to legalising and regulating online casino games and poker. Last week, four Pennsylvania state senators introduced an online gambling and gaming reform bill, Senate Bill 524, which would legalize and regulate online gambling and daily fantasy sports (see previous reports)..
Related News Tags: Atlantic City, New Jersey