Clicky

PGCB Maintains Its Stand on Controversial Sports Betting Tax - PennsylvaniaCasinos.com News : PennsylvaniaCasinos.com News
heavy-tax
Published on
Update on

Since the U.S. Supreme Court lifted the federal ban on sports betting, a number of states have been enacting legislation with reasonable tax rates on the sports betting revenue, which has been a great factor in the growth of the industry. Unfortunately, Pennsylvania has lagged behind in this regard thanks to a wave of criticism from the gambling industry that the state regulator has been subject to due to a tax structure that many industry stakeholders think is untenable.

While two casinos in the state have already had their licenses approved and are now preparing to launch their sports books, the laxity of the remaining casino operator to apply for the sports betting licenses is quite worrying. This might, of course, change in the near future but there needs to be a lot of liberation on the issue before everything finally conforms to the industry’s expectations.

Every state has implemented a tax rate of some sort which may beg the question of why Pennsylvania is being singled out for its tax rates and license fees. Well, if you have been paying attention to the state’s gambling proceedings, you may already be aware of the hefty $10 million initial license fee that the casino operators have to part with. As if that is not enough, once the sports books go live, the gross gaming revenues of these casinos will be subject to a 36 percent tax rate. Both of these are part of the statewide gaming expansion bill that was passed in October last year.

Will It Drive Operators Away?

A number of gaming advocates have expressed concerns that the rather exorbitant tax rates will eventually trickle down to the customer levels in the form of higher vigorish. Others are anticipating that the casinos will shy away from offering sports betting services because of it.

Susan Hensel, the Pennsylvania Gaming Control Board (PGCB), maintains that the double-digit tax rate is best as it is. Speaking at the Sports Betting Symposium at the Global Gaming Expo (G2E) 2018 in Las Vegas, Hensel referenced a 55 percent tax rate on slots machine revenue while defending the controversial tax rate. She further mentioned that the gaming control board has received five sports betting applications from the state’s licensed casino operators. Evidently, just like in the case of interactive gaming, the board is banking on the fact the Commonwealth’s sports betting industry is too lucrative for the operators to pass on.

What About the Professional Sports Leagues?

In addition to the controversial tax rates, the sports books will also have to deal with the pro sports leagues who have been relentlessly campaigning to get a cut from sports betting revenue not just in Pennsylvania, but the whole country. There are a lot of differing opinions pertaining to this particular issue and it is among the most heated debates at the moment. In fact, some of the leagues have even tried to seek federal intervention, with little success. Still, till sports betting officially goes live all we can do is speculate. A lot can change between now and then.

Latest Headlines

Pennsylvania Welcomes 4ThePlayer As Its Latest iGaming Provider

Fast-rising iGaming provider 4ThePlayer has recently received formal approval from the Pennsylvania Gaming Control Board (PGCB) to join the state’s rapidly expanding online casino sector. This important milestone enables 4ThePlayer to provide its captivating and inventive games to gamblers in Pennsylvania, contributing to its further expansion inside the US. Along with Connecticut, Michigan, and New […]

Pennsylvania State Gaming Board Targets Child Safety in Casinos with New Campaign

A new crackdown on child neglect and underage gambling has been unveiled by the Pennsylvania Gaming Control Board (PGCB), with an emphasis on making sure all gaming venues in the state are safe and following all regulations. To support these enforcement efforts, the PGCB has launched the “Don’t Gamble with Kids” public awareness campaign. Needless […]

Mohegan Digital Debuts New iGaming Option in Pennsylvania

Mohegan Digital, a pioneering force in the gambling industry, has recently unveiled its newest offering, an immersive online casino experience developed exclusively for the state of Pennsylvania. This marks yet another great development for the state’s lucrative iGaming sector. The launch is a triumph of ingenuity and complexity, and it was created under the capable […]

Online Gambling and Credit Card Debt Amid Pennsylvania’s Growth Streak

Pennsylvania State Senator Wayne Fontana (D-Allegheny) is advocating for stricter regulations on online gambling payment options, citing concerns about rising credit card debt among players. Now that online gaming and sports betting have joined Pennsylvania’s traditional brick-and-mortar casinos as part of the state’s gaming expansion, Fontana is spearheading a legislative effort to revise the regulations […]

Supremeland Makes US Market Debut with Pennsylvania License

The Pennsylvania Gaming Control Board (PGCB) has granted an interim license to Supremeland, a prominent gaming provider, allowing it to join the US market for the first time. This interim license is a common step in obtaining a license in the lucrative Keystone State gaming market. Supremeland joins the ranks of other successful applicants who […]

Similar Stories in Gambling

Pennsylvania Welcomes 4ThePlayer As Its Latest iGaming Provider

Fast-rising iGaming provider 4ThePlayer has recently received formal approval from the Pennsylvania Gaming Control Board (PGCB) to join the state’s rapidly expanding online casino sector. This important milestone enables 4ThePlayer to provide its captivating and inventive games to gamblers in Pennsylvania, contributing to its further expansion inside the US. Along with Connecticut, Michigan, and New […]

Pennsylvania State Gaming Board Targets Child Safety in Casinos with New Campaign

A new crackdown on child neglect and underage gambling has been unveiled by the Pennsylvania Gaming Control Board (PGCB), with an emphasis on making sure all gaming venues in the state are safe and following all regulations. To support these enforcement efforts, the PGCB has launched the “Don’t Gamble with Kids” public awareness campaign. Needless […]

Mohegan Digital Debuts New iGaming Option in Pennsylvania

Mohegan Digital, a pioneering force in the gambling industry, has recently unveiled its newest offering, an immersive online casino experience developed exclusively for the state of Pennsylvania. This marks yet another great development for the state’s lucrative iGaming sector. The launch is a triumph of ingenuity and complexity, and it was created under the capable […]

Online Gambling and Credit Card Debt Amid Pennsylvania’s Growth Streak

Pennsylvania State Senator Wayne Fontana (D-Allegheny) is advocating for stricter regulations on online gambling payment options, citing concerns about rising credit card debt among players. Now that online gaming and sports betting have joined Pennsylvania’s traditional brick-and-mortar casinos as part of the state’s gaming expansion, Fontana is spearheading a legislative effort to revise the regulations […]