Pennsylvania has become the fourth US state to legalise online gambling, its governor, Tom Wolf, having signed the bill earlier this week.
The bill facilitates a rapid path to market and is built to foster interstate agreements with states where online gambling is also legal and regulated, including Delaware, Nevada and New Jersey.
Substantial upfront licence fees and a blended tax rate, which is more than double New Jersey’s, are among the key difficulties in the state's approach to a regulated online gambling market.
“Pennsylvania’s unique structure makes it difficult to forecast revenues with precision, but the successes in other states suggest that online gambling will be a significant and reliable revenue driver for years to come,” said Chris Grove, a Las Vegas-based gambling industry strategist.
“Pennsylvania's high tax rate will force operators to cut back on marketing and promotion, and could dissuade some consumers from leaving black market sites,” he added.
He said that it is certainly possible that lawmakers will need to revisit the tax rate in order to ensure a market that works best for both the commonwealth and the casino industry “that has contributed billions to Pennsylvania.”
