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Which PA Casinos Will Take The Sports Betting Plunge Next?

While many of PAs slots licensees would like nothing more than to open their own live and online sportsbooks, PA has put a damper on the process by charging an outlandish $10 million licensing fee and applying an oppressive 36% tax on gross gaming revenue. The fee structure has made many casinos rethink their sports betting plans, and question if the low-margin vertical can even be profitable in such an environment. Even so, its highly likely that many, if not the majority of PA casinos will eventually pony up the cash and claim their own sports betting license. Heres how we think the situation might play out, and which casinos might be the next to get into the game. After months of silence, the Pennsylvania Gaming Control Board (PGCB) announced that Penn National , proud owner of a $10 million online gambling license and two satellite casinos , was the first to submit a sports betting application. Penn was originally against expanded gambling, but when its opposition efforts fell flat, decided to go all-in to protect its flagship Hollywood Casino property. The gambling conglomerate recently revealed that it would use gaming developer IGTs software to power its online casino. Its at least plausible that Penn will leverage IGT for its sports betting platform as well. In New Jersey, the software company has already integrated its technology into the FanDuel and playMGM online/mobile sportsbooks, proving its ability to operate with the big dogs in the space. Parx Casino was the second casino to purchase a sports betting license, which was announced by regulators last month. Parx has teamed up with software developer GAN, which will power both its online casino and sportsbook.

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FanDuel Is About to Launch Its Sports Betting App

We couldve taken the approach of doing first and asking for forgiveness later, but its just not worth it for us to do that, he said. The sentiment was echoed by FanDuel CEO Matt King who told Fortune that his company treads carefully when it comes to regulation. Weve always taken a more conservative approach to the point where we deliberately didnt innovate in certain areas because we werent sure if it would be deemed acceptable, he said. On the eve of the NFL season kickoff, FanDuel is ramping up to launch its sports betting offering. Though the company has been beta testing its app for a few months by asking for user feedback and doing anecdotal interviews, it remains to be seen how it performs in the wild. There are two stages of anxiety, Bonaddio said.

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