Pennsylvania Releases Study Of Web PokerState Could See $129 Million In Revenue Annually |
|
A 206-page report released Wednesday by Pennsylvania’s General Assembly’s Legislative Budget and Finance Committee revealed how lucrative online poker could be in the state, should it authorize the activity sometime in the coming years.
The study of gambling in the state said that online poker could lead to revenues of around $129 million annually. Pennsylvania has 12.76 million people.
“If Pennsylvania authorized online gaming, ongoing revenues of $307 million, generating $113 million in annual tax revenues, appear realistic,” the abbreviated report said. “Revenues from online poker are estimated at $129 million and from online casino games, $178 million.”
The study also looked at other opportunities including sports betting, fantasy sports, prediction markets, small games of chance, and slots in airports.
Tax revenue from Pennsylvania 12 casinos grew strongly between 2006 and 2012 before dipping by four percent in 2013, the report said. In 2013, total tax revenue from gaming was $1.38 billion, down from $1.44 billion in 2012.
“The drop in tax revenues appears to be largely due to three factors: after 2 years of operations, the tax rate for table games drops from 14 percent to 12; a nationwide trend of stagnating slot revenues; and increased competition from neighboring states,” the report explained.
Pennsylvania not long ago overtook New Jersey as the nation’s second largest casino market. However, some are worried that gambling expansion in nearby states could suspend growth.
“Pennsylvania casinos are facing competitive pressures from neighboring states. Pennsylvania casinos have benefited by ‘cannibalizing’ gamers from New Jersey, West Virginia, and Delaware. Now, however, Pennsylvania casinos are vulnerable to this same type of cannibalization from Ohio, Maryland, and New York.”
The state is currently in the process of figuring out plans for a new casino in Philadelphia. There have been concerns about the market becoming over-saturated, though.
Thanks to the numbers, online poker will likely be considered more seriously in the Keystone State, but that’s also due to the conclusion that online gaming wouldn’t take away from brick-and-mortar play. That realization has been becoming more and more accepted across the industry as time goes by—with the key exception being Sheldon Adelson.
Just three states—Nevada, New Jersey and Delaware—have online gambling.
Copyright © 2001-2024
CardPlayer.com. All rights reserved.
