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Pennsylvania and Massachusetts Enter New Stage of Regulatory Compliance and Gaming Market Dynamics
March 30, 2019 Andrej Vidovic
The state of US gambling regulations and consequential financial outcomes is being closely monitored by authorities responsible for a seamless integration of legal betting into the everyday lives of millions of Americans. As we enter the year’s second quarter, individual jurisdictions all across the nation are taking a look back at what has been achieved during a brief three-month period.
What follows is a condensed summary of events in some of the US states that have been the most active in their pursuit of online gambling and sports betting commencement.
Much Ado in Pennsylvania
As of late March, the Pennsylvania State Lottery still holds an exclusive license over lottery products while the Pennsylvania Gaming Control Board (PGCB) remains this Eastern state’s go-to regulator.
Eleven land-based commercially operated casinos offer interactive sports betting at licensed venues and racetracks…
…which are also operated on a commercial basis, while there are, in total, nine licensed slot operators currently conducting business.
These land-based casinos are allowed to offer games such as poker, while slot machines are permitted at 14 licensed properties. In June 2018, Pennsylvania has declared sports betting (land-based) legal, after PASPA was overturned.
Eighteen remains the lower age limit for taking part in bingo, lottery and race betting, while 21 is the legal ago for casino, poker and sports betting.
In PA, slot games are taxed at 54% at gross win, while table games come with a 16% GGR tax. Sports betting is somewhere between those two with 36% tax on gross revenue. The lottery’s surplus of funds is sent to charities.
Month by Month
January was the busiest month ever since a wider array of regulatory moves took hold in summer of 2015. memo warning to be sent to operators by PGCB’s Executive Director.
In February, PA attorneys and lawmakers wrote a letter to US Attorney General in which they demanded that the Department of Justice either gives its assurance that it would not enforce certain actions against operators offering online gaming in the state or withdraw its opinion.
In March, another retail sportsbook from FanDuel began working in Valley Forge Casino Resort.
Pennsylvania’s total gambling revenue in 2018 was $40.2 million.
Less Ado in Massachusetts
Atlantic-bound Massachusetts has had a lot less action than Pennsylvania that follows in the footsteps of the traditionally bursting-at-the-seams New Jersey.
The main regulatory body remains the Massachusetts Gaming Commission and this state’s key legislation that is on everybody’s mind there is the Expanded Gaming Act 2011.
Massachusetts State Lottery holds a monopoly on lottery products; and there are, as of yet, not state regulated interactive onshore operators, while some offshore operators still accept players from this state.
Three casinos at most are allowed in three different locations as per The Gaming Act – with one of the permitted to host slot machines. Interactive/online gambling is not forbidden per se, while the legal age for gambling stays at 18 for bingo, lottery and races and 21 for sports betting and gaming.
Casinos are taxed at 25% of GGR, while the slot’s income comes with a 40% tax.
Early Bird Catches the Worm
With very little going on in February and March…
…January is still this quarter’s most pivotal month when it comes to gambling in Massachusetts. During this period, state legislators introduced an array of bills that concern the sports betting in this state to a varying degree.
- Bill S882 looks to permit land-based retail and mobile sportsbook and suggests a GGR tax of 6.75%
- Bill S903 proposes standalone mobile sportsbooks and land-based retail wagering and a higher tax of 12.5%
- S908 seeks to establish a regulatory body or a commission that would make a research on best ways to operate sports betting
- S1110 looks to authorize sports betting art land-based venues and through mobile platforms.
- Bill H3777, introduced by House Rep Bradford Hill wishes to authorize DFS and online gaming
Massachusetts’s total gross gambling revenue in 2018 was $9.7 million.
Source:
“H2 Gambling Capital”, h2gc.com, March 21, 2019.
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Telling stuff indeed. It’s weird that MA is trailing so much behind. Didn’t think of them to be so conservative and hesitant when it comes to gambling scene.