Pennsylvania Casino Partnerships Following IGaming Regulation

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Wednesday, May 25th, 2016 | Written by Charles Washington

At the end of 2015, online poker legislation in Pennsylvania seemed imminent, but legislation has since stalled. Still, industry experts believe that it’s not a question of if online gambling regulation will come to Pennsylvania but when. As a result, operators and casinos are already starting to build relationships in preparation of the arrival of legal online gambling in the state. Here’s a look at how the various companies seem to be pairing up:

– GAN and Parx Casino

The most successful brick and mortar casino, Parx, released a statement to the press back in March 2015 confirming rumors that the casino had partnered with GAN, the company previously known as the GameAccount Network. The partnership is predicted by many to be poised for success, given that the Parx Casino has such a strong, well-known brand.

– Mount Airy and 888

Mount Airy Casino in the Pennsylvania Poconos is another casino that already has a partnership in place. The agreement was formally announced at a 2015 hearing in Harrisburg. The casino is sure to benefit from 888’s innovative online poker and casino platforms, and the company is already successfully partnering with other American casinos in states where iGaming has already been regulated.

– Harrah’s Philly

Harrah’s Casino in Philadelphia has yet to make a formal announcement as to which online operator they will partner with when online gambling is finally legalized. However, Harrah’s already works with 888 in Nevada and New Jersey, leading most industry experts to believe they will partner with them again in the Keystone State. If Harrah’s does sign with 888, the casino could potentially pool players with Mount Airy casino to increase liquidity.

– Mohegan Sun

The Mohegan Sun is already active in online gaming with their Resorts Casino in Atlantic City, which offers an online casino through NYX/Sportech and online poker through PokerStars. Most insiders believe that The Mohegan Sun will continue with these partnerships in Pennsylvania due to the success of their iGaming in New Jersey.

– Sugar House Casino & Rivers Casino

Rush Street Gaming owns both SugarHouse Casino and Rivers Casino in Pennsylvania, and there is reason to believe that the company could combine both casinos into a single site. It’s unclear, however, whether Rush Street Gaming will choose to partner with operators or create their own online platform.

– Hollywood Casino and Meadows Racetrack

Both the Hollywood Casino and Meadows Racetrack are owned by Gaming and Leisure Properties, Inc. and have very well-established brands. Most industry experts foresee the casinos offering iGaming in tandem. No word has been released yet about what providers GLPI may be considering.

– Valley Forge

Although a small casino, Valley Forge is rumored to have entered into a partnership with bwin.party to provide iGaming. At this time, the theory is just speculation, as no official announcement has been made.

– Casinos Who May Pass

Not all casinos seem to be interested in getting in on iGaming. Presque Isle Downs and Lady Luck are both too small to realistically compete in the online market, and since the Sands Bethlehem is owned by anti-online poker crusader Sheldon Adelson, the casino is very unlikely to offer online gaming.

iGambling Bill To Be Considered In June

In the meantime, an iGaming bill (HB 649) which has already passed a committee hearing is set to be considered by the Pennsylvania House in June. If Rep. John Payne’s sponsored piece of legislation passes it will subsequently progress through to the Senate, where it is expected to experience a greater level of resistance. In case of success, though, the state’s 12 land-based casinos will then be granted the option to apply for licenses to offer internet gambling to people located in the state.

There are many good reasons why this time around the iGaming bill may enjoy more popular support in the Senate, though, not least because of the gaping $1.8 billion deficit in Pennsylvania’s state budget. The Senate is currently exploring the best means to boost spending for the 2016-17 fiscal budget, and HB 649 therefore naturally presents a lucrative source of income, especially as the state’s casinos would have to spend $5 million on a license, which would then be renewed at a cost of $250,000 per year. Furthermore, Pennsylvania’s casinos would have to pay a one-off fee of $2 million to go towards problem gambling initiatives, as well as being charged a 14% tax on their daily gross revenues.