How Much Is A Gambling License In Pa

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How Much Is A Gambling License In Pa Average ratng: 4,8/5 9041 reviews

The Pennsylvania gambling expansion law passed largely because the state desperately needed a new source of tax revenue. One of the biggest sources of that revenue was upfront licensing fees for all the new types of gambling.

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Individual Application – all individuals associated with the liquor license. Entity Application – any affiliated entity of the liquor license. IRS-4506-T - Request for Transcript of Tax Return. For fingerprinting questions please contact the Gaming Control Board at: TavernGamesPGCB@pa.gov.
General Hunting Licenses. Resident Adult Hunting License ($20.90): Issued to bona fide residents of Pennsylvania ages 17 through 64. This license includes one antlered deer tag, one fall turkey tag, one spring turkey tag and small game hunting privileges for one license year.

How Much Does It Cost to Get a Bethlehem, Pennsylvania Business License? The cost of a Bethlehem, Pennsylvania Business License is unique for the specific needs of each business. The cost of a Bethlehem, Pennsylvania Business License depends on a company's industry, geographic service regions and possibly other factors.

Even with the potential for big returns, the first state budget after expansion only expected $100 million from online gambling. That is a figure Pennsylvania surpassed after the first mini-casino auction.

Gambling streams are now blossoming in the Commonwealth, bringing in significant revenue for the state and local entities. How much so far?

Last updated: Dec. 18, 2020

How does that number break down? Let’s look at how much each category brought in:

Licensing Fees

Mini-casinos

Lottery expansion

Taxes on revenue

Sports betting revenue starts rolling in

Sports betting in PA started out with retail only. Since the addition of online sportsbooks, revenue has soared. The majority of sports wagering in PA now happens online and the Pennsylvania market is third only behind New Jersey and Nevada in terms of volume of monthly wagers.

Consequently, the state’s tax revenue has experienced large gains since online betting was added to the mix.

Here is a look at the tax revenue (state and local) from sports betting so far:

November 2020: $13,446,089
October 2020: $13,239,693
September 2020: $2,257,158
August 2020: $6,578,667
July 2020: $2,933,093
June 2020: $2,397,657
May 2020: $1,738,436
April 2020: $1,038,049
March 2020: $2,480,132
February 2020: $1,700,011
January 2020: $8,222,829
December 2019: $4,094,893
November 2019: $5,299,449
October 2019: $5,381,370
September 2019: $5,062,216
August 2019: $2,201,406
July 2019: $1,026,769
June 2019: $979,302
May 2019: $1,030,267
April 2019: $1,519,733
March 2019: $1,986,962
February 2019: $700,853.95
January 2019: $938,597.00
December 2018: $722,356.00
November 2018: $183,238.77

Total sports betting tax revenue earned to date: $87,218,454

Online casino taxes now a PA revenue stream

With the launch of online casino sites, the state got another tax revenue stream. In 2020, online casino proved a vital revenue source for PA with land-based casinos and major sports affected by pandemic precautions and closures. With online slot revenue taxed 54%, the state gets even more than the site when it comes to profit.

Table games provide a good chunk as well, with a 16% taxation rate (same as online poker).

Here is a look at slot and table games breakdown by month:

November 2020
Slot tax: $21,272,654
Table games tax: $2,875,595
Total online casino tax: $24,148,249

October 2020
Slot tax: $21,788,756
Table games tax: $2,718,140
Total online casino tax: $24,506,896

September 2020
Slot tax: $21,565,077
Table games tax: $2,356,890
Total online casino tax: $23,921,967

August 2020
Slot tax: $21,400,525
Table games tax: $2,173,236
Total online casino tax: $23,573,761

July 2020
Slot tax: $21,300,706
Table games tax: $1,907,184
Total online casino tax: $23,207,890

June 2020
Slot tax: $19,858,788
Table games tax: $1,606,208
Total online casino tax: $21,464,996

May 2020
Slot tax: $21,259,600
Table games tax: $1,987,122
Total online casino tax: $23,246,722

April 2020
Slot tax: $14,755,476
Table games tax: $1,678,339
Total online casino tax: $16,433,816

March 2020
Slot tax: $6,669,348
Table games tax: $1,405,145
Total online casino tax: $8,074,493

February 2020
Slot tax: $5,202,349
Table games tax: $1,284,237
Total online casino tax: $6,486,586

January 2020
Slot tax: $3,883,784
Table games tax: $737,293
Total online casino tax: $4,621,067

December 2019
Slot tax: $3,008,116
Table games tax: $412,956
Total online casino tax: $3,421,072

November 2019
Slot tax: $2,750,645
Table games tax: $415,445
Total online casino tax: $3,166,090

October 2019
Slot tax: $2,147,692
Table games tax: $154,517
Total online casino tax: $2,302,209

September 2019
Slot tax: $1,746,962
Table games tax:$144,039
Total online casino tax: $1,891,001

August 2019
Slot tax: $1,643,397
Table games tax: $191,601
Total online casino tax: $1,835,058

July 2019
Slot tax: $279,564
Table games tax: $47,135
Total online casino tax: $326,700

Total online casino tax revenue earned to date: $212,636,147

Online poker joins online slots and table games

Mount Airy launched the first online poker room with PokerStars PA going live Nov. 5, 2019. So far, it is the only operator live in the state, though more operators are expected to join the market in the coming months.

Here is a look at revenue and tax revenue by month for online poker in PA, plus total tax revenue to date.

November 2020
Online poker revenue: $2,409,235
Online poker tax: $374,849

October 2020
Online poker revenue: $2,422,505
Online poker tax: $387,601

September 2020
Online poker revenue: $2,376,045
Online poker tax: $380,167

August 2020
Online poker revenue: $2,729,199
Online poker tax: $436,672

July 2020
Online poker revenue: $2,986,498
Online poker tax: $477,840

June 2020
Online poker revenue: $3,240,917
Online poker tax: $509,590

May 2020
Online poker revenue: $4,596,418
Online poker tax: $729,851

April 2020
Online poker revenue: $5,253,304
Online poker tax: $837,550

March 2020
Online poker revenue: $3,133,019
Online poker tax: $500,384

February 2020
Online poker revenue: $1,830,356
Online poker tax: $290,752

January 2020
Online poker revenue: $2,157,266
Online poker tax: $345,162

December 2019
Online poker revenue: $2,473,137
Online poker tax: $395,702

November 2019
Online poker revenue: $1,965,494
Online poker tax: $314,479

Total online poker tax revenue earned to date: $5,980,600

Mini-casino auction profits

Parent Casino	Bid Amount	Location	Additional table games license?
Hollywood Casino	$50,100,000	Yoe in York County	N/A
Stadium Casino LLC	$40,100,005	Derry in Westmoreland County	Yes
Mount Airy Casino	$21,888,888.88	New Castle in Lawrence County	N/A
Parx Casino	$8,111,000	South Newton in Cumberland County	N/A
Hollywood Casino	$7,500,003	West Cocalico Township in Lancaster County	N/A

Total mini-casino auction profit to date: $123,783,331

VGT tax revenue

November 2020: $1,174,884
October 2020: $1,256,413
September 2020: $1,239,548
August 2020: $895,509
July 2020: $1,075,974
June 2020: $560,261
May 2020: $0
April 2020: $0
March 2020: $485,682
February 2020: $697,806
January 2020: $579,914
December 2019: $457,159
November 2019: $342,830
October 2019: $242,522
August/September 2019: $168,849

Lottery expansion nears $45 million in revenue in first year-plus

PA Lottery was part of the gambling expansion bill as well. The laws allowed for the introduction of three new elements of lottery offerings. Those are:

Virtual sports

Keno rolled out May 1, 2018, followed by online lottery games on May 22, 2018. Xpress Sports, the virtual sports element, went live in August.

Based on numbers provided by the PA Lottery in its annual fiscal reports, profits from each of the following game types from launch through July 2019 were as follows:

Online lottery: $32.96 million
Keno and virtuals: $11.62 million

Draw tickets such as Mega Millions and Powerball are now available for purchase online through the iLottery too, as of January 2020. In May, 2020 the PA lottery reported that online sales had crossed $1 billion since launching less than two years prior. Exact revenue figures for the fiscal year are forthcoming.

Daily fantasy sports revenue

While daily fantasy sports (DFS) was not explicitly illegal in Pennsylvania, the 2017 gambling expansion regulated the industry. With that regulation comes taxation and licensing fees.

Ten fantasy sports operators needed to each pay a $50,000 licensing fee. Their revenue is taxed at a rate of 15 percent. Here is a look at each month’s tax revenue from DFS as well as the total amount of tax revenue to date:

November 2020: $452,259
October 2020: $480,451
September 2020: $485,124
August 2020: $320,174
July 2020: $138,861
June 2020: $97,087
May 2020: $47,826
April 2020: $25,088
March 2020: $108,591
February 2020: $255,366
January 2020: $309,716
December 2019: $515,343
November 2019: $447,174
October 2019: $489,654
September 2019: $439,357
August 2019: $208,295
July 2019: $186,730
June 2019: $238,847
May 2019: $270,458
April 2019: $277,883
March 2019: $245,226.70
February 2019: $244,376.75
January 2019: $317,475
December 2018: $429,075.51
November 2018: $486,174.15
October 2018: $435,429.45
September 2018: $320,057.10
August 2018: $141,543.03
July 2018: $131,727.75
June 2018: $152,679.34
May 2018: $199,755.94

Lady Luck Nemacolin lone sports betting holdout

In August 2018 Pennsylvania finally got its first official sports betting applicant. Penn Nationalfiled its petition, breaking the weeks of inactivity that had many worrying that nobody would bite.

A total of 12 of the 13 eligible casinos submitted applications for the $10 million license. The lone holdout is Lady Luck Nemacolin. Late in 2020, Penn National acquired a second $10 million sports betting license (for the forthcoming Hollywood Casino Morgantown property) to partner with the BetMGM online sportsbook.

There are currently 13 retail sportsbooks spread across the state (with Oaks now permanently closed), and more than ten online sports betting apps.

Interactive gaming petitions generate $94 million

The 90-day window for PA casinos to apply for $10 million comprehensive interactive gaming petitions opened in mid-May, 2019. For the first 85 days, there was no news — a panic set in that there might be few or no applicants.

In the end, though, a majority of the 13 casinos ponied up the fee, which allows them to offer online peer-to-peer games like poker, online slots, and online table games. The seven casinos who filed for petitions and received approval are:

Once the all-in-one license application period ended, PA casinos could still purchase a la ca carte licenses for each of the three categories. Presque Isle Downs owner Churchill Downs spent $8 million applying for online poker and online slots. In an unusual move, Mohegan Sun Pocono paid a $2 million premium to apply for all three licenses for $12 million.

Rivers Pittsburgh surprisingly rescinded its interactive application. Rush Street Gaming owns both Rivers casinos (and the SugarHouse brand), so the Rivers Philadelphia license supports online casino products for both venues. That opens up three more licenses, bringing the total to 10.

Stadium Casino rescinded its peer-to-peer application but retained its online slots and table games licenses so that it would pay $8 million in licensing fees.

Mohegan Sun Pocono informed PGCB that it would not seek to offer online poker either, so it too had to pay $8 million.

The Meadows and Lady Luck Nemacolin opted not to apply for any interactive gaming licenses. The Meadows is owned by Penn National, who already applied for a comprehensive license. Lady Luck Nemacolin is managed by Churchill Downs now, and defers to Presque Isle on the online gaming front.

Where does that leave these leftover licenses? The next step was to open up the applications to entities outside of Pennsylvania. The two applicants in that category were MGM Resorts and Golden Nugget Atlantic City.

MGM eventually applied as a full operator, partnering with Hollywood for online casino and Hollywood Morgantown for sports betting. They are also expected to launch online poker under the partypoker brand. Golden Nugget only applied for online casino and sports betting.

Law generates $51 million for PA in a matter of hours

In 2017, the state received two payments in the days immediately following the passage of the law. One was a $1 million payment from Valley Forge Casino to remove the amenity fee requirement on the Category 3 property. The other was a $50 million payment by Stadium Casino LLC for its Category 2 casino license. The group is in the process of building a casino in the Stadium Park area of Philadelphia.

In June of 2018, the Stadium Casino project paid the state an additional $24,750,000 for the right to offer table games at the property when it opens, bringing the total licensing brought in from the group to $74.75 million.

Other sources of revenue from the law include:

On Oct. 31, Valley Forge also took advantage of another change in the law. For $2.5 million, the resort casinos could up the number of slot machines on property. After a year of gaming revenue growth, the casino decided it was time to expand.

After nearly a year and a half of the law being in effect, Lady Luck Nemacolin elected to pay the $1 million to eliminate its $10 Category 3 amenity fee, leaving the state with no more casinos charging for entry.

Introduction to Pennsylvania Slot Machine Casino Gambling in 2020

Pennsylvania slot machine casino gambling consists of twelve casinos of which six are pari-mutuel racetracks with slot machines, four are standalone casinos, and two are casino resorts.

Pennsylvania has both minimum and maximum theoretical payout limits. Return statistics are publicly available online.

This post continues my weekly State-By-State Slot Machine Casino Gambling Series, an online resource dedicated to guiding slot machine casino gambler to success. Now in its third year, each weekly post reviews slots gambling in a single U.S. state, territory, or federal district.

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Relevant Legal Statutes on Gambling in Pennsylvania*

The minimum legal gambling age in Pennsylvania depends upon the gambling activity:

Land-Based Casinos: 21
Poker Rooms: 21
Bingo: 18
Lottery: 18
Pari-Mutuel Wagering: 18

In 2004, the Pennsylvania Race Horse Development and Gaming Act passed. This Act legalized slot machines at fourteen locations. Of these locations, gaming licenses have yet to be issued for a standalone casino and a pari-mutuel racetrack with slot machines.

Since July 2010, table games are in Pennsylvania casinos.

In October 2017, the state legislature legalized casino gambling at truck stops, airports, and online. This bill also authorized ten new satellite casinos with location restrictions.

Satellite casinos of existing casino operators must be within 25 miles of their existing Pennsylvania casino. Further, local municipalities may prohibit such a casino. These satellite casino licenses allow up to 750 slot machines and 50 table games.
Racetracks and standalone casinos can have up to 5,000 slot machines and 250 table games, while casino resorts can have up to 600 slot machines and 50 table games. Truck stops approved by their county may have up to 5 slot machines.

Casino operators may operate a gambling parlor at any of Pennsylvania’s international and regional airports, assuming successful agreements with the airport authority. None have yet opened, but expected in 2020.

To gamble within a casino resort, players must be a guest there. Put another way, the gaming floors within the casino resorts are not open to the public.

*The purpose of this section is to inform the public of state gambling laws and how the laws might apply to various forms of gaming. It is not legal advice.

Slot Machine Private Ownership in Pennsylvania

It is legal to own a slot machine privately in the state of Pennsylvania if it is 25 years old or older.

Gaming Control Board in Pennsylvania

The state gaming commission is the Pennsylvania Gaming Control Board (PGCB). The PGCB is responsible for overseeing slot machines and casino gambling in the state.

Two different state gaming commissions are each responsible for the state lottery and charitable gaming.

Casinos in Pennsylvania

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There are two casino resorts, four standalone casinos, and six racetracks with slot machines in Pennsylvania.

The largest casino in Pennsylvania is Parx Casino with 3,238 gaming machines during the last week of January 2020.

The second-largest casino is Wind Creek Bethlehem with 3,046 gaming machines during the last week of January 2020.

Commercial Casinos in Pennsylvania

The two casino resorts in Pennsylvania are:

Nemacolin Woodlands Resort in Farmington, 69 miles southeast of Pittsburgh.
Valley Forge Casino Resort in King of Prussia, 21 miles northwest of Philadelphia.

The four standalone casinos in Pennsylvania are:

Mount Airy Casino Resort Spa in Mount Pocono, 31 miles southeast of Scranton.
Rivers Casino Philadelphia, 3 miles northeast of the downtown area.
Rivers Casino Pittsburgh in the downtown cultural center.
Wind Creek Bethlehem, 58 miles north of Philadelphia.

The six pari-mutuel racetracks with slot machines in Pennsylvania are:

Harrah’s Philadelphia in Chester, 18 miles southwest of Philadelphia.
Hollywood Casino at Penn National Race Course in Grantville, 17 miles northeast of the capital of Harrisburg.
Mohegan Sun Pocono in Wilkes-Barre, 15 miles southwest of Scranton.
Parx Casino in Bensalem, 19 miles northeast of Philadelphia.
Presque Isle Downs & Casino in Erie, 126 miles north of Pittsburgh.
The Meadows Casino Racetrack Hotel in Washington, 26 miles south-southwest of Pittsburgh.

Tribal Casinos in Pennsylvania

Pennsylvania has no federally-recognized American Indian tribes. Therefore, Pennsylvania has no tribal casinos as allowed by the federal Indian Gaming Regulatory Act of 1989.

However, Pennsylvania is one of the few U.S. states with commercial casinos owned and operated by an American Indian tribe:

Mohegan Sun Pocono is owned and operated by the Mohegan Indian Tribe of Connecticut through their Mohegan Gaming and Entertainment corporation.
Wind Creek Bethlehem is owned and operated by the Poarch Band of Creek Indians through their Wind Creek Hospitality corporation.

Other Gambling Establishments

As an alternative to enjoying Pennsylvania slot machine casino gambling, consider exploring casino options in a nearby state. Bordering Pennsylvania is:

North: New York Slots and Lake Erie
East: New Jersey Slots
South: Delaware Slots, Maryland Slots, and West Virginia Slots
West: Ohio Slots

Each of the links above will take you to my blog for that neighboring U.S. state to Pennsylvania.

Our Pennsylvania Slots Facebook Group

Are you interested in sharing and learning with other slots enthusiasts in Pennsylvania? If so, join our new Pennsylvania slots community on Facebook. All you’ll need is a Facebook profile to join this closed Facebook Group freely.

There, you’ll be able to privately share your slots experiences as well as chat with players about slots gambling in Pennsylvania. Join us!

Payout Returns in Pennsylvania

The theoretical payout minimum for slot machines in Pennsylvania is 85%. Further, the maximum theoretical payout limit may not equal or exceed 100%. Both limits apply to each single play.

The PGCB makes monthly return statistics publicly available for Fiscal Year 2019/2020 for each gaming facility. To calculate player win%, divide payouts by wagers provided in each report.

For February 2020, the player win% at slots for each casino and statewide were:

Harrah’s: 89.47%
Hollywood: 89.38%
Mohegan Sun: 89.63%
Mount Airy: 90.35%
Nemacolin: 89.18%
Parx: 90.43%
Presque Isle: 89.43%
Rivers Philadelphia: 90.49%
Rivers Pittsburgh: 89.68%
The Meadows: 90.11%
Valley Forge: 90.25%
Wind Creek: 89.98%
Statewide: 89.97%

For February 2020, the highest player win% went to Rivers Philadelphia at 90.49%, followed closely by Parx and Mount Airy. The lowest player win% went to Nemacolin at 89.18% followed closely by Hollywood Penn National and Presque Isle.

Summary of Pennsylvania Slot Machine Casino Gambling in 2020

Pennsylvania slot machine casino gambling consists of two casino resorts, four standalone casinos, and six racetracks with slot machines. Other locations should still open in 2020.

The theoretical payout limits are a minimum of 85% and a maximum of up to 100%. Monthly return statistics by casino are available online from the state gaming control board.