Pennsylvania Gaming Expansion has an extremely high rate of taxation for I Gaming. While the rate for table games and fantasy sports are moderate and in the teens, the legislature took a more aggressive posture with slot play. The tax on slots for casino operators is at 54%. While this matches the amount that brick and mortar facilities pay presently, it is high for a online situation. The initial thought is that will diminish interest in the product.
Our take is a resounding no. It is too large an upside not to take part of. We will share one creative way that intelligent operators can find success in the I Gaming world. Look at the compact agreement that Delaware, New Jersey and Nevada have. They can share players and increase liquidity. Imagine the entire Commonwealth of Pennsylvania added to such an agreement. The monetary upside would be worth the cost of investment.
If you want more shrewd ways to build your online experience as an operator or a player, you can reach out to us.
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