by Steve Norton
CEO, Norton Management

iGaming proponents offer persuasive arguments in Pa.

I seriously question the study that concluded that Online Gaming would produce substantial tax revenue for Pennsylvania, without harm to existing PA casinos and racinos. Two states have experimented with Online Gaming, Delaware and New Jersey. In DE, there are 3 casinos, in different parts of the State, but Online revenues have been averaging between $200 thousand and $300 thousand a month, New Jersey, on the other hand produced $197 million in 2016, and paid $29.5 million in taxes. But New Jersey has casinos only in Atlantic City, and the Online Games were only approved because nearly 95% of New Jersey's 8.9 million residents are closer to live gaming in another state; especially those living in North Jersey. So Online Gaming is a way for NJ to keep some resident play in State, and it is doubtful that it is possible to determine what impact Online play has had on AC's annual win of over $2 billion. The AC industry win has been relatively stable, with the remaining 7 casinos picking up the slack from the recently closed Taj Mahal.

And AC's competition has not changed in the last year, other than the opening of MGM Maryland; which has substantially grown that market, with a primary negative impact on two casinos serving the adjacent Baltimore market, Maryland Live and Caesar's Horseshoe.

In Pennsylvania the 5 largest Metropolitan areas have a casino, and the two largest, Philadelphia and Pittsburgh have multiple options. And 2 of the next 4 metro areas have their own casino; so probably less than 20% of the State's population, are without a convenient live casino to experience nearby.

With casino convenience so prevalent in PA, I believe the live casinos in PA would be negatively impacted to a much greater extent than Atlantic City, from New Jersey's gamers.

And considering the amount of tax revenues that PA needs and wants, it will be difficult to introduce an Online Gaming tax rate that is viable, and doesn't harm the win of the existing casinos, and wind up with less tax revenue than currently earned.