Overview of Online Gambling in Pennsylvania
Online gambling was legalised in Pennsylvania in 2017, and already the state is a shining example of how much revenue this industry can provide government coffers.
A full range of options are available in the state, including online casinos, sports betting apps, online poker, and daily fantasy sports. Pennsylvania is now home to many top online gambling brands such as DraftKings, FanDuel, and BetMGM.
Responsibility for the regulation of Pennsylvania’s online gambling industry lies in the hands of the Pennsylvania Gaming Control Board. Anything and everything to do with gambling goes through them, including applications for all PA online casinos.
All players accessing Pennsylvania-licensed platforms must be present in the state, and the use of offshore sites is strictly forbidden.
It has taken many years for the state to reach this point. A federal ban was in place for 56 years and we have seen almost 30 years of legal wrangling across the country.
Timeline of Major Events in US Online Gambling History
- 1961: The Federal Wire Act is passed, outlawing interstate wagering on sports but not addressing other forms of online gambling
- 1994: The Caribbean nation of Antigua and Barbuda passes the Free Trade and Processing Act, allowing for the licensing of online casinos
- 1996: The first online casino is launched, sparking a debate about the legality of online gambling in the US
- 2006: The Unlawful Internet Gambling Enforcement Act (UIGEA) 2006 is passed, making it illegal for American financial institutions to process transactions related to online gambling
- 2011: The Department of Justice issues a legal opinion stating that the Wire Act only applies to sports betting, opening the door for states to legalise online gambling
- 2013: Nevada becomes the first state to legalise online poker
- 2018: The Supreme Court overturns the Professional and Amateur Sports Protection Act (PASPA), allowing states to legalise sports betting
Demographics and Revenue
According to a recent report, 11% of Pennsylvania adults engaged in online gambling, with the majority (66%) being men. The average age of online gamblers was in the late 30s. The most popular online gambling format was online sports betting, accounting for 54% of the activity.Pennsylvania's online casino market currently generates over $1 billion annually in state revenue. In April 2023, online casino operators in the state recorded $167.2 million in revenue.
Future Trends
The online gambling industry in Pennsylvania is experiencing significant growth, with a number of factors contributing to its success. Among those reasons are the usual championing of mobile gaming which has accelerated growth all over the world. So many people around the world now have access to a tablet or smartphone that it stands to reason that this industry is reaping the rewards.In response, operators are investing in mobile-friendly platforms and games to cater to this growing market. Live dealer games are also gaining popularity, providing players with a more immersive experience akin to actually being in a brick-and-mortar casino.
The state of Pennsylvania has benefited significantly from the growth of online gambling. This includes increased tax revenue and job creation, demonstrating that a well-regulated online gambling industry can generate substantial economic advantages.
In addition to mobile gambling and live dealer games, other trends shaping the future of online gambling in Pennsylvania include the increasing popularity of draw-based and scratch-off instant games, as well as the rise of social gambling and esports betting.