888 Holdings defends concept of multiple online brands in Pennsylvania

Indications by the Pennsylvania Gaming Control Board that it is considering restrictions on the number of online gambling brands (or skins) a licensee may offer under a state online gambling licence (see previous reports) has prompted veteran online gambling group 888 Holdings plc to offer its views, based on years of operational experience in regulated markets that include US jurisdictions.

In a letter to the Board this week, 888’s CEO, Itai Freiberger, argues that online gambling is a complex undertaking requiring significant technological and human infrastructure – a stable, successful and well tested gaming platform; qualified and experienced support staff; qualified and experienced responsible gambling, fraud prevention and compliance staff; and online marketing know-how.

By allowing licensees to have multiple brands, the board would enable operators to create multi-tiered offerings geared to the requirements of a wide range of demographics to ensure a wider business offering, he argued. As such it is not far distant from the common land casino practice of having different rooms offering a variety of game types to a diversity of players, he suggested.

Addressing the high tax and fee structure proposed in the Pennsylvanian legislation legalising the offering of online gambling, Freiberger suggested that this may be counter-productive, discouraging companies from making application, and hampering the fast development of a Pennsylvanian online gambling industry.

Turning to the old bugbear of cannibalisation, Freiberger emphasises the impressive volume of empirical evidence that shows that online gambling attracts a different audience from traditional land casino gambling and has repeatedly been shown to complement, rather than cannibalise, land casino revenues.

“Evidence from other regulated jurisdictions like New Jersey shows these concerns to be unwarranted and, in fact, that online offerings of both local and non-local brands have an overall positive impact on the total reported revenue of the land-based licensees,” he wrote.

888’s submission is the latest in a string of carefully thought through recommendations and perspectives that have been submitted to the regulator for consideration, giving the board the benefit of the practical knowledge of a range of companies active in the online gambling market over an extended period of time.

Many of these have included arguments for licensees to be permitted to offer multiple skins, and the regulator’s final decision will be watched with interest.

Read the full content of 888’s submission here