Lawmakers enter Pennsylvania debate over multiple skins
News on 24 Mar 2018
News on 24 Mar 2018
The debate around whether Pennsylvania’s new online gambling regulations should limit the number of brands (or skins) per operator entered a new phase this week when House Representatives Rosita Youngblood and Jason Ortitay corresponded with the regulator to advise that the intent of the legalisation legislation was never to limit the number of brands an operator may decide to launch.
“I urge you to consider the notion that limiting skins would decrease competition and protect only the brands of a few interests. Instead, we should look to increase competition, increase tax revenue and improve the quality of interactive gaming products in Pennsylvania, while at the same time improving customer experience by allowing for multiple skins per license,” the duo wrote.
“The Board should not limit the numbers of skins, nor place conditions on how access to the skins occurs. This will increase revenue for the Commonwealth at a pivotal time, instead of limiting competition or placing an undue burden on how a patron obtains access to a skin.”
The letter presents an opposing view to lobbying attempts by land gambling operators Parx and Hollywood Penn National who have been campaigning for the draft legislation to confine each licensed operator to a single skin.
It also warns that in addition to limiting state revenue, a skins restriction would be contrary to the empowering legislation and a “constitutional usurpation” of the state legislature.
Parx and Hollywood Penn International also face opposition from experienced New Jersey online operators who may have an eye on the new Pennsylvania market.
They too have argued for multiple skins per operator via a lobbying contractor, arguing that restricting the number of skins will have negative consequences for the new Pennsylvania industry and noting that in their experience multiple skins grow the market and maximise revenue.
They contend further that skin restrictions are anti-competitive and will result in an inferior product and user experience, whereas multiple skins increase competitive levels and encourage innovation.
The current draft legislation concerning the multiple skin issue has yet to be released, so the lobbying is likely to continue at least until early April, when the next set of draft regulations is unveiled by the Pennsylvania Gambling Control Board.
