Pennsyvania ilottery takes off in first month

The Pennsylvania state lottery’s decision to open up online activity with instant win games has been vindicated at the close of the first full month of operations, with online punters wagering $21.6 million.

The iLottery paid out $18.7 million in prize money, generating $3 million in revenue, with the prospect of growth good.

“PA iLottery games are a fun, new way to play and win from home or while on the go,” Lottery Executive Director Drew Svitko told local reporters. “iLottery is a big part of our effort to meet our players where they already are, while generating new funds to benefit older Pennsylvanians.”

Our readers will recall that last month Pennsylvania land casino operators, worried about the competition iLottery could represent, asked the state government to shut the iLottery down.

In a compromise decision, the state declined their request, but ordered that iLottery advertising be toned down in regard to the use of descriptive phrases suggesting casino or slot action.

So far the iLottery has registered 45,000 new players.

Despite its now much liberalised gambling laws (regulated online gambling is among those genres now permitted) there has been a remarkable lack of interest among land casino operators to take advantage of the new opportunities to introduce online action (see previous reports).

Not one has applied for online licensing, with observers speculating that this may be due to the fees and taxes state lawmakers imposed despite advice from the industry.

Online casino licenses carry a hefty $4 million fee and a tax on GGR of 54 percent, making it difficult to prosper. For sports betting the fee is $10 million but a lower tax rate of 36 percent applies.

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