- The app testing for mobile betting is underway in Pennsylvania.
- A 36% tax rate could see Pennsylvania lead all states in online revenue.
- Mobile sports betting will be ready “imminently” according to the PGCB.
PHILADELPHIA – Expected to launch any day now, online sports betting in Pennsylvania is primed to take over the market.
With a tax rate on sports betting of 36%, analysts believe the Keystone State could generate more revenue than any other legal sports betting state.
As a reference, the New Jersey sports betting market has seen almost $123 million in online revenue, with $69 million of that occurring in 2019 alone.
Their 13% tax rate for online sports betting revenue allowed the state to receive $16 million in total tax contributions ($9 million this year).
Consider the damage Pennsylvania could do with a tax rate more than 2.75 times that of New Jersey and a population of 4 million more residents.
The online betting platform won’t be limited to Pennsylvania residents, though, as any person is welcome to wager online as long as they are physically located within the state.
The casinos will use geofencing technology to ensure this is the case.
David Forman, the senior director of research for the American Gaming Association, said the apps are accurate enough to determine if you are physically in the state, on a bridge crossing into the state, or just on the outskirts.
But this won’t stop neighboring states’ residents from coming into Pennsylvania to place bets. According to the President and COO of FanDuel, Kip Levin, as much as 25% of online activity in New Jersey stems from New York residents.
Not only will Pennsylvania be able to possibly poach some of these customers, but may also be able to bring in Ohio and Maryland residents – states that have not legalized sports betting.
Add in a temporary blast of West Virginia residents, who have not been able to wager online since early March, and Pennsylvania becomes the hub for USA online sports betting.
Pennsylvania will become the fourth state with legal online sports betting. When looking at their overall gambling industry, it would be no surprise to anyone if they took the crown.
“Pennsylvania collects more tax revenue than any other state. The appetite for a legal sports betting market there is huge,” said Forman.
The testing of the betting platform is expected to occur over the course of May.
According to the Pennsylvania Gaming Control Board, online sports betting in Pennsylvania will be ready “imminently.”