This expansion in Pennsylvania and West Virginia represents a significant escalation for GAN and FanDuel – which is 61 per cent owned by Paddy Power Betfair – who already work together in New Jersey.

The population of New Jersey is around nine million, while the two additional states combine to a population of nearly 15 million more US residents.

The deal includes FanDuel deploying GAN’s patented technology which allows land-based casino customers in on-property loyalty programs to link existing loyalty cards to online gambling accounts and receive loyalty points in exchange for online gambling.

FanDuel becomes GAN’s second Pennsylvania client after Parx Casino and takes FanDuel online in both new state markets.

The new agreement constitutes a five-year contract term extension on the partners existing deal, beginning in 2019 and ending in 2024.

Dermot Smurfit, CEO of GAN said in a statement: “The contract extension combined with US Patent licensing represents a significant milestone in GAN’s US evolution and reinforces our view that in the heavily regulated US online gambling market, effective and compliant ‘platforms’ are a premium component of the supply chain rather than a commodity.

“GAN is therefore very well placed to capitalise on the growth in US online gambling markets in terms of new operator clients, new states and underlying growth momentum.”

The GAN deal sees FanDuel continue to aggressively expand its interests in the US, capitalising not just on last year’s PASPA take-down but also on the online casino opportunity, so closely linked to the expansion of sports betting stateside.

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Filing the petition on 29 July, casinos such as Stadium Casino, Chester Downs, Rivers Philadelphia, Parx Casino Shippensburg, Wind Creek and Greenwood Gaming have requested “declaratory and injunctive relief” after considering the state’s lack of taxation on unlicensed operators and machines as “unconstitutional”. 

The petition has named the Pennsylvania Department of Revenue, along with its Secretary Patrick M Browne, and the Pennsylvania Gaming Control Board as respondents, demanding that taxes be “uniform, upon the same class of subjects”.

Casinos have issued the petition after considering the Pennsylvania Gaming Act’s “substantial” ~50% tax on slot machine revenue as “unconstitutional” due to the lack of taxation on unlicensed gaming operators offering skill and hybrid games. 

In 2023 alone, licensed operators contributed around $1.2bn in taxes through the ~50% slot machine revenue tax law, while unlicensed operators contributed 0% of their revenue from slots, skill or hybrid games. 

The petition claims that since the Gaming Act was first introduced in 2004, over $20bn in revenue has been collected from slot machine taxes alone. 

As a result of these findings, petitioners have claimed that the Gaming Act’s laws are being violated in numerous ways, stating that “there are numerous unlicensed entities in the Commonwealth operating devices that annually earn billions of dollars in revenue which, if earned by a licensed casino, would be taxed as slot machine revenue”. 

Skill and hybrid slot machines

In 2017, amendments were made to Pennsylvania’s Gaming Act to change the definition of a slot machine to include skill and hybrid slot machines. Skill and hybrid slot machines implement at least a slight element of skill into a game of chance to be differentiated from a standard slot machine. 

However, according to the petition, since the 2017 amendments to the Gaming Act, the operation of slot machines by unlicensed entities outside the framework of the Gaming Act has “expanded significantly”. 

The petition noted: “Recent estimates suggest that approximately 67,000 skill and hybrid slot machines are operating in the Commonwealth.”

It is believed that several unlicensed establishments, whether they be bars, taverns, convenience stores, gas stations, pizza shops, laundromats or other venues, are offering skill and hybrid slot machines without distributing any taxes from their machines’ revenue, and without age-restriction and accessibility laws implemented through licences. 

Referring to research from the American Gaming Association, the petition claimed that “these machines generate an estimated $1.9bn in revenue for unlicensed operators annually – close to the $2.5bn that Pennsylvania casinos earned from slot machines in 2023”.

The petition also refers to the violation of the Uniformity Clause of the Pennsylvania Constitution, which states that taxes be “uniform, upon the same class of subjects”. 

To affirm this belief, the petition set out to compare the similarities between slot machines and skill and hybrid machines that can be found in many unlicensed establishments. 

The petition named Banilla Games and Pace-O-Matic as two unlicensed skill and hybrid machine developers, delving into their cabinets to explain that their games are basically just slot machines with added mini-games with slight skill-based gameplay. 

One game, Pace-O-Matic’s Pirates title, had its gameplay showcased in a video included in the petition. The footage shows standard slot gameplay with players relying on chance for the vast majority of their wins. 

While skill-based gameplay does become implemented into these titles, the petition states that this is usually in the form of “time-consuming and difficult” memory games in which players are often required to remember lengthy sequences that take between 12 and 15 minutes to complete, just to win back around 105% of their original stake. 

The petition claimed that “all ‘skill’ and ‘hybrid’ games function like this”, and again referred to research from the AGA that showed 65% of those familiar with skill and hybrid slot machines state that they “are no different from slot machines where wins are based on random chance, and that even a skilled player cannot reliably influence the outcome”. 

Additionally, the petition noted that in 2023, Pennsylvania’s 1-800-GAMBLER hotline received 121 calls from individuals who identified ‘skill machines’ as their ‘most problematic gambling’ or ‘the gambling activity that the caller/subject has the most difficult time controlling’.  

The hotline also received another 68 calls from individuals who identified ‘non Casino – slots’ (defined as unregulated slots) as their ‘most problematic gambling’. 

Those 189 calls make up approximately 8% of all calls received by the hotline throughout 2023, which the petition refers to as “remarkable” considering unlicensed operators that offer these machines aren’t even required to advertise the responsible gambling hotline. 

Furthermore, the rise of ‘parlours’ in Pennsylvania was noted by the petition, suggesting that at least two have opened up in the state. These parlours are essentially often unlicensed game rooms dedicated to operating skill or hybrid slot machines, without regulation as to who can access them or where they can be located.

One Pennsylvanian parlour, the Keystone Klub, was mentioned specifically in the petition as the facility’s website advertises its “game room to play skilled games”, where customers “don’t have to sit at the back of a gas station or a loud smoke-filled bar or casino”. Instead, they can play in the “game room”, complete with complimentary “beverages and snacks” and the “best payouts”.

The Keystone Klub’s website advertises “recent winners” of “jackpot[s]” and “grand prize[s]”, showing thousands of dollars of winnings. The petition then included the following image to show the Klub’s offering, which looks similar to standard slot machines.  

The petition explained: “To date, the Commonwealth Court, as well as Courts of Common Pleas, have held that unlicensed entities are not prohibited from operating these skill and hybrid slot machines because the machines do not constitute ‘gambling devices’ or ‘slot machines’ under Section 5513 of the Crimes Code.

“In addition, the Commonwealth Court has held that the unlicensed operation of skill and hybrid slot machines is not subject to the Gaming Act’s regulatory framework.

“As a practical matter, these decisions effectively conclude that unlicensed operators of skill and hybrid slot machines are also not subject to the Gaming Act’s slot machine tax.”

Petitioners have underlined that they “vigorously disagree” with those decisions, leading to this very petition which asks for relief on four counts. 

Declaratory and injunctive relief

Firstly, on Count I, the petition demands a declaration from the respondents that the taxation laws on slot machines are constitutional. Count II, meanwhile, seeks a corresponding permanent injunction requiring respondents to collect taxes from revenue generated from all slot machines in the state, including those operated by unlicensed entities. 

Alternatively, the petitioners asked the Supreme Court to enjoin respondents from collecting slot machine taxes altogether. 

The petition read: “To avoid any immediate and disruptive effects on the Commonwealth’s tax revenue, Petitioners request that this Court stay such an injunction for 120 days to allow the General Assembly to correct the unconstitutionality of the slot machine taxes.

“To be clear, Petitioners do not seek to pay no taxes on revenue generated from slot machines; rather, they seek parity in the burden of slot machine taxes, as required by the Uniformity Clause.”

Both Counts III and IV included similar aspects of Counts I and II, however, they referred to skill and hybrid machines rather than slot machines. 

The Pennsylvania Supreme Court is prepared to consider how the state imposes tax rates on slot machines after granting a request last week from Attorney General Michelle Henry to hear a case concerning the legality of skill and hybrid machines – often referred to as grey machines.

Henry has asked the court to consider whether electronic slot machines cease to be an illegal ‘gambling device’, governed predominantly by chance, if the machine’s manufacturers embed into its programming a skill element that is almost entirely hidden from view.

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Integrating Sightline’s Play+ in its Bensalem, Pennsylvania, property that features over 3,000 slot machines, approximately 200 table games and a 50-table poker room, customers can now download the Parx Wallet app, powered by Light & Wonder, on their smartphone.

“The Parx Wallet will provide tremendous benefits for our loyal customer base, enhancing their safety and security,” said Marc Oppenheimer, Chief Marketing Officer at Parx Casino. 

“The ability to play cashless across our more than 3,000 slot machines with the Parx Wallet and Play+ will provide our customers with easy access to their funds both on and off property.”

Sightline’s Play+ is the funding solution for the new Parx Wallet, enabling cashless play throughout the Parx Casino floor. The Parx Wallet app connects into the Light & Wonder casino management system deployed across the property.

The Parx Play+ payments solution will also be in operation within its online casino and mobile sports betting platform, betPARX. 

Once enrolled in Parx’s X-Club casino loyalty program, guests can set up a Parx Play+ account to fund their cashless gaming account through multiple sources, such as a debit card. 

Additionally, Parx Play+ patrons will receive the Parx-branded Play+ Discover card in the mail, allowing them to spend their winnings wherever Discover is accepted.

“Light & Wonder is committed to exceeding player expectations,” added Jon Wolfe, Light & Wonder Senior Vice President, President of Global Systems & Service of Gaming.

“Enabling new technologies by working with companies like Sightline is a way for us to provide the best possible digital experience and remain one of the industry’s leaders.”

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The multi-year partnership will see the Greenwood owned Parx Casino and betParx become official banner partners of the 76ers, with the company also vowing to deliver a series of “unique experiences and offerings” through slot and table game products.

“betParx has been an incredible partner of the Philadelphia 76ers as they truly understand the passion and energy of our fan base,” said Katie O’Reilly, 76ers Chief Revenue Officer. 

“We are thrilled to have betParx and all of its offerings as an official 76ers banner partner. Through this extension, we look forward to sharing the betParx experience with our fans for many seasons to come.”

Furthermore, Parx Casino has also been named as the official local casino of the 76ers, while betParx is the official winning partner and has vowed to deliver an array of gameday experience.

As part of this partnership, the 76ers and Parx Casino will host official watch parties throughout the season, with a series of promotions set to be accessible via the digital entity. 

“Parx Casino is excited to continue our relationship with the 76ers. Our partnership has been very productive and the 76ers business team is a great partner to work with,” noted Marc Oppenheimer, Chief Marketing Officer at Parx Casino.

“We look forward to continuing to be their official local casino and official winning partner as they continue their quest for an NBA title.”.

betParx operates igaming and online sports betting products in Pennsylvania, New Jersey and Michigan, while the Bensalem-based gaming property features an array of amenities.

This includes 3,000 slot machines, 148 live table games and 48 poker tables in a private room; live thoroughbred horse racing and simulcast action; a 1,500-seat live entertainment venue; nine restaurants and bars; and a sportsbook.

“We are thrilled to extend our partnership with the Philadelphia 76ers into the 2022-2023 season and beyond as an official winning partner of the team” said Gil Bushkin, Senior Director of betParx Interactive Marketing. 

“This is a natural progression for betParx after being presenting sponsor of the 2022 76ers playoff run. 

“betParx and the 76ers represent a perfect synergy that aims to bring the fans unforgettable experiences on the court and when using our mobile app this season even more than before with a whole new win-for-all promotion and unique fan experiences for our customers”.

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Under the terms of the alliance, Parx will promote responsible gaming consumer education at its sportsbooks, through its app, and across digital channels. 

“Responsible gaming is an integral part of Greenwood Racing’s sports betting strategy,” said Marc Oppenheimer, Parx Chief Marketing Officer. 

“We’re excited to extend our longstanding commitment to responsible gaming consumer education through this partnership with the AGA.” 

The AGA launched Have A Game Plan in late 2019 to promotes four principles of responsible sports wagering, those being set a budget and stick to it; keep it social; know the odds; and play with trusted, regulated operators.

The campaign has broad support from across the sports betting landscape, including sports leagues and teams, media companies, gaming operators and suppliers and others. 

Sports betting is now legal in 33 states and the District of Columbia. Today, 31 jurisdictions are operational, offering more than 130 million American adults the protections of legal wagering in their home market. 

“The AGA is thrilled to welcome Parx Casino and betParx as Have A Game Plan campaign partners,” added Casey Clark, AGA Senior Vice President. 

“The expansion of legal sports betting options—to 130 million Americans today—reinforces the importance of bringing together as many voices as possible to educate consumers on responsible wagering.”

Parx joins campaign partners across the sports, media and sports wagering landscape, including Barstool Sportsbook, BetMGM, DraftKings, Delaware North, Entain, FanDuel, Global Payments, MGM Resorts International, MSG Networks, Monumental Sports and Entertainment, NASCAR, New York Knicks, New York Jets, New York Rangers, NHL, Nuvei, Penn National Gaming, PGA Tour, Rush Street Interactive, SeventySix Capital, Sightline Payments, Sinclair Broadcast Group, UFC, Vegas Golden Knights and Washington Commanders.

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This has seen the betParx offering across the two states become powered by the Playtech information management solution, and follows a multi-state agreement reached by the two parties in February 2021.

The relaunched betParx will gain Playtech titles, including games developed by the group’s Origins and Rarestone Studios, as well as an array of third-party titles, including offerings from the likes of IGT, Konami, and AGS.

“We are incredibly proud to be launching betParx in conjunction with an industry leading technology provider in Playtech,” stated Matthew Cullen, Senior Vice President of igaming and Sports for betParx.

“We’ve made the sign up and deposit and cash-out processes as simple and smooth as anything in the industry. Plus, we’ve created a product that ensures a great experience to any user, casino or sports. We invite everyone to download and play betParx and remember that ‘Today Just Might Be Your Day’.”

As a result of the extended agreement, Playtech is making its debut within Pennsylvania, following licensing approval, with the Keystone State becoming the third US region that the group has been awarded the regulatory green-light and is operational.

Mor Weizer, Playtech CEO commented: ”We are thrilled to continue to grow Playtech’s igaming and sports betting partnership with betParx in other US markets. 

“Playtech’s industry-leading software and expertise provide a high-quality customer experience, and this is exactly what the highly sophisticated consumer market in the US requires. 

“We look forward to further expanding our footprint in the US and working with betParx to deliver world-class gambling and sports betting entertainment across multiple states and products.”

In April 2021, the alliance between Playtech and Parx brough the launch of a new igaming app for Michigan’s Gun Lake Casino, titled Play Gun Lake.

The post Playtech grows Parx alliance with New Jersey & Pennsylvania relaunches appeared first on CasinoBeats.

This will see the group construct a category four gaming establishment within Shippensburg Township, Cumberland County, which is targeting an opening in the latter stages of 2022.

A category four slot machine license permits an entity to operate between 300 and 750 slot machines, with it also possible to petition for permission to initially operate up to 30 table games for an additional fee of $2.5m with the capability of adding an additional 10 after its first year of operation. This table games certificate was also approved.

According to information presented today to the Board, Parx Casino Shippensburg will offer 500 slot machines, electronic tables games, and a restaurant and sports bar facility, at opening within its 73,000 square foot facility.

The casino, which will be non-smoking, expects to create 175 construction jobs and more than 125 full time equivalent permanent jobs. It also plans to offer sports wagering in the future.

The award concludes a process that began on February 22, 2018, when Greenwood secured the right to locate a casino with a winning bid of $8.11m at the fourth category four auction held.

Elsewhere, the PGCB has also made moves to ban four individuals from all casinos in the Commonwealth after leaving children unattended so they could gamble in a gaming establishment.

The Office of Enforcement Counsel presented four cases to the board involving unattended children left in parked vehicles or in a hotel room at casinos in Pennsylvania. 

In each, the regulator says that the parent left a young child or children, with no adult supervision, so they could go into a casino to gamble. 

Subsequently, the board termed this behavior “irresponsible and dangerous,” which has resulted in the approval of the placement of the four adults on the ‘Involuntary Exclusion List’ which prohibits individuals from entering and gambling at all Pennsylvania casinos. Additionally, offenders may face criminal prosecution.

Since 2011, 133 individuals have been placed on the involuntary exclusion list for this type of behaviour.

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In the former, the regulator has issued a $10,000 fine against Greenwood Gaming and Entertainment, operator of Parx Casino, for permitting an 18-year-old to enter the gaming floor and gamble on slot machines.

The PGCB reminds licensees that: “The Gaming Act makes it unlawful for an individual under 21 years of age to enter and remain in any area of a licensed facility where slot machines are operated or the play of table games is conducted, and to wager, play or attempt to play a slot machine or table game at a licensed facility.”

Furthermore, a number of cases involving unattended minors being left in vehicles in parking garages or a surface parking lot at a casino in Pennsylvania were also presented.

In each case, the state regulator says the parent or guardian left a young child or children with no adult supervision so they could go into a casino to gamble on slots, gamble at a table game, buy or redeem a sports bet, or meet up with acquaintances who were gambling.

“In each instance, the board termed this behavior ‘irresponsible’, resulting in the approval of the placement of three offending adults on the PGCB’s involuntary exclusion list that prohibits individuals from entering and gambling at all Pennsylvania casinos,” the PGCB added. 

“Additionally, offenders may also face criminal prosecution for endangering the welfare of a child or children.”

In the first of the incidents, one parent was involuntarily excluded for leaving his 11-year-old child in a vehicle in the parking lot of a casino, so that he could go inside to redeem a sportsbook ticket.

Another saw the partner of eight and five year olds involuntarily excluded after leaving the two in his vehicle to place a bet at the casino sportsbook and play at a craps table.

A third individual was the recipient of a similar action for leaving four children, aged 13, 13, 10 and two, in her vehicle so she could enter the casino to watch an acquaintance play at a craps table.

Since 2011, 129 individuals have been placed on the involuntary exclusion list for this type of incident.

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This has certainly been borne out by the most recent numbers, with PA recently generating a record monthly revenue total across both its online and offline casino verticals.

According to bestcasinosites.net, which lists the best PA online casino sites, there are plenty of operators that offer access to casino gambling in Pennsylvania, with this number continuing to grow year-on-year. We’ll explore this further below, while asking what’s next for the PA marketplace.

How has the iGaming market in PA performed of late?

July saw the local market generate record-breaking numbers, with Pennsylvania casinos banking cumulative revenues of $423.6 million during this four-week period.

This represents the highest monthly total generated to date, beating the previous record of $388.8 million by $35 million overall. Interestingly, the previous record had been set in June, so PA casinos are clearly thriving and continuing to increase their turnovers as 2021 progresses.

July’s figures also highlighted impressive year-on-year growth, with the same period in 2020 seeing PA casino operators bank just $283 million. 

Of course, this had a great deal to do with the coronavirus pandemic and the temporary closures and restrictions that were put in place, with this particularly affecting the Rivers Casino in Pittsburgh.

This time around, this establishment saw its revenues total $34.1 million, with slot machines contributing $25.3 million of this total haul. A further $7.6 million was generated by table games, while the grand amount of $17.9 million was wagered on sports betting in July.

This made Rivers Casino in Pittsburgh the second-best performing establishment in PA, just behind Parx Casino in Bucks County. This delivered the highest revenue in total, bringing in about $64 million during the four-week reporting period.

Next up was the Meadows Racetrack and Casino in Washington, with revenues totalling $20.6 million in July.

The Meadows resort was also one of the most lucrative in terms of its sports betting handle, generating $67.2 million in sports bets placed during the month of July alone.

There’s an interesting takeaway here, as while the doors to brick-and-mortar establishments were once again open this year, there clearly wasn’t a substantial decline in the value of online wagers. 

This is borne out by the total revenues banked by PA casinos, while it also suggests that monthly turnover will continue to increase across both verticals for the foreseeable future.

The figures also show that slot machines remained the top earners for PA casinos in July, accounting for a whopping $222.8 million of the gaming sector’s overall revenue.

Of this number, online slots accounted for $63.2 million, making it the single largest driver of iGaming revenue too. This is part of a wider trend within the global marketplace, with online slots also accounting for more than two-thirds of the total iGaming GGY in the UK.

Elsewhere, online poker and table games generated $2.59 million and $22.8 million respectively, while as much as $3.75 million came directly from video gaming terminals.

What does this mean for the PA marketplace?

These figures are striking, with the delivery of two record-breaking months in June and July highlighting the incredible growth of casino gambling both on and offline in Pennsylvania.

Even more impressively, offline casino gambling appears to be thriving in Pennsylvania, despite the rising prevalence of iGaming and remote sports betting through dedicated platforms such as DraftKings and FanDuel.

This has been borne out by the performance of brick-and-mortar establishments in the wake of the coronavirus restrictions being eased throughout PA, with customers flooding back to land-based casinos just as soon as their doors were reopened to the public.

Despite this, we haven’t seen a sizable decline in the popularity or viability of iGaming verticals, with online casino gambling in PA having become increasingly popular throughout the pandemic and its associated lockdown measures.

Increasingly, it appears that many gamblers may now be adopting a hybrid approach to gameplay, as they look to combine on and offline verticals to create an optimised and convenient gambling experience.

This will serve Pennsylvania well, particularly as the location boasts a thriving offline casino sector and a burgeoning online marketplace.

Over time, of course, we’d expect that online casinos to grow at a much quicker and more sustainable pace than offline alternatives, while interstate iGaming may also become viable if the 2011 interpretation of The Wire Act remains in place.

The post PA casinos revenue up to 423M in July appeared first on CasinoBeats.

These came as the result of board approval at the regulator’s public meeting of consent agreements between the PGCB’s Office of Enforcement Counsel and the license holders.

A fine of $7,500 was levied against VGT terminal operator Second Street Gaming, and one of $5,000 against VGT establishment licensee Love’s Travel Stops & County Stores, stemming from an August 2020 theft of a total of $3,202.81 of cash and cash equivalents. 

In the incident, a patron, who has since been arrested, was in the video gaming area of the Loves Travel Stop in Mifflinville for over three hours, and gained access to the cash box in the machine without video detection from either of the licence holders.

Furthermore, the third sanction was levied against Greenwood Gaming & Entertainment, operator of the Parx Casino and an igaming certificate holder. 

This stemmed from the accidental deployment by an employee of GAN, an online casino partner of Parx, of two interactive slot machine games from a test environment into a production. 

This, says the PGCB, allowed the games to go ‘live,’ resulting in the titles being played by patrons prior to regulatory authorisation to commence interactive games being issued.

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