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$120 MILLION IN UPFRONT LICENSE FEES FOR PENNSYLVANIA FROM LEGAL ONLINE GAMBLING research shows legalized, regulated online gaming and poker 
will be a win for the state, but unique structure presents obstacles

(LAS VEGAS) — Pennsylvania will likely collect $120 million in upfront license fees and stands to collect hundreds of millions of dollars more in tax revenue now that the Keystone State has become the nation’s fourth to legalize and regulate online gambling, according to the recently released white paper by “Pennsylvania Moves to Regulate Online Gambling.”

Pennsylvania Gov. Wolf reportedly signed a bill into law on Monday, Oct. 30, that makes makes online gambling legal, and with that signature comes a unique regulatory framework that will set the Keystone State apart from states that already have regulated online gambling, according to the report.

Substantial upfront license fees and a blended tax rate that is more than double New Jersey’s tax rate are among the key differences in Pennsylvania's approach to regulated online gambling. In addition, the bill facilitates a rapid path to market and is built to foster interstate agreements with states where online gambling is also legal and regulated, including Delaware, Nevada, and New Jersey.

In all, the report forecasts that Pennsylvania will generate $154 million in total revenue in the first full year after legalization and regulation. Annual revenue is projected to grow to $275 million in the fifth full year after legalization.

“Pennsylvania’s unique structure makes it difficult to forecast revenues with precision, but the successes in other states suggest that online gambling will be a significant and reliable revenue driver for years to come,” said Chris Grove, a Las Vegas-based gambling industry strategist who authored the report.

“Pennsylvania’s high tax rate will force operators to cut back on marketing and promotion, and could dissuade some consumers from leaving black market sites,” Grove added. "It is certainly possible that lawmakers will need to revisit the tax rate in order to ensure a market that works best for both the commonwealth and the casino industry that has contributed billions to Pennsylvania's coffers."

The move to legalize and regulate online gambling could also have a cascading effect on neighboring states, including New York, Ohio, and West Virginia, according to the report.

For a copy of the Play Pennsylvania report, visit

About Chris Grove:
Chris Grove is a gambling industry strategist based in Las Vegas. A managing director  at Eilers & Krejcik Gaming, Grove also oversees trade publications covering regulated online gambling, esports, and daily fantasy sports. Grove's research and insights are regularly cited by lawmakers, regulators, and major media outlets.

About The PlayUSA Network:
The PlayUSA Network is a leading source for news, analysis, and research related to the market for regulated online gaming in the United States. With a presence in over a dozen states, and its state-focused branches (including,,, and produce daily original reporting, publish in-depth research, and offer player advocacy tools related to the advancement of safe, licensed, and legal online poker and gaming options for consumers. Based in Las Vegas, The PlayUSA Network is independently owned and operated, with no affiliations to any casino — commercial, tribal, online, or otherwise.