The Keystone State’s online gambling market is still on track to launch on July 15 and everything in the state has begun to take shape in that regard. Even so, there are still a few things that need to be ironed out and one of the most prominent of these issues is a dispute between the state’s casino operators and the Pennsylvania lottery. The casinos have long opposed the lottery’s online offerings citing concerns that these offerings are encroaching on their turf and thus threatening the success of the forthcoming regulated online gaming industry.
That said, the state’s gaming operators have recently doubled down on their efforts by asking the state’s Commonwealth Court to intervene before the online gaming industry kicks off next month. The group of casinos has requested an injunction which is granted will require the Pennsylvania Lottery to stop offering some of its games – these refer to only the games that resemble the casinos’ offerings.
Filed in 2018, the lawsuit came a short while after the lottery began offerings its online games. Three months after the launch of the online games, the Lottery launched Xpress Sports which is a simulated form of sports betting – the lawsuit came just a short while after the two launches. Championing the lawsuit are the following casinos: The Meadows Casino Racetrack Hotel, Penn National Race Course’s Hollywood Casino, Harrah’s Philadelphia, Parx Casino, Valley Forge Casino, Stadium Casino, and the Mohegan Sun Pocono.
What the Lawsuit Entails
The Keystone State’s Casinos are mostly worried that they will not be able to reach their revenue potential because of the lottery’s games which are similar to slot machines. The lawsuit states that the lottery is running their own version of online slot games to which it pays out an average of 85 percent of the betting handle from the games the casino alleges are similar.
Furthermore, the lottery has been accused of offering the slot-like games at a price point that is very similar to tradition slot game play. In addition to that, it has another rather unfair advantage since the players only need to be 18 years old in order to take part in its games while the casino operators have to adhere to the 21 years or older age requirement.
“The actions of the Pennsylvania Lottery are illegal. To make matters even worse, the agency is promoting casino-style gambling to teenagers. Pennsylvania casinos must follow very stringent regulations on underage gaming or face millions of dollars in fines,” David La Torre, the spokesperson for the casino coalition said.
All things considered, it is quite clear that the main concern for the state’s casinos other than the issue of underage gambling is the possibility of low revenue when the online gaming industry goes live next month. While it is certainly too early to predict the outcome of the lawsuit, it goes without saying that it will have a profound effect on the industry going forward.
