United States: Pennsylvania Jurisdiction profile

In our review of Pennsylvania gambling law, we’ll provide enough high-level information on various aspects of the subject to place online gambling in the state in its proper context and focus primarily on interactive gambling overall.

Among the following subjects, we’ll paint with a broad brush and then sketch in some medium detail before pinpointing some finer detail. We’ll provide an overview of the legislative framework for gambling in the state, provide a date-oriented list of historical milestones; introduce the state regulatory authorities including some relevant boundaries and overlaps where pertinent - along with regulatory responsibilities and enforcement mechanisms, and we’ll look at the gambling products available across the spectrum.

We’ll cover land-based gambling broadly and online gambling in slightly more detail as well as licensing information, business-to-business and business-to-consumer (B2B/B2C), mobile and home-based online gambling opportunities, some blockchain gambling information generally and specifically, how gambling debts are dealt with under the law, the state’s gambling tax scheme and some revenue numbers and then we’ll take a look at any advertising restrictions and any upcoming developments including any potential reforms.

On October 26, 2017, the Pennsylvania House of Representatives passed a bill to legalize online gambling in the state. Then Gov.Tom Wolf signed the bill into law on October 30, 2017. However, internet casino gambling wasn’t actually launched until July of 2018 which began the end of a four to five-year hiatus after the promise of regulated online that began bubbling up as first Nevada, then Delaware, and then New Jersey authorized and launched their own online gambling programs all in 2013.

The Expanded Gaming Act of 2017 (HB271) opened new opportunities and broadened some existing gaming liberalization. Elements of the Act were phased in over preplanned stages over the coming months after being signed into law. Please see the timelines and lists of significant milestones that follow for specifics. In general, the law accomplished the following:

• Legalized online gambling to include poker, slots, and table games

• Regulates daily fantasy sports

• Put in place regulation for the administration of sports betting in anticipation of expected changes in federal sportsbetting law

• Authorized the placement of video gaming terminals (VGTs) at truck stops along with mobile tablet gaming at airports

• Created a pathway for the creation of up to ten smaller satellite casinos in various communities around the state. The satellite permits were not always in high demand.

• Legalized and created the basic framework for an online lottery system

When it finally opened up in July 2018, online gambling became very popular, quite quickly after so much pent-up desire and anticipation among PA denizens, and overall gambling revenues in the state soon surpassed that of almost all other states save Nevada despite the fact that gambling in PA had only been legal for less than 20 years in the state.

Since taxation is much higher in Pennsylvania and participation is high, it is possible in some quarters or even years for PA.

Regulation of Online and Other Gambling in Pennsylvania

The state’s omnibus gambling legislation was robust and intricate while spreading authority over land-based and online gambling across more than a dozen internal entities of the Pennsylvania Gaming Control Board (PGCB). As there is no codified legal distinction in the law between land-based and online gambling, all elements of control and compliance apply to both forms of gambling and are only specific to one where no cohort exists in the other realm.

The Board has broad authority over regulation, supervision, licensing, and enforcement of all matters under the Gambling Act. The Board consists of 14 separate divisions with other offices and bureaus within the board handling things such as internal administration, financial reporting and compliance, communications, diversity issues, and of course, problem gambling with no distinction between land-based or internet-based activities.

The main divisions or bureaus operating within the Board are as follows:

Regionally, the Bureau of Investigations and Enforcement and Office of Enforcement Counsel have offices and officers spread throughout the state that enforce the laws and regulations within their “districts” with online issues handled at the state level. These entities are supported by and advised by the Bureau of Investigations and Office of Enforcement Counsel.

The Bureau of Operations is responsible for compliance issues and audits.

An entirely separate Bureau of Casino Compliance ensures gaming integrity is tasked with the assignment of representatives who have the remit to monitor individual activities and compliance at their assigned casino(s).

The Bureau of Licensing is responsible for all licensing matters, including matters related to online and land-based casinos as well as all other forms of gambling not specifically outlawed in the state. This includes the licensing of gambling operations employees.

The Bureau of Gaming Laboratories and Office of Information Technology (IT) takes care of inspections in the field as well as slot machine and gaming table certification along with gaming kiosks, truck stop VGTs, and myriad tech support issues including online gaming server uptime.

The responsibility for geolocation services allowing server-based gaming to be provided only to players placing bets inside the state's borders falls under this division as well as obvious others already mentioned.

As is the case with every other state that allows and regulates online gambling only bets that can be proven to have originated within the borders of Pennsylvania can be placed at an online casino or other online betting site. Virtually every provider in every state uses GeoComply for these services. However, in early 2023, the company failed to prove patent infringement against another company and its near-monopoly began to erode somewhat.

In order to play online with your own money or bonus funds, whether it is sportsbetting, casino games, or even the PA iLottery players must first install a browser plug-in or a mobile app that allows the specific provider to guarantee you are in compliance. Some of the information gathered with each bet placed or slot spin comes from your device's location services so that feature must be activated, GPS, and nearby Wi-Fi activity.

These and other proprietary technologies help the geolocation plugin or app determine with certainty that you are currently in Pennsylvania when you access any online gambling - not only when you log in, deposit, or cash out - but every single bet made.

Even deep within a state’s land area, away from its borders, issues can arise with geolocation services. When that occurs in Pennsylvania due to border proximity, being situated near a large body of water, or even while gambling from a remote location without many nearby WiFi signals or other feedback data, solutions are provided through a potentially escalatory process beginning with FAQs, self-assisted troubleshooting, provider assistance, or even in the background, via an operator facilitated interface with Gambling Board actors such as those in the Bureau of Gaming Laboratories and Office of Information Technology if required.

However, most players will never be aware of this intervention as it happens behind the scenes when “live” or simply in the background as a forensic matter. A solution is almost always provided usually sooner rather than later.

The end result in each and every case is a safe and secure gambling experience in compliance with the law.

Gaming Opportunities in Pennsylvania with Additional Information

Horse Racing:

Pennsylvania legalized horse racing in 1963 via the Pennsylvania Race Horse Development and Gaming Act. The act also created the Pennsylvania Horse Racing Commission to regulate horse racing in the state.

State Lottery:

The state-run lottery in PA was introduced in 1971, making it one of the first state lotteries in America. The lottery offers a variety of games including instant tickets and numbers drawings.

The state is a member of the Multi-State Lottery Association (MUSL), which is owned and operated in part by the state lottery along with 33 other member lotteries. MUSL was created to facilitate the operation of multi-jurisdictional lottery games,.Powerball is one of MUSL’s best-known games.

Casinos:

The first casinos in the state were “racinos”. These were authorized by the Race Horse Development and Gaming Act in 2004, which allowed for the construction of slot machine casinos at certain specific racetracks, but not all racetracks. Mohegan Sun at Pocono Downs was the first casino to offer legal slot machines in Pennsylvania. With the machines being turned on in 2006.

The next year, the Pennsylvania Gaming Control Board (PGCB) was established.

Table games like blackjack, poker, and roulette, were authorized for Pennsylvania casinos in 2010.

Giving permission to operate beginning in 2012 as a permitting process was instituted.

Online gambling legislation was passed in 2017 which legalized online casinos with interactive games like slots, roulette, and baccarat. Online poker was also legalized.

Sports Betting:

Pennsylvania legalized sports betting in 2018 after the Supreme Court's decision in a New Jersey-sponsored case struck down the federal ban on sports betting (PASPA).

Licensed casinos in the state are authorized to offer sports betting services in Pennsylvania.

Video Gaming Terminals (VGTs) at certain Truck Stops:

The 2017 Gambling Act also approved the installation of video gaming terminals (VGTs) at specific truck stops.

Satellite Casinos:

The Omnibus legislation of 2017 allowed for the establishment of up to 10 satellite casinos. These casinos are smaller-scale establishments in addition to the main casino which are already licensed.

Pennsylvania has a comprehensive and diverse legal gambling landscape that includes horse racing, casinos, online gambling, sports betting, video gaming terminals (VGTs), and satellite casinos. The state‘s gambling establishments are overseen by and regulated by regulatory bodies such as the Pennsylvania Horse Racing Commission and the Pennsylvania Gaming Control Board (PGCB).

The PGCB has published Interactive Gambling Reports since 2021. In 2022 the state began publishing Executive Summaries to accompany the reports. According to the 2022 Executive Summary, the following information is topline most-important:

During the 2021/2022 fiscal period, the 19 iGaming operators and 14 online sports betting

locations in Pennsylvania brought in over $1.2 billion in revenue from iGaming (including slots,

table games and poker), over $267 million in revenue from online sports betting, and over $27

million from fantasy sports (Online and on-land fantasy sports revenues are comingled and counted as a lump sum).

Only about one in ten Pennsylvanians participate in online gambling according to the most recent report. There is a massive disconnect in participation between players in different parts of the state with 15.2% South Western Pennsylvanians playing on the high end and 5.5% of North Westerners in the state participating on the low end.