Online Gambling License in Pennsylvania

The Pennsylvania Gaming Control Board is an independent state agency overseeing legal gambling in the State. It regulates all forms of gambling, including online and land-based casinos, sports betting, and fantasy sports games.

The Board consists of one Chair member and nine Commissioners – all with relevant educational and professional backgrounds suitable to support the role and mission of the Board. Each member of the Board must serve the position with honesty, integrity, and credibility, having the Code of Ethics in mind.

The mission of the PGCB is to protect the public by ensuring the integrity of all legal gambling activities and combatting illegal activities. In addition, it supports the development of the Commonwealth by delivering revenue, providing economic opportunities, and improving tourism. The Board protects the public’s interest at no taxpayer expense.

Types of Gambling Regulated by the PGCB

The main function of the Pennsylvania Gaming Control Board (PGCB) is to regulate and oversee all aspects of the gaming industry in Pennsylvania. This includes:

Online Casinos

The Board oversees and licenses all online casinos and ensures they conduct their operations fairly and transparently. The Board is in charge of issuing Interactive Gaming Licenses to land-based casinos in the State, allowing them to partner with online casinos and offer online platforms for residents of Pennsylvania. According to the current legal framework, the Board can issue three types of iGaming Licenses:

• Online Slot Machine License – Allowing the operator to offer slot games online. The fee for this individual license is $4 million.
• Online Table Game License – Allowing the operator to offer blackjack, roulette, and variations of these games online. The fee for this individual license is $4 million.
• Online Poker License – Allowing the operator to offer different types of poker games on their online platform. The fee for this individual license is $4 million.

If an operator wants to apply for all three licenses, they can do so at a discounted price of $10 million. To obtain a license, besides paying the fee, an operator must offer responsible gambling and player protection services. In addition, it needs to provide proof of fair gaming practices and certified RNG for all online games. Should these be violated, or if the Board finds irregularities in audits and financial reporting, they can revoke the license.

Taxation for online casino operation revenue varies based on the games. For online casino slots, the operators pay 54% of the gross gaming revenue. For online poker and other table games, there is a 16% tax. All revenue collected from taxes gets allocated to funds for responsible gaming, education, and other public interests.

Sports Betting

The Pennsylvania Gaming Control Board oversees both online and land-based sportsbooks and ensures that all operators offer fair play and player protection practices. Sports betting has been legal since 2017 when the State passed Act 42 and authorized both land-based and online sports betting operations.

Just like online casinos, the State allows land-based casinos to operate online sports books or partner up with third-party operators to offer online sports betting. The Sports Wagering Operator License allows sports betting companies to offer these services after applying for the license, paying the corresponding fee, and passing background and financial checks.

Operators can only offer their services to patrons over the age of 21, and they must provide tools for self-exclusion and display responsible gambling services visibly on their platforms. They also must comply with measures to prevent fraud and match-fixing.

There is a fee of $10 million for applying for the license, and it covers both in-person and online betting. The Board also oversees tax revenue and ensures that tax money gets allocated properly. Sports betting operators pay a total of 36% tax on the revenue. Out of those, 2% are local share assessments that get allocated to the county or municipality. The other 34% are state taxes which are allocated to the General Fund.

The legal framework also outlines the different types of allowed bets, and it gets revised regularly by the Board. Currently, the list of allowed bets includes single game, parlay, in-play betting, proposition, and future bets, amongst others.

The Pennsylvania Gaming Control Board also reviews the financial reports of all operators and ensures compliance with all laws. It works closely with sports leagues, law enforcement, and third-party monitoring organizations to achieve its goals.

Daily Fantasy Sports

DFS are classified as games of skills and thus aren’t treated as standard gambling compared to casino gaming and sports betting. The Board still oversees all DFS operations and ensures legal compliance.

To legally offer these services, a DFS operator must obtain a Fantasy Contest Operator License from the Board. It is a license that allows the operators to offer daily and seasonal contests for real money.

There is a one-time license fee for applicants of $50,000, and after that, the operators are just financially bound by the tax rates. Each operator must pay a 15% tax on adjusted revenues (entry fees without the winnings paid out). The revenue collected from the taxes gets allocated to the State’s General Fund and is aimed to contribute to public services.

Just like casinos and sports betting operators, DFS operators also must ensure that the contests are fair and transparent. In addition, they must implement measures for responsible gaming and self-exclusion.

The age restrictions differ. For casino and sports betting, the minimum age requirement is 21, whereas for DFS, it is 18. The legal framework also clearly defines the different types of contest types for all professional sports (NFL, NBA, MLB, etc). These include salary cap contests, head-to-head contests, league and tournament contests, and 50/50 contests.

Regulatory Framework of the PGCB

The legal framework outlining the responsibilities and the power of the Board can be found in several legal acts, the main one being the Expanded Gaming Law Act 42 of 2017. This is the act that was a turning point in how gambling is perceived in the State, and it legalized online casinos and online sports books.

The second most important act is the Pennsylvania Horse Race and Gaming Act of 2004, which legalized land-based casino gambling and created the Board to regulate all gambling activities. It also outlines the taxes, their allocation, and the list of legal responsibilities that operators must undertake. In addition, this law also legalized DFS and outlined the technical and financial requirements for all the operators.

Another relevant act outlining the responsibility to oversee casinos was Act 1 of 2010. It allowed licensed casinos to offer table games and established the duty of the board to license these casinos. Moreover, the Lottery Law Amendments of 2019 expanded the list of allowed options and allowed the iLottery games and other similar instant-win games.

All these laws together not only detail the licensing procedures of the Pennsylvania Gaming Control Board, but also give specific instructions on the investigation and overseeing, as well as detail the ability of the board to impose monetary fines, issue cease and desist orders, suspend and revoke licenses, and even forfeit winnings.

FAQs about Pennsylvania Gaming Control Board