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MONTGOMERYBAR.ORG

comparable fees in New Jersey, which
required casinos to pay just $1.2 million
in licensing fees (which also include the
fee required to carry an internet gaming
platform, which is not yet operational in
Pennsylvania and not a part of the $10
million initial fee).
In addition, the taxes payable on
sports betting proceeds are substantial.
The gaming expansion law provided a
whopping 34% tax rate on gross sports
gaming revenue to be paid to the state,
plus an additional 2% to be remitted
to local or municipal taxing authorities.
That makes for an effective 36% tax rate
on all betting proceeds. This dwarfs the
8.5% rate for in-person bets or 13% rate
for online bets in New Jersey. The taxes
and fees make for a good reason to be
cautious about beginning sports betting
operations in Pennsylvania.
As of the date this article was
submitted, the GCB has not awarded
any sports wagering certificates, and no
legal sports betting in Pennsylvania has
taken place. For nearly three months,
no casinos were reported to have applied
for certificates. As the 120-day window
continued to wind down, the new
thinking was that Pennsylvania's casinos
were scared off by the high cost of
maintaining a sports wagering business,
and would not submit applications if
their operations would be subjected to
that kind of tax and fee structure.
Recent weeks, however, have seen a
breakthrough. While the applications
have not been made public, reports
emerged in late August that two
Pennsylvania casinos-Hollywood
Casino in Harrisburg (owned by Penn
National Gaming), and Parx Casino
in Bensalem (owned by Greenwood
Gaming & Entertainment, Inc.)-
submitted applications for certificates.
Several other casinos have been rumored
to have entered into deals with providers
of online gaming platforms or wagering
software, and thus have been rumored to
be preparing for their own entries into

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the sports betting arena in Pennsylvania.
Betting, therefore, is on the horizon.
I am finishing this article on the
same day that the defending champion
Philadelphia Eagles begin the NFL season
against the Atlanta Falcons. While plenty
of Eagles fans in South Jersey will place
bets on the game in casinos and apps,
no fan in Pennsylvania will be able to do
so legally. However, legalized wagering

in Pennsylvania is inching closer. It is
entirely possible, perhaps even likely, that
the state will see legalized betting before
the end of the NFL season. Whenever
the first bet is placed, Pennsylvania
certainly appears to be ready to reap
substantial financial benefits from what
should be a very popular endeavor for
fans across the Commonwealth.

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SIDEBAR Fall 2018

Table of Contents for the Digital Edition of SIDEBAR Fall 2018

SIDEBAR Fall 2018 - 1
SIDEBAR Fall 2018 - 2
SIDEBAR Fall 2018 - 3
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https://www.nxtbook.com/hoffmann/MontgomeryBarAssociation/SIDEBARFall2021
https://www.nxtbook.com/hoffmann/MontgomeryBarAssociation/SIDEBARSummer2021
https://www.nxtbook.com/hoffmann/MontgomeryBarAssociation/SIDEBARSpring2021
https://www.nxtbook.com/hoffmann/MontgomeryBarAssociation/SIDEBARWinter2021
https://www.nxtbook.com/hoffmann/MontgomeryBarAssociation/SIDEBARSummerFall2020
https://www.nxtbook.com/hoffmann/MontgomeryBarAssociation/SIDEBARSpring2020
https://www.nxtbook.com/hoffmann/MontgomeryBarAssociation/SIDEBARWinter2019-2020
https://www.nxtbook.com/hoffmann/MontgomeryBarAssociation/SIDEBARFall2019
https://www.nxtbook.com/hoffmann/MontgomeryBarAssociation/SIDEBARSummer2019
https://www.nxtbook.com/hoffmann/MontgomeryBarAssociation/SIDEBARSpring2019
https://www.nxtbook.com/hoffmann/MontgomeryBarAssociation/SIDEBARWinter2018-19
https://www.nxtbook.com/hoffmann/MontgomeryBarAssociation/SIDEBARFall2018
https://www.nxtbook.com/hoffmann/MontgomeryBarAssociation/SIDEBARSummer2018
https://www.nxtbook.com/hoffmann/MontgomeryBarAssociation/LRSINSIGHT
https://www.nxtbook.com/hoffmann/MontgomeryBarAssociation/SIDEBARSpring2018
https://www.nxtbook.com/hoffmann/MontgomeryBarAssociation/SIDEBARWinter2017-18
https://www.nxtbook.com/hoffmann/MontgomeryBarAssociation/SIDEBARSummer2017
https://www.nxtbook.com/hoffmann/MontgomeryBarAssociation/SIDEBARSpring2017
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