The Pennsylvania Gaming Control Board (PGCB) has approved an Interactive Gaming Manufacturer Conditional Licence to NetEnt Americas LCC, the branch of NetEnt AB.
The Swedish developer was in the first round of approved vendors to conduct online gaming in Pennsylvania.
Ready for the Market Opening
NetEnt announced that they have obtained a license to deliver its online games in the market of Pennsylvania. Prior to obtaining the licence, NetEnt had already signed customer contracts with several gambling operators. Its games are expected to be launched as soon as the casino market opens, the date of which will be set by the PGCB.
The managing director of NetEnt Americas LCC Erik Nyman expressed his satisfaction with being among the first approved vendors in the market.
“This fits well with our strategy to be live with our products on the first day of market opening,” said Nyman.
Gambling Regulation in Pennsylvania
In October 2017, the states’ legislature passed an online gambling law which made Pennsylvania the fourth state to legalise and regulate online gambling.
Considering its population of around 13 million people and its long history of land-based gambling, Pennsylvania represents a big gaming market. Its commercial casino revenues are the second largest – right after Nevada. The total revenue for 2018 amounts to $3.2 billion.
In the process of regulation, three separate licence categories are established:
- Online slots
- House-banked games
- Online poker and other peer-to-peer online games
A licence costs $4 million per category or $10 million for the whole package.
Taxes the operators have to pay for online slots are high compared to other states, which can cause the odds and payout rates to get less favourable than in Nevada or New Jersey. Taxes for online table games and poker come at a rate of 14%, those imposed on online slots stand at 52% while those who want to offer sports betting will have to pay a tax of 34% plus. All online gaming operators will have to pay a 2% local share on top of the taxes.