According to recent gambling news headlines, four out of six states fell short of their tax revenue estimates from sports wagering. However, there remains a bright spot in the industry. Although PA sports betting tax revenue is down, it can still achieve its overall revenue projections.
Among the states with legal sports betting, Rhode Island generated only $50,000 monthly in sports betting tax revenues. However, state officials projected revenues of up to one million each month.
Pennsylvania remains a bright spot. Money earned from both tax revenues and licensing is within its projected amount. However, PA sports betting tax revenue is lagging. The good news is that licensing fees is enough to cover the amount needed to reach the expectations.
Sports betting licensing fees provide the largest benefit to PA’s budget. Sportsbooks pay $10 million for a license to operate in the state. At present, nine casinos paid for a sportsbook license. Also, there are four remaining casino operators without a sports betting license.
The bad news, the state is not open to bookie pay per head operations. Only casinos can apply for a sportsbook license in PA.
In addition, operators who want to offer online slots, table games, and poker need a full online casino license that costs $10 million. A license for one of the casino games costs $4 million. In fact, PA online casino fees earned $94 million for the state. However, it is unknown if any of that amount covered the deficit in gambling revenue due to processing delays.
From November to February, PA sports betting tax revenue is $2.5 million. However, the state is expecting higher revenues starting in July. That’s when sports betting apps will launch. Industry experts expect online sports wagers will outpace revenues from retail locations.