Fantasy contests in Pennsylvania generated $22,542,688 in the first 12 months of operation, which in turn, generated 3,381,403 in tax revenue for the northeastern U.S. state.
The Pennsylvania Gaming Control Board (PGCB) was charged with regulating the burgeoning business after the legislation was signed into law by Governor, Tom Wolf, in October of 2017. The law also expanded casino-style gambling and made the Commonwealth the fourth state after Nevada, New Jersey and West Virginia to legalize online sportsbetting.
Act 42 of 2017 requires that operators of fantasy contests in Pennsylvania be licensed by the Board and pay a 15 percent tax on the adjusted revenues obtained from the state’s players. The regulation and taxation of six online fantasy sports game operators (at the time) by the state’s gaming board began over the last weekend in April 2018.
Posted on its website prior to the weekend, the monthly Fantasy Contests Revenue Report includes totals from the first complete year of the state’s collection of taxes on the fantasy contests.
The report offers a detailed breakdown of fees gathered from the contests, the adjusted revenue of the fantasy contest operators, along with the tax revenue collected.
- Of the 7 active fantasy contests providers in Pennsylvania, the adjusted revenue for April 2019 for the two clear leaders was FanDuel at $961,867.32, and DraftKings with $845,553.33, while for April 2019 fantasy contests state tax due, FanDuel contributed $144,280.10 and DraftKings was at $126,833.00.
- The total for all 7 active fantasy contests providers for April 2019 adjusted revenue was $1,852,551.61, while the total for state tax due came in at $277,882.75.
- Meanwhile, for the entire 12 month period from May 2018 – April 2019, Fantasy Contests Adjusted Revenue was $11,549,460 for DraftKings and $10,274,886 for FanDuel, while the state tax due for the same time period was $1,732,419 for DraftKings and $1,541,233 for FanDuel.
- The total for all 9 fantasy contests providers for May 2018 – April 2019 adjusted revenue was $22,542,688 and for state tax due for the 12-month period it was $3,381,403.
Rivers Casino fined:
In other recent news regarding the state’s gambling landscape, on Wednesday, the PGCB fined Rivers Casino $90,000 for seven instances where individuals under the age of 21 gained access to the venue to consume alcohol and gamble.
The Pittsburgh, PA casino’s operator, Holdings Acquisitions Co., was the recipient of the fine after slot machines and/or table games were played by individuals ranging in age from 17 to 20. According to the gaming board, six of the seven underage individuals also drank.
Signs advising that access is restricted to those 21 and older are reportedly posted throughout the North Shore casino, and the IDs of young adults are customarily checked to verify they meet said requirement. The casino is held accountable by state regulators for anyone under 21 found on the premises.
In an emailed statement, Rivers’ spokesman, Jack Horner, said…
“We take these matters seriously, and the incidents were self-reported. We’ve reviewed and modified internal procedures to help prevent recurrence. We respect the decision of the gaming board,” according to the Pittsburgh Post-Gazette.
Also fined was SugarHouse Casino operator, Sugarhouse HSP Gaming, LP, in an intoxicated patron incident. The $15,000 fine resulted from a failure to properly monitor the complimentary alcoholic drinks served to a patron, which led to said individual gaming in an intoxicated state and causing a number of disturbances at the casino, according to the recent press release.