Pennsylvania Casinos Lose Bid to Close Online Lottery

Seven Pennsylvania casinos have failed to have a court order the state lottery to stop offering online games. The casinos were seeking an injunction to stop the games as part of an ongoing lawsuit against the state. The judge in the case has not ruled on whether the lottery games are legal under the state’s 2017 gaming expansion law, but said she will move quickly to rule on the case.

Pennsylvania Casinos Lose Bid to Close Online Lottery

The Pennsylvania Lottery can continue offering online lottery games even as a group of the state’s land-based casinos challenges their legality.

Seven state casinos challenged the lottery games which began in May 2018 after passage of a set of laws which greatly increased legal gaming in Pennsylvania in 2017. The casinos argue that their own online sites will face competition from the lottery and that the lottery pays no fees or taxes.

Judge Renee Cohn Jubelirer did not order the lottery to stop offering the game noting the disruption it would cause, but did say that whether the lottery games are legal is ambiguous under the 2017 law. She promised a speedy decision on the main suit, but set no timetable.

Cutting off the revenue from the online games, which is already included in the state’s budget projections, would cut more than $30 million in funds for programs assisting seniors.

The PA Lottery saw the decision as a victory.

“We were pleased to see the judge’s ruling,” the lottery said in a press release. “As we have said in the past, Act 42 of 2017 authorized the launch of PA iLottery and the games are being operated in accordance with the law.”

David LaTorre, a spokesman for the casinos, said he was disappointed with the lack of an injunction.

“We are disappointed with the court’s decision, given the overwhelming evidence that the Pennsylvania Lottery is using casino-style games that are illegal,” he said in a release. “Our coalition will continue its lawsuit in Commonwealth Court and we look forward to aggressively pursuing our rights in an upcoming trial.”