Seven casinos apply for iGaming licenses
Sands Casino Resort Bethlehem and Valley Forge Casino Resort have become the two latest casinos to sign onto the state’s new online gaming business.
The application by the Sands, unanimously approved last week by the Pennsylvania Gaming Control Board, is contingent on the property’s sale to Wind Creek Hospitality, the operator owned by Alabama’s Poarch Band of Creek Indians. Before the $1.3 billion sale—the local licensee operating the casino will be PCI Gaming—was announced, Sands was considered the least likely Pennsylvania licensee to opt for an iGaming license, as the chairman of its parent company, Sheldon Adelson, was well known for his opposition to online gaming.
It was clear the iGaming application was made on behalf of Wind Creek, Gaming Control Board spokesman Doug Harbach told the Lehigh Valley Live news site.
“We are only applying for the interactive gaming certificates because of the pending sale of the Sands Bethworks Gaming assets to PCI Gaming,” Sands General Counsel Michael Magazzu told the board before the approval. “If not for that pending acquisition, Sands Bethworks Gaming would not be applying for these interactive gaming certificates.”
In a deal announced in March, the Poarch Band of Creek Indians is working to acquire the property for $1.3 billion.
According to Online Gaming Report, PCI Gaming hasn’t chosen a supplier for its interactive platform. The tribal group does operate a social casino in Alabama, though, so it has some relevant expertise in the space.
Meanwhile, Boyd Gaming, which is acquiring the Valley Forge Casino for $280.5 million, submitted its iGaming application and made a presentation to the board. on the other hand, gave a presentation to the board showcasing its partner, FanDuel Group. Boyd and FanDuel announced the partnership, their first joint venture, in August.
IGT will provide the platform for Valley Forge, offering all three categories of interactive gaming—slots, table games and poker. It plans to launch online sports betting in the future, likely under the FanDuel Sportsbook brand.
Boyd’s presentation included mock-ups of the website, with plans to bring live-dealer games over from New Jersey. FanDuel subsidiary Betfair deploys its live-action table game products in the New Jersey iGaming market.
The board also approved Valley Forge’s application subject to proposed conditions, and because of its technological head-start, observers say Valley Forge could be the first Pennsylvania casino up and running with an online gaming side.
The two approvals bring the number of Pennsylvania casinos applying for online gaming permits to seven of the 13 licensees, a development that surprised many, since the state’s onerous iGaming tax is equal to its tax on land-based slot revenues at 54 percent, in addition to a $10 million application fee for the full complement of online games. Both are far higher than any other jurisdiction.
While the number of online applicants grew, one casino has backed out of the iGaming sweepstakes. Rush Street Gaming, owner of the Rivers Casino in Pittsburgh and SugarHouse in Philadelphia, withdrew its application for online gaming submitted for Rivers Casino.
“Rivers Casino Pittsburgh intends to provide iGaming to Western Pennsylvania and the Commonwealth; however, we’re taking additional time to explore the various options for doing so,” a Rivers Casino spokesman told Online Gaming Report. “Rivers is actively pursuing a sports wagering certificate to offer both land-based and mobile sports betting.”
Rush Street Gaming already operates iGaming in New Jersey through the site playsugarhouse.com, affiliated with the Golden Nugget Atlantic City.
The two approvals bring the number of Pennsylvania casinos applying for online gaming permits to seven of the 13 licensees, a development that surprised many, since the state’s onerous iGaming tax is equal to its tax on land-based slot revenues at 54 percent, in addition to a $10 million application fee for the full complement of online games. Both are far higher than any other jurisdiction.
Beginning October 15, the board will accept applications for iGaming petitions for a period of two weeks from “qualified gaming entities” outside the state.
