Pennsylvania Regulators Could Limit Online Gaming Licences to One Site Each
Pennsylvania passed a bill to legalize online gambling in October, but there is still much to be decided before the industry is ready to launch. According to Online Poker Report, there is talk that state regulators could limit the number of sites each under each license to just one.
In New Jersey’s online gambling market, for example, there is no limit to the number of “skins” or unique website themes, each licensee can operate. This essentially means that each licensee could run countless websites, though they are limited to just five brands, which they can sub-license to specific brands.
This approach to regulating online operators has not led to a plethora of redundant websites, but rather a healthy and competitive market. After four years of growth, the New Jersey market has just five licensees operating a combined total of 17 skins – each skin representing a different branded site. Each time a new brand, or skin, has launched in New Jersey it has expanded the market.
However, Pennsylvania likes to make their own rules. Much like the way they bucked New Jersey’s successful online poker and casino game tax model for a much higher tax structure, Pennsylvania regulators could impose much more restrictive website rules that limit the number of skins.
Licensing skins to additional brands are the primary way online operators offset the high price of state licensing fees. If Pennsylvania’s smaller casinos are only able to operate one skin per license, they could end up priced out of the market. According to OPR, the state would be handing the market to its largest casino operators.