Pennsylvania casinos ask Governor to suspend state ilottery over competition fears

Pennsylvania’s 13 casinos have co-signed a letter to state governor Tom Wolf asking him to suspend the state’s new ilottery product over fears it will cannibalize their own online casinos.

The Pennsylvania Ilottery launched in late May with a small number of online instant win games, which, according to the casinos, use the same “backbone” as casino games.

Specifically the casinos said the ilottery games are “determined by a random number generator with animated graphics and computer operations used to provide a visual depiction of that outcome.”

They are also available to 18-21 year olds, unlike online casino games which will be restricted to 21 and over.

The operators called on Wolf to work collaboratively with them to develop “a lawful iLottery program,” or saying they would consider “all actions available t them” if nothing was done.

The lottery is also not subject to the $10m licence fee for online casino games, and the 54% tax on online shots.

When asked about the competition between the lottery and casinos earlier this week, Pennsylvania Lottery executive director Drew Svitko was evasive, telling EGR: “The Pennsylvania Lottery has coexisted with casinos in the same market for almost a decade.

“Both industries have grown because we have respected the other’s space.  Some players have been drawn to casino games and some prefer our games.  We are confident that we can continue this trend in the interactive space.”

No casino operators have yet applied for an igaming license, but the regulator says it is confident they will do so in due time.