Can Lotto and Slot coexist in Pennsylvania? It’s an interesting question that operators are asking themselves these days. In fact, as you’re aware, PA is breaking new grounds when it comes to online gambling. First, as of April, the PGCB is accepting applications for online casino licenses. But, you may ignore that these license holders will face more competition in PA than anywhere else in the states. Indeed according to the new law passed in October. PA will become the first state to offer both Slots and Lottery online in one market. Currently, The rumor is that online casinos will be operational in Pa at the end of Q4. Whilst the lottery sites could be up and running as early as spring.
What other state offers online lotto?
All in all, they’re currently only 4 states that accept the sale of online lotteries. These states are IL, MI, GA, KY. Additionally, it’s also worth knowing that NH is launching an online lottery in 2018. As said above, they’re currently no states that offer both slots and lotto in one market. So it will be interesting to see the figures of 2018 and the revenue spread per product. Especially since lottery site can also offer scratchers, Keno, and Virtual sports. Which are game of chances that makes an important part of an online casino portfolio.
What kind of revenue can we expect and what’s our take on the situation?
In the first place, its worth knowing that the combined revenues of Illinois and Michigan for online lotto in 2017 are $26.2 million. Some fear the customer cannibalization of the 2 colliding industry in PA. We cannot say that we share the same concern. In fact, we think that the 2 industries will only reinforce each other. That is until the companies start to promote their product. Only then can player cannibalization occurs since the leader will be determined by the size of an advertising budget. But as we see in England both product can coexist well and make for a booming industry. Of course, the UK population is almost 5.5 times the size of PA. So, only time can tell as no one to one comparison is possible with smaller demographics. We’re hopeful both industries will thrive how about you?