Harrah’s Philadelphia Petitions PGCB for Sports Betting

The Pennsylvania Gaming Control Board (PGCB) has been petitioned by Harrah’s Philadelphia requesting approval for sports wagering. It is the third such petition by a Pennsylvania casino looking to throw its hat into the sports betting ring in the state, according to PlayPennsylvania.

State’s first applicants

On August 17, PGCB received its first license application to offer sports wagering from Mountainview Thoroughbred Racing, operator of Hollywood Casino Penn National Race Course. Not long after that, Parx Casino owner Greenwood Gaming & Entertainment (GGE) filed its paperwork with the Board requesting the same approval through its flagship Bucks Count facility and the South Philadelphia Turf Club.

Parx parent company was also the first operator to file for an interactive gaming license in the state.

Hollywood Casino and The Meadows are both owned by Penn, which will enter the sports betting industry under a management partnership with William Hill US. The pair expects to open their retail sportsbook at Hollywood “later this fall.”

Steep licensing fee and tax rate

Any Pennsylvania casino can apply for the license, however, the remaining ten are probably a bit hesitant considering that the request must be accompanied by a $10 million licensing fee. That along with a 36 percent effective tax rate on sports betting revenue has to have operators considering long and hard whether or not to take the plunge.

The application from Harrah’s comes just about a week prior to the October 3 meeting of the PGBC, which is the next earliest date to hear and rule on any petitions for sports betting.

Play by the rules

Applications must be submitted by petitioners a minimum of 90 days prior to taking any bets. That being the case, the soonest Harrah’s would begin to accept wagers would be in December. However, the process can be expedited by the PGCB should they see fit to do so. Each of the three applicants already takes bets on horse racing, which could prove to be an asset when it comes time to build and launch a sportsbook. To date, only racinos have taken the plunge and applied for betting, meanwhile a wait and see approach is being taken by Category 2 and 3 casinos.

While Penn National will not meet its original expectation to be up and running by the end of September, with the next board meeting looming, an end of October launch seems possible.

On the heels of the Supreme Court’s landmark PASPA ruling and the subsequent legalization of sports betting in New Jersey and Mississippi, in June, Harrah’s parent company, Caesars Entertainment, announced that it would introduce sports betting into its Atlantic City, Gulf Coast and Tunica properties in July and August.

FanDuel making moves

While awaiting the state’s first sports books, PlayPennsylvania recently reported that daily fantasy sports company Fanduel expects to set up shop in Pennsylvania via Valley Forge Casino. While Valley Forge has yet to submit a sports betting application, it’s probably safe to assume that it will do so soon, a sports betting application submission from PaddyPower Betfair, parent group of FanDuel, being a good indicator.