Pennsylvania Gaming License
A Pennsylvania gaming license is not one permit. The Pennsylvania Gaming Control Board (PGCB) issues a set of separate licenses and certificates. The governing law is the Pennsylvania Race Horse Development and Gaming Act, 4 Pa.C.S. Part II. Online casino operators enter either as an Interactive Gaming Operator tethered to a Pennsylvania casino, or as an untethered Qualified Gaming Entity.
What is a Pennsylvania gaming license?
A Pennsylvania gaming license is a set of permissions rather than a single document. The Pennsylvania Gaming Control Board (PGCB) issues each one under the Pennsylvania Race Horse Development and Gaming Act, 4 Pa.C.S. Part II, as expanded by Act 42 of 2017 (House Bill 271). Different products need different licenses, and each carries its own fee.
The multi-license structure is what separates Pennsylvania from an offshore jurisdiction. A Curaçao or Anjouan license is one instrument that covers a catalogue of games. In Pennsylvania the product decides the paperwork. A company running an online casino brand holds a different license from the company supplying the games. Both hold different licenses again from the casino whose certificate the brand operates under.
The Act 42 of 2017 expansion added five things in one piece of legislation. Interactive gaming, retail and online sports wagering, Category 4 satellite casinos, video gaming terminals at truck stops, and fantasy contests. Every one of those verticals now has its own licensing chapter inside 4 Pa.C.S. Part II.
A gambling license in Pennsylvania is therefore a question of which permission the business model needs. It is not a question of qualifying for a single master license. How that compares with other regimes sits on the MGL gambling license hub.
Who regulates gambling in Pennsylvania?
The Pennsylvania Gaming Control Board (PGCB) regulates every gambling vertical in the Commonwealth. Casino slots and table games, interactive gaming and sports wagering all sit with one agency. So do video gaming terminals at truck stops and fantasy contests. New Jersey splits the same work between the Division of Gaming Enforcement (DGE) and the Casino Control Commission.
The single-regulator structure matters commercially. A company holding more than one Pennsylvania permission deals with one licensing bureau, one investigations bureau and one board. In New Jersey the same company answers to two bodies with separate procedures.
The PGCB was established by Section 1201 of Title 4 of the Pennsylvania Consolidated Statutes. Seven appointed members sit alongside three ex officio members: the Secretary of Revenue, the Secretary of Agriculture and the State Treasurer. Denise J. Smyler chairs the Board. The headquarters is at 303 Walnut Street, Harrisburg.
Two bureaus do the work a company actually meets. The Bureau of Licensing receives applications and processes them. The Bureau of Gaming Laboratory Operations tests and certifies gaming devices and associated equipment. Every Pennsylvania gambling license is applied for through the Bureau of Licensing.
What types of gaming licenses does the PGCB issue?
The PGCB issues more than twenty license, certificate and registration types across five verticals. Slot machine licenses cover land-based casinos. Interactive gaming certificates, operator licenses and supplier licenses cover online casino. Sports wagering has its own certificate and operator tiers. Fantasy contests, video gaming terminals and junket enterprises each carry separate licenses.
The table below lists every type in the published PGCB Schedule of Fees. Anyone researching a Pennsylvania online gaming license should read the interactive rows first, since those are the only ones that authorise online casino activity.
| License type | Who holds it | Term | Initial fee | Renewal fee |
|---|---|---|---|---|
| Category 1 slot machine license | Racetrack casino | See note below | $50,000,000 | Not stated in the Schedule of Fees |
| Category 2 slot machine license | Standalone casino | See note below | $50,000,000 | Not stated in the Schedule of Fees |
| Category 3 slot machine license | Resort casino | See note below | $5,000,000 | Not stated in the Schedule of Fees |
| Category 4 slot machine license | Satellite or mini casino | See note below | Auction | Not stated in the Schedule of Fees |
| Management Company (C-1, C-2) | Operator managing a Category 1 or 2 facility | 5 years | $2,500,000 | $2,500,000 |
| Management Company (C-3, C-4) | Operator managing a Category 3 or 4 facility | 5 years | $250,000 | $250,000 |
| Interactive Gaming Certificate | Slot machine licensee or Qualified Gaming Entity | 5 years | $4,000,000 to $12,000,000 | $250,000 |
| Interactive Gaming Operator License | Platform company running a brand for a certificate holder | 5 years | $1,000,000 | $100,000 |
| Interactive Gaming Manufacturer | Maker of interactive gaming systems and games | 5 years | $10,000 | $10,000 |
| Interactive Gaming Supplier | Supplier of interactive gaming equipment or services | 5 years | $10,000 | $10,000 |
| Interactive Gaming Service Provider, certification | Higher-value interactive vendor | 5 years | $5,000 | $5,000 |
| Interactive Gaming Service Provider, registration | Lower-value interactive vendor | 5 years | $2,500 | $2,500 |
| Sports Wagering Certificate | Licensed Pennsylvania casino | 5 years | $10,000,000 | $250,000 |
| Sports Wagering Operator License | Sportsbook platform partnering with a certificate holder | 5 years | $50,000 | $50,000 |
| Sports Wagering Manufacturer | Maker of sports wagering systems | 5 years | $10,000 | $10,000 |
| Sports Wagering Supplier | Supplier of sports wagering equipment or services | 5 years | $10,000 | $10,000 |
| Manufacturer | Maker of slot machines and gaming equipment | 5 years | $170,000 | $150,000 |
| Manufacturer Designee | Entity acting for a licensed manufacturer | 5 years | $15,000 | $12,500 |
| Supplier | Supplier contracting through a licensed manufacturer | 5 years | $85,000 | $75,000 |
| Gaming Related Gaming Service Provider, certification | Vendor whose goods or services relate directly to gaming; the PGCB runs this as its own application track, separate from the general gaming service provider one | 5 years | $10,000 | $10,000 |
| Gaming Service Provider, certification | Non gaming-related vendor above the certification threshold of $500,000 in a consecutive 12-month period | 5 years | $5,000 | $5,000 |
| Gaming Service Provider, registration | Non gaming-related vendor in the $100,000 to $500,000 registration band | 5 years | $2,500 | $2,500 |
| Fantasy Contest Operator | Fantasy contest operator | 5 years | $50,000 | $10,000 |
| VGT Terminal Operator | Operator of terminals at qualified truck stops | 5 years | $5,000 | $5,000 |
| VGT Manufacturer or Supplier | Maker or supplier of video gaming terminals | 5 years | $10,000 | $10,000 |
| VGT Establishment License | Qualified truck stop hosting terminals | 5 years | $250 per terminal | $250 per terminal |
| Junket Enterprise | Junket organiser | 5 years | $4,000 | $4,000 |
| Non-Gaming Service Provider Notification | Vendor below the gaming thresholds | 5 years | $100 | $100 |
Note on term. The Schedule of Fees sets an initial term of five years and a renewal term of five years. It shows no renewal fee for the four slot machine license categories. Category 1, 2, 3 and 4 renewal cycles are governed separately in 4 Pa.C.S. Part II.
Category 1, 2, 3 and 4 slot machine licenses
Category 1 licenses go to racetrack casinos. Category 2 licenses go to standalone casinos. Category 3 licenses go to resort casinos. Category 4 licenses go to satellite or mini casinos and are awarded by auction. Each Category 4 casino holds between 300 and 750 slot machines.
Initial fees are $50,000,000 for Category 1 and Category 2, and $5,000,000 for Category 3. Category 4 pricing is set at auction, with a minimum bid of $7,500,000.
Table games are a separate petition, not part of the slot machine license. A Category 1 or Category 2 licensee that received its slot machine license after 1 June 2010 pays a one-time non-refundable fee of $24,750,000. A Category 3 licensee pays $11,250,000 and a Category 4 licensee pays $2,500,000, under 4 Pa.C.S. § 13A61.
Category fees sit behind any Pennsylvania online gambling license conversation, because interactive gaming certificates originate with the casinos that hold these licenses.
Interactive Gaming Certificate
The Interactive Gaming Certificate is the authorisation to conduct online casino gaming in Pennsylvania. It is held either by a Pennsylvania slot machine licensee or by a Qualified Gaming Entity. The statute allows 39 certificates in total: 13 in each of three game categories.
The three categories are peer-to-peer games, typically poker; non-peer-to-peer games simulating slot machines; and non-peer-to-peer games simulating banked table games such as blackjack.
The authorisation fee turns on when the petition was filed, not on how many verticals it covers. Casino licensees filing within the first 90 days of the application window paid $10,000,000 for all three categories combined. Filings between day 90 and day 120, a window that closed on 14 August 2018, cost $4,000,000 per category. A Qualified Gaming Entity pays $4,000,000 per category.
The published Schedule of Fees shows the range as $4,000,000 to $12,000,000, which is $4,000,000 multiplied by up to three categories. Renewal is $250,000 for a further five years.
Anyone comparing gaming license in Pennsylvania cost against an offshore alternative should note two things. The certificate is the single largest recurring line in an online casino entry. The operator license sits on top of it.
Interactive Gaming Operator License
The Interactive Gaming Operator License authorises a company to run an online casino platform or brand on behalf of an Interactive Gaming Certificate holder. The fee is $1,000,000 initial and $100,000 on renewal, each covering five years.
The operator license is the standard entry point for a third-party operator. The certificate holder supplies the market access, the operator supplies the platform, the brand and the commercial operation. Certificate holders in practice run more than one online casino brand under a single certificate. That is why the Pennsylvania online casino market carries more brands than certificate holders.
The operator license does not by itself authorise anything. Without a certificate holder behind it, or a Qualified Gaming Entity certificate of the company's own, there is nothing to operate.
Interactive Gaming Manufacturer, Supplier and Service Provider
Interactive Gaming Manufacturer and Interactive Gaming Supplier licenses cost $10,000 for five years, with renewal at the same figure. Interactive Gaming Service Provider certification costs $5,000 and registration costs $2,500, both for five years and both renewing at the same amount.
The gap between $10,000 and $1,000,000 is two orders of magnitude, and it decides most entry strategies. A company that supplies games, content, platform components or services to a licensed Pennsylvania operator does not need the operator license at all. It needs the vendor license matching what it supplies.
For a B2B business the practical question is not how to afford a Pennsylvania online gaming license. It is which vendor tier the contract falls into. Contract value sets the tier.
Sports Wagering Certificate and Operator License
The Sports Wagering Certificate costs $10,000,000 with a $250,000 renewal. The Sports Wagering Operator License, held by the platform, costs $50,000 initial and $50,000 on renewal, plus a $5,000 applicant investigation deposit.
Sports wagering in Pennsylvania is tethered without exception. Only the Commonwealth's licensed casinos may hold a sports wagering certificate, under 4 Pa.C.S. § 13C11(a)(1)(i). There is no Qualified Gaming Entity route into sports.
The skin limit is the constraint that surprises operators. A sports wagering certificate holder may partner with one sports wagering operator and is limited to one website and one mobile application. Two operators are permitted only where one handles retail and the other handles online. The site and app must clearly and prominently display the certificate holder's name. New Jersey imposes no comparable one-skin cap on its online casino side.
Gaming Service Providers and vendor tiers
Vendor obligations in Pennsylvania are set by contract value, and the thresholds are published. Registration thresholds sit in 58 Pa. Code § 437a.1. A gaming service provider must register once the value of goods or services to a licensee reaches $100,000 in a consecutive 12-month period. The registration band runs up to $500,000. Above $500,000 the vendor must be certified instead.
Below the registration floor there is a lighter step. A licensee files a notification for a material gaming service provider where payments reach $15,000 or more within a consecutive 12-month period.
Publicly traded companies have a shortcut. A Casino Publicly Traded Authorization Form carries an application fee of $250, against $2,500 for a certification applicant and $500 for a registration applicant.
Fantasy contests, VGTs and junket enterprises
A Fantasy Contest Operator License costs $50,000 initial and $10,000 on renewal, and fantasy contest adjusted revenues are taxed at 15%.
Video gaming terminals at qualified truck stops are licensed in three tiers. A VGT Terminal Operator pays $5,000 and a VGT Manufacturer or Supplier pays $10,000. A VGT Establishment License costs $250 per terminal, or $1,250 for five machines. VGT revenue is taxed at 52%.
A Junket Enterprise License costs $4,000 initial and $4,000 on renewal, with a $1,500 applicant investigation deposit.
Can a company get a Pennsylvania online gaming license without a land-based casino?
Yes, through the Qualified Gaming Entity route, and this is the exception rather than the default. Pennsylvania's default model is a land-based tether, where a licensed casino holds the Interactive Gaming Certificate. A Qualified Gaming Entity holds a certificate directly and, in the PGCB's own wording, may "operate online without having any ties to a Pennsylvania Casino".
The Qualified Gaming Entity route is set out in 4 Pa.C.S. § 13B12(a.1) and 58 Pa. Code Chapter 804a. The Board created it because certificates went unclaimed. After the initial 120-day window closed in August 2018, 12 certificates remained: six peer-to-peer, three simulating slot machines and three simulating banked table games. The Board reopened the petition period between 3 January and 3 March 2023.
The qualification bar is high and specific. The entity must hold a license in good standing in another gaming jurisdiction. That license must entitle it to conduct casino, table or poker-style games in a physical land-based casino or over the internet, or both. The petitioner must show by clear and convincing evidence that the other jurisdiction's standards qualify. Those standards must be "comprehensive and thorough" and provide "similar safeguards as those required by the Commonwealth". A Curaçao or Anjouan license does not meet that standard.
The financial commitment is front-loaded. A Qualified Gaming Entity petitioner must post a bond or letter of credit of $4,000,000 for each certificate sought. The bond must come from an established bank located in the United States. It is posted before the certificate is awarded, to show the ability to pay the fee. The Qualified Gaming Entity route carries its own application fee scale, separate from the general schedule. The fees are $5,000 for the entity, $2,500 per principal and $1,500 per key employee.
Two limits apply. Qualified Gaming Entity status covers interactive gaming only, and the statute provides no authorisation for a Qualified Gaming Entity to engage in sports wagering. Certificate availability changes as petitions are granted, so remaining availability has to be confirmed with the PGCB.
Three routes therefore lead into Pennsylvania online gaming. A partnership with a certificate holder plus an Interactive Gaming Operator License. A Qualified Gaming Entity certificate of the company's own. Or a vendor license as a manufacturer, supplier or service provider. Serving Pennsylvania players from an offshore license is not among them.
How it works
How do you get a Pennsylvania gaming license?
Navigating the gaming license process can be complex. Here's a streamlined guide to each step.
Getting a Pennsylvania gaming license runs through a fixed sequence. Choose the license category and the market-access structure. File with the PGCB Bureau of Licensing and pay non-refundable investigation deposits. Clear suitability review by the Board and the Pennsylvania State Police. Take the award at a public Board meeting. Licenses run for five years.
No statutory review period applies. The duration of a Pennsylvania application is set by the scope of the background investigation. That scope turns on how many principals and affiliated entities the applicant carries, and how clean their record is elsewhere. The PGCB publishes no target or maximum review period, so any specific number is guesswork.
One deadline is fixed and checkable. Renewal applications for employee permits and registrations must be submitted at least 180 days before expiry.
What are the requirements for a Pennsylvania gaming license?
Pennsylvania requires an applicant to prove financial suitability and the lawful source of its funds. Good character must be shown across the entity and every qualifier. A business plan, full ownership disclosure, approved internal controls and anti-money laundering policies are all required. Interactive platforms must meet technical and cybersecurity standards. The Bureau of Gaming Laboratory Operations certifies gaming equipment.
Financial suitability is evidenced with money. A Qualified Gaming Entity demonstrates it by posting a $4,000,000 bond or letter of credit from a United States bank for each certificate sought.
Character extends beyond the applying company. Every principal, key employee and qualifier is disclosed and investigated.
How much does a Pennsylvania gaming license cost?
A Pennsylvania gaming license costs between $100 and $50,000,000 depending on the category. Three interactive figures matter most to online operators. The certificate costs $4,000,000 to $12,000,000, the operator license $1,000,000, and a manufacturer or supplier license $10,000. Every figure below comes from the published PGCB Schedule of Fees.
| License type | Initial (5 years) | Renewal (5 years) | Applicant investigation deposit |
|---|---|---|---|
| Category 1 slot machine license | $50,000,000 | Not stated | $5,000 |
| Category 2 slot machine license | $50,000,000 | Not stated | $5,000 |
| Category 3 slot machine license | $5,000,000 | Not stated | $5,000 |
| Category 4 slot machine license | Auction, minimum bid $7,500,000 | Not stated | $5,000 |
| Management Company (C-1, C-2) | $2,500,000 | $2,500,000 | $5,000 |
| Management Company (C-3, C-4) | $250,000 | $250,000 | $5,000 |
| Interactive Gaming Certificate | $4,000,000 to $12,000,000 | $250,000 | $5,000 |
| Interactive Gaming Operator | $1,000,000 | $100,000 | $5,000 |
| Interactive Gaming Manufacturer | $10,000 | $10,000 | $5,000 |
| Interactive Gaming Supplier | $10,000 | $10,000 | $5,000 |
| Interactive Gaming Service Provider, certification | $5,000 | $5,000 | $2,500 |
| Interactive Gaming Service Provider, registration | $2,500 | $2,500 | $500 |
| Sports Wagering Certificate | $10,000,000 | $250,000 | $5,000 |
| Sports Wagering Operator | $50,000 | $50,000 | $5,000 |
| Manufacturer | $170,000 | $150,000 | $5,000 |
| Manufacturer Designee | $15,000 | $12,500 | $5,000 |
| Supplier | $85,000 | $75,000 | $5,000 |
| Fantasy Contest Operator | $50,000 | $10,000 | $5,000 |
| Junket Enterprise | $4,000 | $4,000 | $1,500 |
Beyond the applicant deposit, investigation deposits run to $2,500 for each affiliated entity and $2,500 for each principal, principal entity, key employee or qualifier. Employee permits carry $350 and employee registrations $60.
One caveat on currency. The published PGCB Schedule of Fees is marked effective June 2018 and remains the current published version. Confirm no later edition has been issued before committing a budget.
Renewal and ongoing costs
Renewal is calculated on the same five-year cycle as the initial term, and for the interactive categories it is dramatically lower. An Interactive Gaming Certificate renews at $250,000 against an initial $4,000,000 to $12,000,000. An Interactive Gaming Operator License renews at $100,000 against an initial $1,000,000.
The pattern does not hold everywhere. Management Company renewals match the initial fee exactly, at $2,500,000 or $250,000 depending on category. Manufacturer, supplier and most vendor positions renew at close to or exactly the initial figure. A Manufacturer pays $170,000 then $150,000. A Supplier pays $85,000 then $75,000. Interactive manufacturers and suppliers pay $10,000 both times.
Two ongoing costs sit outside the fee schedule. Investigation deposits are non-refundable whatever the outcome. Where the Board's investigators travel in overnight status or stenographic services are required, the applicant reimburses the actual costs incurred.
What taxes apply to gaming operators in Pennsylvania?
Pennsylvania taxes online slots at 54% of daily gross interactive gaming revenue, made up of the 52% state rate in 4 Pa.C.S. § 13B52 and the 2% local share in § 13B53. No other US state charges more on online slots. Online table games and online poker are taxed at 16% on the same basis, 14% plus 2%, and sports wagering at 36%. On the PGCB's own monthly revenue reports Pennsylvania still generated about $2.78 billion in iGaming revenue in 2025, up roughly 27% on 2024.
| Base | Rate | Source |
|---|---|---|
| Online slots (interactive) | 54% of daily gross interactive gaming revenue, being 52% state tax plus a 2% local share | 4 Pa.C.S. § 13B52 and § 13B53 |
| Online table games, non-peer-to-peer | 16%, being 14% state tax plus a 2% local share | 4 Pa.C.S. § 13B52 and § 13B53 |
| Online poker, peer-to-peer | 16%, being 14% state tax plus a 2% local share | 4 Pa.C.S. § 13B52 and § 13B53 |
| Sports wagering, retail and online | 36%, being 34% state and 2% local share | 4 Pa.C.S. Chapter 13C |
| Land-based slots, Category 1, 2 and 3 | 34% state, plus 2% local share for Category 1 and 2 or 4% for Category 3, plus 5.5% Economic Development Fund, plus Race Horse Development Fund capped at 12% | 4 Pa.C.S. §§ 1403, 1405, 1407 |
| Land-based slots, Category 4 | 54% | 4 Pa.C.S. § 1403(b.1)(1), § 1403(c.1)(3) |
| Land-based table games, Category 1, 2 and 3 | Effective 14% to 16% | 4 Pa.C.S. §§ 13A62(a)(1), 13A63(a), 13A63(f) |
| Land-based table games, Category 4 | 14% | 4 Pa.C.S. §§ 13A62(a)(1), 13A63(a.1) |
| Video gaming terminals at truck stops | 52%, being 42% Video Gaming Fund and 10% local share | Act 42 of 2017 |
| Fantasy contests | 15% of fantasy contest adjusted revenues | 4 Pa.C.S. § 302 |
4 Pa.C.S. is Title 4 of the Pennsylvania Consolidated Statutes, the Pennsylvania Race Horse Development and Gaming Act.
Free play is not tax-free in Pennsylvania, and this is where marketing models built for other states break. Under Gaming Tax Bulletin 2019-01, the Pennsylvania Department of Revenue treats tangible promotional items as deductible. The deduction applies to gross interactive gaming revenue and gross sports wagering revenue, under the criteria in Bulletin 2015-01. Amounts given to players through reward programs are not cash equivalents unless they meet the definition in 4 Pa.C.S. § 1103.
One further condition narrows the deduction. Blended promotions cannot be claimed at all, so every deduction must be attributed to a single category of play.
The commercial consequence is direct. At 54% on online slots, an acquisition model that assumes bonus credits fall outside the tax base understates the cost of every player it buys.
What compliance obligations apply to Pennsylvania licensees?
Pennsylvania licensees must run product-specific self-exclusion lists, apply Bank Secrecy Act anti-money laundering controls, and use only equipment certified by the Bureau of Gaming Laboratory Operations. Internal controls are approved before launch. PGCB enforcement is active, and every penalty the Board imposes is published.
Responsible gaming and self-exclusion
The PGCB operates separate self-exclusion lists by product, covering casino, iGaming, video gaming terminals and fantasy contests. Exclusion periods run for one year, five years or a lifetime under 4 Pa.C.S. § 1514. A lifetime ban cannot be lifted.
An operator must block a listed person at registration and at every login.
The PGCB also maintains involuntary exclusion lists for casino, video gaming terminal and iGaming activity.
Anti-money laundering
Pennsylvania licensees apply the federal Bank Secrecy Act, including casino suspicious activity reporting, alongside internal controls, staff training and audit at licensee level.
Pennsylvania adds a state-level criminal sanction that many operators miss. Failure to report a suspicious transaction of $5,000 or more is a misdemeanor of the third degree under Pennsylvania law.
Detailed guidance sits on the MGL AML compliance page.
Technical standards and laboratory certification
The Bureau of Gaming Laboratory Operations tests and certifies slot machines, table game devices and associated equipment before they may be used in Pennsylvania.
Interactive products carry technical and cybersecurity standards on top. Systems must be tested and certified before launch, and failure to hold certification stops digital operations.
Enforcement and fines
The PGCB enforces actively and publishes every penalty it imposes. Most matters close by consent agreement.
Three fact patterns recur. Allowing a self-excluded person to gamble. Allowing a person under 21 to play. Letting a principal's license lapse past its renewal date.
None of those is an abstract compliance risk. Each is a concrete, published enforcement basis with a fine attached.
Are skill games legal in Pennsylvania?
Skill games are not legal in Pennsylvania as of 3 September 2026. The Pennsylvania Supreme Court ruled on 15 June 2026 that skill games are slot machines under state law. The ruling places them outside the licensing system entirely. A 120-day stay on enforcement expires on 13 October 2026.
The stay was granted so the legislature could build a regulatory framework. The legislature has not acted. The 2026 to 2027 budget of $50,800,000,000 was signed in July 2026 with no provision regulating or taxing skill games. An estimated 70,000 devices are in service.
Proposed tax rates diverge far enough to make the eventual economics unpredictable. Operators propose 16%, Senate Republicans 35% and the Governor's office 52%.
This section is dated 3 September 2026 and needs review after the 13 October 2026 deadline.
Are sweepstakes casinos and prediction markets legal in Pennsylvania?
Neither is settled in Pennsylvania as of 3 September 2026. Sweepstakes casinos face no express statutory ban, unlike New Jersey, and the PGCB has acted administratively instead. Prediction markets sit in direct conflict between the PGCB's stated position and binding federal appellate precedent.
On sweepstakes, the PGCB sent 18 cease and desist letters to sweepstakes operators in April 2025, and the recipients left the market. The regulator's reach stops there. The PGCB cannot bring legal proceedings against unlicensed sweepstakes operators the way it can against its own licensees. The regulator has asked the legislature to extend its powers and to ban the model outright. Background on the model sits on the MGL sweepstakes casino page.
On prediction markets, the PGCB told the Commodity Futures Trading Commission in May 2026 that sports event contracts are illegal betting under Pennsylvania law. The regulator joined a coalition of states saying the same. The Third Circuit held otherwise. In KalshiEX LLC v. Flaherty, decided 6 April 2026, the court held by a 2-1 majority against the states. The Commodity Exchange Act likely preempts state gambling law for sports event contracts traded on a CFTC-designated contract market. That decision binds federal courts in Pennsylvania.
Legislation is moving in the opposite direction from prohibition. House Bill 2711 was introduced on 22 July 2026 by Representative Tarik Khan and would regulate rather than ban. The bill sets a minimum age of 21 and bars trading on material non-public information. It prohibits contracts tied to death, assassination or mass casualty events, and requires self-exclusion.
Oversight would move to the Attorney General. A gaming business could not act as liquidity provider or market maker for a prediction market offered in Pennsylvania.
A separate proposal would license prediction market operators at $1,000,000 with a tax of 20% plus a 2% local share. That is a proposal only and has not been enacted.
How does Pennsylvania compare with New Jersey and other US iGaming states?
Pennsylvania charges the highest online slots tax and the highest platform entry fee of the four largest US iGaming states. Only Pennsylvania among the four has a route to an online casino certificate that needs no in-state casino partner. New Jersey, Michigan and West Virginia all require a partnership with a licensed in-state operator.
| Parameter | Pennsylvania | New Jersey | Michigan | West Virginia |
|---|---|---|---|---|
| Regulator | Pennsylvania Gaming Control Board, single agency | Division of Gaming Enforcement (DGE) and Casino Control Commission | Michigan Gaming Control Board | West Virginia Lottery |
| Online slots tax | 54% of GGR | 19.75% of GGR | 20% to 28% of adjusted gross receipts, graduated | 15% of adjusted gross interactive wagering receipts |
| Online table games and poker tax | 16% of GGR | 19.75% of GGR | 20% to 28%, graduated | 15% |
| Platform operator entry cost | $1,000,000 Interactive Gaming Operator License | Casino Service Industry Enterprise license at actual investigation cost for interactive gaming and sports wagering applicants, rather than the $5,000 tier | $50,000 application and $100,000 initial license | Management Services Provider license $100,000 (W.Va. Code 29-22E-7); the $250,000 Operator License under 29-22E-6 can only be held by the gaming facility itself |
| Land-based tie | Casino tether, or an untethered Qualified Gaming Entity certificate | Atlantic City casino partnership required | Detroit casino or tribal operator partnership required | In-state licensed gaming facility partnership required |
| License term | Five years | New Jersey Internet gaming permit renewed annually; Casino Service Industry Enterprise license five years | Five years | Five years, renewal $100,000 |
Three contrasts drive most Pennsylvania decisions. One regulator instead of two. An online slots rate of 54% against 19.75% next door in New Jersey. And a platform entry fee of $1,000,000 against a New Jersey Casino Service Industry Enterprise license starting at $5,000.
The tax gap is not the whole picture, because Pennsylvania splits its rate by product. Online table games and poker are taxed at 16% here and at 19.75% in New Jersey. A poker-led or table-led product mix is taxed more lightly in Pennsylvania than in New Jersey. A slots-led mix is taxed nearly three times as heavily. Product mix, not the headline rate, sets the blended number.
Wider US context sits on the MGL USA gaming license hub, and the state pages for New Jersey and Michigan cover those regimes in detail.
Why choose MGL for Pennsylvania licensing support?
MGL prepares the filings and the corporate and compliance material a Pennsylvania application needs, and coordinates with US counsel where the work requires it. MGL is not a United States law firm and does not represent applicants before the PGCB.
The work covers Interactive Gaming Manufacturer, Supplier and Service Provider packages, plus Gaming Service Provider certification and registration. It covers the Multi-Jurisdictional Personal History Disclosure Form and its Pennsylvania Supplement, and corporate ownership disclosure across the previous five years. Anti-money laundering and responsible gaming policies are written against Pennsylvania rules rather than adapted from an offshore manual.
Pennsylvania rewards getting the structure right before anything is filed. The choice between a $1,000,000 Interactive Gaming Operator License and a $4,000,000 Qualified Gaming Entity certificate changes the capital plan, the timeline and the counterparties. So does knowing that sports wagering allows one operator and one skin per certificate holder, and that the five-year term applies to every interactive category.
MGL has delivered 300+ licenses across jurisdictions. Vendor tier questions, ownership disclosure and the policy set are familiar ground here.
FAQ
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No statutory review period applies in Pennsylvania. The duration depends on the scope of the PGCB suitability investigation. That scope is driven by the number of principals, key employees and affiliated entities to be cleared. The PGCB publishes no target or maximum review period.
Five years applies to interactive gaming, sports wagering, manufacturer, supplier and gaming service provider licenses, with five-year renewal terms. Employee permits and registrations renew separately, and those applications are due at least 180 days before expiry.
An Interactive Gaming Manufacturer or Interactive Gaming Supplier license costs $10,000 for five years, and Interactive Gaming Service Provider registration costs $2,500. Both sit orders of magnitude below the $1,000,000 Interactive Gaming Operator License, which is why B2B suppliers enter Pennsylvania before B2C brands do.
Pennsylvania does not require primary interactive gaming equipment to sit in the state. Under 58 Pa. Code § 809a.3, it may be located anywhere in the United States. Redundancy, secondary and emergency servers must be in a secure data center within the Commonwealth.
A sports wagering certificate holder may partner with one sports wagering operator and offer one website and one mobile application. Two operators are allowed only where one runs retail and the other runs online. Interactive gaming certificate holders run more than one online casino brand in practice.
Pennsylvania does not exempt free play. Gaming Tax Bulletin 2019-01 allows tangible promotional items to be deducted from gross interactive gaming revenue and gross sports wagering revenue. Reward program credits are not cash equivalents unless they meet 4 Pa.C.S. § 1103, and blended promotions cannot be claimed.
No. Offering gaming to players in Pennsylvania requires PGCB authorisation, and no offshore license substitutes for it. A Curaçao license or an Anjouan license also falls short of the Qualified Gaming Entity standard. That standard requires licensing standards comparable to the Commonwealth's own.
Eighteen land-based casinos operated in Pennsylvania in 2025. The split was six Category 1 racetrack casinos, five Category 2 standalone, two Category 3 resort and five Category 4 mini casinos. The newest, Happy Valley Casino, opened in April 2026.
Act 42 of 2017 authorised interactive gaming, and the first Pennsylvania online casino sites went live in July 2019.
Yes. Video gaming terminals at qualified truck stops are licensed by the PGCB and taxed at 52%. Video gaming terminals should not be confused with skill games. The Pennsylvania Supreme Court ruled in June 2026 that skill games are slot machines, and they remain unlicensed.
There is no federal licence. Each state decides for itself, and most of them license neither online casino nor betting.
US gambling licensing, state by stateWhere a licence exists, where only betting is allowed, and what to run in the restOverviewSend us the licenses you already hold and the products you want live. We will tell you which Pennsylvania route is open to you, what the PGCB will ask of your principals, and what the fees total. No obligation. If your product mix is slots-led, we will say so before you commit to 54%.