DraftKings to Compete In PA After Wednesday MeetingLegal
The Pennsylvania Gaming Control Board (PGCB) will hold their monthly meeting via teleconference Wednesday, April 29.
The main topic of the agenda is an approval for an Interactive Gaming Operator License (online casino gambling) for DraftKings. The company with its initial taste in the Keystone State in fantasy sports has been operating in the state since November.
If the agenda is approved, Pennsylvania would have its 10th online casino before week end.
The market initially got to a slower start than anticipated, but has recently grown a significant surge. Three new PA online casinos have already launched this year now that Caesars Casino joined the community last week.
DraftKings Possible Partnership in Pennsylvania
DraftKings’ land based casino partner is an entity that surprisingly did not initially join the rush to apply for an online casino license. The Meadows owner of both Penn National and Hollywood Casino holds high priority to the digital realm.
Under Pennsylvania online gambling laws, each land-based casino can have multiple interactive partners within their organizations. DraftKings Casino will operate under Hollywood’s license as agreed upon terms of their national market-access agreement formed in 2019.
On the agreement, there is a Sports Wagering Operator License for DraftKings; an upgrade from the conditional permit it initially received to fuel the launch. I the PCBG approves on Wednesday, it will obtain a full license to operate DraftKings Sportsbbook PA for the next five years.
Expectations of Early FanDuel Initial Returns
To predict what DraftKings can expect in Pennsylvania, numbers can be compared to FanDuel’s trends since they already launched their casino games at the end of January. Both companies have similar opportunities for Pennsylvania sports and online gamers explained through their extensive advertising.
FanDuel Casino was rated number one in overall earnings in Pennsylvania since their January launch, followed by Poker Stars/Fox Bet as well and BetRivers. However, desktop support has become a hindrance due to the implications of the recent Coronavirus pandemic.
If DraftKings Casino likewise gets about half the action that FanDuel Casino does, the overall numbers would suggest they will have an estimated $2.5 million in monthly gross revenue – at least equally matching generating the amount Penn already generates through Hollywood.
If this deal goes through in Pennsylvania Wednesday, this would create a huge economic increase in the Pennsylvania online gaming market, putting four of the seven land-based license holders in competition for top numbers within the state.