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Casinos roll dice on online casino gambling

Pennsylvania reported a 1.8% annual increase in gambling revenue for the fiscal year ending June 30, boosted by last year’s startup of sports betting and fantasy sports games.

Gaming operators took in a record $3.3 billion last year, up about $60 million from the previous year, according to figures just released by the Pennsylvania Gaming Control Board. State and local governments pulled in $1.39 billion in tax revenue last year, compared with $1.34 billion the previous year, a nearly 4% increase.

This year’s take is likely to be even bigger as the gaming board gave its blessing to three casinos to start online casino gambling betting. Parx Casino in Bensalem Township, Bucks County, Penn National’s Hollywood Casino near Hershey and SugarHouse Casino in Philadelphia all launched their online apps late last week.

Mount Airy near Mount Pocono and Wind Creek (formerly the Sands of Bethlehem) will not be far behind. The gaming board has conditionally approved Mount Airy for online casino and sports betting licenses, and the casino has announced a partnership with The Star Entertainment Group.

Mount Airy missed the July 15 launch date and still needs to get its retail sportsbook operation up and running before offering an online betting app. The gaming board approved Mount Airy’s applications for the licenses last Aug. 15, so these products can be released at any time.

According to Steve Ruddock, senior analyst at Catena Media, which tracks developments in the casino industry, Mount Airy’s early and continued embrace of online gambling should translate into success. “In fact,” he said, “Mount Airy has a chance to become the Golden Nugget of Pennsylvania, a smaller casino that punches above its weight and dominates the digital market.”

As for Wind Creek, its former owner, the Sands of Bethlehem, applied for an online gaming license on behalf of Wind Creek before the sale was completed. Sands owner Sheldon Adelson has been a vehement and persistent critic of online gambling, claiming it will affect the brick-and-mortar product. Still, he agreed to go after the license as one of the conditions of sale to Wind Creek, an affiliate of Alabama’s Poarch Band of Creek Indians.

The gaming commission allows casino operators to buy separate licenses for online slots, casino games or poker. Most who have jumped in paid $10 million license fees to get all three licenses.

It is hard to believe that Pennsylvania, which not that many years ago resisted the introduction of casino gambling, now has jumped in with both feet. Nevada, New Jersey and Delaware are the only other states where online casino gambling is legal. In terms of commercial casino revenue, Pennsylvania ranks number two in the nation behind Nevada.

With the start of round-the-clock streaming of internet gaming in Pennsylvania, critics, such as former state Rep. Paul Clymer, R-Bucks, are concerned that gambling addiction will spike dramatically because of this added convenience. After all, you will no longer have to leave the comfort of your home or place of business to go to a brick-and-mortar casino to gamble. Only state residents at least 21 years of age can place online bets in Pennsylvania.

Many play slots and casino games on their phones for funny money. Now, however, you can use the real thing, and that temptation is what is troubling.

The casinos are required to show concern for compulsive gamblers’ addiction by prominently posting a helpline number (800-848-1880).

“We recognize that although gaming, in all forms, provides harmless fun and excitement for the vast majority of participants, there will be a small proportion of people who may lose the ability to control their gambling,” Parx officials say on their website. “We believe that compulsive gambling is an illness, but one that is eminently treatable.”

That’s way too cavalier for my money.

By Bruce Frassinelli | tneditor@tnonline.com