NetEnt Applies for a Pennsylvania iGaming License in Hopes of Expansion in the US

Discussion in 'Gambling News' started by Marina, Sep 24, 2018.

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  1. Marina

    Marina Administrator Staff Member

    Net Entertainment, a leading gaming software provider with 20 years of experience in the online gaming industry, has applied for a Pennsylvania gaming license after years of success working with Malta, Gibraltar, Poland, Sweden, Ukraine and the State of New Jersey in the USA.

    In light of the approval of the bill by the Pennsylvania state in October 2017 that allows online casino gambling, NetEnt has applied for a gaming license to the Pennsylvania Gaming Control Board (PCGB). With this application, NetEnt asks for a permission to deliver its award-winning slots and table games selection to the Pennsylvania casinos and casino players, in hopes of continued strategic expansion in the US.


    NetEnt’s History in the USA

    NetEnt has been trying to expand in the USA since the first unfolding developments in the US gambling scene appeared in 2013. It went live in New Jersey with the help of Bjorn Krantz in 2015.

    The next step was the signing of the agreement with GameSys US and that meant a bridge to provide games to casinos such as VirginCasino.com and TropicanaCasino.com. Once they got the transactional waiver by the New Jersey Division of Gaming Enforcement, the integration was complete and players were able to access NetEnt’s games in the two casinos.

    The peak was when NetEnt signed a license agreement with the owner of the world’s biggest names in online poker, PokerStars, in 2016. The agreement with Amaya, the owner, enabled NetEnt to offer its games through the site PokerStarsNJ.com.


    Why Pennsylvania?

    One factor that contributed to this move is the bill approval. Another reason to target Pennsylvania as their next strategic step is the fact that Pennsylvania is the 5th largest state by population, with 13 million people, and second largest that regulates online casino activities. In addition, it has a long history of land-based casino gambling that generates a significantly high gross revenue.

    Since the bill, many Pennsylvania casinos have already purchased the iGaming license, but many others applied for it as well. If they all get it, and NetEnt takes a seat on the table as well, it would mean that Pennsylvania's iGaming market would finally start taking shape.


    How Much Would the License Cost?

    The entry in Pennsylvania's iGaming market would be anything but cheap. All gaming suppliers and manufacturers that want to get a license need to pay a $1 million fee. In addition, even though the population in Pennsylvania is much larger than the population in New Jersey, there is the 54% tax to be paid to the Commonwealth regulators for slot machines. This means that the profit margins would be much lower, having in mind that the majority of NetEnt games are slots. As for its table games, operators would profit better, as the tax for them is 16%.

    Nevertheless, the $1 million fee for licensing would mean nothing to NetEnt in comparison with the licensing fee that brick-and-mortar casinos have to pay, which is $10 million.


    What Does NetEnt Offer?

    In the official press release, in an interview with the NetEnt’s American managing director, Erik Nyman, it is stated that NetEnt strongly believes they would continue their success in the US in Pennsylvania just as they have in New Jersey.

    They promise the best of their table games, jackpot, and video slots. They also offer the players' favorite special features, such as free spins, that significantly boost their winnings. Finally, Nyman says that they will go live as soon as the market opens, promising not to keep players in suspense any minute longer. The good news is that the market is expected to go live by the end of the year.


    What NetEnt’s Entry in Pennsylvania's iGaming Means for US Players?

    If US players wanted to play the insanely popular NetEnt games, they would have to search for hours in hopes of finding an online casino that accepts US players. NetEnt’s expansion on US soil gives US players the freedom to actually play their favorite games without any effort whatsoever.

    So far, there were only a few casinos that would offer the NetEnt games, so players’ choice was somewhat more limited. With the slow but successful growth of the number of casinos and casino companies that are joining in the NetEnt’s family, players would get a much bigger choice of online casinos and games to choose from.
     
    Mike likes this.

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