Pennsylvania’s First Month of Online Poker Generates $2.5 Million

Playing Cards on Top of Keyboard, Poker Chips, Red DiceFollowing a soft-launch in early November, December was the first full month of online poker in the Keystone State. The rollout came two years after the legislature legalized online gambling in 2017. With  early reports indicating that interest in poker was high in the Keystone State, the Pennsylvania Gaming Control Board has supplied some evidence:

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Publishing its December 2019 revenue report, the regulator showed that monthly online earnings were up 10.3 percent. Pennsylvania online poker, in total, generated $2.5 million in revenue during December 2019. Nearly $400,000 of that revenue was collected by the state as tax revenue.

PokerStars PA Boosts Revenue

In November, online gaming revenue was $9,655,811. One month later, Pennsylvania’s five licensed operators earned $10,624,699. The jump was somewhat expected thanks to launch of PokerStars PA. Although the site went live in November, December was its first full month of activity.

Currently, PokerStars PA is the only Pennsylvania online poker room in operation and there has been no official word that a competitor is on the verge of entering the market. In less than two months, online poker revenue in the state totaled more than $4.4 million and added $710,000 to state coffers.

Thanks to the Pennsylvania Championship of Online Poker (PACOOP), everything started off pretty well. Held afloat by the increase in activity during the event’s opening week, PokerStars PA increased the overall guarantee from $1 million to $1.2 million.

The total payout eventually surpassed $1.5 million; a figure that helped PokerStars rake $2,473,173 in December.

While impressive, the $2.5 million in revenue made in December only made up less than 1 percent of Pennsylvania’s gross gambling revenue, but online gambling is steadily taking up a bigger percentage of market share than in years past.

Online Poker Compared to Other iGaming Verticals in the State

Like its first month, online poker compares favorably in terms of revenue when considered alongside other iGaming verticals in the state.

The highest amount ever generated from slots last month was $1.9 million by Rivers-Philidelphia. Hollywood Casino ranked second and brought in about $1.5 million in profits. For table games, once again Rivers-Philidelphia led the market with $1.1 million in revenue. Mount Airy was the next highest with $805k.

When combining slots and table games, poker still fares well, out-earning all but the market-leading Rivers-Philidelphia.

Poker compares favorably when compared to the highly lucrative sports betting vertical, too. When compared to land-based sports betting, poker generated more than any single operator. In fact, poker almost outgained all land-based sports betting in the market last month which combined for just under $3 million.

It will be interesting to see the trajectory of Pennsylvania online poker revenue over the course of its first year. It’s uncertain whether the hype may wear off, or if it will continue to gain more and more traction. We may more operators enter the market and it is even possible that the state may begin sharing liquidity with other states should the Wire Act case be settled favorably.

For now, though, the good amount of revenue coming out of Pennsylvania demonstrates just how much money a state can truly generate in tax revenue from the regulation and legalization of online poker. It won’t be long before other states begin it to follow in its footsteps after seeing the numbers.

Paddy Power-PokerStars Merger is the Biggest in History

Two of the biggest gambling companies in the world have officially agreed to merge. Company officials have confirmed that Paddy Power and PokerStars have joined forces. This PaddyPower-PokerStars merger is the biggest of any online gambling companies in history.

Paddy Power Logo

Today, we’re going to look at how this merger came together. We’ll also talk about what these companies will now offer as a team. Let’s get into it!

History of Paddy Power and PokerStars

If you know anything about online gambling, there’s a good chance you’ve heard of both Paddy Power and PokerStars. Both of these companies are extremely popular, with millions of active users around the world. Interestingly, both are very different and offer their members unique forms of gambling.

Paddy Power was founded all the way back in 1988 in Dublin, Ireland. For a decade, the company focused on expanding land-based betting shops around Ireland and eventually, the United Kingdom. Before long, this company began offering online betting platforms. Today, it’s one of the most successful gambling companies in the world.

PokerStars is another extremely popular internet gambling company. This company wasn’t founded in 2001, initially by a Costa Rican company called Regional Enterprises. It immediately began offering services to players in the United States and grew to become the largest online poker company in the world.

The Unlawful Internet Gambling Enforcement Act of 2006 forced PokerStars to leave the US market. Despite this, it’s grown extremely popular in Europe and Asia.

Despite the rise in online gambling competition, both of these companies have continued to bring in massive revenue figures. This week, they’ve officially agreed to merge.

Details of the Paddy Power-PokerStars Merge Come to Fruition?

Paddy Power is no stranger to big merges. Back in 2015, this company famously merged with Betfair. Today, this company is technically called Paddy Power Betfair. This week, Paddy Power has confirmed that it’s joining forces with PokerStars.

Flutter Entertainment, the parent company of Paddy Power, will control 54.64% of this new company. Toronto Stars Group, which owns PokerStars, will own 45.36% of the company. Immediately after the news of this merger was announced, Flutter Entertainment’s stock prices rose by 15%.

The Paddy Power-PokerStars merger is the biggest ever in the history of gambling companies. Together, these companies will have a combined annual revenue of more than $4.6 billion. CEO of Flutter Entertainment Peter Jackson recently commented on the news of this deal to the media.

“We believe the combination of Flutter and TSG will deliver substantial value for shareholders,” he said. “We will have an exceptional portfolio of leading recreational brands and best-in-class products on industry-leading technology platforms.” 

Jackson also told the media that this merge will “turbocharge” the company’s plans to expand into new markets. The US, in particular, is becoming a major point of interest for these companies.

Expansion Into the US is Coming Soon

In 2018, the US Supreme Court struck down PASPA. Now, every state in the country can set laws on sports gambling. 19 states have already legalized this form of gambling and many are set to within the next couple of years. As a result, many of the top gambling companies in the world are now interested in breaking into this market.

The Paddy Power-Poker Stars merger now has backing from FOX Sports. The powerful US company will acquire an 18.5% stake in Flutter Entertainment’s US business.

“We’re excited to be able to expand our partnership into FanDuel, which together with FOX Bet, will be a leader in sports wagering in the U.S.,” an official at FOX Corporation told the media. 

Several states have also legalized internet casino gambling recently. It’s unclear whether or not the newly merged company will look to offer any online casino games in the US. As more states choose to legalize this industry, this scenario will become more likely.

The Paddy Power-PokerStars merger is the biggest ever made in the history of gambling companies. We’ll need to wait and see how effective this company is at breaking into the United States.

Stay tuned for more updates over the next few weeks!