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Online Casinos Lose Pennsylvania iLottery Case
By Shane Addinall Jun 06, 2021 IndustryOnline casino operators may have lost the first bout against the Pennsylvania Lottery, but with the odd reasons given for the judgement it is highly likely they will appeal the ruling and continue the good fight.In a surprising turn of events a lawsuit brought before Commonwealth Court Judge, Renee Cohn Jubelirer, by seven Pennsylvania casinos, saw the gavel fall in favour of the defendant, the Pennsylvania Lottery.
The owners of these casinos claimed that the iLottery division of the Pennsylvania Lottery was overstepping its bounds by offering games which they felt qualified as casino games according to commonly held definitions.
Play By The Rules
2017 saw a landmark ruling by Governor Tom Wolf when he allowed gambling games to be offered in Pennsylvania per Act 42.
While casino operators kicked the development of their online platforms into high gear the Pennsylvania Lottery was a step ahead, easily adding real money games to their site under a provision made for an iLottery division.
The only caveat to the change in regulation was that the Lottery was prohibited from offering casino games:
“While Act 42, as a general matter, gives the Department broad authority to offer online lottery games, it precludes the agency from offering online games that simulate poker or casino-style games.”
Another advantage of the Pennsylvania Department of Revenue being allowed to operate games of chance under ‘iLottery games’ is that they did not have to pay the $1 million authorisation fee that was required of online casino operators.
A Slot By Any Other Name
In a confusing ruling Judge Jubelirer found that the games offered by iLottery are not simulating casino games, rather they:
“… relate to technological advances in online gaming; are based on online entertainment and gaming, as well as existing entertainment sources like television and board games which have indisputably inspired both iLottery game and slot machines game designers; or existed in the same or similar fashion in traditional lottery products that were translated into a new online medium.”
However, the games offered by iLottery bear a striking resemblance in theme and execution to games found in all online and mobile casinos today.
One of the most obvious culprits would be that iLottery offers Keno as a real money game. Keno is a well-known game found in land-based and online casinos around the world, yet it is not considered a contravention of Act 42 2017.
Most of their games are billed as “instant win” games that payout based on a “match x or y” mechanic. Regardless of how these results are displayed matching a variable number of symbols or a variety of payouts is literally what slot machines offer.
In addition to mechanics that play like a slot machine, these games of chance come with progressive jackpots, free plays, and feature instantly recognisable online slot themes like “Foxin Wins”.
Down But Not Out
While the judgement allows iLottery to continue offering casino-style games, which this year alone has netted the Department of Revenue more than $900 million, the case is far from over.
Mark Stewart, group legal counsel for the casino operators, has confirmed that his clients are reviewing the court documents with the intent to appeal the ruling.
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