Pennsylvania recently became the 17th state to legalize paid-entry fantasy sports contests when Governor Tom Wolfe signed a bill into law that also includes provisions for poker and other casino-style games. The law includes important regulations for fantasy sports operators that wish to do business in the Commonwealth.

What are Some Key Provisions of the Pennsylvania Fantasy Sports Law?

The regulations contained within Pennsylvania’s fantasy sports law are similar to those of other states, with certain key differences. These include, but are not limited to:

  • Licensing requirements, with registration fees of $50,000 for the first five years of licensure;
  • A 15% tax on gross revenue;
  • Operators must maintain an office or place of business in the State;
  • Operators must contract with a testing lab to annually verify compliance with the law; and
  • While contests will be available to individuals that are 18 years of age, licensed operators may offer restricted slot machine or table game match play contests to those who are at least 21 years of age.

Notably, the licensing fees and gross revenue tax are on the upper end of the spectrum as compared to similar laws in other states.

The Ongoing Need for a Fantasy Sports Lawyer

Pennsylvania is the latest example of jurisdictions that have taken action in the fantasy sports space. The overall trend of such intervention has been to legalize and regulate the industry. Nevertheless, each state’s fantasy sports regulations are unique in one way or another. If operators are to effectively navigate this rapidly-changing regulatory framework, it is imperative to work closely with seasoned fantasy sports lawyers to regularly review their respective contests, entry fees, prize structures and associated advertising campaigns.