Casinos file suit, say online lottery games infringe on their turf
A group of Pennsylvania casinos filed suit Wednesday in Commonwealth Court seeking to stop the Pennsylvania Lottery from offering its new online games, which the lawsuit claims are too similar to slot machines.
The seven casinos teaming in the suit — which includes the Meadows Racetrack & Casino in North Strabane but not Rivers Casino on the North Shore — contend that the iLottery games that began in May infringe upon the type of gambling only they are permitted to offer under state law. They also raised concerns that the lottery is offering such games to individuals as young as 18, while casino gambling is restricted to those 21 and older.
The suit comes during a period in which 11 of Pennsylvania’s 13 licensed casinos are ramping up to offer their own versions of online gambling, which — like the lottery — they were authorized to do under the state’s wide-ranging gambling expansion act of October 2017. The suit notes the casinos have had to pay hefty fees — in most cases $10 million — for internet gaming licenses. Pennsylvania Gaming Control Board action to enable the casinos’ web-based gambling to begin is pending.
Within months, casinos will likely be able to offer online gambling comparable to the slot machines, table games and poker found within their buildings. Their objection to the lottery is that certain of its new games are too similar to slot machines instead of representing traditional lottery offerings. The similarity violates state law, according to the suit.
“Mirroring the State Lottery Law, the term ‘iLottery’ excludes ‘games that represent physical, Internet-based or monitorbased interactive lottery games which simulate casino-style lottery games, specifically including poker, roulette, slot machines or blackjack,” the suit states.
Prior to filing the suit, the casino industry raised the same concerns in a letter to state Revenue Secretary C. Daniel Hassell, who oversees the lottery. In response, lottery officials adjusted some of the marketing being done to promote the new games but did not acknowledge any problem with the games, which include such names as Volcano Eruption Reveal, Robin Hood, Super Gems, Big Foot and Monster Wins.
Lottery officials have sought to feature such online games as a way to reach new, younger customers who are more likely to use computers and mobile devices than visit a vendor for a traditional lottery ticket. In the month of July, the online games generated sales exceeding $20 million, with 58,000 individuals having created online accounts.
Lottery spokesman Gary Miller said Wednesday that administration officials had not yet been able to review the industry’s lawsuit.
“It is important to note that Act 42 authorized the Lottery’s new games, which are part of an effort to continue delivering to our customers games that they want and where they want while generating the additional funds to stabilize the Lottery fund and provide vital services to older Pennsylvanians,” Mr. Miller said in an email.
The suit seeks a court order permanently barring the state “from offering iLottery games that simulate slot machines or casino-style games.”