NetEnt has recently announced that its subsidiary, NetEnt Americas LLC, has been given a conditional license so that the company can distribute its extensive portfolio of games to the newly regulated Pennsylvania market.
NetEnt Expanding Its United States Reach
NetEnt has already been granted a full license to operate in the state of New Jersey. They have been provisionally operating in New Jersey since 2015 via a transactional waiver from the state's Division of Gaming Enforcement, but last month, their license application was finally approved.
Pennsylvania has long been known for its brick-and-mortar gambling, which means that the shift to include online gaming is huge. The state is home to 13 million people, and its current gambling revenues are second only to the state of Nevada.
Breaking Into the Pennsylvania Market Early
Pennsylvania passed legislature in 2017 that made it the fourth state to legalize and regulate online gambling, and there are three separate license categories that companies can apply for: online slots, house-banked games and online poker or other peer-to-peer online games. Operators can pay $4 million per category or $10 million for the entire license bundle.
While taxes for licensed operators are higher than in other states, breaking into the Pennsylvania market early allows NetEnt to gain an advantageous foothold in the state's online gambling operations.
Currently, NetEnt Americas is one of a select few vendors that has made it through the state's first round of licensure approvals, which gives NetEnt a competitive edge. Combining this edge with the company's award-winning reputation for innovation and quality means that they will be able to gain a significant portion of the market from day one.
Erik Nyman, the managing director of NetEnt Americas, commented that they are "very pleased to be in the first round of approved vendors to conduct online gaming in Pennsylvania." He says that this early approval "fits well with [their] strategy to be live with [their] products at the first day of market opening."
Currently, there is no formal market opening date. The Pennsylvania Gaming Control Board is set to announce a date as soon as it is agreed upon.
About NetEnt Americas LLC
NetEnt Americas LLC is a subsidiary of the renowned digital entertainment software provider NetEntertainment. Founded in 1996, NetEnt has established a long history of producing innovative and fresh content for the online gambling industry.
Press Release, NetEnt granted license in Pennsylvania netent.com, March 14, 2019