Two Sides to a Controversial Issue: PA Gaming Industry Clashes Over Multiple Skins for Online Gambling Sites

In October 2017, Pennsylvania law changed, paving the way for a new era. Although casinos in Pennsylvania have been around a while, the new law opens doors for online gambling sites to have a piece of the pie. It also means economic growth and development — and a stink over the “skins” issue. Multiple skins would allow sites to have several pages operating under different brand images, catering to different games and audiences versus a single skin law would allow a casino to operate a partnered site with only one brand image. There are two sides to this story, and they’re both tugging at Pennsylvania regulators to decide.

Caption: New gambling laws mean elation for residents, confusion for lawmakers — but where will the dice fall on this controversial issue?

888 Holdings Lobbies for Multiple Skins, Argues for Business Growth and Online Trust

888 Casino’s USA-based CEO Itai Frieberger is up in arms about multiple skins. He recently wrote a letter to the Pennsylvania Gaming Control Board (PGCB), which was published publicly on their online archives. In the letter, Frieberger makes his case for multiple skins. He argues that multiple skins are a way for sites to cater to the players’ exact needs and desires, creating a healthy and competitive market as well as economic growth and development in the online gaming sector.

Frieberger’s company currently drives almost 300 online gaming brands, and he wants to use those brands to push the Pennsylvania market above and beyond into its real potential. The 888 Casino brand is arguably one of the best-known in the world. They have operations across the globe, spanning many countries and in a plethora of languages. With this world-class recognition comes world-class trust. Without multiple skin protection laws in place, 888 Casino wouldn’t be able to use their own brand — they would be forced to operate under the brand of their partner.

Caption: Gamblers across Pennsylvania breathed a collective sigh of relief when online gaming was legalized in November, but will they be able to play with the brands they want? (Photo by Degree53 UK, CC BY)

Such a move would be less than beneficial for 888 Holdings, as their brand attracts customers. Their name has become almost synonymous with online trust. In fact, they are the only online brand that has a stake in every state where gambling is legal, and they stand to be just as successful in Pennsylvania. Not only is this online casino giant financially set to roll with any punches they may receive, they are ready to offer Pennsylvania gamblers an experience they may not be able to find online at other sites, fostering industry growth and competition. Currently, 888 Casino offers a variety of extremely competitive promotions, bonuses and games on their New Jersey sites. These include exclusive slot games, deposit-dependent “bankroll booster” bonuses and a rare promotional no deposit bonus you can use to make wagers with zero investment.

Aside from all that, Frieberger still makes a good argument. He claims his online infrastructure is completely up to par with the competition, surpassing local technology and experience. However, not everybody agrees with 888. Some see them as a threat.

Parx and Penn Push Against Skins, Cite PA Jobs and Legislature

Parx Casino and Penn National Gaming are two land-based casinos set to have their fingers in the pie of Pennsylvania online gaming as well, but they take a much different stance than 888. Parx wrote an email to the PGCB, explaining how multiple skins would adversely affect the state.

The main argument Parx makes is that allowing companies to have multiple skins would afford them to bypass specific regulatory laws and systems. Multiple skins would, of course, also have to be regulated, and the new set of laws would be contrary to the current laws (which do not explicitly ban multiple skins). Parx thinks that the implementation of multiple skins would cannibalize the current gaming market.

Caption: The opening of the online gambling market in Pennsylvania brings fierce competition between online gaming brands. (Photo by BagoGames, CC BY)

Parx went on to argue that Pennsylvania jobs would be put at risk by allowing companies to have multiple online brands. International brands inevitably bring their staff and operate from their servers outside of PA. Parx claimed the servers should be located within the state, and that all staff employed by online casinos operating in Pennsylvania should be living in there as well. Doing so would potentially protect outsiders from having employment opportunities that PA natives don’t have.

How Allowing Multiple Skins Could Affect the Gaming Industry in PA

So, who’s right? One way to determine the validity of the arguments on both sides is to look at the state of New Jersey. The situation is similar. New Jersey has allowed its partnered casinos to take on different skins (888 has and continues to do so). What happened there?

Caption: It’s likely the PGCB will consider the broader economic impact that the New Jersey model of implementation has provided the state. (Infographic by Chris Grove on Slideshare)

The New Jersey market increased significantly after the implementation of multiple skins. The industry there is thriving on healthy competition, and New Jersey operators urge Pennsylvania to move in the same direction. The effects of multiple skin laws in NJ are quite beneficial to the economy. The iDEA Growth group has also taken up advocacy for the same laws in PA, publishing a white paper on the subject.

The paper states that the legalization of online gambling in NJ has created nearly 3,500 jobs. In addition, $998.3 million in revenue and $124.4 million in tax revenue for the state has been generated. It goes on to say that the NJ model is completely transferable and usable in other states as well. Therefore, the forecast for the Pennsylvania market looks profitable.

Caption: Online gambling revenue stands to bring Pennsylvania a sizable amount of much-needed revenue. (Infographic by PlayPennsylvania)

Arguments Addressed on Both Sides as the Board Moves to Make Decisions

888 Casino has addressed the concerns of Parx and Penn by reiterating the outcome of multiple skins in New Jersey. With none of the native operators being cannibalized and an actual increase in job openings, their stance is solid.

Historically, USA gaming laws have always waxed and waned, changing with political and economic tides. The PGCB gets the final say, and it’s possible that the tide will turn. In the past, a lobby was made by another advocacy group to change the law in a similar way (the same advocacy group that is now lobbying on behalf of 888, the iDEA Group) and it was shot down. However, this time may be different. The economic success of New Jersey, as well as the appeal of 888’s well-recognized and respected brand, may sway the board to allow for multiple skins.