Pennsylvania Casinos Sue State Over iLottery Games

A story we missed last week but that is worth following is news that a coalition of Pennsylvania casinos have filed a lawsuit enjoining the state lottery from running instant win games through the new PA iLottery website.

PA iLottery launched earlier this year with a collection of instant-win games that basically act as the digital equivalent of scratch-off cards but with variable bet sizes and other features such as bonus rounds and mini games.

Pennsylvania’s casinos opposed the games from the start, claiming they infringe on state gaming law which gives licensed casinos the exclusive right to offer casino-style games. Specifically, state law states the lottery may not offer “games which simulate casino-style lottery games, specifically including roulette, poker, slot machines or blackjack.”

In June, PA casinos sent a letter to the Department of Revenue demanding that it shut down the games offered at PAiLottery.com. The letter threatened further legal action if the Wolf Administration does not offer a favorable response by July 3^rd.

The Pennsylvania Lottery did drop references to “slots” in its advertising, but did not suspend the games as demanded. Now, the state’s casinos made good on their threat with a lawsuit filed on Wednesday. The Pennsylvania Casino Gaming Coalition is now seeking an injunction on PA iLottery’s instant win games, which the coalition argues simulate slot-style games.

Seven of Pennsylvania’s casinos are listed as plaintiffs in the lawsuit: Hollywood Casino, Parx Casino, Harrah’s Philadelphia, Meadows Casino Racetrack, Stadium Casino, Valley Forge Casino Resort and Mohegan Sun Pocono.

Defendants are listed as the Commonwealth of Pennsylvania, the Department of Revenue (which oversees the PA Lottery) and Department of Revenue Secretary C. Daniel Hassell.

Chief Complaints

The lawsuit contends the instant win PA iLottery games look and function as regular slot machines:

“All of the iLottery games feature the same user interface as a slot machine, and have the same interactive appearance, feel and play experience that a player would expect from land-based and online slot machines.

“These features include graphics, animation, suspenseful music, flashing lights, bells or sounds played when combinations are hit, and similar visual and auditory features.”

The Pennsylvania Casino Gaming Coalition also takes umbrage at the fact that PA iLottery games have a minimum age of 18 to play while licensed casino games are restricted to customers 21 or older. Once Pennsylvania’s casinos finally take their games online, those will similarly be restricted to customers 21-and-up.

Additionally, the lawsuit points out that PA casinos are being asked to pay a licensing fee of $10 million and pay taxes of 54% on online slots and 16% for online table games and poker.

The lawsuit filed on Wednesday also points to advertisements deployed by the Pennsylvania iLottery using phrases such as “instant win slot-style games.” As evidence, the lawsuit includes screenshots of advertisements published by PA iLottery affiliates that include references to slot-style games.

Furthermore, the lawsuit claims that several iLottery games feature the same titles and/or themes as actual slots hosted at Pennsylvania casinos. PA iLottery games Volcano Eruption Reveal, Robin Hood, Super Gems, Slingo, Big Foot and Monster Wins are specifically named as being similar to actual slots that can be found at local casinos.

Other issues described in the lawsuit include the use of betting terminology such as “set bet,” “choose bet” and “select bet amount” that would typically be used by an actual slot machine.

With this lawsuit, Pennsylvania’s casinos have shown they are serious about putting an end to the instant win games currently found at PAiLottery.com. A ruling in favor of the casinos could quickly put an end to PAiLottery, as the only games it has on offer right now are instant win games of the type described in the lawsuit.