Casinos didn’t like a copycat
In 2019, before online casino games even launched in Pennsylvania, the state’s casinos sued the Lottery. It was a turf war – the casinos believed that though the Pennsylvania Lottery was permitted to offer its own internet-based games, its games were too similar to those the casinos had in their brick-and-mortar venues or online in other states. Last week, a judge ruled in favor of the Lottery, saying that there was nothing wrong with the games it offers.
Much of the revenue generated by the Pennsylvania Lottery goes to senior citizen programs and other benefits. Naturally, there was a fear that by legalizing online gambling, some money would be diverted away from the Lottery and thus away from the important programs. As such, the Lottery was allowed to offer its own games. The casinos – Mohegan Sun Pocono, Valley Forge Casino Resort, Stadium Casino, Harrah’s Philadelphia Casino & Racetrack, Hollywood Casino, Parx Casino, and the Meadows Casino Racetrack Hotel – argued that the Lottery’s games were supposed to be different than those the casinos offered, but were not.
The casinos said that nine of the Lottery’s games had the same name or theme as those the casinos already had. They also argued that the payout percentage of the internet lottery games – 81.6% to 89.1% – was more in line with the 85% mandatory payout floor of casino slots than it was for traditional lottery games (61% to 77%), evidence that the Lottery was trying mimic casino products.
Additionally, they pointed out that the Department of Revenue, under which the Lottery operates, had made its game supplier agree not to sell the same games to the casinos. This, they say, make it obvious that the Lottery games are the same types of games that would be offered by casinos.
Judge didn’t see any problem
In the end, though, Judge Renee Cohn Jubelirer determined that while the games are without a doubt similar, those similarities are more a result of advances in technology and entertainment as opposed to flat-out mimicry.
“The features of iLottery games challenged by petitioners are not signature, iconic, or key features particular to casino slot machines,” Judge Jubelirer said.
She added that the features of the games “….relate to technological advances in online gaming; are based on online entertainment and gaming, as well as existing entertainment sources like television and board games which have indisputably inspired both iLottery game and slot machines game designers; or existed in the same or similar fashion in traditional lottery products that were translated into a new online medium.”
Pennsylvania Lottery Executive Director Drew Svitko was clearly happy about the ruling, saying, “Because the Lottery’s online games have been an incredible success — generating more than $170 million in profit since their launch in May 2018 — we have another popular product in our portfolio that helps us responsibly generate funds for programs that benefit older Pennsylvanians.”
