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The Pa. Lotterys new iLottery mimics slot games, casinos complain. A big court fight is brewing

by Andrew Maykuth (Courtesy of Pennsylvania Lottery) Where does the line fall between an online casino game and an internet lottery? A lot of money is riding on the answer. Pennsylvania's casino industry is challenging the Pennsylvania Lottery's new iLottery internet gaming system , saying the state agency's digital offerings  mimic slot games in violation of the state's gaming law. The law prohibits "interactive lottery games which simulate casino-style games." Pennsylvania Revenue Secretary C. Daniel Hassell acknowledged in a  June 29 letter to the casinos'  attorney, Mark Stewart, that the online lottery games were inappropriately marketed as "slot-style" or "casino-style." Hassell blamed the advertising on an affiliate of the iLottery vendor, and said the practice had stopped. Hassell did not address the allegations that the online lottery offers the look and feel of slot machines. A department spokesman said Monday that  "the games are being operated in accordance with the law." The controversy, which seems to be heading to court, loomed behind Monday's deadline for casinos to apply for the first Pennsylvania interactive gaming licenses offered under the state's 2018 expanded gaming law . The licenses cost $10 million each, though some in the casino industry privately question the value of the certificates if the state's giant lottery system is moving into the casinos' space. A screenshot of the Pennsylvania Lottery’s new iLottery website, showing a winner in a demonstration game of “Slingo.” Casinos say the state agency’s offerings mimic casino games and have asked the Lottery to suspend the games. (Courtesy of Pennsylvania Lottery) Despite any misgivings, three casinos applied Friday for certificates to offer interactive gaming: Parx in Bensalem, Mount Airy in the Poconos, and the yet-to-be-built Stadium Casino in South Philadelphia. The Pennsylvania Gaming Control Board has up to 90 days to approve the licenses.

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