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

by Andrew Maykuth The tax rate for online slots is 54 percent. The casinos say they are operating at a disadvantage to the state-run iLottery, which they contend constitutes an "illegal incursion" into the interactive gaming domain that the Assembly assigned to casinos. In their letter to Hassell,  whose agency oversees the state lottery, the casinos said the iLottery has the "same interactive appearance, feel and play experience that a player would expect from land-based and online slot machines." The casino operators said the lottery also uses two "key casino tools" to retain customers — free play and a patron-loyalty program.The iLottery offers prizes up to $250,000 and plays that cost as little as a penny, similar to slot machines. Several iLottery games also have the same names as casino slot machines: Robin Hood, Super Gems, Slingo, Big Foot, Volcano Eruption and Monster Wins. "Overall, the games essentially have the same backbone as a slot machine; an outcome that is determined by a random number generator with animated graphics and computer operations used to provide a visual depiction of that outcome," the casinos argue. The casinos also complained that the lottery is aimed at players 18 or older, while the casinos would be sanctioned if they allowed anyone younger than 21 to bet.

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