The Pennsylvania House and Senate have now both passed a bill to legalise online gambling in the state. Subject to Governor sign-off, it appears likely that the state could become the fourth in the US to allow online gaming products, potentially in 2018. That is good news for GAN in particular, which already has a B2B agreement in place with Parx Casino, the largest land-based operator in the state. Unfortunately the bill contains one big drawback; a tax rate of 54% has been set on all casino slot revenues. That will obviously have implications for the attractiveness of the market and operators’ ability to spend on marketing over time. Overall, we view the pending regulation as a positive development that should help sector sentiment. However, the tax rate means that it is a case of two steps forward, one step back.