Hopes are being pinned on a new House budget deficit plan that will try to end Pennsylvania’s prolonged budget impasse, local media reported on Thursday. The state government approved in July a $32-billion budget plan but has failed since then to close a $2.2-billion gap that has already began wreaking financial havoc and has resulted in Pennsylvania’s credit rating being downgraded.
Two separate plans aiming to remedy the budget situation were presented in recent months – one by the Senate, the other by the House. However, they both failed in gaining the necessary support in the opposite chambers of the Legislature.
On Thursday, the Pennsylvania House summoned its colleagues from the Senate, who were off up to October 16, indicating that a new budget plan was in the works. The House’s GOP caucus has repeatedly pointed out that it would try its best to prevent or at least minimize any tax hikes or new taxes previously proposed by the Senate. According to different sources, Republicans are coming closer to devising a scheme that would do exactly that. Discussions are set to resume on Monday and Senate lawmakers were encouraged to join them.
Online Gambling – One of the Backbones of the New Plan
The legalization of online gambling has been the subject of prolonged discussions in the state Legislature. The topic will be brought up once again and once again lawmakers will seek to provide additional revenue sources for the ailing budget through tax revenue from iGaming and general expansion of gambling.
Although details on the new House-developed budged deficit plan are yet to emerge, it is believed that online gambling and daily fantasy sports provisions will be tacked onto it. And given the fact that lawmakers need to find a quick solution to the budget issue amid growing frustration over the current state of affairs, the iGaming and the overall gambling expansion effort could regain momentum.
According to local media, aside from the legalization of online gambling, lawmakers are also considering extending the land-based gaming options available across the state. For instance, they could allow the construction of satellite casinos as well as the legalization of the highly controversial video lottery terminals.
At present, there are a number of such gaming devices spread across Pennsylvania, although their owners have no legal permission to operate them. If their legalization is approved, VLTs will be installed at truck stops and bars. The House was previously opposed to the move, but its stance may be softening, particularly when additional revenue sources are desperately needed.
VLTs have been surrounded by controversy due to doubts that they will be able to produce additional revenue rather than stealing proceeds from the state’s existing land-based casinos.
If a budget deficit plan is eventually produced and agreed on by legislators, it will be up to Gov. Wolf to determine whether it will be enacted. As far as online gambling goes, the state’s top official has previously pointed out that he would approve any form of gambling expansion only if the move ensures new and recurring revenue for Pennsylvania. This has been interpreted by many as a quiet blessing of the legalization of iGaming and daily fantasy sports services. It is yet to be seen whether that interpretation was the result from wishful thinking or actual positive attitude towards the move.
