Pennsylvania legislators are considering expansion of the state’s gambling industry in an attempt to fill a huge budget shortfall before June 30, when negotiations over the annual budget are due to be completed.
Centerpiece in a bill, which is to be reviewed by the Senate, is the legalization of online gambling on the territory of the state. Furthermore, the proposed legislation calls for casinos and racinos to be allowed to install slot machines in off-track betting facilities as well as satellite locations.
If passed into law, the bill would require state casinos to pay considerable upfront fees in order to introduce online gambling options and to expand their operations outside their premises. According to some lawmakers, the signing of the proposal would result in millions of dollars being directed to Pennsylvania’s coffers.
Sen. Kim Ward, Chair of the Senate Community, Economic and Recreational Development Committee, who introduced the bill, commented that they are not prompting it in order to secure the budget shortfall. However, Sen. Ward admitted that her proposal might help the state budget but only in the short term.
If signed into law, the bill would allow to 10 of Pennsylvania’s 12 casinos to launch online gambling operations. Yet, they will need to pay a $10-million permit fee and another $1 million to renew their Internet licenses every five years. Furthermore, they will also have to pay a $5-million fee in order to be able to install slot machines at satellite and off-track betting facilities.
If all eligible gambling venues on the territory of the state decide to take advantage of the bill, the amount of $260 million in upfront fees will be generated.
Kevin O’Toole, Executive Director of the Pennsylvania Gaming Control Board, said that the regulator will move quickly when it comes to online gambling and its introduction in the state. According to the official, online operations could be launched up to 12 months after the bill’s passage. It all depends on when casino operators will file their applications.
In addition to all this, Sen. Ward’s legislation calls for a 54% tax on gaming revenue to be imposed. The state has posted a drop in its casino revenue for two consecutive years. Operators pointed to competition from neighboring states as one of the main reasons for this.
It seems that Sen. Ward’s proposed legislation has been welcomed by most of Pennsylvania’s gambling venues. Casino officials commented that online gambling would probably improve their properties’ arsenals and would generate more revenue.
However, certain casino representatives believe that Sen. Ward’s bill might not be good for Pennsylvania’s gambling industry. For instance, Mark Juliano, President of Sands Casino Resort Bethlehem, noted that online gambling would have negative effect on the industry and would result in state residents losing their jobs at local casinos.
