Pennsylvania Online Gambling Legislation Postponed Until Next Year

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Despite the expectations that Pennsylvania would legalize online gambling before the end of 2015, it was announced that the final decision is to be made no earlier than the spring of 2016. The statement Rep. John Payne made put an end to the speculations that HB 649 is likely to pass by the end of the year.

Back in November, Rep Payne’s HB 649 received the support of 18 of the House Gaming Oversight Committee members, while 8 of them voted against it. However, the bill stalled due to disagreements between the majority of House GOP representatives and the Senate, which is controlled by Republicans.

Yesterday, the House Republicans rejected the spending package approved by the Senate GOP. It amounted to $30.8 billion and it stated that as much as $350 million is to be set aside for the school systems. A tax increase of $1.2 billion was also included. Yet, the House Republicans introduced a new $30.3 billion spending bill.

The majority of House republicans believe that the online gambling could have a great contribution to the state coffers. They expect as much as $120 million to be collected from tax revenue and additional $10 million licensing fees to be imposed on each operator interested in entering the Pennsylvania online gambling market.

Online gambling legalization is one of the best possible solutions for dealing with the budget deficit. The other alternative includes a tax increase but according to data, presented by Rep. Payne, the amount of $120 million could be generated during the first year of legalizing the online gambling.

The fact that Pennsylvania lawmakers included the bill to the 2016 budget made the local communities believe that they might be able to legally place their bets online pretty soon and the delay came as a huge disappointment.

In case the online gambling bill is approved, it will enable casino operators available in Pennsylvania, to provide real money poker and casino games in an online format. In addition, the bill would authorize the installation of slot machines at the airports and the OTB venues of the racetrack operators.

Last week, a few more amendments to HB 649 were narrowly approved. The amended bill would give the green light to the availability of up to five video gaming terminals in each pub and bar. The licensed casino operators did not support the new clauses and they are expected to lobby against the HB 649’s passing unless the aforementioned amendments are withdrawn.

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