Lawmakers in the state of Pennsylvania are to vote on the potential introduction of regulated online gambling in the state this Wednesday. Last week, the possibility of passing a bill which is to introduce an online gambling service on the territory of Pennsylvania was discussed during a meeting of the state’s House Gaming Oversight Committee.
John Payne, member of the House of Representatives, spoke in favour of passing the bill which is to regulate online gambling activities and daily fantasy sports (DFS). Payne also debated the potential benefits for the state of Pennsylvania the bill would bring about.
In 2004, the state’s lawmakers enacted a gambling law which requires all gambling venues, save for those on the territory of Philadelphia, Valley Forge and Nemacolin, to pay a “local share” tax amounting to 2% of their overall slots revenue, or roughly $10 million.
However, this past September, the Pennsylvania Supreme Court ruled out the “local share” tax as unconstitutional. A certain possibility exists some gambling venues would end up generating humbler revenue while paying heavier taxes. The state’s lawmakers were given four months to come up with an adequate solution.
Passing the “local share” tax resulted in a $140 million hole in the annual revenue of local communities whose budgets heavily rely on gambling. This might lead to budget difficulties for a number of counties and townships in the state of Pennsylvania.
The Senate is yet to decide on whether or not the new gambling bill should be passed. Although no decision has been reached yet, $100 million are already included in the state’s budget as revenue expected to be generated from the bill’s passing. A substantial portion of the money is likely to come in the form of license fees granted to web-based casinos and poker rooms.
According to John Pappas, executive director of Poker Players Alliance, the introduction of the new bill will result in additional tax revenue for the state from licensed gambling operators. Pappas argues passing the legislature would prevent players from registering at unregulated gambling websites minimizing the risks of underage gambling. Pappas cites the state of New Jersey as an example of successful regulation of online gambling.
Several Pennsylvania-based casinos, including the SugarHouse Casino, have taken their online operations to the territory of New Jersey, which Pappas deems an “unfortunate outsourcing.” In Pappas’ words, New Jersey has proven “regulation works” and there is no reason why it would not in Pennsylvania.
The passing of the new bill will result in a safer gaming environment for players and more revenue for the state of Pennsylvania. Pennsylvania has till January 2017 to come up with a fix for the issue. Yet, the state’s lawmakers are eager to find a solution by the end of the year’s legislative session on October 26.
