Pennsylvania has taken a big step closer to becoming the fourth US state to legalize and regulate online gambling after the majority of House representatives voted in favor of a bill calling for major expansion of the local gaming industry. The proposed legislation may become part of a larger budget proposal.
The set of gambling expansion measures passed a 155-80 House vote on Wednesday. If it becomes part of the budget package, as initially planned, this is expected to result in up to $200 million being contributed to the state in the 2016-17 fiscal year.
After certain amendments in the bill are implemented, it is expected to go for a final vote in the House later today and will then be handed to the Senate for further consideration and adjustments.
As already pointed out, one of the bill’s provisions concerns the legalization and subsequent regulation of online gambling. Under the proposed legislation, Pennsylvania-based players aged 21 or over will be allowed to play online casino games.
Casino operators providing Internet gambling options will have to deploy systems that will make it possible for gambling customers to limit bets and losses. Companies will have to pay the amount of $8 million in licensing fees.
Revenue from online gambling will be taxed at 16%, with 14% entering the state coffers and the remaining 2% being directed to the Pennsylvania Department of Community and Economic Development.
The proposed bill also calls for the state’s five racetrack gambling venues to be allowed to add up to 250 slot machines at up to four off-track betting parlors. The said parlors should be located at a more than 50-mile distance from other casinos. The racetracks will have to pay a licensing fee of $5 million for each parlor they want to install slot machines at.
A 54% tax on daily slots revenue will be implemented. The state general fund will receive 92% of the revenue generated. The host county and the host municipality will each be contributed 4% of the money.
Gambling at airports is another main point discussed in the proposed legislation. It allows for casino operators to install slot machines at Pennsylvania’s six international airports. The state gambling regulator will be authorized to determine how much gaming devices companies will be allowed to add.
Operators will have to pay a $5-million licensing fee if they want to feature gambling options on the Philadelphia airport, $2.5 million for the Pittsburgh one, and $1 million for each of the four other airports.
Slot machines at the state’s airports will all be taxed at 54%, with 34% going to Pennsylvania’s coffers and 20% being routed to airports themselves.
Changes in current casino resorts rules have also been proposed in the bill. Under the original regulations, visitors at such resorts should be customers of other facilities at the site in order to be allowed to play at casinos. Otherwise, they should pay a certain fee for gambling. The proposed legislation sheds this rule.
It also allows casino resorts to add 250 more slot machines, thus increasing the maximum number of devices to 850, and 15 more table games. Under the current regulations, casino complexes may feature 50 table games.
If the bill comes into effect, it will also legalize and regulate the provision of daily fantasy sports options within the state’s borders.
