Pennsylvania Online Casino Bill

  

Online gambling legislation in Pennsylvania has been approved once again by the House, moves back to the Senate for consideration. For years now, Pennsylvania has been poised to become the 4 th state in the US to pass legislation to offer online casino and poker gaming.

Pennsylvania has presented another online gambling bill. Senate Bill 524 was officially introduced by number of Democratic State Senators. The four co-sponsors and supporters of the bill are the Senate Minority Leader Jay Costa, Senator Judy Schwank, Senator Vincent Hughes, and Senator Wayne Fontana. The memoranda regarding the co-sponsorship was first introduced in January 2017. Apart from Senate Bill 524, there are a number of state Republican senators who brought another piece of the legislation that complements the House of Representative gaming reform bill that was introduced early March.

Senate Bill 524 Reforms

The SB 524 is the third of online gambling legislation the two prior one were SB 477 and HB 392, both of them being similar. Some of the provisions that were presented with the new bill are quite similar to ones previously included. It does however, include some reforms, mostly in terms of taxation and fees. The new bill is also focused on the legalisation and regulation of online gambling operations across Pennsylvania. It also looks to legitimization of the daily fantasy sports and online lottery. The multi-state progressive slot machines will also be allowed to run in the state under the new Senate Bill 524. This bill will allow gaming on tablets at specific airports, Slot machines which are are considered to be skill-based and also hybrid ones. The SB 524 bill also restores the local share tax that is imposed on host and the surrounding communities. Under the new nline gaming legislation Casino facility requirement that is currently imposed which is Category 3, casinos will then be eliminated under the provisions of this new online gambling legislation, and would then be replaced with a once off fee to be charged. Also this new legislation will impose a higher tax rate of 25% for both online gambling as well as daily fantasy sports which is in comparison to the 14% tax rate that was previously offered. This newly-presented legislation offers a larger licensing fee that is estimated to be $10 million, previous licensing fees were $8 million. Should the Senate Bill 524 be passed, industry vendors would be hit by a higher rate which is estimated to be $5 millions compared to $2-million of other bills.

- June 29, 2016 By Oliver Young -

Members of Pennsylvania House of Representatives voted in favor of the online gambling bill proposed by John Payne.

In May this year it was announced that Pennsylvanian lawmakers will be discussing a bill on online gambling and now the House of Representatives passed the online gambling bill which was proposed by John Payne. This was an expected outcome, especially if we know that the state has been trying to find ways to increase its budget revenues.

We reported on some mix reactions towards the idea of legalizing online gambling in Pennsylvania two years ago, but it appears that a positive attitude towards online gambling prevailed and the bill was passed.

114 Representatives Voted in Favor, 85 Against

The online gambling legalization bill HB2105 won the support of the representatives who voted 114 to 85 in favor of the bill. Existing holders of a casino license issued by Pennsylvania now have the chance of going online.

Most of the proposals that were part of the bill have been passed, although video gaming terminals were excluded. Slots will now be available at airports, as well as conventional betting sites that are located outside race-tracks. The bill will soon be in front of the Senate and it is unclear whether the Senate will give it a pass or not.

The CEO of Sheldon Adelson’s Sands Bethlehem Casino has already stated that he and his company are against this bill. That is understandably, as it will make the market more competitive. The CEO believes that Senate will reject the bill and he is particularly opposed to the provisions that allow slots at off-track locations and airports.

The Main Goal of the Bill Is to Provide Additional Budget Revenues

It is more than clear that filling the state budget was one of the primary reasons why the House passed this bill. The $31.5bn budget was passed 132 to 68, but there were serious talks between Republicans and Conservatives before an agreement was reached.

Governor Wolf, already said that he doesn’t believe that it is possible to raise that much money. The chair of the House Appropriations Committee, on the other hand, claims that $1bn could be collected from legalized online gambling, increased tobacco taxes and a special program for tax amnesty.

Operators who wish to become licensed online operators will have to pay a fee worth $8m for a license, whereas renewals will cost $250,000. Suppliers of casino products and serves will need to pay a fee of $2m and $100,000 for renewals. Moreover, operators will be taxed at a 16% rate on their income. Mobile casino gaming will only be allowed at airports. However, that will come a cost of $1m per airport and a 34% tax, plus a 20% levy. Some have already claimed that with taxes, levies and fees that high, there won’t be any incentive for operators.

The bill also has a provision which is believed that will enable inter-state shared player pools. The executive director of the PPA (Poker Players Alliance), John Pappas who was one of the main lobbyists was happy with the outcome of the vote. He stated that this bill is win-win for Pennsylvania and he urged both the Governor and the Senate to enact this bill as soon as possible. He added that this legislation will create jobs in the state.

Pennsylvania online casino bill pass

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