At a vote of 38-12, HB 271, which could see the expansion of gambling in Pennsylvania, passed through the state’s Senate. The bill is most noteworthy because it would accommodate the legalization and regulation of igaming in Pennsylvania.
If the law passes, existing casinos in the state will be given three months to apply for a license to offer their players games such as poker, roulette, slots and blackjack over the internet. The market will then be open to other operators, who will be charged up to $10 million of an igaming license. They will also be required to pay a quarter of a million every five years for their license.
The state expects to earn up to $120 million in revenue from the sale of licenses to online gambling operators. In addition, around $13 million will be earned over six months from the 54% gross daily revenue tax for internet slot and table games. At the same time, the state will put aside a portion of the money earned in order to pay for compulsive gambling treatment.
The new law also accommodates the introduction of igaming kiosks in state airports in conjunction with local casinos, for the chance for the state to earn up to another $12 million.
Lottery ticket sales may also move online, with the Revenue Department in line to pad its coffers with nearly $19 million in profits if this happens.
The subject of Daily Fantasy Sports was also touched addressed in HB 271. Casinos will be allowed to offer fantasy sport games where players take home cash prizes, as long as the operator has a license. The cost of this license would be $50K. In addition, the company would have to pay a 12% on its adjusted revenue.
HB 271 now moves from the Senate to the House, where it will be taken up next month. However, analysts warn that it is still early days for the bill, and it may not receive the support it needs to pass through the House and become law. Industry watchers say that the House would adjust the high tax rate currently proposed in the bill.
A final bill will obviously not be sent to the governor before the end of the month, although pressure is being put on the House to make a decision quickly. It is hoped that Pennsylvania will finally act on a an idea that has been floating around its legal corridors for several years already.
