Pennsylvania has become one of the six US states which has faced the introduction of online gambling bills at the beginning of 2017. Now, the state of Pennsylvania, along with New York, Massachusetts, Michigan, California and New Hampshire is facing the strong push towards implementing the legislation of online gambling.
As part of this push, Pennsylvania is facing an online gambling hearing, which was scheduled for March 7th. The event, which took place on Tuesday afternoon, put the issues of online gambling as a subject of the joint hearing of the Senate Community, the House Gaming Oversight Committee and the Economic & Recreational Development Committee.
The hearing saw both proponents and opponents of the online gambling in the state. The opponents of the idea presented a point of view that was concentrated mainly against a proposed tax rate related to legalising online gambling in the state. They described the proposed tax rate as too low, and shared their belief that the revenue generated by online gambling operations on the territory of the state could not meet the initial expectations. On the other hand, there was the supportive group of the online gambling legislation, which presented a number of optimistic expectations.
As already mentioned above, the opponents of the online gambling legislation within the state cited the 14% tax rate that would be imposed on online gambling operations could lead to local casinos moving their land-based operations online, due to the low tax rate proposed. Currently, the slots machines in the state of Pennsylvania are taxed at a 54% rate.
One of the main reasons why there are currently so many opponents of the idea for online gambling legislation in the state, is the fact that the eventual revenue that would be generated by iGaming operations is considered as too low. According to the estimates, there would be hundreds of millions in taxes and fees over the first five years, but considering the relatively low tax rate imposed on online gambling operations is expected to lead to small tax revenue in the state.
Despite the many opponents of the online gambling legislation, Gaming Board of the state, however, was pretty supportive of the idea, saying that it backs the gambling bill which includes online gambling in the House. Currently, there is a Senate Bill SB 477 which has also been introduced on these matters, but the one that surfaced in the House includes online gambling operations, so the Gaming Board provided its support on its side.
Of course, the hearing also saw discussions on the matters related to prevention of the dangers and risks related to online gambling operations, and especially the ones related to under-age gambling. In addition, testimony from gambling operators and organisations such as Caesars, Amaya, CSIG, LadyLuch, PPA, Coalition for a Safe and Regulated Internet, etc. were presented during the hearing.
- Author
Daniel Williams
