Pennsylvania finally saw the introduction of a piece of legislation seeking to make video gaming terminals (VGTs) across the state bars, truck stops and betting parlours situated away from racetracks legal. The bill, called HB 1010, was presented to the Pennsylvania House of Representatives.
The bill concerning the video gaming terminals is actually repeats a previous effort for such piece of legislation which was introduced over the last session of the Pennsylvania’s legislature. The sponsors of the bill, forty-six state representatives led by the Representative Mar Mustio as main sponsor hope that the VGTs bill will get more support in the 2017 session.
When it comes to the previous effort for implementing the video gaming terminals bill, it came as part of a broader gaming reform, which however turn out as unsuccessful due to a devastating vote of 66 to 122. Then, the Pennsylvania House of Representatives passed an alternative gambling legislation package, which however lacked the part concerning the video gaming terminals.
VGTs Legislation
The expansion of slot machine-style gambling has long been considered in the state of Pennsylvania along with online gambling legislation. The state has been seeking to expand and consolidate its casino gambling market, which is currently estimated to $3 billion, and make it a worthy rival of the nearby states’ ones.
On the other hand, the state of Pennsylvania has been seeking a way to stop video gaming terminals from operating in the grey sector. According to police records, there are currently more than 40,000 illegal VGTs which exist across the territory of the state as unlicensed, untaxed and unregulated platforms.
The VGTs legislation introduced to the state’s House of Representatives in Tuesday, seeks to make video gaming machines legal outside Pennsylvania’s 12 casinos. Under the provisions of the HB 1010 bill, various businesses, including taverns, bars, off-track betting parlours, etc. would be provided with the chance to offer video gaming terminals to their customers.
Under the provisions of the new HB 1010 bill, video gaming terminals are to be made legal within the state. The new piece of regulation would allow no more than ten terminals at truck stops, while licensed bars would be allowed to offer a maximum of five VGTs to their customers. Also, up to ten terminals would be allowed at pari-mutuel, off-track betting parlours. Betting on VGTs would be allowed only during operation hours of the above-mentioned establishments.
The establishments are set to receive up to 25% of the gross revenue generated by the video gaming terminals, with the agreements between the terminals’ suppliers and local operators for a minimum of 5 years and a maximum of ten years. The tax rate implemented in the new HB 1010 bill amounts to 34% until July 1st, 2018. After that, the rate would be reduced to 29%. Also, there will be an additional tax amounting to 4% of the gross revenue generated by the VGTs that would be paid to local communities.
The future of the video gaming machines in Pennsylvania is yet unsure, regardless of the fact that both iGaming and the slots machines expansion were considered in 2016. To date, only two of the state’s casinos have protested online gambling legislation, while the VGTs issue is considered more controversial for the time being.
- Author
Daniel Williams
