Online gambling legalisation off to a fast start in Pennsylvania

News on 5 Jan 2017

Expectations that a revitalised online gambling bill in Pennsylvania would probably come from either Sen. Kim Ward or Rep. Rosita Youngblood have been pre-empted by state Senator Jay Costa, who this week took the initiative and launched a co-sponsorship memorandum as a first step to introducing a new bill which closely replicates the content of HB 1887, which Our readers will recall was passed in 2016 by the House, but killed by the Senate’s failure to vote the legislation forward at the last hurdle.

The differences lie mainly in the licence fees and tax rate, both of which have been hiked. Like HB 1887, it appears that Costa intends his measure to be an omnibus gambling expansion bill which will also contain provisions to resolve the land casino contribution to host communities issue following last year’s judicial rulings (see previous reports).

Costa’s first draft includes the following provisions, according to the usually reliable publication Online Poker Report:

* Licence fees higher at $10 million for land casino operators taking their business online under the new bill, and $5 million for online technology suppliers. Daily fantasy sports operators and state airports which offer mobile gambling facilities will be charged $2.5 million;

* The airports mobile gambling initiative will initially be restricted to a five year pilot project and then reassessed;

* Tax rate higher at 25 percent of GGR for all operators and suppliers;

* State Lottery permitted to take its offers online;

* Online licenses confined to existing state licence holders, but operators prohibited from offering online gambling on land casino premises;

* Land casino host communities to receive contributions from the operators set at the same level as those earlier declared unconstitutional by the State Supreme Court last year.

Senator Kim Ward’s “informational” meeting apparently took place on January 3, but so far there have been no reports on its content and outcome.

See the full report here: http://www.onlinepokerreport.com/23342/pennsylvania-online-gambling-bill-2017/

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