As expected, it didn't take long for Pennsylvania to start the ball rolling towards online gambling regulation in 2017.

On January 2nd, Senator Jay Costa posted a Senate Co-Sponsorship Memoranda announcing his intention to introduce legislation that would legalize both iGaming and daily fantasy sports.

According to reports, this legislation is a high priority item for some lawmakers after an iGaming bill failed to pass in 2016.

What We Know So Far

According to the memo on Pennsylvania State Senate website, Costa intends to file a bill that will legalize and regulate both DFS and iGaming, allow the state lottery to offer online lottery games and fix the issue of taxes on gambling facilities which benefits areas that hosts casinos.

If passed, casinos in PA may offer iGaming after paying a license fee of $10 million. Vendors must pay a license fee of $5 million. DFS operators will be able to purchase a license for $2.5 million.

One thing that may be prohibitive in the new legislation is the tax rate proposed. Presently, the tax rate is set at 25%.

If this passes, it may be difficult for some operators to offer online poker in PA. Other forms of gambling would be able to absorb this tax rate. It is also unknown whether DFS operators will be willing to shell out a 25% tax rate.

Senate Vote is Lynchpin for Passage

The fact that the Senate is getting an early start bodes well for iGaming regulation in 2017. Twice the state House has passed iGaming, most recently in 2016. However, the Senate has yet to reach a vote.

A vote was believed to be close at the end of the 2016 legislative session, but last-minute concerns shelved the bill. If the bill passes, iGaming would account for between $100 and $125 million to the state.

The PA state budget has earmarked $100 million from iGaming proceeds while Costa's memo estimates that the state could get up to $125 million in the first year.

The $125 million includes license fees from operators and vendors.

Pennsylvania is seen as a potential catalyst for online in the United States. Many believe that several states, including California, could follow PA's lead should they move forward.

With word of a new bill coming out so early in the year, this could prove to be a banner year for U.S. iGaming.