While the issue of online poker is shelved in California until next year Pennsylvania continues to press forward in its attempts to regulate the game.
On Wednesday the PA House Gaming Oversight Committee voted 18-8 to pass HB 649, a measure that would regulate online poker and iGaming in the state.
This measure could bring significant tax revenue to the state and may even be a way to help balance the state budget. It will now move on to the PA House for a full vote.
Details of HB 649
For those unfamiliar with Pennsylvania's HB 649, the bill is your standard iGaming bill that looks to regulate both online poker sites and general iGaming. Details of the bill include the following:
- Players 21 and older only
- Players must be physically in PA
- Providers must pay a $5 million licensing fee while significant vendors pay $1 million for licensing
- 14% tax rate on gross revenue
- Potential for interstate compacts to allow for player pool sharing
- No bad actor clause
Most of the casinos in Pennsylvania have been favorable towards regulating iGaming with the Sands Bethlehem (owned by Sheldon Adelson) the only casino opposing.
What if HB 649 Becomes Part of the Budget?
Another likely outcome for HB 649 is that it becomes part of the PA state budget. The legislature is presently at an impasse regarding the 2016 budget, one that has drug on for the last four months.
Online gambling is one option to help balance the budget as it would provide revenue without the need to raise citizen taxes. This is viewed favorably by those looking to balance the budget.
The good news is that the bill has not received a verbal veto from Governor Tom Wolf, meaning that the option remains open. Should the bill become part of the budget it would go into law as soon as the Governor signs the bill.