Pennsylvania to study impact of online gambling

2013-12-16

Reading time 1:37 min

(US).- With New Jersey now offering online gambling and New York and Massachusetts ready to open land-based casinos, Pennsylvania has ordered a study of online gaming and its possible implications for the state’s casino industry (Sands Bethlehem at left). Though a simple procedural step, it could set up a long battle on the issue in the state.

The Pennsylvania State Senate has passed a resolution to study the possibility of opening online gambling in the state. And while that’s just a simple first step, the issue is already sparking debate.

Proponents argue that Pennsylvania’s 12 casino are already starting to see revenues level off and even decline as more East Coast states—such as New York and Massachusetts—are about to add land-based casinos. Meanwhile neighboring New Jersey began offering online gambling last month. But opposition to online gambling is also mounting, with detractors saying the move will lead to an explosion of problem gamblers in the state.

The resolution simply calls for an analysis of the impact online gaming would have on the casino industry, employment and the tax implications for the state. The resolution, however, does not stipulate the types of games that would be offered if the state passed online gambling.

Currently three states offer online gaming—Delaware, New Jersey and Nevada—but Nevada offers only online poker while Delaware and New Jersey provide a full slate of casino games. In all three cases, gambling is restricted to people physically in the state when playing.

The move comes as Pennsylvania is reportedly facing a growing budget deficit—estimated at about us$ 839 million over two years—and legislators are looking for new revenue sources.

However, opposition to online gambling has been growing nationwide, spearheaded by Las Vegas casino tycoon Sheldon Adelson, owner of the Sands Casino Resort in Bethlehem.

Adelson has hired lawyers and lobbyists to press Congress for a federal ban on Internet gambling, saying online gambling will hurt youth, substance abusers and addicted gamblers and can’t be policed like land-based casinos.

On the other hand, Caesars Entertainment—which owns Harrah’s Philadelphia casino in Chester—has started online gaming in New Jersey through its four Atlantic City casinos.
Proponents of the bill argue that as casino competition on the East Coast continues to grow and New Jersey’s online gambling possibly siphons off some Pennsylvania players, the state has to be proactive and defend its casino industry. A final report is scheduled for May.