Pennsylvania Internet gambling bill introduced in Senate

In addition, a number of other less controversial proposals were also included, such as charging prospective companies an initial USD 5 million licensing fee, with 14% of their subsequent gross gaming revenues then being collected in taxes. Furthermore, the bill allows Pennsylvania to form interstate poker compacts with other regulated US states, and envisages no criminal penalties for gamblers playing on unlicensed, offshore websites.

Also included is a strongly worded ‘bad actor’ clause which prohibits companies which operated in the US post 2006 from being granted an igaming license. Operators  with a “presumption of unsuitability” extends to those companies which: “Purchased or acquired, directly or indirectly, in whole or in significant part, a third party described in paragraph (1) or will use that third party or a covered asset in connection with interactive gaming.”

In the meantime, industry experts have been assessing whether SB 1386 stands a better chance of succeeding than the last online gaming bill presented by State Representative Tina Davis, which stalled last year. This time around, however, there appears to be a stronger sense of optimism, with Pennsylvania’s huge $1.2 billion budget deficit cited as a catalyst for regulation. According to an Econsult feasibility study, for instance, Pennsylvania stands to earn an additional $129 million in annual revenues if it takes the plunge and joins the other regulated igaming states of Nevada, Delaware, and New Jersey.

As the Erickson’s SB 1386, states: “Developments in technology and recent legal decisions have created an opportunity to legalize interactive poker as a means to further enhance and complement the benefits delivered by casino gaming, licensed facilities and the communities in which they operate.”