More details on costa online gambling legalisation bill in Pennsylvania

Earlier this year Pennsylvania Senate Minority Leader Jay Costa flagged his intention to introduce an online gambling and gaming reform bill (see previous  report) and this week made good on his word with the introduction of SB524.

Senators Wayne Fontana, Vincent Hughes and Judy Schwank have signed up in support for the bill, which mirrors unsuccessful measures last year to legalise online gambling and makes the following proposals:

* That online gambling should be legalised and regulated in Pennsylvania, along with daily fantasy sports;
* Permits tablet gaming at certain airports;
* Permits online operations by the state lottery;
* Hikes the proposed tax rate on online gambling and DFS GGR in earlier bills from 14 percent to 25 percent
* Similarly hikes online gambling operator licensing fees from $8 million in previous proposals to $10 million, with vendors fees raised from $2 million to $5 million;

The bill also contains land gambling provisions aimed at clearing up points of political and commercial contention.

Observers have noted that SB524 is a proposal that will likely see considerable debate and adjustment.

Many experts are of the view that a 25 percent tax rate is untenable for operators and does not compete with the 15 percent charged in neighbouring New Jersey. The maximum tax rate for viable online gambling and DFS activity should be no higher than 15 to 20 percent, they argue.

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