New omnibus gambling bill to be introduced in Pennsylvania
Forthcoming legislation seeks to authorize online gambling, ilottery and DFS
Pennsylvania state senator Jay Costa has announced plans to introduce a new omnibus gambling bill to legalize online gaming in the state.
Costa issued a co-sponsorship memo to the Senate this week, explaining that his new bill would raise $137m for the state.
He said the legislation would be based on last year’s gambling bill which passed the House but not the Senate in 2016.
The new bill would authorize casinos to offer internet gaming for a $10m license fee, while platform providers would face a $5m licensing fee.
The bill would also authorize multi-use computing devices (i.e. tablet gaming) at the Philadelphia and Pittsburgh airports in the form of a five-year pilot program, with operators facing an additional $2.5m licensing fee.
Costa’s bill would also allow the Pennsylvania lottery to go online, with Costa explaining: “I believe it is imperative that we provide the lottery with the tools it needs to adjust and remain solvent in the future.”
The forthcoming legislation will also tackle DFS, with Costa seeking to regulate the activity and tax it at 25% with a $2.5m upfront licensing fee.
However, operators will likely balk at such a high barrier to entry, with Indiana, for example, setting its initial license fee at $50,000 with an annual renewal cost of $5,000.
Costa did not put a specific timeline of the introduction of his bill, simply saying it would be introduced in the “near future”.
He later told reporters it would likely be discussed in February/March and voted on in April/May.