New Pennsylvania online gaming bill ratchets up tax rate
Senator Jay Costa’s new bill calls for 25% tax rate and $10m licensing fee
A new online gambling bill introduced in the Pennsylvania Senate was greeted with apprehension by the industry thanks to a hefty 25% tax rate.
Senator Jay Costa’s SB 524 also sets licence fees for online gaming operators at $10m – a significantly heavier burden than the 14% tax rate and $8m fees suggested by the existing gaming bill HB 392 and its Senate twin SB 477.
The licence fee for providers also increases from $2m to $5m, while the 25% tax rate would also apply to DFS operators.
The bill, first mooted back in January, also differs from existing version by authorising online lottery, and allowing the lottery to sell “internet instant tickets, iLottery games [and] play-for-fun games”.
The various bills are due to be debated next Tuesday in the House Gaming Oversight Committee, where the tax rate is likely to be the key point of contention. Pennslyvania operators will likely point to New Jersey, where a 15% tax rate has helped the industry flourish.
The passage of online gaming in Pennsylvania is stills seen as more likely than not, thanks to the support of Governor Tom Wolfe and the inclusion of $100m contribution from online gambling in the state budget.
However it is still opposed by two of 12 Pennsylvania casinos, including Sands Casino, owned by anti-online gaming lobbyist Sheldon Adelson.
Last week five anti-poker Pennsylvania representatives introduced HB 801, which would criminalize all online gaming in the state.