Legal online poker could raise $90m a year, Florida told
Florida lawmakers have been hit with a report showing that legalising online poker could earn the cash-strapped US state more than $90m in tax revenue a year.
FLORIDA LAWMAKERS HAVE BEEN presented with a report showing that legalising online poker could earn the cash-strapped US state more than $90m in tax revenue a year.
American Poker Ventures (APV), the Florida sister organisation of lobby group Poker Voters of America, presented the data to the Florida Office of Program Policy Analysis and Government Accountability (OPPAGA), the body that will play a major role in deciding if the state legalises online poker, ahead of a 1 December deadline for OPPAGA to report its findings to the Florida Senate.
According to the projections, which were prepared by UK gambling data business H2 and are based on total gross online poker rake of $226m in the first year of legalisation, $331m in Year 2 and $457m in Year 3, Florida’s government could expect a 20% cut worth $45m, $66m and $91m respectively.
Florida is one of America’s most heavily indebted states, with governor Charlie Crist recently forced to bridge the state’s $5.9bn budget shortfall with a programme of cuts, federal stimulus money and tax raises, and US think tank the Pew Center publishing a study this week placing it among 10 states facing looming budget disasters.
PVA president Melanie Brenner said: “For us to be able to walk in with a solution for their budget problems is obviously very helpful when you are sitting down with an elected official. Although these are unfortunate circumstances, these have really helped give our cause momentum.”
The PVA proposes a model in which a single-hub system would be run by a private operator under contract with the state government after a tender process. Half the poker gross rake generated within state borders would be split among the card rooms and tribes with gaming compacts proposed as licensees, with 30% going to the systems operator, and the remaining 20% going to the state. Up to a quarter of the state’s cut would be earmarked for problem gambling charities.
The OPPAGA report follows Florida governor Charlie Grist having approved a study into the state’s bricks-and-mortar card rooms, and on the possibility of passing laws to protect state residents from playing on unregulated offshore poker sites.
APV helped draft the study measures contained within Florida’s HB 225 study bill, and also recently gave a presentation to OPPAGA on the technical aspects of intrastate online poker systems.
PVA and APV president Melanie Brenner is speaking at EGR Live, eGaming Review‘s free-to-attend conference and exhibition for operators this month.