Lawmakers drafting the Pennsylvania state budget are taking a serious look at whether or not to legalize internet gaming, after a state-sanctioned report estimated that iGaming would generate around 7 million in new revenue annually.
Although it is widely thought that the issue will not be resolved this year, iGaming is now part of the debate in Pennsylvania. With a looming $1 billion budget deficit, state House and Senate budget negotiators are looking for new revenue wherever they can get it. And, although initial internet gaming results in neighboring states New Jersey and Delaware did not inspire confidence, some lawmakers feel iGaming would be a painless way to put a dent in the deficit.
“I think there is significant revenue to be gleaned from internet gaming,” said Drew Crompton, top aide to state Senate President Pro Tempore Joseph Scarnati, in an interview with Pennsylvania’s Times-Shamrock newspaper chain.
The new debate on iGaming follows a report by Econsult Solutions commissioned by the joint Legislative Budget and Finance Committee. The report estimated not only that iGaming would generate more than $300 million annually, but that Pennsylvania casinos, likely to host sites, would see $180 million in new revenue during the first year of iGaming.
The study arrives at the $307 million revenue figure by estimating that internet gambling by Pennsylvania residents would account for about 3.6 percent of a potential $8.5 billion online gaming market, including both poker and casino games, in the U.S. The study assumes state tax rates at 20 percent for online poker and 60 percent for online slot games.
