Payne: Pennsylvania iGaming Possible This Year

Prominent Pennsylvania state Rep. John Payne predicted that passage of one of the several bills to legalize internet gaming in the General Assembly could pass this year.

Pennsylvania state Rep. John Payne, the Dauphin County Republican who chairs the House Gaming Oversight Committee, said last week that iGaming is still on the legislative agenda, and that there is still a good chance it could pass before the end of the session.

Speaking to the CardPlayer.com website, Payne said any of the five iGaming bills in the state General Assembly could come up for discussions during the lawmakers’ budge negotiations, which are ongoing right now and will likely stretch out several weeks, with some past negotiations having gone on as late as October.

One of the key points of debate will be the iGaming tax rate, as lawmakers seek the maximum revenue from internet gaming on the heels of a less-than-stellar start for online gaming in New Jersey and Delaware. Payne’s own bill, which would legalize an entire slate of casino games online, contemplates a 14 percent tax rate, the lowest of any of the Pennsylvania bills. A measure in the state Senate sits at the other end of the spectrum, with a 54 percent tax rate, essentially the same as brick-and-mortar casinos pay.

“I think (54 percent) is the high end, Payne told CardPlayer. “If 14 percent is too low I am willing to negotiate.” New Jersey imposes an 18 percent revenue tax on online casinos; Delaware imposes 45 percent.

As chairman of the House gaming panel, Payne is in position to advance his own bill in the House. The Senate bill calling for a 54 percent tax rate is sponsored by state Senator Kim Ward, who also chairs the committee that would move a bill forward, the Community, Economic and Recreational Development Committee.

Ward’s bill has been criticized by many lawmakers for the high tax rate, and for a requirement of in-person registration at land-based casinos before any player can access the iGaming websites.