Pennsylvania iGaming in Limbo

Two amendments to an existing gaming expansion bill that would legalize Pennsylvania online gaming were voted down, then revived for more debate. At issue is the expansion of gaming to include electronic game terminals (EGTs) at more racetracks, international airports and possibly bars and restaurants in a bill sponsored by Rep. Mark Mustio (l.).

As many predicted, the legalization of online gaming in Pennsylvania during the current session came down to a last-minute amendment to a bill during debate on the 2016-17 state budget.

Two amendments, actually—and both failed. So far.

It was originally thought that iGaming would be added as an amendment to the must-pass state budget bill. However, iGaming was instead offered as an amendment to a separate gaming bill, HB 1925, which would also authorize current casino licensees to place slot machines at airports and off-track betting facilities.

As the Pennsylvania House of Representatives moved to pass the budget before adjourning for the summer, a vote was taken on two amendments to HB 1925 that would legalize internet gaming. One came from Rep. John Payne, the House Gaming Oversight Committee Chairman who sponsored a bill to legalize a complete slate of online casino games on sites operated by Pennsylvania casino license-holders.

Payne’s HB 1925 amendment, tagged as A7619, was identical to his iGaming bill, which was never brought to a floor vote.

Before A7619 was brought to a vote, a separate amendment was voted on. Tagged A7622, it was identical to the other amendment in legalizing iGaming, but it also would legalize video gaming terminals for non-casino locations such as taverns. That amendment was easily defeated by a 122-66 vote.

The second amendment also failed, but by a closer margin of 107-81. However, there was much confusion surrounding the vote. House leaders had listed Payne as sponsor of both amendments, but Payne himself, when speaking about his own amendment, revealed that the amendment including VGTs was sponsored by Rep. Mark Mustio.

After Payne spoke, the House voted to reconsider both amendments at a later date. As of press time, a new vote had not been scheduled. The issue could be delayed to the next legislative session.

During last week’s debate, Rep. George Dunbar indicated that more debate is needed because critics of iGaming are basing their opposition on myths. “I wanted to address some things that not everybody understands,” Dunbar said. “You can gamble online in Pennsylvania right now. Maybe not in this building because of firewalls, but I guarantee you, I can walk out of this building and play poker tonight at the Radisson Hotel. I can use a credit card to do it.

“What we are providing in this bill is consumer protection.”

Payne thanked Dunbar for the clarification. “He has more knowledge of gaming than I do,” he said. “When he tells you he can walk out tonight and go to his hotel and gamble online, and use his credit card to play, he is telling you the truth. My whole intent when introducing the iGaming bill was to bring protections to my children, my grandchildren, the compulsive gamers. Make no mistake, you can gamble online right now without this bill using a credit card.

“If you are going to vote ‘no,’ please don’t use the crutch that it’s because you want to protect people. The protections are in this amendment… We are, like it or not, the majority shareholder in the casino industry because we get 54 percent of the (revenue). In the private sector, that would mean we are the majority shareholder. It behooves us to make sure our casinos do well, because we get more money.”

Each bill may be considered on June 6 but could stretch far beyond as it may be part of the Pennsylvania budget process which lasted long into last winter.