Pennsylvania Moves on iGaming

A key state House committee in Pennsylvania has cleared a bill that would legalize a complete slate of online casino games to be linked to the state’s land-based casino licensees. Sponsored by the committee’s chairman, Rep. John Payne (l.), the bill now moves to a vote in the full House.

Bill wins bipartisan support

Pennsylvania took a big step last week toward becoming the fourth state in the U.S. to legalize online gaming when the state House Gaming Oversight Committee cleared HB 649, which would legalize a complete slate of online casino games including poker.

The bill, sponsored by the chairman of the gaming committee, Rep. John Payne, cleared the committee easily, by a bipartisan 18-8 vote. It now moves the full House, and then possibly to the Senate and the desk of Governor Tom Wolf. Another route to its passage could be as an amendment to an omnibus budget bill now before both chambers.

Were HB 649 to become part of the larger budget bill, it would likely be accompanied by other gambling expansion measures currently before Pennsylvania lawmakers, which include legalizing slots at airports and off-track betting parlors, regulation of daily fantasy sports and online lottery sales.

The National Poker Players Alliance (PPA) one of the groups lobbying heavily for this and other bills to legalize online poker, quickly issued a press release lauding the committee passage of Payne’s bill. “With the passage of HB 649, the House Gaming Oversight Committee has proven their commitment to providing Pennsylvania residents with a safe and regulated place to play online poker within their own borders,” PPA Executive Director John Pappas said in the statement.

“The PPA thanks Chairman John Payne and the committee for their leadership. Now this bill needs to become law. The safety of consumers and the fiscal health of Pennsylvania will be vastly improved when internet gaming is appropriately licensed, regulated and taxed. It is our hope that the legislation will be enacted on its own or as part of the state’s 2016 budget by the end of this year.”

Payne’s bill follows the New Jersey model, in that the state’s 12 casino licensees would be required to be licensed for online poker, and all iGaming would be conducted through those licenses. Under Payne’s measure, the state revenue tax on online gaming would be 14 percent, with a one-time license fee of $8 million. Another 2 percent of iGaming revenues would go for local economic development or civic improvement projects.

Payne’s measure has no “bad-actor” clause that would prevent companies like PokerStars—just found suitable by New Jersey regulators—from participating because of accepting U.S. wagers after passage of the 2006 Unlawful Internet Gaming Enforcement Act.

The PPA, meanwhile, is continuing its lobbying efforts in favor of the bill. The organization has set up an HB 649 advocacy webpage to provide tools for Pennsylvania residents to easily contact target state legislators via emails, calls and through social media to urge them to support the measure.

“Regardless of HB 649’s pathway to becoming law in Pennsylvania, we want to see Internet poker legislation enacted this year,” said the PPA’s Pappas. “Therefore, we are calling on all Pennsylvania poker players to tell the state’s policymakers why passing this bill is so important to Pennsylvanians and urging all poker reporters and activists to help spread the word through media outlets, blogs and social media forums.

 “It is absolutely crucial that Pennsylvania state representatives, senators and Governor Tom Wolf are hearing from their constituents about the consumer benefits of licensing and regulating internet poker in the state.”