Pennsylvania internet poker bill expected in weeks
Legislation sponsored by Senator Edwin Erikson sets licence fee at US$5m and tax rates at 14% of gross gaming revenue
New legislation which proposes the regulation of online poker but omits casino games will be introduced in Pennsylvania this month, according to a senior politician in the state.
State Senator Edwin Erickson announced his intention to submit his bill “ SB 1386 “ to the legislature “in the coming weeks” on the Pennsylvania State Senate website.
The poker-only bill would award online licences to the state’s existing land-based casino operators with licence fees set at US$5m each and taxes at 14% of gross gaming revenue.
A ‘bad actor’ clause would prevent operators who continued to take bets from US players post Unlawful Internet Gaming Enforcement Act 2006 from being awarded a licence, with the state’s Gaming Control Board acting as the regulator.
“In the next few weeks I intend to introduce Senate Bill 1386, legislation that would authorise interactive gaming in the form of online poker,” Erikson wrote.
“Poker is unlike banking games in many respects that make it best for the introduction of interactive gaming. Poker operators are not participants in the games and are indifferent as to the outcome.
“Additionally, many Pennsylvania residents participate in illegal and unregulated poker sites. Establishing a strong regulatory framework under the Gaming Control Board will assist in shutting down these illegal sites and enhance consumer protection for our gaming residents,” he added.
The state’s gaming expansion study found that egaming could generate additional revenues of $307m per year, with $178m coming from online casino and $129m from internet poker. It also noted that any cannibalisation would be offset by revenues from online.
It looks set to be a busy month for regulated internet gaming in the US, with a single, streamlined bill expected to be introduced to the California legislator this week. The move would boost the chance of progress in the current legislative session, which ends in August.
A federal bill aiming to outlaw all forms of internet gambling except online poker has also been doing the rounds in Washington DC.