How Likely is Pennsylvania Online Gambling Expansion in 2016?

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Monday, December 28th, 2015 | Written by Charles Washington

The iGaming world is abuzz with news and speculations concerning the future of online gambling in the state of Pennsylvania. Many experts feel that online gambling legalization and regulation in the Keystone State is imminent, which is exciting news for would-be legal poker players, as well as for the industry as a whole. Not only would a law removing the ban on online gambling have a positive impact on the industry in Pennsylvania, but it could also lead to legalization across the United States.

Plenty of iGaming Supporters

Pennsylvania is currently caught up in a nasty battle over the state’s budget. The Governor of Pennsylvania, Tom Wolfe, is hoping to restore funding for education that was cut by predecessor Tom Corbett, while Republicans in the state legislature wish to pass entitlement reforms to shrink the state deficit. Negotiations have been at an impasse with the Governor already having vetoed several proposed budgets.

Both the Republican chair and the Democrat co-chair of the Pennsylvania House Gaming Oversight Committee are in favor of the proposed online gambling bill, HB 649, which seeks to shrink the deficit both through licensing fees for casinos and operators, and from tax revenue. The legislation is also supported by 11 of the 12 land based casinos currently licensed to operate in Pennsylvania.

With 2015 finishing out with no budget for Pennsylvania, many people are speculating that online gambling may be attached to the budget when the legislature reconvenes in January 2016. If this is the case, online gambling legalization may be just around the corner. Even if the law is not packaged with the 2016 budget, many Harrisburg insiders feel that the state will pass iGaming legislation before the end of 2016.

Still More Hurdles Ahead

Still, some experts in the industry are not as optimistic. Matthew Katz, the Chief Executive Officer of a company that provides geolocation services for online gambling sites, is on record saying that people may be overestimating the desire to push through online gaming legislation. It’s possible that the upcoming elections in 2016 could leave lawmakers less than eager to make major changes in online gambling before the close of the year. In addition, a number of experts have suggested that certain amendments that have now been attached to the bill may serve only to muddy the waters further, and commenting on the issue Poker Players Alliance Vice President of Player Relations, Rich Muny, explained:

“We are concerned about any amendments, such as the VGT (video gaming terminals) amendment, that could erode support for the bill. The increased licensing fee is interesting, as it increases likelihood of passage but could possibly impact players in the form of higher rakes. This is the process and PPA is fully engaged in it.”

Potential Impact of the Pennsylvania Law

Assuming that Pennsylvania succeeds in passing online gambling legislation, many industry experts believe that the move will energize other states to follow suit. If iGaming brings in the amount of revenue expected to in Pennsylvania, states like California and New York that have toyed with the idea of legalizing online gambling may finally have the incentive needed to push ahead with regulation.

On the flip side, many people fear that if Pennsylvania does not succeed in passing an iGaming law, the online poker legalization movement may die completely. As no other state is anywhere near being able to act on online gaming, the movement would likely lose momentum without a victory in Pennsylvania. With the arrival of the New Year, all eyes will be on Harrisburg to see how legislation finally plays out. While things seem promising, the stakes are high for the movement.

Implementing Regulation Takes Time

Even if Pennsylvania does decide to legalize online poker next year, the process of setting up a regulated, licensed framework and subsequently launching the industry will still take time. Obviously, while the state would prefer to see the process move quickly, the experiences of the country’s three regulated markets shows just how long things can take. Nevertheless, the Poker Players Alliance has said it was prepared to help the state in any way necessary, with the PPA’s Rich Muny explaining:

“I think bid submissions will be relatively quick, with suitability reviews, software verification, and the rest being less so. PPA will lend its expertise to the state in any way we can to help them with this process.”