Pennsylvania iPoker Shaping Up For 2016

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Thursday, November 5th, 2015 | Written by Lucy Brown

Pennsylvanians may have something new to look forward to in 2016, namely the legalization of more types of gambling games. According to observers, the Keystone State is poised to become the fourth state to legalize iGaming in the US, following the lead of Nevada, New Jersey and Delaware, and there is even talk of extending the ability to gamble legally to daily fantasy sports, as well.

Current State of Gambling in Pennsylvania

Under Pennsylvania law, many forms of gambling are already legal. The Pennsylvania Gaming Control Board has issued licenses for a number of standalone casinos spread throughout the state, in addition to providing licenses for horse track racinos, and off-track wagering facilities. Pennsylvania also offers its own lottery system.

Budget Crisis Leads to Bipartisan Cooperation

Pennsylvania is one of many states that has a divide between the executive and legislative branches. The Governor, Tom Wolfe, is a Democrat who has vowed to put money back into many state programs that were cut under his Republican predecessor. The legislature in the capital city of Harrisburg, on the other hand, is under Republican control, which has led to a major dispute with the current budget. The Republicans passed a $30.2 billion plan that ended up being vetoed at Wolfe’s desk, as he refuses to accept any plan for under $31.6 billion.

With the budget more than 100 days overdue, Pennsylvania’s lawmakers are now scrambling to find ways to make up for the deficit. Legalizing more forms of gambling seems to be one possible solution, and both Democrats and Republicans are signing onto the idea. As Democratic member of the Pennsylvania House of Representatives, Nick Kotik, explains:

“We are at a critical time in this state in terms of funding steams and funding needs. I welcome a serious discussion on these expanded forms of gaming to not just stay ahead of the curve but to invest real dollars into where they’re needed most to put the state back on track.”

What’s Ahead in Pennsylvania

Representative John Payne (photo), who serves as the Chairman of the Pennsylvania House Gaming Oversight Committee, has introduced a piece of legislation called HB 649. If passed, the bill will make all forms of iGaming legal in Pennsylvania. Payne estimates that the plan would bring in $120 million in its first year and eventually bring $700 million in annual revenues for the state. In addition to legalizing online poker and online casino games, the bill would allow licensed slot parlors outside of casinos, and permit terminal slot machines to be placed in the state’s international airports.

Payne’s Democratic counterpart on the committee, Nick Kotik, is in full favor of HB 649, but he wants to take things even further. He has introduced legislation that would legalize sports betting at licensed casinos in addition to the other forms of gambling covered in Payne’s bill. Kotik has stated that since sports betting is taking place illegally in the state already, Pennsylvania should simply legalize it and earn revenue.

Will iGaming Solve the Problem?

Because HB 649 involves more than just online poker, it is likely to bring Pennsylvania the revenue that is anticipated. Nevada, for instance, tried to raise revenues through online poker alone, and subsequently experienced some extremely disappointing results due to the state’s limited player pools. The well-rounded online gambling bill from Pennsylvania, however, will likely generate substantial revenue over time, but Pennsylvanians will have to wait and see whether HB 649 passes first.

Daily Fantasy Sports May Be Next

In addition, State Rep. George Dunbar (R-Westmoreland) is looking to have the lucrative daily fantasy sports industry regulated in Pennsylvania. According to his proposed bill, which is gaining support in the Legislature, Pennsylvania would forbid outside DFS sites from operating in the state, and would turn over the industry to state-regulated casinos, instead. Dunbar’s proposed bill is the first piece of legislation to suggest a regulated fantasy sports industry, and comes at a time when daily fantasy sports operators are under increasing scrutiny by individual states, including New York, Michigan, Illinois, Georgia, Massachusetts and Minnesota. However, Pennsylvania is not just considering whether to expand gambling to include DFS betting in the state, but also whether the industry might face a future challenge by the Federal Government. As Dunbar explains:

“It’s not like this is a debate about whether we should get into gaming. We already have casinos and a fairly big gaming industry regulated by the state. Estimates suggest there are 1 million people in this state playing fantasy sports. I see no reason we shouldn’t embrace that.”