Pennsylvania senate okays online gambling bill, all eyes on House

Pennsylvania’s state senate has approved its new gambling expansion bill, but an uncertain future awaits in the state’s other legislative chamber.

As expected, Pennsylvania senators approved their version of HB 271 on Wednesday with minimal revisions and by a significant margin (38-12). The vote was noteworthy for being the first time the senate has approved any measure that contained authorization for intrastate online gambling and daily fantasy sports.

The bill now moves to the state House, which has typically been far more amenable to online gambling legislation. However, the House is also more fond of other gambling expansion proposals, including the controversial subject of authorizing tens of thousands of new video gaming terminals (VGT) at state bars, clubs and other small venues with liquor licenses.

Even if the House were to rubber-stamp their approval of the Senate package, there’s the not-insignificant matter of the 54% tax on online casino revenue contained in the Senate bill. The rate is probably three times greater than what online operators would consider workable, and that’s before factoring in the $5m upfront license fee – and $5m more if you also want to offer online poker – that won’t be credited against future tax obligations.