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Pennsylvania Assembly Passes Sweeping Expansion of Gambling

On June 22, 2016 the Pennsylvania General Assembly passed a sweeping expansion of gambling .   The bill, which must be passed by the state’s Senate and signed by the Governor, would allow for internet based gambling, daily fantasy sports, slot machines at off-track betting parlors (“OTBs”), slot machines at airports and even paves the way for legalized sports betting, if, and when that is allowed under federal law.

Internet Gambling

  • Pennsylvania would be the fourth state to allow legal internet gambling (Internet gambling is currently legal in New Jersey, Delaware and Nevada);
  • Internet gambling would be offered through the Commonwealth’s current, licensed casinos with each casino paying an $8 million license fee to offer internet gaming;
  • Age and geo-location controls will be required – players must open an account, be 21 or over and must be located within PA while participating in internet gambling;
  • The tax rate on internet gambling revenue would total 16%;
  • Participating casinos would not be allowed to reduce their number of slots machines their existing b casinos

Daily Fantasy Sports

  • Bill allows current DFA operators like FanDuel and Draft Kings to obtain a license to offer DFS without partnering with a PA casino; DFS operators would pay 5% of its revenues ( after player payouts) to the state;
  • DFS players must be 18 yo or older;

Slots at OTBs

  • PA’s 5 racetrack casinos would each be permitted to have up to 4 off-track betting parlors with up to 250 slot machines per OTB;
  • Each such OTB must be outside a 50 mile radius of an established PA casino;
  • There is a $5 million licensee fee for each OTB with slots;

Slots at Airports

  • Casinos can seek permission to install slot machines at airports; the PA Gaming Control Bd can set limits on the number of slot machines l allowed;
  • License fees for such operations would be $5 million in Philadelphia; $2.5 million in Pittsburgh; and $1 million a each at the four other international airports in PA;

Expansion of Current Resort Casinos

  • Current Category III casinos in PA can expand their max slot machines counts from 600 to 850 and table games from 50 to 65;
  • There is also a relaxation in the requirement that casino patrons be customers of other amenities;
  • If a current Category III casino and all three changes it so would requires $4.5 million is additional license fees.

Sports Wagering

  • The bill instructs the PA Gaming Control Bd to develop regulations to allow for sports wagering if, and when the federal government permits such sport betting

Ten States Consider Internet Gambling Legislation

Internet gambling is currently legal and operating in three, U.S. States – Nevada, New Jersey and Delaware. Additional states, perhaps realizing that the likelihood of federal legislation on the topic anytime soon is remote, considered their own internet gambling legislation this past year. Proposals for new, or expanded internet gambling have, or will likely be considered by California, Colorado, Hawaii, Iowa, Louisiana, Massachusetts, Mississippi, New Jersey and Pennsylvania.

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