Nevada, New Jersey and Delaware are the very first states to legalize interstate online casino. But realizing how lucrative the industry is, all the other states now are trying to join the ride as well. The recent one is Pennsylvania. The state lawmakers proposed to allow Internet gambling throughout the state with Representative Tina M. Davis as the prime bill sponsor. Interestingly, this issue has been going around for quite some time now. However, there have been opposing parties that cause delays to the submission of the proposal.
Rep. Davis pointed out that there is a great need to push the legalization as two of its neighboring states already have it in place. She also reiterated that the Pennsylvania casinos are now getting on top of the U.S. gambling market competition and not having its online counterpart situated properly will surely leave them behind. Davis further explained that the proposal covered the licensing, operations, and the safe and secure implementation of Internet based casinos. Operators must ensure that they run the business according to the regulatory framework. Although the full details of the proposed bill have not been disclosed yet, reports say that the bill has undergone major changes since Davis announced that she would be introducing it.
The first draft stated that the tax rate to be collected is 45 percent of the gross gaming revenue while the licensing fee is at $16.7 million. In the new proposal, the tax rate has been reduced to 28 percent while the application for license will be at $5 million. Davis added that the State Lottery Fund and the Property Tax Relief will be the beneficiary of the proceeds. There is an estimated 16,000 jobs to be generated and about $7 billion tax revenues. Davis ensures that this money will be under the full control of the state. However, the bill has to convince the National Governor’s Association first that is led by the state Governor Tom Corbett. According to the group, the legalization of online poker and casinos in the state is unnecessary. With this, Davis did significant changes in the previous bill to hopefully gain the support from all parties.