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Examining The New Pennsylvania Online Gambling Bill
Friday June 12,2015 : NEW PENNSYLVANIAN ONLINE GAMBLING BILL EXAMINED (Update)
There will have to be changes if operators are to enjoy success.
The latest online gambling legalisation bill to hit the Pennsylvanian Legislature, SB900, is admittedly still subject to debate and amendment, but changes will be needed before it can be regarded as presenting commercially viable prospects for operators.
Industry writer John Mehaffey examined the current provisions of the measure in the publication Online Poker Report this week and outlined specific problem areas in the online gambling legalisation section that will need to be addressed:
* The proposed 54 percent tax rate on GGR will, as a number of land industry executives have already warned, make the nascent internet business unworkable in terms of profit. The rate is far in excess of that levied in other online gambling states like Nevada and New Jersey (6.75 percent and 17.5 percent respectively) and these indirectly affect the quality of marketing and promotions to players that operators can viably offer.
* In addition to the high tax rate the proposed $10 million licensing fee makes recovery difficult in a market the size of Pennsylvania, even over a five year licensing period, and may deter applicants.
* Limiting licensing to one licence per existing land casino will restrict the market and make branding, audience targeting and partnerships with experienced online gambling companies problematic.
* In-person registration at the licence-holder's physical location could discourage sign-ups for a variety of reasons, and drive punters to unlicensed websites, denying the licensed operator business and the state its tax revenues.
* Excluding Category 3 operators from the nascent online gambling industry restricts competition and reduces the chances of maintaining the present positive consensus among interested parties in Pennsylvania. It could also create problems for Cat 3 operators (resorts that restrict casino activity to guests and members) who have already reached agreements with experienced online gambling firms in anticipation of legalisation.
Mehaffey points out that it is not too late to address these potential problems and produce a practical measure that everyone can support. The alternative could be defeat in the Legislature and the start of years of disagreement as has been the case in California.
Read Mehaffey's well-reasoned and calculated op-ed here:
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Gambling News :
Phil Ivey Loses Borgata Casino -
Phil Ivey has lost in his four-year legal tussle with the Borgata over baccarat winnings; on Friday a US federal judge ruled that he and a companion violated New Jersey state gambling regulations in the manner in which they won nearly $10 million playing at the Atlantic City casino.
NYX Gaming in deal with Endemol -
"Endemol Shine’s IP will be a strong addition to the NYX portfolio of content and we look forward to working together to bring additional instantly recognizable brands to market.”
NEW CAMBODIAN GAMBLING LAWS -
After more than two years of debate and drafting, Cambodia may be closing in on final agreement regarding its proposed gambling law changes.
Playtech Acquires ECM Systems -
Online gambling soiftware provider Playtech plc has announced the acquisition of a ninety percent stake in UK bingo software developer ECM Systems for a consideration of GBP 14.9 million.
Marks and Spencer store Manager steals to Gamblie Online -
The Cambridge News reports that a 28-year-old manager of a Marks and Spencer store, Martin Trenor, has been jailed for three years for stealing GBP 254,538.11 in shop takings over the course of a year and spending it almost immediately at online gambling websites.
Chinese Gambling crackdown could damage high roller revenue -
Fast-moving events this week have seen Australian media reports quoting hundreds of millions of dollars wagered by Chinese high rollers in Aussie land casinos, offset to some extent by Crown claims that this whale gambler" demographic generates only 12 percent of turnover.
EvenBet Open Face Chinese Poker -
Open Face Chinese Poker online games provider EvenBet has reported that its Open Face Chinese Poker product is gaining traction with games recently integrated for desktop action at the Malta-licensed operational site Poker Grant.
2016 EPT Malta -
The European Poker Tour is off to a good start in Malta, with German pro Dietrich Fast claiming a well-earned Euro 174,000 main prize in the Euro 10,000 buy-in Single-Entry Rebuy event.
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