Tuesday April 23,2013 :  PENNSYLVANIA ONLINE GAMBLING BILL CONTENT (Update)
 
Only existing category 3 slot machine licensees eligible to operate internet gambling?
 
The Pennsylvania online gambling legalization bill HB1235 authored by Rep. Tina Davis which was referred to the Committee on Gaming Oversight this week was published on the Pennsylvanian legislature website this week.
 
Pertinent points include:

  • The wording of the proposal seems to indicate that only existing category 3 slot machine licensees may apply to operate internet gambling and of those,  only licensees who hold a valid seasonal or year-round membership.  ""The Commonwealth has a legitimate State interest in protecting the integrity of State-authorized intrastate Internet gaming by licensing those entities already engaged in the conduct of gaming in this Commonwealth, which are subject to the scrutiny and discipline of the board and other regulatory agencies and which are in good standing with those agencies."
  • Licensees and players are required to maintain a physical presence in the State.  Players must be a minimum of 21 years of age.
  • Each slot machine licensee that is issued an Internet gaming certificate must pay a one-time non-refundable authorization fee in the amount of $5 million.  The certificate is renewable every three years. 
  • A slot machine licensee that has been issued an Internet gaming certificate must pay a renewal fee in the amount of $500 000 upon the renewal of its Internet gaming certificate.
  • Each slot machine licensee that operates Internet gaming must pay a tax of 28 percent of its daily Internet gaming gross revenue.
  • Use of funds derived from the internet gaming tax will consist :  85 percent deposited into the State Lottery Fund with 55 percent allocated solely for the provision of property tax relief for the elderly and 30 percent to provide free or reduced fare transit services for the elderly.  The remaining 15 percent will be deposited into the Pennsylvania Race Horse Development Fund.

Co-sponsors of the bill currently stand at eleven and comprise Dom Costa, Vanessa Lowery Brown, John Sabatina, RoseMarie Swanger, Thomas Caltagirone, George Dunbar, Rosita Youngblood, William Kortz, Mark Cohen, Ed Neilson and John Galloway.

The full text of the proposed bill can be read at : http://www.legis.state.pa.us/cfdocs/legis/PN/Public/btCheck.cfm?txtType=PDF&sessYr=2013&sessInd=0&billBody=H&billTyp=B&billNbr=1235&pn=1566