On October 26, the Pennsylvania House of Representatives voted to pass House Bill 271. The gambling expansion bill previously passed the Senate on October 25 and will now be sent to Governor Tom Wolf, who has a period of ten days to sign the bill, veto it, or let it become law without his signature. Highlights of Pennsylvania’s casino gambling expansion bill By The Associated Press October 26, 2017 GMT A newly unveiled measure to expand casino-style gambling in Pennsylvania — already the nation’s No. 2 commercial casino state — is on the move in the Legislature in a bid to help the state government plug its biggest cash shortfall. Highlights of Pennsylvania's casino gambling expansion bill By The Associated Press; Oct 25, 2017 Oct 25, 2017; 0; A newly unveiled measure to expand casino-style gambling in Pennsylvania. Top Republicans in Pennsylvania's state Senate are pressing sweeping gambling legislation that would allow slot machine-like terminals in thousands of bars, restaurants, nonprofit social clubs. The bill would allow each of Pennsylvania’s casinos to bid on a minicasino license allowing up to 750 slot machines and 30 table games. Bidding would start at $7.5 million, with a table games.
The casino expansion bill that anxiously awaited review by lawmakers finally received approval on the PA Senate floor. It will be the first item on the House floor Thursday morning.
What this means
According to US News, this plan would expand gambling in the state to include:
- Truck stops
- Online portals
- Airports
- Satellite casino sites
Pennsylvania, the second-largest commercial casino state in the country, could increase the slot machine and table game numbers around the state in these various entities.
The PA Senate publicized the 470-page bill on Wednesday evening and passed it almost within the hour. The final tally came in at 31-19. PennLive reported that 18 Republicans and 13 Democrats in the Senate voted in support of the bill.
Senate Majority Leader Jake Corman said this package, along with the tax and borrowing package, could finish off this year’s spending and next year’s. The state government also tapped into $500 million from off-budget funds, according to Lancaster Online.
“This should bring closure to the budget,” Corman said.
What it could do for PA
The potential wins
- More than $200 million a year in license fees and taxes on gambling losses
- PA would be the first state to allow both casino and lottery games online
- Casinos pay $10 million annually to host communities
- A first: PA would allow commercial gambling outside the 12 currently permitted casinos and racetracks
- PA already raked in $1.4 billion in taxes from the gambling industry this past year
- The mini-casinos could host between 300 and 750 slot machines and 30 table games
- Truck stops get up to five video gaming terminals (VGTs)
The potential losses
Pa Gambling Expansion Bill 2019
- The proposed 25-mile radius distance from existing casinos exposes the primary market and may just alter current revenue, argues Penn National Gaming Inc. of Hollywood Casino at Penn National Race Course.
- Penn National threatened suit if the bill becomes law, due to its “punitive” nature
- Local controls may prevent widespread change for PA, according to Corman
- Bars are not included
In an effort to pacify the House, the Senate allowed the widely-debated VGTs in truck stops only.
Sen. Jay Costa, the Democratic floor leader, had this to say to PennLive:
“There’s no question that that was added to bring consensus between the Senate and the House.”
The House originally pushed the VGTs through in their gambling expansion plan, allowing for lower tax rates and a wider range of online gaming. The Senate, on the other hand, passed a more conservative plan with higher tax rates on online gambling.
Budget issues may still be on the horizon
Despite these wins and losses, some Republicans, previously in favor of the new bill, now see it as overwhelming.
“If you pass this bill, you will see an explosion of gambling in Pennsylvania like you’ve never seen before,” said House Gaming Oversight Committee Chairman Scott Petri to Lancaster Online.
Gov. Tom Wolf has yet to come out on either side. He vaguely stated that he will review the bills before him. Others on his desk include borrowing against future revenues, education code, and more than $600 million in aid to universities.
The budget’s issues began with a $2.2 billion hole. Lawmakers have attempted to fill this shortfall since they passed the $32 billion budget that began July 1.
Keeping the budget locked up in this standoff lost the state its credit rating. Now, after downgrading it, the state adds $50 million to borrowing costs per year.
Even so, the fact that a gambling expansion plan remains on the list of items for consideration remains big news.
A newly unveiled measure to expand casino-style gambling in Pennsylvania — already the nation’s No. 2 commercial casino state — is on the move in the Legislature in a bid to help the state government plug its biggest cash shortfall since the recession.
The heavily lobbied legislation emerged from behind closed doors Wednesday night as part of wider budget negotiations, after competing measures passed the House and Senate in the last five months. It involves a jumble of concepts that offer a combination of license fees and taxes on new gambling losses. The Senate passed it, 31-19. The measure requires approval by the House and Democratic Gov. Tom Wolf. Here is a look at some of the elements:
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SATELLITE CASINOS
Each of Pennsylvania’s 10 larger casinos would be able to bid on a satellite casino license allowing up to 750 slot machines and 30 table games at a facility that is not within 25 miles of another casino. Bidding starts at $7.5 million, with a table games certificate costing an extra $2.5 million. License fees and taxes on gambling at the sites would go into the treasuries of local and state governments, as well public schools and economic and civic development projects.
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GAMBLING AT TRUCK STOPS
Qualifying truck stops could operate up to five slot machine-style video gambling terminals. The revenue would be split between the state, the license holder, terminal operators and host counties and municipalities.
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ONLINE GAMBLING
Licensed commercial casinos, both in Pennsylvania and beyond, can apply to the Pennsylvania Gaming Control Board to operate casino-style gambling on websites and mobile applications to people in Pennsylvania. A license fee of up to $10 million would be necessary to operate a website. Gross revenue from gambling on online slot machine-style games would be taxed at a 52 percent rate, while online table game revenue would be taxed at 14 percent. Just three states — New Jersey, Delaware and Nevada — allow online casino gambling.
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LOTTERY
The Pennsylvania Lottery would be able to offer keno and feature online games, including its existing games, instant tickets and raffle games. The proceeds would go into the state Lottery Fund, which subsidizes programs for the elderly. The lottery would be prohibited from operating casino-style games online, such as poker, roulette, slot machines and blackjack. Four states — Georgia, Illinois, Kentucky and Michigan — allow online lottery play, according to the National Conference of State Legislatures.
Pa Gambling Expansion Bill Online
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LOCAL SHARE
Casinos would be required to pay millions of dollars annually to their host communities, reinstating a mandate struck down by the state Supreme Court last year because it treated casinos differently. The requirement had meant about $140 million that Pennsylvania’s casinos pay annually to local government budgets, institutions and projects in Philadelphia and 11 counties.
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AIRPORT GAMBLING
Casinos could seek approval to operate an interactive gambling parlor at an international or regional airport in Pennsylvania, with an agreement from the airport authority. The machines would be accessible only to ticketed passengers and license fees would be required. Eligible airports are: Philadelphia; Pittsburgh; Erie; Wilkes-Barre/Scranton; Lehigh Valley; Harrisburg; Arnold Palmer Regional Airport; and University Park Airport in State College. Taxes on airport gambling revenue would go to the state and local governments.
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FANTASY SPORTS
Daily fantasy sports betting in Pennsylvania would become regulated and taxed in Pennsylvania. Fantasy sports operators would have to pay a $50,000 license fee and a 15 percent tax based on in-state participation. Applicants would have to verify that players are at least 18.
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SPORTS BETTING
Casinos could apply to the Pennsylvania Gaming Control Board to offer sports betting at the casino or online, should it become legal under federal law or under a federal court ruling. A license would be $10 million.
Pa Gambling Expansion Bill Vote
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RESORT CASINOS
Pa Gambling Expansion Bill Passed
Resort casinos — Valley Forge Casino in suburban Philadelphia and Lady Luck Casino Nemacolin in southwestern Pennsylvania — can pay a $1 million fee to be relieved from requirements in the original 2004 casino law that gamblers must also take part in other amenities at the establishment.
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CASINO OWNERSHIP
Pa Gambling Expansion Bill
A 2004 provision limiting ownership of casinos to no more than one controlling stake in one casino would be repealed.
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Pa Gambling Expansion Bill Details
Source: Pennsylvania Senate Republicans.