Pennsylvania Allows Online Gambling – Tax Rates Unworkable?
Online gambling has a level of incertitude that continues to leave people, who are looking to spend some time doing so, with many questions in many regions throughout the United States. However, Pennsylvania has just passed a package that makes it the fourth state to outright say that online gambling is now legal within their jurisdiction despite the ambivalence that federal law beckons.
Governor Tim Wolf followed in the footsteps of his House and Senate who both got Bill 271 through to his desk so that they could allow more freedom within their state when it comes to this type of activity. It is true that the Keystone State already has quite a few brick and mortar casinos within its borders, and now they are also trying to be the first to apply for the specific license that will allow them to begin offering such services online to the residents as well. The hope is that this new method will allow those who are unable or do not want to make the trip to those destinations to continue to produce revenue for the state and the companies interested in such online gambling.
This will cost them a fee of $10 million to start with, and if there are still some existing licenses that are not claimed during the initial offering, then they will be put on the sales floor again at a lower price of only $4 million according to the bill’s terms. The key component is the tax rate that will be a hefty 54% for online slot games and a lower 16% for the table games and poker that these companies will then provide.
Another incentive that this bill brings along with it is the ability for the state lottery system to offer similar tickets online so that the citizens do not even have to go to the gas station or supermarket in order to try their chance there. The daily fantasy sports segment is still up for grabs, and Pennsylvania will likely need the approval of the Federal Government before it is allowed to legally have operators of that nature in their state, but this initiative does open up the state for that potential should there soon be the relevant legislation passed at that higher level.
The bill does not stop at just the aforementioned either. There is also wording that will allow the creation of some mini casinos; 10 of them will be allowed throughout the state. Also, travelers through the state’s truck stops and passengers in the airports are likely to have new options and ways to spend their leisure or waiting time due to this bill opening up the way for video gaming terminals (VGTs) and tablet device gambling.
This might be good news for those looking to profit in some manner from online gambling, but the main point of contention is in regards to the slot rate of 54% that most do not see as feasible in any respect. The Quaker State may indeed be morphing a little in regards to their tolerances.