The majority of Pennsylvania’s dozen casino operators have expressed support for online gambling but only if tax rates are set low enough to ensure profitability.
Wednesday saw Pennsylvania hold its latest hearing into the possibility of launching a regulated online gambling market. The Senate Committee on Community, Economic and Recreational Development hearing came one day after committee chair Sen. Kim Ward filed SB 900, which proposed a whopping 54% tax on online gambling revenue.
Among those expressing concern over this proposed rate was Eric Schippers, senior VP of government relations at Penn National Gaming. Schippers said his company’s online gambling operations would lose $20m in its first three years of operation under a 54% tax rate. Schippers said the 14% rate envisioned by state Rep. John Payne’s HB 649 would be infinitely more preferable.
Parx Casino chairman Robert Green said his firm wasn’t opposed to venturing online but insisted there must be “safeguards” to ensure that online gambling is “integrated into the existing industry.” Green is suspected of having pushed for SB 900’s requirement for would-be online gamblers to register in-person at one of the state’s brick-and-mortar gaming venues.