Pennsylvania online gambling hopes get a lift

Pennsylvania’s online gambling hopes got a major boost on Thursday via reports that the state’s bickering legislators had reached tentative agreement on a gaming expansion plan.

Late Thursday, City & State Pennsylvania quoted sources saying state legislators had agreed that online poker and casino sites would form part of the $225m in extra gaming revenue the legislature had already agreed would contribute to the $32b budget for the state’s current fiscal year.

The Senate is now reportedly looking to get $250m from gambling into the budget, and the extra $25m could come from increased taxes on casino table games. At present, casinos pay 16% tax on their table revenue, but scuttlebutt has it that this could be raised to 20%.

It’s unknown whether legislators have tweaked the fee and tax structure of their earlier online gambling plans. Earlier this week, GamblingCompliance scribe Chris Krafcik tweeted that his sources indicated online gambling operators would pay one-off license fees of $10m-$15m, while online revenue would face an effective tax rate of 15%-20%.