Pennsylvania Senator Jay Costa has introduced his long-anticipated gambling reform bill, proposing tax rates as high as 25 per cent of gross revenue.
Costa's proposed bill, details of which first emerged in January, aims to keep Pennsylvania's gaming industry competitive while also helping the state to meet its budget requirements.
The result is a bill that proposes a wide-scale expansion of gambling but at potentially prohibitive tax rates.
SB524, introduced in the Senate on March 20th, provides for the regulation of fantasy sports, interactive lottery, interactive gaming, multi-state progressive slot machines, skill and hybrid slot machines, and gaming at certain airports.Fantasy sportsProposes a licence fee of $2.5m for a five-year licence, with a $500,000 renewal fee. Sets a tax rate of 25 per cent of adjusted gross revenue (stakes less prizes).iLotteryWaives the state's procurement rules to allow the lottery to select a partner and quickly launch interactive services under temporary regulations expiring in two years.Airport GamingProposes a licence fee of $2.5m for a five-year licence, plus a 10 per cent tax on daily gross interactive gaming revenue generated from multi-use computing devices at authorised airports.iGamingProposes a non-refundable authorisation fee of $10m, with a $500,000 renewal fee. Sets a tax rate of 25 per cent of daily gross interactive gaming revenue.
The proposed bill has been referred to the Community, Economic and Recreational Development Committee.Gaming Intelligence