Pennsylvania pushes for video gambling legislation

Lawmakers in Pennsylvania are trying to expand gambling in the state by allowing video gambling terminals to be featured on bars.

US.- State Senator Lisa Boscola, D-Northampton, announced yesterday the creation of a bill that would create more than 35.000 video gambling terminals in the state. Despite not being written, the bill would establish the permission to feature the terminals at state bars, truck stops and OTB outlets, among other options. Pennsylvania’s House Gaming Oversight Committee will hold the latest hearing this morning.

The bipartisan group of senators from Pennsylvania said that this is part of the attempts to expand gambling in the state. The police said that there are tens of thousand of illegal machines operating in Pennsylvania, and the new bill would not only regulate them, but also increase the number of offerings. “We need to legitimize this activity. It’s been going on for decades in basements,” said Boscola. All the terminals would be allowed at places with a license to sell alcohol and they would be subject to the Gaming Control Board from Pennsylvania.

If a licensed establishment operates an illegal machine, the control board would have the permission to press felony criminal charges against the institution. Furthermore, companies that sell the terminals would not be able to donate money to politicians. According to Rep. Mark Mustio, R-Allegheny, the group of senators project that the state would generate US$100 million during the first fiscal year, and US$500 million in the upcoming years. Every county would receive a part of US$50 million.

According to The Morning Call, the bill is sponsored by the lobbying group Pennsylvania Tavern Association. The bill would certainly help with the US$3 billion budget deficit projected for next fiscal year, and even though it has support from both parties, its future is uncertain since a similar bill failed in 2016 by a wide margin.

The bill has opposition from 11 of the 12 state’s casino, but the lawmakers included a measure that would reduce the 54 percent slot machine tax by 15 percent. The state would also set a 34 percent tax on VGT revenue, and the operators would have to pay a 4 percent local share tax.

Moreover, the state is set to discuss today the future of the revenues that Pennsylvania gets from the gambling industry. If they don’t find a solution regarding levy for slot machines in the state, multiple counties would stop receiving money in mid-July.