The eyes of the online poker world will be on Pennsylvania next week as it tries to become the fourth US state to regulate online gambling.
The process will take a major step forward next week as a joint hearing regarding gambling expansion will be held.
A recent white paper estimates that the state could expect over $400 million in tax revenue after the first five years of regulated iGaming.
Joint Hearing to Discuss Gambling Expansion on Tuesday
Online gambling will likely be part of the agenda of a meeting of the Senate Community, Economic & Recreational Development Committee and the House Gaming Oversight Committee next week.
The joint meeting will be held on Tuesday March 7 at 2 p.m. and its purpose is to explore gambling expansion. It's presently unknown which topics will be discussed during the meeting but gambling stakeholders will reportedly be on hand.
HB 392 was filed earlier this month as a measure to expand online gambling, including online poker and Daily Fantasy Sports. Pennsylvania is one of two states the industry is watching closely this year due to substantial progress made in 2016.
Many feel that a bill will be pushed through at some point due to the fact that $100 million has already been earmarked in the state budget from gambling expansion.
If lawmakers pay attention to a recent white paper, we could see them ramp up their push of the bill.
PA Could Receive $426 Million in iGaming Tax Revenues in First Five Years
Robert DellaFave of PlayPennsylvania.com has recently published a white paper on PA online gambling revenue and the numbers are quite surprising. According to the paper annual revenue for casinos during the first five years of legalized iGaming will range from $230 to $364 million.
Year One revenues are estimated to be $230 million with $41 million coming from online poker. Overall figures climb steadily over five years with the state casinos receiving up to $364 million in revenues by the end of Year 5.
This translates into significant revenue for the state in terms of taxes and license fees. It has already been widely reported that licensing fees will net the state around $126 million in Year 1.
Starting in Year 2, the state will start receiving tax payments and those are estimated to be between $46 and $72.8 million annually. By the end of the first five years of regulated iGaming, Pennsylvania will reportedly receive $426.3 million in taxes and license fees.
It should be noted that the bulk of earnings would come from online casino games. Online poker actually shows a downward trend in the white paper.
Estimates for the first year of operations put casinos receiving $41 million in revenue from online poker and then those numbers slowly dropping to $35 million by the end of the fifth year.