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Pennsylvania Further Ponders Internet Poker

Casino Industry Tells Lawmakers I-Gambling Would Help

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A Wednesday morning hearing held in Harrisburg, Pennsylvania was largely favorable to the online gaming issue, as numerous casino operators told lawmakers they support the state legalizing and regulating virtual casino games to help them and the state bring in more money.

Pennsylvania faces a multi-billion dollar budget shortfall and the state’s casino industry has experienced two consecutive years of gaming revenue decline.

The public hearing was held by the Senate Community, Economic & Recreational Development Committee, chaired by Sen. Kim Ward, who is pushing an online gaming bill. Her proposal is one of six separate web gambling-related proposals on the table in the Keystone State.

A representative from Penn National Gaming testified that online gambling will be a “vital tool.” A spokesperson from Harrah’s echoed a similar sentiment.

A representative from the Meadows Racetrack and Casino in North Strabane Township said that Ohio and West Virginia are “pillaging our customers.” The representative said that online gaming needs to be “affordable” if legalized and regulated. That was referring to the costs of entering the space (i.e. licensing fees and taxes). “The devil is in the details,” he added.

The SugarHouse Casino in Philadelphia testified strongly in favor of I-gaming.

“Across the mid-Atlantic region [gaming revenue] has peaked…revenue growth has ended,” SugarHouse’s Wendy Hamilton said. Hamilton said that the state should explore ways to help the gaming industry. Pennsylvania saw its first casino open in 2007.

“If implemented properly, online gaming presents an opportunity,” another representative from SugarHouse said. According to SugarHouse, casino operators in neighboring New Jersey are actively marketing online gaming to people in the Philadelphia metro area. Pennsylvania should regulate online gaming to prevent revenue loss to New Jersey, according to SugarHouse.

The casino added that the state should not implement an in-person requirement for online gaming account registration, because it would hurt the “player experience.”

“Thank you for all of that testimony,” Sen. Ward said after all the speakers were done. Questions were then posed to the casino representatives by lawmakers.

A representative from Parx casino responded to a question by reiterating that online gaming will provide a “boost” to the industry, thanks to potentially attracting new customers.

In contrast to Parx’s position of being in favor of in-person registration requirements, Caesars/Harrah’s said that customers should be able to do that online.

Currently, Pennsylvania online gaming could be part of a larger gambling reform package that the casino industry is pushing to keep pace with gambling expansion in nearby states.

The Poker Players Alliance, a grassroots lobbying group on Capitol Hill, issued a statement about hearing, saying that momentum is building for online poker in Pennsylvania.

“Today the Pennsylvania Senate took an important step toward bringing the great game of poker into the 21st Century and ensuring residents are protected by the most sophisticated online consumer technologies,” John Pappas, executive director of the PPA, said.

“As the Internet increasingly becomes an integral part of all of our daily lives, Pennsylvania lawmakers are clearly recognizing that more and more Pennsylvanians want the option to enjoy the game of poker online,” Pappas added in his statement.

The next steps for online gaming efforts in Pennsylvania include more meetings, amendments to proposals and hopefully the emergence of a proposal that will be the vehicle to get through both the House and Senate, and then be signed by the governor.