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Pennsylvania Holds Online Poker Hearing

Discussion Fortunately Very Favorable To Online Poker

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On Thursday, Pennsylvania’s House Gaming Oversight Committee held a roughly 130 minute-long hearing on an online gaming proposal in the Keystone State.

H.B. 649, which is a proposal from Rep. John Payne, was the legislation being discussed.

The hearing in Harrisburg featured testimony about how online gaming works well in other jurisdictions, in Europe, as well as in three U.S. states—Nevada, Delaware and New Jersey. Thousands of high-tech jobs are created through the legalization of online poker, and tax revenue is generated for the jurisdiction in which the games are run.

Pennsylvania, like Nevada and Delaware, might want to one day enter into a compact with another jurisdiction for increased online poker liquidity, according to comments from lawmakers at the hearing. Liquidity is the name of the game for I-poker. The success of Delaware and Nevada implementing their player sharing deal with no hiccups was highlighted at the hearing.

A representative from Caesars said that licensed online gaming works in partnership with brick-and-mortar properties and does not cannibalize them. In other words, it’s complimentary.

The second part of the hearing featured testimony from Gaming Laboratories International on the technology side of online gaming. Online gaming was compared to online banking, which is well-regulated and has enhanced the industry. Online poker can be run in the same way, according to the testimony. The safeguards are also there to prevent minors from creating accounts.

Michael Pollock of Spectrum Gaming Group closed out the hearing by telling Pennsylvania lawmakers that Internet gaming should be a privilege and operators must meet high regulatory standards set forth by Pennsylvania gaming regulators.

Pennsylvania concluded in a study last year that regulated online poker could be worth up to $129 million annually once it reaches maturation. It also found that house-banked online casino games could reach $178 million annually under the same conditions. Pennsylvania has 12.76 million people and 12 casinos. Rep. Tina Davis, who is also pushing for web poker in Pennsylvania, said that she wants online gaming because she cares about the brick-and-mortar gaming in Pennsylvania, which began in 2007 with the opening of the state’s first casino.

Along with Payne and Davis’ bills, there is a third online poker proposal in Pennsylvania.

No vote was taken on Payne’s bill during Thursday’s hearing, as another hearing is planned for May. The good news is that the Pennsylvania hearing on Internet gaming was much better than the federal hearing on the Restoration of America’s Wire Act last month.