High tax rates threaten Pennsylvania online gaming bill
Two Pennsylvania Senate Committees have approved an amended version of an online gaming bill, although high tax rates could threaten its progress.
The updated bill includes new language that refers to tax rates of 54% on online slot and table game revenue, while peer-to-peer game revenue, such as internet poker, would be taxed at a rate of 16%.
According to Onlinepokerreport.com, the proposed tax measures would be the highest for any regulated market in the world and could prove a major stumbling block for operators looking to launch their services in Pennsylvania.
Other provisions in the bill include two licences for online poker and casino, each of which will be priced at $5 million (€4.5 million).
For daily fantasy sports, operators would pay the lesser of $50,000 of 7.5% of gross revenue to secure a licence, with a tax rate of 12% once licensed.
In addition, the bill sets out plans for the Pennsylvania Gaming Control Board to oversee the regulation of online gaming in the state.
According to the Triblive.com website, the Senate could hold a final vote on the bill as early as today (Wednesday) and send it forward to the House.
The online bill comes after Pennsylvania last month edged closer to introducing a legalised sports betting market after the Gaming and Oversight Committee in the state’s House of Representatives voted to move legislation forward.
Related article: Pennsylvania takes first steps towards legalised sports betting