PA House Passes Gaming Expansion Bill

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Photo: Anne M. Eberhardt
Bill would permit slots at OTBs in Pennsylvania

The Pennsylvania House of Representatives June 22 passed legislation authorizing Internet casino gambling and more slot machines in the state but stopped short of approving tens of thousands of video gaming machines for bars, taverns, and private clubs.

The measure, which would permit slots at six international airports and 10 off-track betting parlors in the state, was approved on a 115-80 vote, according to the Associated Press. It also would regulate daily fantasy sports and, if deemed legal under federal law, sports betting.

According to reports, the state Senate could vote on the omnibus gambling bill June 23. Lawmakers and Gov. Tom Wolf have less than seven days to approve a budget for the next fiscal year.

Horseracing industry organizations and casinos opposed the plan to permit VGMs at numerous locations around Pennsylvania. Horsemen noted online casino gambling will divert business from brick-and-mortar casinos and thus reduce the amount of revenue the industry gets for purses and breed development programs from casino-based slot machines.

Under the legislation, slots at OTB parlors—there are geographic limitations—would be limited to 250 per facility, and no revenue would go to horse racing. The tax rate would be 54%, most of which would be sent to the state for budgetary purposes.

About half of the OTB parlors in Pennsylvania have closed over the last 10 years. Parx Racing operates four, Mohegan Sun Pocono three, Hollywood Casino at Penn National Race Course two, and The Meadows Racetrack and Casino one.