While there are many states weighing the pros and cons of offering regulated online gambling to their residents, few states have the high level of resident interest as Pennsylvania. In fact, the percentage of residents who are open to online gambling is so high that Pennsylvania stands to be an industry leader in the world of online gambling.
While the demand is there, Pennsylvania’s largest roadblock to date is the proposed online tax rates. Four proposals to legalize different variations of online gambling have been presented to Legislature in Pennsylvania, with proposed tax rates at 14%, 28%, and 54%. In comparison, New Jersey’s tax rates are 15%.
According to TribLive, industry experts fear that even if regulated online gambling is legalized in the state of Pennsylvania, that the excessively high tax rates will discourage casinos from pursuing the new avenue of revenue with enthusiasm—in fact, some casinos may not see the value in offering it at all.
“People won’t invest proper marketing dollars to drive revenue if the tax rates too high,” says David Licht, executive chairman and CEO of All American Poker Network.
“If the tax rate is exceedingly high, the operator is going to take that out on the consumer,” says John Pappas, executive director of the Poker Players Alliance, which bills itself as a voice for gamblers.”
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