White paper claims state can generate $400 million in tax revenues from online gambling by 2022
A report by online poker legalisation action group Play Pennsylvania and the respected independent online poker information site Online Poker Report released Monday claims that the state could realise around $400 million in tax revenues by 2022 from the legalisation of online gambling.
The 14-page white paper's author, analyst Robert DellaFave, projects that the state will collect $126 million in upfront licensing fees from casinos operating the online gambling sites, and $46 million a year in taxes beginning after the first year.
With projected revenues of $230 million in the first year, growing to $364 million by year 2022, a tax rate of 20 percent would bring the state $426 million for the first five years, in part basing the predictions on the successful legalised internet gambling in New Jersey, which has grown from $122 million in gross revenue in 2014 to nearly $200 million in 2016.
DellaFave projects $126 million in fees following by $46 million in taxes the first year.
"Of any state that has already legalized some form of online gambling or is actively exploring the idea, Pennsylvania represents the biggest economic upside," DellaFave opined.
Representative Scott Petri, the new Republican Party chair of the state House Gaming Oversight Committee, told the publication mcall.com that whilst he tends to look at all reports with a sceptical eye that there may be bias, he is always interested in useful and factual content, which would be taken into account.
DellaFaves's thoughtful calculations were immediately attacked by Sheldon Adelson's anti-online gambling action group the Coalition to Stop Internet Gambling, whose spokesman John Ashbrook,commented:
"These predictions are about as reliable as Warren Beatty's best picture envelope. It's not surprising that online gaming consultants would exaggerate numbers to help their business."
Respected online gambling consultant and Online Poker Report spokesman Chris Groves responded by saying:
"There's no voodoo involved in these projections (which are) based on New Jersey's experience and adjusted for Pennsylvania's casino industry and demographics."
In related news, local media reports from Pennsylvania indicate that online gambling is likely to be a part of a joint committee hearing involving the Pennsylvania House and Senate that will take place next Tuesday March 7, addressing the general topic of expanded gambling.
It will involve members of both the Senate Community, Economic & Recreational Development Committee and the House Gaming Oversight Committee, through which all gambling bills must flow.
A notice from the CERD Committee noted the hearing's purpose is to "gather information regarding any House/Senate suggested Title 4 changes, gaming expansion options from the previous and current sessions…"
Online Casino News Courtesy of Infopowa
