Last week, the Pennsylvania House of Representatives passed one of the biggest expansions of gaming law bills in over a decade.
This massive and potentially ground-breaking legislation will authorize fantasy sports gaming, online gaming, online lottery, airport gaming, and up to 40,000 video game tablet (VGT) terminals in up to 40,000 locations throughout the state, according to the Philadelphia Inquirer (Philly.com)
The bill also embodies the very definition of irony as it was originally introduced to try and provide better gambling addiction treatment services. This development is also part of a bigger movement sweeping the United States. Lobbyists working on behalf of leading daily fantasy sports (DFS) firms, most notably DraftKings and FanDuel, to further define and clarify the legal status of their businesses are experiencing some successes.
ESPN has a map conveying the states where the two main DFS firms can and cannot accept customers. The article cites that 20 states have pending legislation in the works that would permit DFS within their borders. The online gaming industry is evolving, and to know where we could be headed, we have to first re-examine where we have been. History repeats itself, past is prologue, pick your cliche and you can apply it well to the online gaming industry.
It wasn’t until 1978 that the U.S. had a law allowing people to bet on horse racing across state lines, and not just at the track. it wasn’t until 22 years later than an amendment in 2000 allowed wagers online and by phone. However these are still restricted or banned in 10 states.
While horse racing is nowhere near as popular as it used to, the NFL remains a juggernaut, and it is woven into the fabric of American culture. Given that Fantasy football and DFS are so intertwined with the National Football League, these endeavors are not just here to stay, but expanding.
The growing daily fantasy sports gaming movement opens the door for an expansion to other forms of online gaming, a proliferation of online casinos and a boom in Netbet Casino style games. How quickly these endeavors find success and to what level they find success will determine the pace at which this industry grows.
How will Pennsylvania fare under this new legislation?
How much more income will they generate in tax revenue? That could have an impact on what the state of Illinois decides to do. The Land of Lincoln could be the next state to realize hundreds of millions of dollars in new revenue. There is an Illinois bill to legalize online gambling, online poker and daily fantasy sports up for a vote, and if it passes, studies say it could be a huge boon to tax revenue.
The timing would be perfect too, as the state of Illinois is dealing with a massive budget short fall right now.
