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Lawmakers discuss legalizing online gambling

Only three states in the United States currently allow and regulate online gambling: Nevada, New Jersey, and Delaware. Pennsylvania should be the fourth, accord...
Only three states in the United States currently allow and regulate online gambling: Nevada, New Jersey, and Delaware. Pennsylvania should be the fourth, according to a group of state lawmakers.
The House Gaming Committee will soon vote on HB 649, a bill which would legalize and regulate all forms of online gaming. Its prime sponsor, Rep. John Payne (R-Dauphin), is also the chairman of the committee, which heard testimony Thursday on the positive and negative merits of possibly putting the bill into law down the road.
"Internet gaming is here," Payne said. "Should we try and regulate it so we know, one, an underage person isn't on it. Two, a compulsive gambler isn't on it and three, you get your fair share if you win."
Pennsylvania makes over $3 billion annually in gambling revenue, making it the second-highest grossing state in the country, behind Nevada. It passed New Jersey for second on the list in 2013. Proponents of HB 649 say they hope the state regulation of online gaming would add at least $120 million annually to the state.
Chris Sheffield, spokesperson for I-Gaming at Penn National Gaming which runs locally-based Hollywood Casino, worked with European models in the United Kingdom for the past decade.
"There are very big companies (in Europe) making huge amounts of revenue," he said. "We live in the Internet world nowadays, and it's something we're all very used to."
Penn National and Hollywood Casino are among many gaming businesses in favor of regulating online gambling, saying it will increase jobs along with revenue. Sands Casino, which has a complex in Bethlehem, Pa., announced its opposition on the grounds of protecting families and children from accessing online gaming.
"We don't believe this is the evolution of the gaming industry," said Andy Abboud, Sands' Vice President of Government Relations. "We believe it can be the destruction of the industry."
In his testimony, Abboud called the potential legalization of online gaming in Pennsylvania as the state's "Joe Camel moment," in reference to the 1990's lawsuits of cigarette companies for their marketing towards children.
"PokerStars, an indicted company, and Caesars (Palace), which is in financial trouble, are going to turn the industry into targeting youth and almost youth alone," Abboud said.
According to polling data, Pennsylvanians are not in favor of legalized and state-regulated online gaming. A 2014 poll administered by The Terrance Group found 63 percent said they were opposed to legalizing online gambling in Pennsylvania, compared to 34 percent in favor.

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