Pennsylvania has a long and rich history regarding gambling. These roots can be traced back to the Prohibition era when games involving luck were played secretly. Over time, the Keystone State has witnessed gradual changes in the legalization of various gambling activities.
Throughout the years, the state has experienced successes and challenges in regulating and overseeing the different gambling varieties. A recent controversy arose when there was an effort to ban skills games, which was later deemed legal by the state court in November 2023.
Timeline of Legalization of Gambling
In Pennsylvania’s earlier years, gambling was mainly banned due to the strict religious beliefs associated with immorality. However, attitudes towards gambling have changed to the point that Pennsylvania legalized online gambling and sports betting recently, and the industry is now thriving in the state. How have Pennsylvania’s laws evolved over time?
1959 -1988
The introduction of the Pennsylvania Thoroughbred Horse Racing Law aimed to legalize horse racing, marking the first permitted form of gambling in the Keystone State. In 1988, the law was amended to become the Race Horse Development and Gaming Act. This allowed for the establishment of horse racing tracks and the installation of slot machines in these venues. This act aimed to revive the horse racing industry to generate additional revenue for the state.
2004
In 2004, Pennsylvania took a significant step in further legalizing gambling when it approved the Gaming Expansion Act.
The law permitted the creation of physical casinos in three cities: Pittsburgh, Philadelphia, and Harrisburg. Additionally, it permitted the placement of video poker machines at truck stops across the entire state.
2010
In 2010, Governor Ed Rendell approved a bill that legalized table games such as poker, roulette, and blackjack in casinos. This legislation aimed to collect significant license fees to help eliminate a budget shortfall in that specific year and generate revenue for both the state and local governments in the subsequent years.
2017 – 2019
In 2017, the Pennsylvania Gaming Control Board (PGCB) obtained the authority to supervise and control online gambling, making it legal. The Supreme Court overturned the Professional and Amateur Sports Protection Act (PASPA). This act legalized sports betting, which was banned in most states nationwide.
Between 2017 and 2019, the state witnessed increased gambling opportunities by approving satellite casinos, allowing existing operators to open smaller establishments. In May 2019, the legalization of sports betting, including physical sportsbooks and online platforms, became official.
2020-2021
In 2020, Pennsylvania officially introduced its first online casinos, offering a wide range of casino games that were available on both PC and mobile devices. Pennsylvania expanded its regulations on gambling, allowing online gaming providers to introduce live dealer games in 2021.
Impact of Gambling
The State of Pennsylvania has seen economic benefits through the legalization of gambling. The state’s tax earnings have significantly increased, creating jobs and boosting Pennsylvania’s local economy. Additionally, local businesses and communities have greatly benefitted from this gambling-driven boost.
The tax revenue generated from gambling has been significant. As stated in the 2019 report by the Pennsylvania Gaming Control Board, gambling has produced tax income of over $3.3 billion, which has been used to support various state initiatives. This financial contribution has been crucial in funding Pennsylvania’s education, infrastructure, and social services programs.
The Bottom Line
The regulation and growth of gambling are being debated in Pennsylvania, which creates uncertainty about the future of gambling in the state. Despite successfully legalizing gambling, Pennsylvania needs to adapt its laws to keep up with the ever-evolving industry driven by technological advancements and shifting attitudes toward gambling.