Pennsylvania Bills Propose Major Changes to Gambling Market

The Keystone State is considering some drastic changes to its gambling market.

Democrat Rep. Tarik Khan has proposed a series of bills he’s dubbed Protecting Public Health in Online Gambling. Each bill contains significant new restrictions on gambling in the state in an effort to curb the growth of problem gambling. 

These proposals are split into three separate bills, which Republican Rep. Jamie Flick has co-sponsored, lending bipartisan support.

The package of bills was referred to the Gaming Oversight Committee, where it awaits review.

Bans on Micro, Live Wagers

The largest of the three bills is HB 2879, which proposes banning micro-betting and other forms of in-game wagering. These controversial bet types let sports bettors place dozens of wagers during a single game, giving them constant options to chase previous losses. 

Micro-betting has also been linked to several betting schemes involving athletes, prompting strong opposition from pro and college leagues.

While both wager types have been linked to problem gambling, they also generate much of the revenue for sports betting markets. As a result, banning them would significantly reduce the state's tax revenue. 

Projected losses have prevented other states from pursuing similar action, given the importance of the tax revenue they generate.

Ending Predatory Ad Practices

Another key goal for Khan’s bipartisan bill package is to severely restrict how online casinos and sportsbooks can advertise and market themselves. The bill proposes restricting AI-driven marketing, VIP loyalty programs, and even text and push messages. 

In a press release, Rep. Khan shared his belief that these practices are one of the key drivers of problem gambling in the US. 

Problem gambling ruins lives and destroys families. That’s why I pushed for this statewide study in the first place. What we found was deeply troubling: Gambling companies using predatory practices to keep people betting, even as they’re losing everything. This study became the foundation of our bipartisan legislation to hold these Wall Street bookies accountable and protect Pennsylvania families.

Limits on Deposits, Young Bettors

The package proposes that all online gambling operators force customers to set “reasonable” 24-hour deposit limits. HB 2879 goes further, proposing that operators severely limit deposit and loss-limits for bettors whose income has not been verified.

The smaller HB 2875 would also prohibit using credit cards to deposit into any gambling account. 

Proponents of the Pennsylvania effort believe these changes will help limit debt accumulated by compulsive gamblers and give them time to cool off and accept their losses.

The proposals also call for strict restrictions on bettors ages 21 to 25. Online gambling platforms would only be allowed to accept wagers of up to $2 from these young bettors, and a $750 loss limit in 24 hours.