Pennsylvania State Senator Wayne Fontana is the sponsor of SB 1159, a bill that would ban the use of credit cards to fund online gambling of any kind in the Keystone State.
Let’s take a quick look at the main reasons behind this bill and how it may impact online sportsbooks.
Bet To Excess
A research study conducted in 2022 by Penn State University revealed that 36% of those who gamble online have at least one gambling habit that they refer to as a problem. That statistic concerned State Senator Wayne Fontana so he, along with his colleagues in the Senate including Amanda Cappelletti (D-Delaware), Jim Brewster (D-Allegheny), Jay Costa (D-Allegheny), Jimmy Dillon (D-Philadelphia), Lisa Baker (R-Wyoming) and Timothy Kearney (D-Delaware) decided to do something that could curtail gambling debt.
The remedy has come in the form of SB 1159 which, if approved, would prohibit all gaming entities, including the lottery, from accepting credit cards as a source of payment. Pennsylvania is home to a variety of gaming, including the aforementioned state lottery, as well as retail and online sports betting, daily fantasy sports and land-based casino gambling, while being one of only seven states in the nation to offer iGaming.
Fontana said, “Since the expansion of gaming to include online gaming and sports wagering, there is greater access to gambling which in turn increases the number of individuals who may develop a gambling disorder.
“In fact, over 36% of online gaming participants in the commonwealth reported at least one gambling problem according to the 2022 Online Gaming Report produced by Pennsylvania State University in coordination with the Pennsylvania Department of Drug and Alcohol Programs as well as the state’s Gaming Control Board,” added Fontana.
The bill has advanced to the Senate Community, Economic and Recreational Development Committee for further review.
Credit Is Climbing
The use of credit cards to buy everyday staples is increasing due to the rising cost of living. Everything is more expensive today than before and credit card balances in Pennsylvania are 12% higher now than in pre-pandemic 2019. The average credit card balance in Pennsylvania has grown to approximately $5600 and Fontana believes using credit cards instead of discretionary income to fund gambling bankrolls is a bad habit and part of the escalating problem.
“Online gaming and sports betting is growing exponentially, especially with young adults,” said Fontana. “At the same time, credit card debt is climbing. So, we need to make sure the greater access to gambling isn’t leading to burdensome or crippling credit card balances.”
Healthy Industry
There is no shortage of gambling in Pennsylvania as the market trails only Nevada and New Jersey in terms of revenue generated from all gaming sectors with a whopping $5.69 billion generated in 2023, a 9.3% increase from the previous year, according to the Pennsylvania Gaming Control Board.
Slot machines at any one of the 17 casinos comprised of six racinos, five stand-alone casinos, two resort/casinos and four mini-casinos ruled Pennsylvania’s gaming landscape with a haul of $2.46 billion in revenue. Meanwhile, online casino gambling, also known as iGaming, experienced a 28% revenue increase, which delivered $1.74 billion last year.
The taxes levied on those revenues amounted to $2.34 billion, a $220 million increase over the $2.12 billion produced in 2022.
