Harrah’s Philadelphia General Manager Ron Baumann and Caesars Entertainment Group Executive Vice President Jan Jones Blackhurst gave insights into the value of online gambling coming to Pennsylvania during the hearing at Harrah’s Philadelphia Casino and Racetrack on Wednesday.
Rep. John Payne, chairman of the Gaming Oversight Committee, introduced HB 649 in February. Payne’s bill would authorize online poker and casino games approved by the Pennsylvania Gaming Control Board while Rep. Nick Miccarelli’s HB 695 would authorize only poker.
“Today’s reality is that internet gambling is taking place in all 50 states, almost all of it illegally,” Blackhurst told the committee. “It’s an environment that’s ripe for fraud and criminal activity and it provides no tax revenue.”
Blackhurst also said that legalizing online gaming would create a safer gambling experience by adding state regulation and consumer protections.
Currently, only Delaware, Nevada and New Jersey allow online gambling and Blackhurst pointed out that the experience in those states has been successful. “One of the simple things we need to realize is that Internet gaming is here to stay, whether it is illegal or regulated.”
The committee members raised questions about security of personal information and underage gambling in an online environment but Blackhurst said that a verification system can be set in place, eliminating the possibility of identity theft and underage gamblers gaining access to the online gaming system.
Blackhurst has also addressed the issues of market saturation and potential revenue “cannibalization” by using customer data from New Jersey. According to the study, 80% of online gamblers in that state were new customers, while 15% were inactive gamblers who played again after online options became legal.
The state Senate Gaming Oversight Committee held another meeting on Wednesday afternoon at the nearby SugarHouse Casino in Philadelphia.
