One Pennsylvania lawmaker is taking a new approach aimed at preventing people from facing financial ruin due to their gambling practices. Let’s take a closer look at the reasons behind this approach and how it may impact online sportsbooks in the region.
Credit Crunch
To curb addiction and financial irresponsibility, Senator Wayne Fontana introduced a bill prohibiting the use of credit cards for online gambling.
Fontana filed Senate Bill 1159. The statute proposes removing credit cards as an acceptable form of payment to fund online gaming accounts for lottery games, interactive slots and casino table games, sports betting, and fantasy sports.
“There are more young folks between 18 and 30 gambling online, and they are running it up on their credit cards,” Fontana told Legal Sports Report. “The state is partners with (online gambling companies), and we have an obligation to make sure people do not get addicted if we can help it.”
The bill is now in the hands of the Senate Community, Economic and Recreational Development Committee for review.
Study Finds Online Gamblers Spend More
A recent study funded by the Pennsylvania Gaming Control Board (PGCB) reveals a surge in participation in Pennsylvania’s online casino market.
The study’s key findings show the percentage of Pennsylvanians engaging in online gambling grew to 16% in 2023, marking a 5% increase compared to previous years. Results also show that online gamblers tend to gamble more than their counterparts who frequent brick-and-mortar casinos. The report states that gamblers who play at online casinos gamble significantly more than those who gamble in person at casinos.
The study also found that individuals who engage in both online and in-person gambling spend approximately $708 per month. This is in stark contrast to those who only gamble offline, spending an average of $103 monthly. Thus, gamblers who participate both online and in-person spend nearly three times as much as those who gamble exclusively offline
Ban Already in Place in Some States
Should SB 1159 get the support it needs to clear the legislative hurdle, Pennsylvania would align itself with Iowa, Massachusetts and Tennessee, the three states that currently ban the use of credit cards for funding online gambling accounts.
Alternatives for funding gambling accounts, including those for sports betting in the Keystone State, can be financed with cash deposits via apps like PayPal and Venmo, debit card transactions or ACH transfers.
Bill Has Support on Both Sides of the Aisle
Fontana, a member of the Democratic party, has garnered the support of six co-sponsors for his bill, one of whom is Senator Lisa Baker, a Republican.
Fontana views the bill as a straightforward matter of consumer protection, stating, “This isn’t about party lines. It’s simple, whether you’re a Democrat or a Republican.” Most consumers consider carrying a credit card balance as one of the worst financial decisions they can make. High-interest rates accompany credit cards, and inflation and the US Feds’ interest rate hikes have only worsened these rates.
In the coming weeks, he hopes to attract additional co-sponsors and advocates for the bill’s initial committee hearing. Should the bill not pass this year, Fontana told Legal Sports Report that he will reintroduce it next year.
Calculators
