Growing Desperate: Could We Legalize Because We Need the Money?

Since the global economic downturn of 2008, governments across the world have had to deal with large deficits in their finances and budgets. Elections have been won and lost on the argument where one political train of thought says we should increase investment and regenerate the economy through raising taxable revenue, whilst the other philosophy is more conservative and advocates spending less money in the hope that in time we reach a situation where money is more plentiful and we can spend more at that point.

This week it has been reported that Pennsylvania governor, Tom Wolf, faces a deficit of $1.8 billion in his 2016/2017 budget. In order for his proposed budget to be acceptable, Wolf must find additional sources of revenue or face his budget being rejected. One suggestion, which whilst logical is obviously unpalatable to most of the electorate and certainly to his party, would be to increase the rate of income tax. You can almost feel Wolf shudder at the thought and quite understandably, so the Republicans are shopping around for alternative ways forward before considering that unpopular option.

The state Republicans have noticed that Internet gambling and poker would offer a source of revenue not currently available to them. It would not fill the entire shortfall, but it would make a significant start towards balancing the books and it would prove popular with poker playing voters. Whilst in it’s early stages, the lure of filling a revenue shortfall without the need to increase taxes, a decision which would certainly have negative political implications, must be very attractive.

Everything must be finalized by June 30th, so things are getting increasingly desperate. You will have heard the saying “where there is a will there is a way,” and this certainly applies here. For Governor Wolf, it is a fairly easy to judge his performance based on whether he can sort the budget out in order to keep his reputation and ratings as high as possible. Should he fail, his political support will dwindle and you can be sure that his opponents will be quick to remind him of the problems his failure brings about.

In February 2015, State Representative John Payne introduced “House Bill 649” which planned to reform gaming laws across Pennsylvania. Deep within this bill was the legalization of online gaming. At the time, it was projected that the reform would generate hundreds of millions of dollars for the state and this was the main attraction of it. The bill stalled when the revenue it hoped to generate was found elsewhere, however, it may now return to the table. One additional reason poker players are watching this develop is that State Representative Payne has announced his retirement and there is no guarantee that his successor will be in favor of his bill.

If online gaming is used as a revenue generator, other states could follow suit. Budget deficits are not confined to Pennsylvania and not even to the United States of America. The blanket ban for online gaming saw the operations of the major online poker rooms scattered far and wide across the globe, eventually settling in more welcoming jurisdictions. Many poker players left, determined to play online poker or other games no matter what it cost them in terms of disrupting their lives, taking their disposable income with them. There is no suggestion that this alone caused the economic problems currently faced by the USA, but it is fact that the gambling companies that left the USA are large and very profitable. The millions of dollars that would be generated in all states across the USA would be a welcome revenue stream for government at a time when every cent counts.

It is not just about the money. Poker players and online gamblers have something far more valuable to the politicians than money, they have a vote. If you took a straw poll on the popularity of State Representative Payne in poker circles in Pennsylvania, I am certain you would see popularity ratings that would be welcomed by any politician. It may be populist in terms of appealing to poker players, but it works. This is yet another reason why the bill may progress. Whenever it is clear that voters will support something, politicians find a way to support it. That’s the game.

This issue sends a clear message to the legislators. You scratch our back and we will scratch yours. The poker community does exist, and it generates revenue. If it helps us play poker, the public will support anyone who assists in the progression of House Bill 649 or another similar bill. If it helps a politician out of a bind and fills some of their budget deficit, well, bink!

Poker players do not mind how we get there, but legalized poker has long since been our collective goal. We all hope for a return to the days where we can all play under one virtual roof, where online poker tournaments fill up quickly in front of our eyes, and there are new players and exciting games available all of the time across many poker rooms and across many different poker games.

The ball, or the chips, are in the state's hands. Their move.