Pennsylvania House Bill HB2071

Pennsylvania 2025-2026 Regular Session

• Introduced: 12/3/25
• Refer: 12/3/25

Caption

In interactive gaming, further providing for interactive gaming tax.

Summary

HB2071 amends Pennsylvania’s interactive gaming tax distribution rules. The bill changes the share of interactive gaming tax revenue that is deposited into the Commonwealth Financing Authority’s restricted receipts account from 25% to 22%, while adding a new 3% deposit to the Pennsylvania Race Horse Development Trust Fund. The new horse-racing allocation is limited to the exclusive use of an active and operating Category 1 licensee conducting live racing. In practical terms, the bill redirects a portion of online gaming tax revenue away from the existing public-interest grants account and toward the state’s horse racing industry. The measure does not change the underlying interactive gaming tax rate itself; it changes only how the tax proceeds are allocated after collection. It would amend Title 4 of the Pennsylvania Consolidated Statutes and take effect 60 days after enactment. The available record shows no committee transcript or recorded votes, so there is no documented floor debate or formal vote history to indicate broader legislative sentiment. Based on the bill’s sponsorship and structure, it appears to be a targeted revenue reallocation measure rather than a broad policy overhaul. The main point of contention is likely the tradeoff between funding public-interest projects through the Commonwealth Financing Authority and supporting live horse racing through the Race Horse Development Trust Fund. Supporters of the racing industry may favor the dedicated 3% transfer, while opponents may object to reducing the amount available for grants that serve statewide public projects. The bill’s effect is therefore a redistribution of gaming-tax proceeds among competing state priorities.

Impact

HB2071 would amend Title 4 of the Pennsylvania Consolidated Statutes by revising the statutory distribution of interactive gaming tax receipts. It reduces the portion deposited into the Commonwealth Financing Authority restricted receipts account from 25% to 22% and creates a 3% allocation to the Race Horse Development Trust Fund for live-racing Category 1 licensees. The bill affects state revenue allocation, the Commonwealth Financing Authority’s grant funding, and the horse racing industry, but does not alter the tax rate imposed on interactive gaming operators.

Sentiment

There is no recorded committee transcript or vote history in the provided materials, so formal sentiment cannot be measured from debate or roll call. The bill’s design suggests support from lawmakers interested in bolstering Pennsylvania’s horse racing sector, alongside a likely concern from those who prefer preserving funding for public-interest grants. Overall, the measure appears to be a focused fiscal adjustment with a potentially mixed reception depending on stakeholders’ priorities.

Contention

The central controversy is the reallocation of gaming-tax revenue: 3% is shifted from the Commonwealth Financing Authority’s public-interest grant account to the Race Horse Development Trust Fund. Supporters of live racing and the horse-racing industry would likely favor the dedicated funding stream, while critics may argue that it diverts money from broader public projects. The bill also raises the recurring policy question of whether gaming-related revenues should support general public purposes or industry-specific subsidies.