Gamblers often spend their lifetimes chasing jackpots. In the process of seeking that golden payday, states that permit and regulate lotteries, casinos or Internet gaming cash in via license fees and taxes. Every dollar spent gambling is a win for the government.
Yet when Lady Luck recently presented Pennsylvania with a prime opportunity to double down on a burgeoning multibillion-dollar Internet sweepstakes cafe industry, the legislature folded. Instead of embracing a new revenue source, the Pennsylvania General Assembly bet the house on the brick-and-mortar casino industry by enacting 18 Pa. C.S. § 5513(a), or Act 81, on June 30, 2012, to outlaw Internet sweepstakes cafes. On Oct. 7, 2013, the U.S. Court of Appeals for the Third Circuit upheld the constitutionality of Act 81.
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