Pennsylvania Lawmaker Says Online Gambling Increasing Credit Card Debt

Sen. Wayne Fontana (D-Allegheny) of Pennsylvania believes that plastic should not be used online if it is prohibited to use a credit card to gamble in any of the state's 17 physical casinos.

In order to change the Pennsylvania Gaming Control Board's rules governing acceptable funding sources for online sports betting, fantasy sports player accounts, iGaming, and iLottery, Fontana intends to submit legislation. At the moment, player deposits through credit card transactions are permitted on the state's approved online betting sites.

"Since the expansion of gaming to include online gaming and sports wagering, there is greater access to gambling which in turn increases the number of individuals who may develop a gambling disorder. In fact, over 36% of online gaming participants in the commonwealth reported at least one gambling problem according to the 2022 Online Gaming Report produced by Pennsylvania State University in coordination with the Pennsylvania Department of Drug and Alcohol Programs as well as the state’s Gaming Control Board,” Fontana said.

In the state's 2017 gambling expansion package, Pennsylvania lawmakers approved fantasy sports, sports betting, and iGaming. The bill also permitted so-called "mini-casinos" and extended gaming to truck stops.

Verification of Credit

According to Fontana, credit card debt is on the rise in the Commonwealth, with the average balance reaching $5,600. Compared to prepandemic levels, T hat is 12% greater.

Although some DC government officials assert that the burden is lessening, inflation is primarily to blame because everyday needs are still more expensive than they were in 2019. Fontana argues that consumers' increased credit card balances, which are subject to excessive interest rates, are also a result of online gaming.

"Online gaming and sports betting is growing exponentially, especially with young adults,” said Fontana. “At the same time, credit card debt is climbing. So, we need to make sure the greater access to gambling isn’t leading to burdensome or crippling credit card balances.”

With a record gross gaming income of around $5.7 billion in 2023, Pennsylvania's gambling business is one of the three richest in the nation, after Nevada and New Jersey.

The players' record losses were spurred by iGaming and sports betting, which contributed $1.74 billion and $458.6 million, respectively. It was a new record for both marks.

States Take Action

In the United States, legal internet sports betting is still relatively new. After the Supreme Court overturned a federal regulation that had restricted sports gambling to Nevada in May 2018, the business grew quickly.

Nearly 40 states now permit sports betting. While just a few forbid the use of credit cards, about 29 states and Washington, D.C., permit online betting. Massachusetts, Tennessee, and Iowa are among the states that prohibit sports wagers on credit.

The issue of rising credit card debt is not unique to Pennsylvania.

According to the Federal Reserve, US consumers had $1.13 trillion in credit card debt at the end of 2023, up $50 billion in the fourth quarter. Credit card debt has skyrocketed since the end of 2019, when it was at a record high of $930 billion.