roposals to regulate online gambling in Pennsylvania moved a step closer yesterday after the state's House of Representatives passed a bill legalising it in the state.

Representatives voted 102-89 in favour of the amended version of house bill 271, which in its original version legalises and regulates both online gaming and DFS in Pennsylvania.

However, the amended legislation changes the tax rates payable by DFS operators and includes controversial proposals allowing liquor licence holders in the state to place up to 10 video gaming terminals at truck stops and off-track betting parlours.

Under the new proposals DFS operators will now be taxed at 19% rather than the originally proposed 12%, while the legislation proposes a minimum age of 18 for any individual participating in DFS, rather than the originally proposed age of 21.

The house bill imposes a 16% tax rate on all other forms of online gambling while giving state lottery officials the ability to sell lottery tickets online.

It will now be passed to the Pennsylvania Senate for further debate and amendment, with senators widely tipped to call for the removal of the proposed new video gaming terminal regulations from the final legislation.