EmailEmail
PrintPrint
State House discusses proposal for table games
Wednesday, August 12, 2009

HARRISBURG -- The push is on to allow Pennsylvania's slots casinos to add table games, such as blackjack, roulette, poker and dice.

Executives from three existing casinos, Philadelphia Park, Mohegan Sun and the Sands Bethworks, urged the state House Gaming Oversight Committee today to approve a measure legalizing table games at state casinos.

Robert Soper of Mohegan Sun (near Wilkes-Barre), Robert DeSalvio of Sands Bethworks (in Bethlehem) and Dave Jonas of Philadelphia Park (in Bucks County) all said they would double their current employment of 600-700 if table games were authorized.

"Table games are very labor intensive," said Mr. Jonas. "We hear from customers every day: 'When are live table games coming to Philadelphia Park?'"

When the Legislature legalized slots casinos in July 2004, Gov. Ed Rendell said he wanted to wait until all 14 casinos were up and running before expanding legalized gambling by adding table games. So far, six of the seven authorized racetrack/casinos are operating and three of the five stand-alone casinos have opened. The two resort hotel casinos aren't open yet.

The governor, a supporter of slots, still isn't leading the charge for table games, but in view of the state's serious budget problems, he has recently said he would consider signing a bill if the Legislature approved one.

And more legislators are willing to consider such a gaming expansion as a way to close a $3.2 billion budget deficit left over from fiscal 2008-09, which ended June 30. Many legislators don't want to increase taxes as a way to close the gap, and so are willing to consider adding table games in order to generate additional revenue.

Two bills have been submitted: Senate Bill 1033, by Sen. Robert Tomlinson, R-Bucks, whose district includes Philadelphia Park, and House Bill 21 by House Democratic Whip Bill DeWeese of Waynesburg.

Mr. Tomlinson's bill calls for a casino to pay a one-time, upfront fee of $10 million for a table games license, and then it would apply a 12 percent tax rate to a casino's take from table games. The casino executives said that if the tax rate is more than 12 percent, they wouldn't be able to hire as many new workers.

They supported the $10 million fee and the Tomlinson tax rate. The state's current tax rate on slots revenue is 55 percent, which casino executives consider too high.

Mr. DeWeese also calls for a $10 million licensing fee for table games but proposed a tax rate of 21 percent, with much of the money going for property tax relief. But he said today that his suggested rate is "flexible" and he would consider a rate closer to 12 percent.

For the first three years that table games exist, Mr. DeWeese said the money could be shifted into the state's general fund to help balance the state budget. But after that, he would like the table games money to provide property tax relief, as 34 percent of the slots revenue does now.

The House panel didn't vote on either bill today, but is expected to discuss the idea of legalizing blackjack, poker and the other table games as the stalled budget process continues.

For the current fiscal year of 2009-10, the main revenue from table games would come from casinos paying the $10 million licensing fee. With nine casinos now up and running, that would generate $90 million for the state this year, which would help balance the budget.

Mr. Rendell and Senate Republicans are still about $900 million apart on a 2009-10 budget, with Mr. Rendell proposing $28.2 billion and the GOP proposing $27.3 billion.

More details in tomorrow's Pittsburgh Post-Gazette

Tom Barnes can be reached at tbarnes@post-gazette.com or 717-787-4254.
First published on August 12, 2009 at 11:41 am
Featured Homes
Featured Rentals