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FOR IMMEDIATE RELEASE |
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State Rep. Mike Carroll
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Carroll: House approves table games legislation
HARRISBURG, Dec. 15 – State Rep. Mike Carroll, D-Luzerne/Monroe, said the state House approved legislation today that would permit the state's slots gaming facilities to offer table games.
The bill, as amended by the House, would allow Category 1 and Category 2 licensed slot facilities to operate up to 250 table games at any one time, while Category 3 licensees could operate up to 50. Category 1 licensees include racetracks with slot machines, Category 2 licensees are stand-alone casinos and Category 3 licenses are available to resort destinations.
Initially, table games licensees would be required to pay a total tax rate of 16 percent on all gross table game revenues, with 14 percent going to the state, 1 percent to the host county and 1 percent to the host municipality.
"While I would much prefer table game revenue be directed to help reduce property taxes, the budget agreement enacted earlier this year requires the dedication of these funds to help balance the state budget in the short term," Carroll said.
State revenue from table games would go directly into the General Fund until the state's Rainy Day Fund balance surpasses $750 million. After that, all state table games revenue would be allocated for property tax relief, along with the revenue from slots.
"The reality of our state's economy and the need for additional revenue resulted in the legalization of table games to minimize the impact of Pennsylvania's budget deficit," Carroll added. "Estimated revenues of $320 million will fill this void and the creation of more than 6,000 new, good-paying jobs is one of the ancillary benefits of table games."
Under the legislation, Mohegan Sun at Pocono Downs in Luzerne County would pay 2 percent of gross terminal revenues from table games and slots to the Commonwealth Financing Authority. The CFA would then distribute the 2 percent local share to fund grants for projects in the public interest.
The Mount Airy Casino in Monroe County would also pay 2 percent of its gross terminal revenues from table games and slots. However, the distribution of funds would differ significantly. Beginning in 2010 and continuing for 20 years, $2.4 million would be distributed to Monroe County to fund debt services related to the construction of the Northampton County Community College campus located in Tannersville. The current split of the local share tax among Monroe and surrounding counties will continue except that Luzerne County will be prohibited from eligibility for surrounding county funds. Finally, the Commonwealth Financing Authority would be designated to distribute funds for projects in Monroe County.
Senate Bill 711 now goes back to the Senate for concurrence.
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