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FOR IMMEDIATE RELEASE |
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State
Rep. Dante Santoni |
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House clears way for table games
HARRISBURG, Dec. 15 – Following months of extensive debate and negotiation, the state House today approved legislation that would permit table games like poker, blackjack and roulette at Pennsylvania's 14 licensed slot-gaming facilities and use part of the proceeds to fund the state budget, according to state Rep. Dante Santoni, D-Berks.
The bill, which also addresses a number of reforms to Pennsylvania’s gaming industry, is a component of the revenue package necessary to fund the 2009-10 budget state lawmakers completed in October.
"This legislation accomplishes two important goals," said Santoni, chairman of the House Gaming Oversight Committee. "It provides the sustainable revenues necessary to fill our budgetary needs and it spurs economic development to make possible thousands of new jobs for Pennsylvanians."
Santoni said the measure is expected to raise about $320 million over the next two years.
The bill (S.B. 711), 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, while Category 2 licensees are stand-alone casinos. Category 3 licenses go to resort destinations like the Valley Forge Convention Center and the potential casino at the Crowne Plaza Reading in Wyomissing. The legislation also would allow the Pennsylvania Gaming Control Board to authorize one additional Category 3 license in the state.
Casinos would pay a one-time fee to be authorized for table games, $16.5 million for racetrack and stand-alone casinos and $7.5 million for resort casinos.
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. The state share of table games revenue would go directly into the state’s General Fund for budget needs until the state’s Rainy Day Fund balance surpasses $750 million. After that, all table games revenue would be allocated for property tax relief, along with the revenue from slots.
Santoni said adding table games to the state's current slot operations has the potential to create more than 10,000 direct and related jobs and provide $1 billion in economic output annually. According to industry experts, casinos on average hire 700 people for every 65 table games in play, he said.
"Pennsylvania slots casinos have created thousands of jobs, revitalized our horse racing industry and continue to deliver hundreds of millions of dollars for property tax relief across the state," Santoni said. "Table games are the natural progression of this industry. These games will attract the customers who are now heading to other states that offer both slots and table games. Simply put, table games will help to keep Pennsylvania dollars at home and working for taxpayers."
Senate Bill 711 now goes back to the Senate for consideration.
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