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| FOR IMMEDIATE RELEASE |
| State Rep. Rosita C. Youngblood |
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April 1, 2011
Philadelphia should fight to keep second casino license
by state Rep. Rosita C. Youngblood, D-Phila.
As Philadelphia continues to make the painfully slow transition out of one of the worst economic recessions in decades, tough times still exist for many of our communities. The city is still facing a significant budget crisis, and the Philadelphia School District is looking at a shortfall of more than $620 million, due in part to a proposed state budget that will slash funding to our local schools.
And according to the U.S. Bureau of Labor Statistics, Philadelphia's current unemployment rate is hovering near 11 percent, far above the national unemployment rate of 8.8 percent.
But in the midst of this critical financial time, Philadelphia has an opportunity to improve upon job creation, and bring in millions of dollars in local revenue with the construction of a second casino within the city.
This opportunity is currently being threatened by some members of the state legislature who want to get rid of the second casino, and possibly move it to some other municipality in Pennsylvania. Some are even advocating getting rid of the license all together, claiming Pennsylvania's gaming industry has reached its capacity.
I find that hard to believe, especially since new reports show that Pennsylvania is the leading collector of gaming revenue of any state in the country, surpassing both Nevada and New Jersey. This is significant, since Las Vegas and Atlantic City have been prominent tourist destinations for decades.
The truth of the matter is Philadelphia has been counting on the revenues from this second Category 2 license since the original Gaming Act was established in 2004. And, the people of this city have been eager to apply for the full-time, high-wage jobs, most of which come with medical and pension benefits, that were promised from two licensed facilities.
And now with SugarHouse Casino up and running, we will begin to see significant local share revenues, some of which will go to the Philadelphia School District. The local communities surrounding SugarHouse are also receiving additional funding from the casino, above and beyond what is being paid in state taxes.
Not to mention that Philadelphia has been seeing some of the benefits of the gaming industry – with hundreds of millions of dollars allocated for the Pennsylvania Convention Center. Philadelphia has also received nearly $260 million from the Property Tax Relief Fund. However, since Philadelphia uses this money for wage tax relief rather than property tax relief, many residents don't see the revenue that is coming for tax relief. I plan on introducing legislation in the near future that will address this disparity.
But the reality is Philadelphia has seen significant economic benefit from the 10 casinos that are currently operating in Pennsylvania. Bringing a second casino into Philadelphia would only improve the success we have already seen with regard to this industry.
Overall, since 2006 when the first casino in Pennsylvania opened its doors, casinos have generated over $4 billion in revenue for the state, two-thirds of which has been returned to Pennsylvania's taxpayers. Statewide, over 14,000 permanent living-wage jobs that offer competitive benefits have been created, in addition to several thousand construction jobs. And this doesn't take into account the millions of dollars and thousands of jobs created in secondary industries, like restaurants, hotels and surrounding businesses.
I am disappointed that the original investors selected to build the second casino failed to make it happen. But, the taxpayers and residents of Philadelphia should not be left holding the bag and punished for the errors and sins of private business.
Philadelphia has an opportunity to infuse our communities with significant economic development funding and thousands of good paying jobs. But we will need to fight to keep this second casino license in our city.
The mayor and other city officials need to have a stronger voice on this issue and work with lawmakers who represent the people of Philadelphia to ensure that we are doing all we can to sustain our investments in job creation and economic development.
The key to a successful economic recovery is job creation. While the need to create jobs is obvious, the policies that will get us there are not. Philadelphia needs to build an agenda that encourages investment and makes it easier for businesses to hire more people. Two areas where policy can directly impact investment are innovation and infrastructure, and it has been proven that Pennsylvania's gaming industry has the ability to do both.
We cannot let this opportunity pass us by. We need to fight for our city and our residents.
Let’s keep Philadelphia moving forward.
Rep. Rosita C. Youngblood represents the 198th Legislative District and is the Democratic chairwoman of the House Gaming Oversight Committee.
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