Officials from The Meadows Racetrack and Casino in North Strabane Township presented on Wednesday a plan to attract high roller players from neighboring states at a license renewal hearing with the Pennsylvania Gaming Control Board.
Every three years the state gaming regulator meets casino officials to determine as to whether the facilities are to have their licenses renewed.
William Paulos, Principal at gaming operator Cannery Casino Resorts, which currently owns The Meadows, pointed out that the venue has been posting a drop in gaming revenue for several years now. Back in 2009, The Meadows generated record slot revenue of almost $264.5 million. Last year, the amount of $220.8 million was posted.
Mr. Paulos commented that at present Pennsylvania-based casinos have no incentive to attract high-roller slot players from neighboring states, as under the current law, the gambling venues have to pay a 55% gross gaming revenue tax to the state. Furthermore, players of this rank are usually offered additional privileges, such as free hotel rooms or flights, tickets for certain events, etc.
As Mr. Paulos pointed out, once casinos pay for the perks offered to high rollers and contribute the required portion of their revenue to the state, they might end up losing money instead of generating a profit.
On the other hand, neighboring states attract Pennsylvanian high-roller players, due to the fact that they have been imposed lower slot machine taxes.
During the Wednesday hearing, Mr. Paulos and his colleagues called for The Meadows and the other state casinos to have expenses for high roller perks deducted from the revenue earned from those players before the application of the 55% tax. Casino executives emphasized that their proposal should be seen as a means for additional revenue to be brought to the state and not as an attempt to have their tax liability cut.
Yesterday, The Meadows casino officials also expressed their support for proposals that call for slot machines to be permitted at off-track betting parlors and the state international airports, as this would attract more players and would create a “revenue stream”.
However, the North Strabane-located casino objected to the proposed legalization of video display terminals on the territory of the state as well as to any changes in the current casino smoking laws, arguing that this would have quite a negative effect on existing gambling venues across Pennsylvania.
The state gaming regulator is to vote on the renewal of The Meadows’ license within the next two to three months.
