Pennsylvania legislators are considering the implementation of certain changes in the state casino gambling legislation in an attempt to cope with the current budget situation.
For instance, they revived the discussions over the legalization of online gambling, although it seems that this would not happen anytime soon. State Sen. Tommy Tomlinson commented at a Thursday meeting that the changes are regarded as a means for the budget situation to be solved, as not many legislators would vote in favor of a tax increase.
The matters that were discussed by state lawmakers include proposals such as the introduction of online gambling on the territory of Pennsylvania, the granting of licenses that would authorize casinos to serve liquor 24 hours a day, as well as the launch of satellite slot parlors. If implemented, those changes would result in casino owners paying additional fees in order to be allowed to expand their businesses. This, in turn, would lead to more money contributed to the state 2015-16 budget.
Back in 2012, the state’s gambling venues generated record revenue of $3.15 billion. Last year, it dropped to $3.07 billion, which means that a decrease in the money contributed to Pennsylvania in gaming taxes was posted as well.
During a Wednesday meeting, Sen. Tomlinson said that legislators are considering to relax access restrictions for Category Three gambling venues, such as Valley Forge Casino Resort, located near King of Prussia.
Under its current license, the casino only permits access to guests of the hotel or visitors who spend no less than $10 at other amenities part of the property or purchase a membership. At present, the gaming facility features 600 slot machines.
Bob Pickus, Chairman of Valley Forge Casino Resort, commented that not only guests will benefit from a potential change in the Gaming Act, but also more money would be contributed to the state.
However, there were certain gambling operators that did not welcome the reform. Fully-fledged casinos on the territory of Pennsylvania were required to pay a fee of $50 million, in order to be granted a license. Venues like Valley Forge Casino Resort paid ten time less.
Legislators also discussed the possibility for fully-fledged casinos, which are currently allowed to feature no more than 5,000 slot machines, to be allowed to launch satellite venues with as many as 250 slots.
As mentioned above, the potential legalization of online gambling was also among the matters considered by lawmakers. Earlier this year, State Rep. John Payne, Gaming Oversight Committee Chairman, presented a bill, under which operators are to pay a $5-million license fee and 14% tax to the state, in order to be allowed to feature online gambling options.
However, Sen. Tomlinson pointed out that the tax rate is way too low and if imposed, it might result in casino operators shifting from slot machines to online gambling. Currently, the Pennsylvania gaming facilities are paying a 55% tax on revenue from slot machines.
