Ohio and West Virginia could not have been pleased by the news that Pennsylvania has legalized table games. Ohio just recently approved slots parlors and West Virginia has held a competitive edge over Pennsylvania since they already offer table games. However, that competitive advantage is about to vanish. The revenue generated from Pennsylvania’s table games will be taxed at a rate of just 16 percent, with 1 percent going to the home county of each casino. Compare that with the 35 percent tax on table game revenues in West Virginia and it is clear that casinos in West Virginia will soon be at a huge competitive disadvantage. Likewise, many Pennsylvania residents will now be staying in their home state to play table games, rather than making the trek to West Virginia. The first table games are tentatively scheduled to debut in July at most Pennsylvania casinos.
Bill 711 Bails out Budget
Pennsylvania Bill 711 is the catalyst that will allow poker, roulette, blackjack and dice games. The bill does a lot more than just legalize table games because it is filled with special earmarks. For example, there is an earmark that allows patrons in Philadelphia casinos to smoke despite the fact that there is a city law that bans smoking in public places. Additionally, the bill also increases the amount of slot machines that a resort casino can have from 500 to 600.
Had this bill not passed it likely would have lead to the elimination of 1,000 state jobs and cuts to many state-funded programs. Currently, there is a $250 million gap in the Pennsylvania budget and this bill is expected to fill that void. The passage of Bill 711 came as good news to many and could mean particularly good news for the Rivers Casino in Pittsburgh. Rivers Casino was predicted to be one of the State’s most lucrative, yet this past September it posted the third-lowest revenues of Pennsylvania’s nine casinos. The hope is that table games will bring the Rivers Casino revenues closer to the highest in the state, rather than the lowest.
click here to see most Popular PagesMuch like every other state, Pennsylvania struggles to pass its budget each year. The passage of table games has always been the, “break glass in case of emergency,” quick fix in the State’s back pocket. Pennsylvania legislators must now hope that revenue projections will meet expectations because if they don’t there is no quick fix left to bail out the budget.
