Slot Machine Compromise for Board

After the Pennsylvania Gaming Control Board announced last week that they needed more money to keep running, some casinos got rather upset. The two casinos that have already opened said that the way the deal was structured; they would be penalized for being open before other casinos – as they would have to pay more in slot machine revenue than the others would.

The Board had said that they would need five percent of slot machine revenues from the casinos that were open. Needless to say, this seemed unfair. Instead of that plan, the Department of Revenue will be imposing a 1.5% tax on the gross gaming sales of those currently opening, as well as two others that should be open by May. This would bring in $5.4 million by the end of June.

The five casinos would also have to pay an additional $800,000 from their escrow funds that they pay into. As gambling regulation has been funded by the state up until now, it was important that the gambling itself fund their own regulatory committee. The Revenue Department has the right to determine how the slot machine revenues will be used in the way of gambling regulatory activities.

By the end of 2008, eleven casinos should be up and running, and participating in the process of supporting the board, which will mean less slot machine revenue paid out for those initial five.

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