Slots Middlemen Get Tax Help

The state of Pennsylvania wanted middlemen. They provided for slot machine middlemen to act as a go between for the racetracks and the slot machine manufacturers. It was simply one of the ways the state was trying to bring in more jobs linked to the slot machine industry.

Next thing you know, politicians started showing up as part of the firms’ group – and people said no way – this was just another way to put money in the pockets of those who need it the least. They say it is just an example of the corruption that will take place now that the slot machines are coming. However, the state had 18 companies that had slot machine licenses.

So, instead of slot machine middlemen, the state is going to pay them off. They had already decided to tax the slot machines to pay for gambling addiction programs, and a hefty $500 tax will now be on every slot machine sold in the state. A portion of that money will now go to the Pennsylvania firms that had started doing business as middlemen. That will give them a nice chunk of an estimated $19 million. They will start by reimbursing them for the money spent applying for a slot machine distributor license, but they will then have to prove how much business they lost due to the change in the rules. slo

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