Table games might be coming to Pennsylvania’s 9 state casinos much earlier than expected and all because of the state’s financial crisis. State officials are planning to sell a table gaming license to casinos and racetracks throughout Pennsylvania. The onetime purchase of this license by these casinos and racetracks will generate an estimated $200 million dollars for the state. Casino owners and track operators are appalled at this news and fear it may put them out of business.
Most of the 14 casinos are in operation but two in Philadelphia have been delayed due to litigation in the city. It seems table games will be introduced before those casinos are even built.
Blackjack, poker, and roulette are among the table games that will be allowed at the state run casinos. Revenue from these games is needed to balance out the budge short falls. Other items in the budget concerning casinos is a $10 million licensing fee and 21% tax rate on daily gross revenue. Most casino operations feel this is too high of a tax because table games are rather labor intensive.
The first casino in Pennsylvania opened a short three years ago and it has been expanding now is too early. This influx in casinos and racetracks within the state has opened the eyes of state officials. These officials are beginning to see these popular destinations as a major source of income for the state.
The prescribed amount for licensing fees and tax rate hasn’t been set in stone yet. The projected fee for the new license has been said to be over twenty million dollars per casino and/or racetrack. According to casino owners and racetrack operators, this fee is not plausible or possible. In addition to this licensing fee, the casinos and racetracks would also incur increased costs for security systems, employees and equipment. Operators hope the state will be more aware of their needs so that they can easily introduce table games to increase the state revenue instead of impeding them from bringing in the games because of the expense related to them. They say a 12% tax would be more advantageous for all. All operators are requesting a tax rate that is affordable for them. Table games must be staffed whereas slot machines that are currently being utilized in casinos only need to be filled and fixed on occasion. Table games have to be staffed at all times.
Two casinos planning major additions to their casinos are the Meadows Casino and the Rivers Casino. The additions will include a major increase in employees (for table games) and an increase in slot machines.
If the state does legalize table games it should be able to see an increase of 25 % in gaming revenue, depending on the tax rate. Pennsylvania residents at this time do visit casinos in West Virginia to play table games. They would stay in the state if they were sanctioned there.
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