State legislators from Delaware County, Pennsylvania recently reached an agreement with Harrah’s Philadelphia Casino and Racetrack in Chester City. Under the arrangement negotiated by county officials including state Senators Thomas McGarrigle and Tom Killion, the county will continue to receive .9 million and Chester City will receive .5 million in annual revenue sharing—about one-third of its annual budget. “I want to thank Harrah’s Philadelphia for stepping up to the plate. While a legislative fix is required for a long-term solution, this agreement reflects the spirit of the Gaming Act and the need to return gaming revenue to host municipalities and counties,” Killion said.
The deal was arranged after the Pennsylvania Supreme Court in September ruled the existing tax-revenue law was unconstitutional. The state legislature failed to enact a replacement before recessing for the year. The House passed a new casino revenue-sharing plan in the final days of the session but the Senate postponed considering it until January. As a result, cities and counties sought private deals to make up for the millions of dollars they had become accustomed to receiving.
Previously, since 2004, most casinos outside of Philadelphia had been required to pay 2 percent of slot revenue to host counties and an additional 2 percent or $10 million, whichever is greater, to host municipalities. The Mount Airy Casino Resort challenged the $10 million amount as unconstitutionally imposing an uneven tax rate. The state Supreme Court agreed and gave legislators 120 days to find solutions, which they have not accomplished yet.
