Lawmakers in Pennsylvania are expressing confidence that the state Senate will vote this week on a new local host fee to replace the fee struck down last fall as unconstitutional by the state Supreme Court.
The original host fee provided by the 2004 Pennsylvania gaming law provided 2 percent of slot revenues or $10 million, whichever was higher, to the municipality hosting each casino. In a lawsuit brought by smaller casinos, the high court ruled that the fee violated the tax uniformity clause of the state constitution because smaller casinos were paying a larger portion of their revenues for the host fee than the larger ones.
At the end of the session in October, both chambers passed legislation that would impose a flat $10 million annual fee to be paid to the localities. However, the session adjourned without a final vote on the combined package of bills, which included online gaming and other gaming expansion measures.
The current Senate bill imposes the same flat $10 million annual fee. However, officials of Mount Airy Casino Resort, which brought the initial lawsuit, say they will challenge the new fee on the same basis—$10 million is a larger portion of its revenues than the state’s largest casinos.
Early this year, the Supreme Court judge that made the ruling extended the deadline for lawmakers to pass a replacement host fee to May 26. Last week, some lawmakers were confident they will make the deadline by passing legislation this week.
Others are not so confident. Both chambers are scrambling to pass omnibus gaming legislation that includes online gaming, tablet gaming at airports and other expansion measures that are still being debated. Lawmakers are at odds over the tax rate to be set for online gaming and those other expansion measures, which include a controversial provision to add video gaming terminals to bars and taverns.
Republican state Senator Mario Scavello, chairman of the Community, Economic and Recreational Committee, told the Erie Times-News that he will work to move a House-sponsored expansion bill out of his committee when lawmakers return from recess today.
The amended bill will include language to address the local share assessment, Scavello said. It would then head to the floor to be voted on by the full Senate no later than May 24. The House could then vote on the bill as is or make amendments of its own, sending it back to the Senate for a final vote before being sent to Governor Tom Wolf.
“It’s not contentious, but when you get a solution in one area, someone from another area wants the same or more,” state Rep Pat Harkins told the newspaper. “Then you add in the Senate and it gets sticky. I really believe the solution now won’t come until mid-to-late June during the budget negotiations.”
Meanwhile, the Pennsylvania House of Representatives has passed a bill that would update the state’s antiquated Bingo Law, originally enacted in 1981.
The bill, sponsored by Rep. Kate Klunk, would allow bingo operators to advertise on the internet and through social media. It also would increase the allowable prizes.
“A lot has changed since the Bingo Law was enacted, especially the value of the dollar,” Klunk told Yogonet.com. “Increasing cash prizes will help these valuable community organizations attract new players.”
Prize limits would be increased from $250 to $500 for any one game of bingo; from $2,000 to $4,000 for jackpot games; and from $4,000 to $8,000 for total amount of prizes awarded in a calendar day.
“By increasing the prize limits, additional interest in bingo games will be generated, attracting more players,” Klunk told Yogonet. “That, in turn, will lead to greater revenue for these civic organizations that help our communities through charitable endeavors. These groups have asked the legislature to give them the ability to offer bigger prizes and to use modern technology to retain and attract new players.”
Klunk’s bill would remove restrictions on the number of days a licensed association may conduct bingo games, permit pre-draw bingo, allow for guest callers and allow new members of a licensed association to assist in the operation of bingo.
The legislation also includes a provision that would allow a volunteer fire company created from the merger of two or more companies to be immediately eligible for a bingo license. Under current law, the fire company has to wait two years before becoming eligible.
