After a law passed last year authorizing small games of chance in bars and taverns in Pennsylvania drew a pitifully small number of takers, state Senators are looking to amend the law to make the program more appealing to bar owners. The state House, meanwhile, is considering a bill to add video gaming to bars.
State Senator Richard Alloway is sponsoring a bill to amend the law, known as Act 90, to lower the fees and taxes implemented under the law. Bar owners have avoided applying for licenses because of a $4,000 up-front licensing fee and a 65 percent state tax on revenue for the game. Additionally, owners have backed off the program because of the required background checks, which are in addition to the checks already performed when they got their liquor licenses. Additionally, under the law, a gaming violation could put a licensee’s liquor license in jeopardy as well.
Alloway has already gaining support from both Republicans and Democrats for the revision bill, which would address the major issues keeping applicants away. Under the measure, the initial license fee would be reduced from $4,000 to $2,000, covering the first year of the tavern gaming license. The FBI background check—a $1,500 cost to applicants—would be eliminated, since bar owners already undergo checks every two years to maintain their liquor licenses.
The bill would reduce the revenue tax to 55 percent, with 50 percent of that tax going to the state and 5 percent to the local host municipality.
Gaming violations would no longer also count as liquor code violations under the measure, but the bill would add a “three strikes clause” that would allow the Gaming Control Board to revoke a license after three gaming violations.
Meanwhile, a separate bill in a state House committee would allow video gaming including bingo, keno, blackjack and other games in bars, taverns, hotels and clubs with valid liquor licenses. Eligible establishments would pay a license fee of $500 for each machine, with a maximum of three machines allowed per location.
The machines would pay out in tickets redeemable for cash at the bar. Awards would be capped at $1,000 per game.
Under the bill, 45 percent of gaming revenues would go to the state’s Property Tax Relief Fund, with 23 percent kept by the establishment and 22 percent going to the licensed machine vendor. Five percent would go to the host community, and the other 5 percent would go to the state’s casinos.
The measure is currently before the House Gaming Oversight Committee.
