Last week, Pennsylvania’s casinos began paying an extra 2 percent tax on their table game revenue as a result of a series of stop-gap gaming-related measures approved by the legislature earlier in July to help fund the state’s 2016-17 budget.
The increase brings the tax on table games to 16 percent on top of the 54 percent the casinos pay on their slot win.
“We’re not happy about it, but it doesn’t stop us in our tracks,” Sands Bethlehem CEO Mark Juliano told the Allentown Morning Call. “We spent a lot of time fighting some of the other stuff; this one sort of came out of nowhere. But we’ll deal with it.”
The table tax increase occurred as online gambling supporters wait for the legislature to put the finishing touches on a broad-based gaming reform and expansion bill that will legalize web gambling and daily fantasy sports. Ironically, however, Juliano says his company will continue to oppose online gaming, reflecting the views of company CEO, Sheldon Adelson.
Most other Pennsylvania gaming operators are ready to jump in.
“We clearly are watching the other issues very closely and believe that online and daily fantasy sports are part of a comprehensive product offering,” said Bobby Soper, president of Connecticut’s Mohegan Tribal Gaming Authority, which owns Mohegan Sun Pocono, and operates legal iGaming sites in New Jersey via its partnership with Resorts Atlantic City.
The table tax increase is expected to generate an additional $17 million annually for the state. Online gambling, on the other hand, could generate $100 million or more.
Instead, the state is hoping to raise additional cash by selling the 12 casinos licenses for 24-hour alcohol sales. The licenses are $1 million each, and the casinos aren’t enthused. So far, none have anted up.
