Pennsylvania’s Rivers Casino has dropped a lawsuit it filed against the state claiming a tax it pays to its host city of Pittsburgh is unconstitutional.
Rivers gave no reason for the decision to give up its bid to prevent the Pennsylvania Department of Revenue from collecting the so-called “local share tax,” which dates back to the legalization of casinos in the state in 2004.
Rivers claimed the municipal portion of the tax unlawfully applies different tax rates to the state’s 12 casinos and doesn’t tax all casinos equally in terms of revenue from slot machines that goes to municipalities.
Rivers annually to Pittsburgh 2 percent of slots revenues, or $10 million, whichever is greater. For fiscal year 2015-16, Rivers earned $272 million in slot revenues, records show. The casino has paid $65 million to the city since opening in 2009.
Rivers’ parent, Holding Acquisition Co., also wanted a refund of some of the money it has paid.
The state’s Mount Airy and Harrah’s casinos are also challenging the tax in court.
