Pennsylvania‘s i-gaming legislation could fall apart, as New York State’s shamefully did (Gary Pretlow should change his name to Mr. Useless) but both houses are presently trying to find a satisfactory middle ground. Slot routes stick in the craw of state senators while the lower
house balks at a prohibitive, 54% tax rate for online casinos. A 16% rate has been counterproposed and Senate Minority Leader Jay Costa (D) is trying to get both sides to coalesce around a 25% impost. As for the slot routes, some make the morally bankrupt argument that since they already exist in black-market form the state should simply ratify the status quo. Says Costa, “Video gaming terminals is an issue that I think a lot of members of the Senate are not supportive of, and that has become a roadblock, quite frankly, to reaching a consensus.”
More appealingly, Rep. George Dunbar has proposed raising the licensing fee on slot routes from $100 per machine to $10,000. Of VLTs, he says, “I don’t believe it was put in as a poison pill to make the bill fail. You saw the product the Senate sent us. We sent them back a realistic product that if they want to put their stamp on, they can put their stamp on. I don’t see them rejecting it entirely. They can pull out VGTs or something else. Hopefully they will leave it all intact.” However, the two houses missed Dunbar’s June 19 deadline for passing the legislation on to Gov. Tom Wolf (D).
Dunbar is helping by trying to add more baubles to the Christmas tree, like a usurious, 50% tax on OTBs, to underwrite the Race Horse Development Fund. The Sport of Kings has fallen on pathetic times,
ever-reliant on governmental subsidies to keep it cantering around the track. “When we first legislated gaming in Pennsylvania, the only legal gaming was horse racing. We knew they’d lose revenue, so that’s why they get a percentage of the taxes generated by casinos. I think it should be consistent,” Dunbar argues in his own defense. “Let’s not kid ourselves. Online poker is going on, iGaming is going on, VGTs in bars are very prevalent in Pennsylvania. This is not some sweeping change or some large increase in the amount of gaming.”
There are those who would disagree.
* New showplace T-Mobile Arena won’t be the only winner of the Floyd Mayweather/Conor McGregor fight on Aug. 22. No, the match of the two noisiest tomato cans in brawling is expected to goose casino revenues. Yeah, big surprise, right? Baccarat play is expected to be the main beneficiary, as usual. The bump in Strip gaming revenue should at least be in the 10% range of the tainted Mayweather/Manny Paquiao in May 2015. Sports books saw a 37.5% increase in handle. ESPN sounds a cautionary note, stating the McGregor’s inexperience at boxing makes him a potentially easy victim for Mayweather, who started as a 25-1 favorite. That’s hardly a sporting proposition unless you have a miraculous faith in underdogs.
* In an enlightened move, the Massachusetts Gaming Commission voted to approve casino-management courses at
Bristol Community College. (The curriculum will include mock games of craps and blackjack, hence the need for a go-ahead.) Without moves like these, Massachusetts would put its own students at a disadvantage for careers in the gaming industry. As MGC Chairman Stephen Crosby said, “Preparing a local workforce to meet the demand of casino hiring is central to maximizing economic opportunity and job creation in the Commonwealth.”
* If I give you free play credits in my casino to encourage you to play slots, is that taxable revenue? You wouldn’t think so but the State of New Mexico believes otherwise. It’s dunning three tribal casinos for $40 million, although a 2015 accord would seem to back the tribes up. A dried-up state general fund may explain regulators’ motivation to put the squeeze on Tesuque Pueblo ($3 million), Sandia Pueblo ($26.5 million) and Isleta Pueblo ($10 million). Tribal governors liken the state’s move to charging full-price tax on a shirt bought at half off. New Mexico racinos folded their hands in a similar scenario but perhaps the tribes are made of sterner stuff.
* In response to a recent shooting incident at a Philippines casino, lawmakers are proposing a $61 entrance fee. Expect casinos to protest, as this would cut into mass-market play. What price safety, huh?
