Pennsylvania seems to be inundated with new proposals to expand gambling in the state. The latest bill, HB 110, Sen. Guy Reschenthaler, seeks to allow licensed bars and taverns in the Keystone State to offer their customers the opportunity to play slot games.
For a while now, the state has been seeking ways to stop the spread of what it terms ‘illegal’ video gaming terminals, of which there are currently thousands across the state. Under Pennsylvanian law, slot games are currently limited to the twelve licensed Vegas style casinos. HB 110 seeks to make them legal outside of these casinos, as long as they are played during the official operating hours of the establishments. The new law makes provisions for truck stops to offer up to ten VGTs, and to limit the number of terminals at bars to no more than five. Pari-mutuel, off-track betting parlours will also be allowed to offer up to ten.
Other features of Senator Reschenthaler’s bill include:
* The businesses will receive up to 25% of the gross revenue generated by the video gaming terminals (VGTs).
* Local operators and VGT suppliers will enter into agreements of between 5 and 10 years.
* A tax rate will be set at 34% until July 2018, after which time it will be reduced to 29%.
* Local communities will be given another 4% tax of the gross revenue generated from the slot terminals.
Support for HB 110
The new proposal has bi-partisan support; both because it would regulate an existing industry that currently operates in a grey area, and also because it could bring in millions of dollars to state coffers.
“Pennsylvania State Police estimate over 40,000 illegal VGTs – 40,000 illegal VGTs – are now operating in Pennsylvania and these illegal machines exist in an unlicensed, unregulated, untaxed platform,” noted the Senator. “We need to legalize this industry to bring it out of the shadows.”
There is also support from bar owners who would be keen to increase their revenue. Jerry McCardle of the Pennsylvania Tavern Association said that local tavern owners are always looking for ways to receive some revenue to help stay afloat and continue to contribute to the many endeavors that they constantly do such as churches, Little League, etc.
“My consensus from the tavern owners that I have talked to is that if certain parts of this bill can be worked out, overwhelmingly the tavern owner is in favor of it,” he added.
