Jackpot
remain status quo, Chester always getting $10 million from slots, the county was getting 2 percent that was the same in all the drafts.”
There are 12 casinos in operation in Pennsylvania, with the Live! Hotel and Casino slated for construction near the sports complex in South Philadelphia set to be the 13th. The expansion bill opens up any place that sells alcohol to plug in video gaming terminals (VGTs) for patrons to gamble online, which places local municipalities with casinos in a unique position.
“We want to see Harrah’s be successful, because of tax revenue and contract revenue with this legislation, first and foremost we want to be structured so that we aren’t losing revenue,” McBlain said. “Hopefully if there’s new revenue generated we can capture a share of that.”
McBlain said the expansion in Pennsylvania will turn 12 casinos into “thousands” with the advent of gambling in bars, which would inevitably eat into the revenue gathered by casinos.
Harrah’s has been a vocal opponent of VGTs.
“Harrah’s Philadelphia remains opposed to video gaming terminals (VGT’s) because it threatens payments to the community, jobs at the casino and otherwise will put slot machines in everyone’s neighborhoods in every bar, tavern and club,” the statement offered to the Daily Times reads. “It will weaken the financial condition of the Commonwealth’s casinos and threaten the loss of hundreds of millions of dollars in property tax relief.”
McBlain explained that a share of the slot revenue is paid into the property tax relief fund, which “offers relief to property owners for school tax,” he said.
Nichols said the state is “treading new water” with the gaming expansion, but looked to casinos in New Jersey that he said saw benefits in Internet gaming through tournaments and similar events.
“The Internet expansion could add to their brick and mortar,” Nichols said. “And that, in turn, benefits the city.”
However, both city and county remain involved in talks to make sure any changes in the legislation would continue the revenue stream earns to local municipalities.
For the bar owners, the expansion potentially means many more patrons to their establishments.
On thing is a sure bet: The move into legal gaming won’t come cheap.
Uner the House bill, a liquor license holder, such as a bar, hotel, restaurant, truck stop or fraternal club, could operate slot machinestyle gambling machines, called video gaming terminals. As many as 40,000 terminals would be allowed statewide. Each establishment could operate up to five, while a truck stop could operate as many as 10. The state would take 37.5 percent of the gambling revenue, with certain amounts set aside for the Lottery Fund, volunteer emergency services grants and compulsive gambling prevention programs. The license holder would get 26 percent of the gambling revenue, terminal operators would get 31 percent, host counties and municipalities would each get 2 percent and the rest would go to the cost of regulation.
“I put in an application to the state to get the video gaming terminals over two years ago,” said Andrew Newborn, owner of Clank’s Pizza and Bar in Marcus Hook. He’s looking to set up three VGTs if the law allows it.
Some opponents wonder about the damage from unchecked gaming in local bars, as opposed to the casinos, which put a lot of emphasis on the problems linked to gambling addicts. No such measure would be in place in local neighborhood taverns.
Newborn said it would be up to the owners, bartenders and employees to recognize addiction the same as alcoholism.
“We’re talking about bars, where crime is often already attracted to,” Newborn said. “Will gambling in bars change that? I don’t know.”
McBlain agreed that the state will be faced with a difficult decision.
“Pennsylvania went to great lengths to regulate casinos and now instead of 12 casinos, you’ve created thousands,” McBlain said. “But, we certainly understand the tavern owners desire for revenue.”
Meanwhile, Harrah’s continues to look for support in opposing the gaming terminals.
“We want to thank our local leaders who oppose VGT’s and applaud them for understanding the economic engine that Harrah’s Philadelphia has been for the community.”
The budget deadline is on June 30, and the gaming bill is expected to go to conference committee in advance of the deadline to hash out the details of the bill.