Pennsylvania Casino Tax Deadline Looms, as State Scrambles for Revenue Solution

The elimination of a casino taxation in Pennsylvania is putting their state in a fiscal bind. Using the 2017 session of the General Assembly closing this week, lawmakers must find at least a fix that is quick the income woes they’ve known about since last fall, whenever the state Supreme Court ruled elements of the current casino tax structure were unconstitutional.
Pennsylvania counties risk losing $120 million from a casino tax that’s been declared unconstitutional. Gov. Tom Wolf wants a bill on his desk ASAP to remedy budget problems resulting from the state Supreme Court ruling.
If the state legalized some forms of casino gambling in 2006, they did so with the vow that each casino would pay 2 percent of gross slot revenues to the townships where they’re located.
That share had been to encourage communities to welcome new casino construction, and help offset extra costs connected with having a gambling location inside their backyard. If any casinos did not meet a $10 million minimum, however, it was on it to make the difference up. And that’s where the video slot minimum tax created problem for the courts.
Courtroom Bust
In 2015, the Mount Airy Casino and Resort into the Poconos protested, when 2 percent of the slot revenues amounted to no more than $2.8 million, leaving them $7.2 million short.
The Supreme Court ruled in September 2016 that the formula for determining a minimal slots inco
