News

December 17, 2009

Table games dealt a win by Senate

By Andrew M. Seder aseder@timesleader.com
Times Leader Staff Writer
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Poker, blackjack, roulette and other table games are one step closer to coming to casinos throughout the state next year, including the two in Northeastern Pennsylvania.

The state Senate voted 27-22 Wednesday night to approve an amended bill that authorizes table games but strikes some of the language that was included in the bill the House approved 103-92 Tuesday night.

The removal of that language is being reviewed by House members, who are expected to reconvene today to vote on possible concurrence with the Senate version of the bill. The Senate’s decision to roll the dice by changing the House-approved version opens the door to the possibility of the bill not being approved.

There is no guarantee that the House will vote to concur, said Brett Marcy, spokesman for House Majority Leader Todd Eachus, D-Butler Township. Even if the House does vote to concur, Gov. Ed Rendell will still have to sign the bill into law, though that’s something he has indicated he would do.

The parts of the House-approved measure that the Senate amendment scraps involved raising the state’s number of casino licenses from 14 to 15. Three of the 12 companies already awarded licenses have not yet opened their casinos. The House bill would protect two current competitors for the state’s last available casino license. The bill approved by the Senate would allow new applicants to compete for that last license.

“What we passed (Tuesday night) was language that was able to pass muster with the majority of the members of the House,” Marcy said. “Any change to that will require significant review by the House. Quite frankly, there are no guarantees on this.”

For months, haggling over licensing fees and tax rates held up the votes. The final bill would require a $16.5 million licensing fee for category 1 casinos, which includes Mohegan Sun at Pocono Downs in Plains Township and category 2 casinos such as Mount Airy Resort near Mount Pocono, and $7.5 million for category 3 casinos.

The tax rate would be levied at 14 percent for a casino’s first two years of table games and then the rate would drop to 12 percent. Two percent would be allocated to local entities, including municipalities, development projects and institutions, including The Commonwealth Medical College in Scranton.

The bill is projected to raise $320 million for the state over the first two fiscal years by imposing a 14 percent tax rate on revenue from table games and requiring the casinos to pay millions in license fees. Proceeds could eventually help pay for public schools once the state’s drained budget reserve returns to $750 million.

The enabling legislation was needed after the Legislature approved a 2009-10 state budget including $250 million in revenue generated by legalizing table games. It is needed to close a projected budget shortfall.

Sen. Lisa Baker, R-Lehman Township, and Sen. John Gordner, R-Berwick, voted against the measure.

“As I said in October when we voted on the budget, I do not believe the expansion of gambling is a responsible solution to our problems. It is not the sort of thing that should be just waved through because the state is desperate for dollars. None of what has occurred over the last two months strikes the public as being a debate where the public interest is front and center,” Baker said.

Sen. Bob Mellow, D-Peckville, cast a yes vote for the bill and called it a “win-win for Pennsylvanians.”

“Not only will the tax revenue generated through gaming help to balance the state’s budget without raising people’s taxes, but bringing table games to Pennsylvania casinos will create over 10,000 new jobs. As I’ve said before, these are family-sustaining jobs with salaries averaging around $50,000 a year. We need to do everything we can to breathe new life into the state’s economy, and putting Pennsylvanians to work by the thousands does this without a doubt.”

The bill, in addition to authorizing up to 250 table games at Category 1 and 2 casinos and 50 tables at Category 3 casinos, includes a measure to allow casinos to extend credit lines to gamblers and institutes a range of reforms relating to gambling.

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