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Former Governor Ed Rendell is urging lawmakers to reject a “sweetheart deal” for out-of-state skill games companies who are pushing for a 16% tax rate on their machines – compared to the 54% tax that casinos pay on slot machine revenues.
The Governor points out that Pennsylvania’s gaming “juggernaut” generates more gaming tax revenue than any other state. Governor Rendell also notes that:
“The secret to maintaining Pennsylvania’s gaming tax juggernaut over the last 20 years has been the General Assembly’s disciplined and consistent approach with respect to setting tax rates.”
“All currently authorized forms of slot machine style devices in the Commonwealth are taxed at the same 52% rate, be they slot machines at brick and mortar casinos, virtual slot machines on-line, or video gaming terminals (“VGTs”) in truck stops.”
“Our legal gaming industry has already proven that all forms of slot machine style gaming in the commonwealth, including the type most similar to skill games – specifically, VGTs – can operate successfully at the 52% rate.”
“It appears to me that the legislators who support the significantly reduced tax rate for skill games … do not understand that the significant difference between a 52% tax rate and one ranging between 16% and 34% will cost Pennsylvanians millions of dollars a year in corporate tax revenue.”
Click here to read the Governor’s column.
Click here to read a report by Casino News.
Please contact Pete Shelly at pshelly@clearpointpa.com for more information.
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