Sands refuses to pay a host fee until the Pennsylvania Justice implements a new casino law.
US.- Las Vegas Sands Corp. announced they would not pay the host fee for its Pennsylvanian casino in Bethlehem last week and the State officials responded with a warn. Northampton County District Attorney John Morganelli assured that his office would cut their support if they are not able to negotiate the payment of the US$10 million tax.
As Pennsylvania casino operators are negotiating the host fee to contribute with the institutional development of communities, representatives of Las Vegas Sands Corp. rejected to do the same under the Supreme Court’s resolution, which determined that the tax was unconstitutional. However, the end of the tax payments is affecting the communities’ investments in the police, firefighters and shelters.
Pennsylvania legislators are planning the introduction of a new casino law to define the financial conditions for host communities and operators. Officers have time to present a complete resolution for the host fee problem until January 26, 2017.
The former host fee was jeopardising the operations of smaller casinos such as Mount Airy Casino Resort. But some major companies decided to keep their contributions with the Pennsylvania communities despite the Supreme Court’s statement. “I would not in good conscience be able to justify the use of my limited resources to help a profitable billion-dollar corporation while the Sands maintains the position they are an island unto themselves,” commented Morganelli.