Pennsylvania casinos claim slot machine tax is unconstitutional

The lawsuit calls for skill games to be taxed at the same rate.

US.- Twelve casino operators in Pennsylvania, including Caesars Entertainment and Penn Entertainment, have filed a lawsuit arguing that the state’s tax on slot machine revenue is unconstitutional. They say the state taxes slot machines at approximately 54 per cent but doesn’t impose a similar tax on skill game terminals in bars and stores, violating constitutional fairness guarantees.

The lawsuit calls for the same tax to be applied to skill games or for slot machines to be exempt. Pennsylvania generates the highest casino tax revenue in the US at around $1bn. The Pennsylvania Department of Revenue and the Gaming Control Board are reviewing the case. The Supreme Court is already due to decide whether skill games are illegal or should be subject to state gambling laws.