Pennsylvania casinos to pay higher taxes on table games
The measure will become effective as soon as next week, after state legislature decided to add the tax to bring much needed revenues to Pennsylvania.
US.- Casinos in the state of Pennsylvania will be forced to pay a higher tax rate on the revenue of table games beginning next week, after state legislature decided to add the tax to bring much needed revenues to the state.
The tax rate is 2 percent higher than what was set previously, from 14 percent going to 16 percent, even though casinos already pay 54 percent on slot machines, which is the highest tax rate in the casino industry in the country. It is estimated that the rate increase will generate as much as US$17 million more a year for the state. The change is set to expire on January of 2019, unless the legislature decides to reauthorise the tax.
For now on, Pennsylvania casinos will have to start paying more for table games in lieu of taxes and wait to see if online gambling will come in to play. In the event online gaming were allowed in the state, casinos could team up with online operators to offer gaming, which could lead to additional streams of revenue, making up for the amount paid in additional table game taxes.
In the meantime, legislation for online poker and casino gaming has been postponed until the fall whilst the state desperately needs the money that online gambling could provide as well as additional gaming expansions within Pennsylvania. The state is counting on US$100 million from the gaming industry to help balance the budget and the US$31 billion set to come from the table game tax bill is not nearly enough to cover this amount.
