Pennsylvania sued over gambling expansion regulation
Pennsylvania has seen three different lawsuits, led by Sands, filed against it over the recently approved gambling expansion.
US.- Pennsylvania has recently approved the gambling expansion law and it seemed the industry was set to take advantage of new regulations that are expected to generate US$376 M. in revenue for the state. However, Sands Casino Resort Bethlehem and other two parties have filed lawsuits to challenge the legislation.
Sands was the last to file a lawsuit and did it in state Supreme Court. It alleged that the law is unconstitutional (both state and federally) as it demands high performing casinos to pay special taxes to finance struggling venues. According to Sands, it goes against the state constitution’s tax uniformity clause and another section that says all taxes must go to a public good while also violating the due process protections in the U.S. Constitution.
Furthermore, the Mountainview Thoroughbred Racing Association filed another one in Commonwealth Court just before the state Gaming Control Board holds its first auction for mini-casino licenses. They argued that the state should tighten regulations outlining where mini-casinos can be located. Also, the owner of a Harrisburg casino, who filed a lawsuit arguing the gambling expansion leaves the business vulnerable to the new “mini-casinos.”
Bethlehem Mayor Robert Donchez reacted to the lawsuits and stated “it’s critically important to the city” that Sands’ lawsuit would not affect the host fee, which represents nearly 13 per cent of the city’s general fund budget.
