Legislators in Harrisburg are working out the specific details of permitting casino table games, like blackjack and poker at the slot parlors in the state of Pennsylvania. The main reason behind legalizing casino games this year is the financial crisis.
At first, the revenue from the casino table games will be utilized to supplement the state general fund and solve the budget deficit. Aside from that, a small percentage of the earnings will be set aside for the local municipalities where casino facilities are located. But after finances of Pennsylvania stabilize, the bulk of the earnings from the casino games will be used to supplement the rainy day fund of Pennsylvania until it reaches $750 million.
Revenue taken in after that amount will be allocated to property tax relief. But Pennsylvania legislators still disagree over two important components. The first component is the tax rate casino facilities will have to pay the state on their profit from the casino table games. Tax rates from 12% to 37% have been proposed.
The second component is how much casino facilities will have to pay when they first acquire a casino license to add casino table games. The license cost could range from $10 to $20 million. Legislators are counting on the casino games to fill a $240 million budget deficit.
But some question if legislators, who had a difficult time creating an agreement on the spending plan, will be able to reach a compromise on the casino table games in a timely and speedy manner. Political analyst Dr. Terry Madonna said on October 12th, 2009 said that with the fact that legislators in Harrisburg at the present do not trust and respect one another, do not seem to have good relationship to solve big state problems.
Dr. Madonna added that there are some gaming observers in Harrisburg who think it is going to be very difficult for the legislature to accomplish anything.
Sunday, November 15 , 2009