East
Pennsylvania Tops Las Vegas, Atlantic City in Gaming Taxes
August 10, 2010
Although it has fewer games, casinos and employees than most of its competitors, Pennsylvania collected more taxes from its casinos last year than any other state — including both Nevada and New Jersey — local newspaper
The Morning Call of Allentown, Pa., reported last month.
Citing data from the American Gaming Association, the paper said Pennsylvania, which introduced table games at its casinos last month, collected nearly $1.1 billion in taxes from commercial casinos for the fiscal year ended June 30. Indiana, which collected $878 million, came in second, while Nevada, which collected $831 million, placed third. Rounding out the top nine were Louisiana, with $598 million; Illinois, with $495 million; Missouri, with $469 million; New York, with $455 million; West Virginia, with $408 million; and New Jersey, with $348 million.
"It is pretty amazing, but not unexpected," said Pennsylvania Gaming Control Board spokesperson Richard McGarvey, according to The Morning Call, stressing that Pennsylvania owes its top spot in the gaming industry to its high tax rate, which is 55 percent, compared to just 8 percent in Nevada and 9 percent in New Jersey. "Our tax is so high because the intention of the gaming law was to bring in tax money."
Although Pennsylvania gaming has its critics, Gov. Ed Rendell has credited gambling revenues with helping state and local lawmakers balance their budgets and reduce other taxes, such as school taxes and property taxes.
"The [gaming] law was designed to raise money that people were taking into other states," Gary Tuma, a spokesperson for Gov. Rendell, told The Morning Call. "Obviously, it's doing its job very, very well."
Still, some tourism industry officials worry that Pennsylvania's high tax rate will discourage future development and dissuade existing casinos from making capital improvements.
"A higher tax rate brings in more money, but that usually means fewer jobs and less capital investment," Las Vegas-based industry analyst Grant Govertsen told The Morning Call.
This page is protected by Copyright laws. Do Not Copy