Rendell: Delay threatens table games revenue
Published: November 5, 2009
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share thisHARRISBURG - Gov. Ed Rendell warned Wednesday that continued delay in passing table-games legislation could lead to a shortfall in revenue needed to balance the state budget.
The governor said the delay is a major concern and he will be forced to put other state appropriations in reserve if a bill does not reach his desk soon.
Rendell met with leaders of the four legislative caucuses to discuss the state tax rate on table-games profits. While no agreement was announced, the pace of talks has picked up in advance of the return of House lawmakers to session Monday. The Senate is scheduled back in session Monday, Nov. 16, but could return earlier if an agreement is reached.
The $27.8 billion state budget enacted last month cannot be balanced without an estimated $200 million in table-games revenue.
The bulk of the $200 million would come from one-time fees paid by casino owners for table-games licenses. In succeeding years, the state would realize more revenue from a tax on slots profits.
The passage of a table-games bill is linked with reform of state gambling oversight, a capital projects borrowing bill and state funding for 26 local education, health-related and cultural institutions that receive aid through separate appropriations bills. The Everhart Museum and Johnson College, both in Scranton, receive state aid in this manner.
One reason for Rendell's concern is the time needed to add table games such as roulette and poker to casino floors.
State gambling regulators say they will need six to nine months to implement table games after a law is enacted. Greg Fajt, executive director of the state Gaming Control Board, told senators recently that table games will require a different scope of regulation than slot machines because a heavier cash transaction is involved.
Rendell has said he will veto any table-games bill that doesn't set a $15 million license fee and levy at least a 16 percent state tax.
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