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So you’re thinking of starting a casino, huh? Unless it’s an online casino, you may want to think again….at least if you’re in the state of Pennsylvania.
Just yesterday morning, Governor Ed Rendell announced that his plans to lay the smack down, vetoing any bill planning to legalize table games at casinos which fail to produce a minimum of $200 million in new revenue this year. This means that every casino must pay fifteen million dollars up front. (Think Dr. Evil: “Fifteen MIIIIIIIIIIIILLION DOLLARS!”) It’s a lot of cash and it doesn’t stop there. These casinos would also need to pay a tax rate of at least 16% on casino games such as blackjack, roulette, poker, and other games. I said AT LEAST….legislators will decide, that’s just the starting point.
Dude, your Phillies just went up 3-1 over the Dodgers. Why so serious???
The need to find the right balance will help raise revenue from casino games while still allowing casinos to make money from adding table games.
“It has to produce enough revenue… the same amount of revenue that we put into the budget. Absent that, I will veto a bill that comes in with license fees and taxes at a figure that’s too low to produce that revenue. Basically, it’s $15 million in license fees and 16 percent in taxes.”
Thanks, Ed. Unbelievably, the House of Representatives is proposing a 34% tax rate with the Senate only 14%. Let’s give it up for the Senate!
Wherever the number falls, the writing is on the wall. More and more aspiring online gambling moguls will be setting up online casino sites as opposed to brick-and-mortar. It’s just too expensive. Even if it doesn’t matter to the average casino games junkie, this is more about the casino owners. Stay tuned. And go, Phillies.