Story: Pa. tops in taxes from casino gambling

ALLENTOWN, Pa. - Pennsylvania collected more in taxes from commercial casino gambling than any other state, including gambling heavyweight Nevada, a newspaper reported.

Pennsylvania's tax revenue from commercial casinos approached $1.1 billion in the fiscal year that ended June 30, the Morning Call, of Allentown, reported yesterday. Indiana was second with $878 million and Nevada third with $831 million.

A comparison by the American Gaming Association also showed Pennsylvania ahead in the 2009 calendar year.

Pennsylvania has just nine casinos operating, but its 55 percent tax rate on slot-machine gambling more than makes up for it. By comparison, Nevada takes 8 percent from its 260 casinos.

Pennsylvania's casinos began offering table games this month. Those games are taxed at a rate of 16 percent and are projected to bring the state $320 million more per year.

Gaming Control Board spokesman Richard McGarvey said that Pennsylvania's high revenue isn't surprising.

"Our tax is so high because the intention of the gaming law was to bring in tax money," he said.

Slot machine revenue has helped lower real-estate taxes and helped prop up the state's horse-racing industry. Its also helping pay for large civic projects like the expansion of the Pennsylvania Convention Center, in Philadelphia, and grants for volunteer fire companies.

Gary Tuma, a spokesman for Gov. Rendell, said that a typical taxpayer has seen his bill go down about $190 per year, and senior citizens get even bigger breaks.

Pennsylvania's 55 percent tax rate on slot-machine proceeds is among the highest in the nation, below New York's 65 percent and West Virginia's 57 percent.