Pa. horsemen argue against table games
A Pennsylvania horsemen's group maintains that introduction of table games at the state's casinos would lower slots revenue, thus hurting the horse-racing industry.
A Pennsylvania horsemen's group maintains that introduction of table games at the state's casinos would lower slots revenue, thus hurting the horse-racing industry.
The decrease could be 8 percent to 13 percent, according to the Pennsylvania Equine Coalition, which presented its study to the House Gaming Oversight Committee in Harrisburg yesterday.
"Current table-games legislation misguidedly sets different tax rates for slot machines and table games, creating the potential for lost state revenues and declines in funds for the equine industry," said Joe Santanna, president of the National Horsemen's Benevolent and Protective Association, a member of the equine coalition.
The report was meant to counter an analysis funded by the state's casino operators that said Pennsylvania's annual gambling revenue could increase 30 percent, or $976 million, by 2012 if table games were added.
Both State Rep. Bill DeWeese (D., Greene) and State Sen. Tommy Tomlinson (R., Bucks) have introduced measures to legalize table games, and both bills propose a much lower tax rate on the games' revenue than the 55 percent tax rate on slots revenue. Neither has been scheduled for a floor vote.
The horsemen's group argues table games will be detrimental to the horse-racing industry because it will dilute slots revenue. Horse racing now benefits directly from gross slots revenue, getting a percentage of the state's tax proceeds to underwrite harness and thoroughbred races and higher purses.
Current table-games legislation contains no such provisions to aid the industry, Santanna said.
Tomlinson tried to undercut the report yesterday.
"Table games will provide an additional 10,000 family-sustaining jobs and salaries and generate economic activity in a host of related industries, including tourism," he testified. "They will also help to make us competitive with neighboring states, which are all benefiting from revenue from table games."
