Casino executives and politicians are hoping for a fix to Pennsylvania's local slots tax - ruled unconstitutional last week by the state Supreme Court - that keeps the same amount of money flowing to municipalities and counties.
"We've said to the people in Pittsburgh and in Philadelphia, we're not looking to reduce our payment. We're happy with the status quo," Greg Carlin, chief executive of the company that runs SugarHouse Casino in Philadelphia and Rivers Casino in Pittsburgh, said Thursday.
"We're going to work collaboratively with all the interested parties to try to figure out a solution," Carlin said after an American Gaming Association event at SugarHouse.
Based on a challenge by Mount Airy Casino Resort in the Poconos, the Supreme Court ruled that part of the local tax on slot machines outside Philadelphia violates the state constitution because it effectively imposes different rates on casinos depending on their size.
The 2004 law that legalized casino gambling in Pennsylvania requires most casinos to pay 2 percent or $10 million, whichever is greater, of slots revenues to their host municipality. SugarHouse has an exception, paying 4 percent of slots revenue to the city, with the first $5 million earmarked for the school district.
Mount Airy, which filed the challenge to the tax, had an effective tax rate of 7.1 percent in 2015 because of the $10 million minimum. Parx Casino, by contrast, had an effective rate of 2.6 percent.
Asked whether some places might have to pay more and others less to satisfy the Supreme Court decision, Carlin said: "We'll see how it plays out. We've let both cities know that we're committed to the status quo and we're not looking to reduce our payments."
State Rep. William F. Keller (D., Phila.), also at the industry event, said he agreed that right now it seems that some casinos will have to pay more and some less to comply with the ruling.
"That's the way it looks now, but when people sit down let's see if we can get another solution. There's always a solution if people sit down," Keller said. "We're not going to ruin a good thing."
The so-called local share assessment was included in the 2004 Race Horse Development and Gaming Act to help host communities offset public-safety and other costs. The local shares were also supposed to "enhance community and economic well-being," according to the latest report on the distribution of that money.
The state Department of Community and Economic Development said 157 local governments received "local shares" last year. Only 137 of them filed required paperwork with the state. The amounts ranged from $13.5 million for Dauphin County, home to Hollywood Casino at Penn National Race Course, to less than $100 for four townships.
Those local governments reported spending $98.9 million of the $103.8 million they received in 2015. In aggregate, the biggest category of spending was public safety, accounting for $30.8 million. Other big categories were miscellaneous expenditures at $17 million and community development at $16.8 million.
The General Assembly has just six more sessions scheduled this year. The House of Representatives Gaming Oversight Committee has an Oct. 18 hearing on the local share ruling, followed the next day by one on online gambling and fantasy sports, which would be legalized under bill the House passed in June.
The chairman of the Gaming Oversight committee, John Payne (R., Dauphin), said last week that the quickest way to fix the local slots tax would be for the Senate to amend one of the gaming bills that the House has already passed.
"Don't just send us a bill with a fix, send us a bill that brings in some revenue," from internet gaming, fantasy sports, something, Payne said.