Table games could help budget
Many Pennsylvanians are living in the most difficult economic time in decades. The struggling economy demands that the Commonwealth take bold action. My Republican colleague Sen. “Tommy” Tomlinson and I have introduced legislation in the Pennsylvania General Assembly (House Bill 21 and Senate Bill 1033) that would generate substantial revenue and create thousands of good-paying jobs without raising taxes. By adding table games to the state’s stand-alone casinos, a recent study suggests we likely can generate 16,000 jobs and $200 million annually in revenue for the Commonwealth – money that eventually could be used to lower homeowner property taxes. This is in addition to the more than $600 million in tax cuts that slot machines have provided during each of the past two years. Keep in mind, we’re still waiting for the state’s three largest casinos to open – one in August in Pittsburgh and two likely by the end of next year in Philadelphia – so the slots numbers will increase.
It’s important to remember that those 16,000 jobs are not only in the casinos.
In addition to the direct jobs that would be created, amenities such as hotels, dining and entertainment likely will be created and they will hire even more local residents. Local businesses such as gas stations, convenience stores and others also will provide employment opportunities.
There’s no practical difference between placing $20 in a slot machine versus putting it on a poker or blackjack table. So why not provide more options for the casino patron? Research also indicates that people who play table games are a different demographic than slots players, which creates a new revenue stream.
The industry embraces the idea of adding table games at their facilities and gaming officials say it would take between six and nine months to be fully licensed and operational. That timeline coincides with Gov. Ed Rendell giving his final budget address in February for the 2010-11 state budget. Every analyst predicts next year will be worse financially than this year, so Sen. Tomlinson and I believe that if we take legislative action now, the governor could anticipate new revenue from table games for next year’s budget and that revenue doesn’t require a tax increase.
Under both of our bills, casinos would pay a one-time $10 million fee, so before the first card is even played, we could generate more than $100 million for next year’s state coffers.
If Pennsylvania adds these additional gaming opportunities, our casinos can remain competitive with neighboring states and we can keep the discretionary dollars here that many residents otherwise are spending in states that offer blackjack, poker, roulette and craps.
When the slot machine law was being formulated in 2004, one of the important facets was its projected positive impact on the horse racing industry. Since the law’s enactment, racing purses have increased and jobs have been created at horse farms and related businesses. My proposed table games legislation would continue that commitment to horse racing, by providing funding to several agriculture-related programs, including track and stable repair and maintenance at county fairgrounds.
While opponents of gaming may recite anecdotal evidence about increased crime rates near gaming facilities, the facts in Pennsylvania do not bear out those claims. To the contrary, the economic development fund created through slots has generated millions of dollars in significant improvements throughout the surrounding communities.
Now is the time to do something to improve our economy. Sen. Tomlinson and I believe that we should add table games to the casinos to create thousands of jobs and generate millions of dollars in revenue without raising taxes.
(Bill DeWeese, a nongambler, is the House Majority Whip and has represented the 50th Legislative District in Fayette, Greene and Washington counties since 1976.)