Gaming in Pennsylvania
By Wendy Lewis , Senior Budget Analyst | 2 years ago
Gaming Analyst: Brittany Van Strien, Budget Analyst
| Category 4 Casino Auction Results as of August 2021 |
| Casino |
County |
Final Location |
Auction Date |
Bid Amount |
| Hollywood |
York |
Springettsbury Township, York Galleria Mall |
1/10/2018 |
$50,100,000 |
| Live |
Westmoreland |
Hempfield Township, Westmoreland Mall |
1/24/2018 |
$40,100,005 |
| Parx |
Cumberland |
Shippensburg Township near Rt. 81 |
2/22/2018 |
$8,111,000 |
| Hollywood |
Lancaster |
Caernarvon Township, Berks County near PA Turnpike |
4/4/2018 |
$7,500,003 |
| Rivers |
Centre |
Union Borough, Centre County |
9/2/2020 |
$10,000,101 |
| Total |
$115,811,109 |
| Invalidated Auction Attempt |
| Sands |
Mercer |
Hempfield Township |
2/21/2018 |
$9,885,000 |
| Mount Airy |
Lawrence |
Big Beaver, Beaver County
Application denied 11/19/2019. 75% of fee returned. |
2/8/2018 |
$21,188,889 |
Appendix A - License Fees, Tax Rates, and Distributions
| Gaming License and Certificate Fees |
| One-Time Fees |
Fee |
Devices Allowed |
Additional Information |
| Slot Machine License Fee - Category 1 & 2 |
$50 million |
3,000 |
Up to 2,000 more slots after 6 months of operation, if approved by the Board. Deposited into the State Gaming Fund prior to 2017/18, after that to the General Fund. |
| Slot Machine License Fee - Category 3 |
$5 million |
500 |
Deposited into the State Gaming Fund. Additional 100 slots permitted with a table games certificate. |
| Table Games Certificate Fee - Category 1 & 2 |
$16.5 million |
250 |
For certificates issued before June 1, 2010. |
| Table Games Certificate Fee - Category 1 & 2 - after June 1, 2010 |
$24.75 million |
250 |
For slot machine licenses issued in 2017/18, the table games fee is due before June 30, 2018. |
| Table Games Certificate Fee - Category 3 |
$7.5 million |
50 |
100 more slots allowed if casino also holds a table games certificate. |
| Expanded Gaming - All Fees Deposited into the General Fund |
| Category 3 - Additional Slot Machine Fee |
$2.5 million |
250 |
Allows for additional slot machines. |
| Category 3 - Additional Table Games Fee |
$1 million |
15 |
Limited to only poker tables. |
| Category 3 - Patron of the Amenities Waiver |
$1 million |
N/A |
Allows public to patronize casino without patronizing resort amenities or paying a membership fee. |
| Category 4 Casino - Slot Machine License Fee |
$7.5 million minimum bid |
300-750 |
Fees are based on auction price. Number of devices may not exceed total complement of the licensee. |
| Category 4 Casino - Table Games Certificate Fee |
$2.5 million |
30 |
Optional certificate fee after slot machine license is approved. |
| iGaming Certificate |
$10 million |
No limit |
Additional $1 million fee for contracted operators. $10 million for current casinos to purchase all 3 (poker, tables, slots) certificates in first 90 days. After that, PA casinos and other qualified entities can purchase any remaining certificates for $4 million each. |
| Airport Gaming Fee |
$125,000 to $2.5 million |
No limit |
Must first have iGaming Certificate. $2.5 million in first-class county, $1.25 million in 2nd class, $500,000 in all other counties with an international airport. For other qualified airports, $125,000. Only available to iGaming certificate holders. |
| Fantasy Contest License |
$50,000 |
No limit |
Allows fantasy sports operators, regardless of location, to collect taxes on contest net revenues adjusted for PA in-state participants. |
| Video Gaming Terminal License |
$250 per VGT |
5 per truck stop |
Truck stop must sell 50,000 gallons of diesel per month, have 20 commercial parking spaces, and occupy at least 3 acres. |
| Sports Wagering Certificate |
$10 million |
N/A |
Certificate fee deposited into the General Fund. Must first have an iGaming certificate. |
| Simulcasting Permit of Horse Races |
No Fee |
N/A |
Allows Category 1,2,3 and 4 casinos to simulcast live races from any location for conducing pari-mutuel wagering. |
Gaming Taxes, Assessments and Distributions
Slot Machines and Table Games - Prior to Expanded Gaming
($ amounts in millions) |
| Taxes and Assessments |
Rate |
Revenue
2017/18 |
CumulativeThrough 6/30/2018 |
Distribution of Funds |
| Slot Machine Tax - State Share |
34% |
$ 799.8 |
$ 8,419.5 |
Local property tax relief (wage tax relief in Philadelphia); local law enforcement grants ($2 million per year); compulsive gambling treatment program (at least $2 million per year); drug and alcohol treatment services ($3 million to Dept. of Health); volunteer fire company grants ($30 million). |
| Slot Machine Tax - County Local Share Assessment |
2% |
$ 23.3 |
$ 911.5 |
Distributed to host counties to be used for security, road construction, traffic systems, and other local government services needed to support orderly operation of slots facilities. |
| Slot Machine Tax - Municipal Local Share Assessment |
$10 Million |
|
|
Act 42 of 2017 changed the rate from the greater of 2% or $10 million to a fee of $10 million. Windfall provisions roll excess revenues over to the host county. |
| Race Horse Improvement Assessment1 |
12% |
$ 240.2 |
$ 2,728.4 |
Funds allocated to the horsemen's orgainzation must be used to benefit all horsemen. Benevolent programs include pension and health insurance benefits for the horsemen. |
| Gaming Economic Development and Tourism Assessment |
6% |
$ 129.6 |
$ 1,250.1 |
Funds are distributed to specific projects via separate capital budget bills, Act 53 of 2007 and Act 63 of 2008 (H2O PA). Of the 6%, 0.5% of Category 1, 2 and 3 gross terminal revenue goes to the Casino Marketing and Capital Development Account. Category 4 casinos are assessed at 6%, all going to the GEDTF. |
| Table Games - State Share2 |
12% |
$ 126.2 |
$ 791.6 |
Deposited in the General Fund. If Rainy Day Fund reaches $750 million, revenues would go to Property Tax Relief Fund. |
| Table Games - Local Share |
2% |
$ 17.9 |
$ 119.9 |
1% to the host county and 1% to the host municipality. |
1The race horse improvement assessment is a formula based on each entity's gross terminal revenue and the gross terminal revenue at all Category 1 licensees, which is capped at 12% of gross terminal revenue. Actual rates are closer to 10%.
2The table games tax rate is 14% for the first two years of table games operation at each casino, then drops to 12%.The state tax rate on fully automated table games is 34% in addition to the base rate of either 12% or 14%. Effective August 1, 2016, there is an additional 2% tax on table games revenue, which is set to expire on June 30, 2019 (Act 84 of 2016 amending the Tax Reform Code). |
Expanded Gaming Taxes, Assessments and Distributions
($ in millions) |
| Taxes and Assessments |
Rate |
Distribution of Funds |
| Category 4 Slot Machine Tax |
50% |
34% deposited into the Property Tax Relief Fund.
5% to the Commonwealth Financing Agency for project grants in the public interest in any county.
5% distributed to counties whose local share funding levels decrease below 2017/18 levels.
6% to the PA Gaming Economic Development and Tourism Fund. |
| Category 4 Slot Machine Local Share |
4% |
2% to the host county.
2% to the host municipality. |
| iGaming - Table Games and Poker |
14% |
Deposited into the General Fund. |
| iGaming - Slot Machine Style |
52% |
34% to the Property Tax Relief Fund.
5% to counties whose local share decreases below 2017/18 levels.
13% to the CFA for grants in any county for projects in the public interest. |
| iGaming - Local Share |
2% |
1% to the host county of the licensed casino, added to and distributed according to county slot machine distributions.
- Philadelphia: 1% to the school district.
- Delaware County (Harrahs): 1% to the county authority for municipal police and
emergency services or other economic development.
- If the certificate holder is not a PA casino, 1% added to and distributed with the
amount below to the CFA for projects in any county.
1% to the CFA for projects in the public interest in any county. |
| Airport Gaming - Table Games and Poker |
14% |
Tax rates and local share are the same as iGaming rates; however all taxes deposited into the General Fund. |
| Airport Gaming - Slot Machine Style |
52% |
Tax rates and local share are the same as iGaming rates; however all taxes deposited into the General Fund. |
| Airport Gaming - Local Share |
2% |
1% to the CFA for grants in the host county.
- Philadelphia Airport: 0.5% to the Philadelphia school district and 0.5% to
Delaware County.
1% to the CFA for grants in any county. |
| Fantasy Sports |
15% |
Deposited into the General Fund. Tax collections began May 2, 2018. Each year 0.2% transferred to the Department of Drug and Alcohol Programs for drug and alcohol addiction treatment services. |
| Video Gaming Terminals |
42% |
Deposited into the Video Gaming Fund. 0.2% of revenues transferred for compulsive and problem gambling; remaining revenue transferred to the General Fund. |
| Video Gaming Terminals - Local Share |
10% |
Distributed to the CFA for grants in the commonwealth. |
| Sports Wagering |
34% |
Deposited into the General Fund. Each year 0.2% transferred to the Department of Drug and Alcohol Programs for drug and alcohol addiction treatment services and 0.2% of revenues transferred to the Compulsive and Problem Gambling Treatment Fund. |
| Sports Wagering - Local Share |
2% |
Distributed to the CFA for grants in the commonwealth. |
| Simulcasting |
1.5% |
Same as pari-mutuel wagering: 1.5% of the amount wagered on win, place or show wagers and 2.5% on exotic wagers (exacta, daily double, quinella and trifecta). Distributed to the State Racing Fund for regulation of the Racing Commission and for promotion of horse racing. |
Appendix B - Slot Machine Revenue Deposits and Fund Transfers
The diagram below shows a basic distribution of the taxes and assessments on slots gaming at land-based casinos. The base of the assessments is gross terminal revenue. For information on distributions from other types of gaming, such as table games and iGaming, see Appendix A.
| Property Tax Relief Fund Disbursements |
| |
General Property Tax Relief |
Sterling Act (Philadelphia Wage Tax Relief) |
Expanded Property Tax/Rent Rebate Reduction |
Cities and High Burden |
Volunteer Company Grants $5 Million |
Transfer to Lottery Fund for Expanded PTRR |
Transition Grants to Counties |
Total |
| 2006-07 |
$ - |
$ - |
$ - |
$ - |
$ - |
$ 100,000 |
$ - |
$ 100,000 |
| 2007-08 |
$ - |
$ - |
$ - |
$ - |
$ - |
$ 100,000 |
$ 2,760 |
$ 102,760 |
| 2008-09 |
$ 594,571 |
$ 17,887 |
$ - |
$ 48,500 |
$ - |
$ - |
$ 229 |
$ 661,187 |
| 2009-10 |
$ 595,000 |
$ 18,200 |
$ 127,500 |
$ 9,200 |
$ - |
$ 40,000 |
$ - |
$ 789,900 |
| 2010-11 |
$ 595,000 |
$ 21,500 |
$ 129,100 |
$ 26,900 |
$ - |
$ 9,900 |
$ - |
$ 782,400 |
| 2011-12 |
$ 595,000 |
$ 17,100 |
$ 135,900 |
$ 28,200 |
$ - |
$ - |
$ - |
$ 776,200 |
| 2012-13 |
$ 595,000 |
$ 20,600 |
$ 137,800 |
$ 29,000 |
$ 5,000 |
$ - |
$ - |
$ 787,400 |
| 2013-14 |
$ 595,000 |
$ 16,600 |
$ 136,700 |
$ 29,800 |
$ 5,000 |
$ - |
$ - |
$ 783,100 |
| 2014-15 |
$ 595,000 |
$ 16,600 |
$ 131,300 |
$ 28,900 |
$ 5,000 |
$ - |
$ - |
$ 776,800 |
| 2016-16 |
$ 595,000 |
$ 21,490 |
$ 136,400 |
$ 30,400 |
$ 5,000 |
$ - |
$ - |
$ 788,290 |
| 2016-17 |
$ 595,000 |
$ 22,900 |
$ 120,700 |
$ 27,300 |
$ 5,000 |
$ - |
$ - |
$ 770,900 |
| 2017-18 |
$ 595,000 |
$ 24,300 |
$ 118,500 |
$ 27,200 |
$ 5,000 |
$ - |
$ - |
$ 770,000 |
| 2018-19 |
$ 595,000 |
$ 24,500 |
$ 114,100 |
$ 27,600 |
$ 5,000 |
$ - |
$ - |
$ 766,200 |
| 2019-20 |
$ 595,000 |
$ 25,500 |
$ 211,500 |
$ 53,500 |
$ 5,000 |
$ - |
$ - |
$ 890,500 |
| 2020-21 |
$ 595,000 |
$ 26,000 |
$ - |
$ - |
$ 5,000 |
$ - |
$ - |
$ 626,000 |
| 2021-22 |
$ 595,000 |
$ 26,000 |
$ 90,100 |
$ 24,400 |
$ 5,000 |
$ - |
$ - |
$ 740,500 |