Pennsylvania Passes Jersey, Now #2 Gambling State in Country

Pennsylvania this year has eclipsed New Jersey as the number two gambling market in the country. (We don’t need to tell you who’s #1.)

“Casino and gaming revenues in the Northeast are shifting away from Atlantic City toward neighboring states, especially Pennsylvania,” said the report from Moody’s Investors Services.

Pennsylvania, which opened its first casino in 2006, led the nation with $1.5 billion in gaming-related taxes last year. Comparable tax revenues plunged by 49 percent in the same period in New Jersey, falling from $570 million to $291 million.

Woo-hoo?

[Courier-Post]

 

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  • stevenorton

    States considering the introduction of casino gaming have to decide what benefits they are trying to achieve. Most recent gaming markets have been interested primarily in taxes. PA, NY, MD and RI all have tax rates they discourage major resort casino investments. Each have tax rates that started at 55% to the high 60% range. Atlantic City, the first US state to introduce casinos, outside of Nevada, was more interested in re-establishing the North-east’s most significant seasonal resort. The State was interested in construction, jobs and tourism, so kept the effective win tax at 9.25%, still much higher than Nevada’s 6.25%. Mississippi, which was also interested in tourism, more than taxes, introduced a rate of 12%, with 4% going to the local community. Massachusetts, the latest gaming jurisdiction, has a win tax of 25%, but has to compete with the nearby Connecticut Tribes, if they are going to bring home some of the $ billion, that MA residents now spend at Mohegan Sun and Foxwoods. CT Tribe’s slots revenues are taxed at 25%, but nothing is paid on table win. Florida is now debating all of the issues surrounding various forms of gaming; including Tribal casinos, slots at pari-mutuals, cruises to no-where and now mega resortsthat would cost $ billions. FL just outlawed Internet Cafes and a number of individuals are currently facing jail time for a several hundred $million scam, that promised funds to disabled military personal.