The Race Horse Development and Gaming Act of 2004, authorized 14 slot machine gaming operator licenses to be awarded to applicants approved by the Pennsylvania Gaming Control Board which was also established under the same act. Several major objectives of the Act are to deliver a significant source of revenue for property tax relief, provide additional jobs and reinvigorate the Pennsylvania horse racing industry. Subsequent legislation in January 2010 authorized table games and an additional casino resort license to be awarded in 2017.
Pennsylvania Gaming Control Board (PGCB)
Established with the passage of the Race Horse Development and Gaming Act of 2004, the Pennsylvania Gaming Control Board was created to oversee the authorization, operation and regulation of casino gaming in the Commonwealth. Its objectives are to ensure the success, integrity and fairness of gaming across the state.
The Pennsylvania Gaming Control Board provides regulation and oversight through the testing and certification of all slot machines and gaming equipment. On-site enforcement of internal controls at each casino facility is a major priority of the PGCB to ensure an immediate response to patron complaints and to quickly initiate investigations.
For more information regarding the operations and responsibilities of the Pennsylvania Gaming Control Board, please view the video below.
Pennsylvania Gaming Taxes
A Pennsylvania tax rate of 55% is levied on revenue earned from slot machine play. This means that for every dollar produced as revenue from slot machine play, 55 cents is returned to Pennsylvanians.
The following chart displays the percentage breakdown of taxation and licensee retained earnings from slot machine revenue according to the Race Horse Development and Gaming Act of 2004:
According to legislation authorizing table games, a tax rate of 16% is levied on revenue earned during the first two years of operation. Of that amount, 14% goes to the State and 2% goes to local and county governments. After two years, the tax rate drops to 14% with 12% going to the State and 2% going to local and county governments.
It Pays to Play in PA (Our Official Tagline)
It Pays to Play in PA… for Pennsylvania Property Owners and Senior Boca citizens use casino gaming revenues are marked to offset property taxes and fund a rent rebate program for senior citizens.
It Pays to Play in PA… for the Pennsylvania Horse Racing Industry because casino gaming revenues are utilized for larger purses, improving racetrack amenities and supporting breeding programs.
It Pays to Play in PA… for Pennsylvania Economic Development and Tourism because casino gaming revenues are utilized to fund various Economic Development and Tourism initiatives throughout the State.
It Pays to Play in PA… for the host counties and municipalities where the casinos are located because gaming revenues are split between the host county and municipality.
It Pays to Play in PA… for PA Casinos, Businesses and Jobseekers because millions of casino patrons are wagering billions of dollars, creating jobs and generating tax revenues locally and statewide.
It Pays to Play in PA… for visitors to the PA casinos because the Pennsylvania law requires slot machines to pay back a minimum of 85% of what is wagered in the slot machines. This requirement is higher than the laws in both New Jersey at 83% and Nevada at 75%.
Additional information regarding the Pennsylvania Casino Industry including gaming revenue data for each PA casino location can be found on the Pennsylvania Gaming Control Board website.