O'Brien's gamble on new casino tax
In talking to state Rep. Mike O'Brien (D-175th dist.) about the reasoning behind his latest amendment to Senate Bill 711, the representative likened the lawmaking process to something seemingly unrelated - sausage. "There are two things that should not be watched being made, sausage and legislation," he said recently, paraphrasing a 19th century German statesman Otto Von Bismarck. But, just as the FDA isn't going to allow any sausage out into the marketplace without being inspected, the media hasn't let O'Brien's amendment pass unnoticed. Some worry that if the amendment - aimed at securing funds from a tax on table games for neighborhoods impacted by casinos - goes through, it could derail the work Fishtown Action and the New Kensington Community Development Corporation did in securing a community benefits agreement with the SugarHouse casino. Others have even likened the amendment to a Vince Fumo-esque money grab, but O'Brien said his only motivation is to protect the community. He also warned the community might need a backup agreement, pointing to wording in the neighborhood's CBA that could potentially void the agreement at any time. Introduced by O'Brien on Sunday, Oct. 4, the amendment would hit casinos with an additional 1-percent tax on gross table game revenue, should games like roulette, poker and craps be legalized. The legalization of table gaming is a very real possibility, as Gov. Ed Rendell pushed legislators to have the budget -which includes revenue from table games - finalized and on his desk by Friday. The state hopes to have a new source of funding to funnel to the counties and municipalities that host casinos. In most counties, this would be a simple addition of revenue into the general funds for the host county and the host municipality. MAKING THAT SAUSAGE Senate Bill 711 originally was introduced by state Sen. Jane Earll, a Republican from western Pennsylvania, as a reform bill with no mention of legalized table gaming. It included many changes to Act 71, the 2004 law that legalized slots, including a way to prohibit individuals and entities regulated by the gaming act from making political contributions. It also introduced a felony ban, prohibiting convicted felons from securing principal or key gaming licenses to work at state casinos and more. But, as any bill in Harrisburg, Senate Bill 711 has been through the meat grinder of amendments a number of times, with some choice morsels being worked into the mix. After the bill left the State Senate, the State's House of Representatives added in the inclusion of table games at Pennsylvania casinos and suggested a 34-percent tax on all table gaming revenue. While the bill hasn't yet been passed, the state Senate would rather see a 14-percent tax on table games, with some sort of local share included, similar to what has been done with slots. The governor has promised to veto any table gaming legislation that doesn't produce at least $200 million a year for the state. This would mean the senate and the house will need to come to at least a 16-percent tax on table games with a $15 million fee for a table gaming license. Currently, counties and municipalities hosting any of the state's nine slots parlors each get a 2-percent cut of gross slots revenue.
