Clicky

Supreme Court Knocks Down Part of Pa. Gambling Laws - PennsylvaniaCasinos.com News : PennsylvaniaCasinos.com News
gavel_and_cash
Published on
Update on

About a year and a half ago, the Keystone State passed a gambling expansion law that saw the launch of a number of new gambling activities in the state including sportsbooks, online casinos and satellite casinos among other things. The new regulatory regime in the state was widely welcome and lauded for all the developments that came with it even though there are a few issues that have come up. Some of these issues included the exorbitantly high tax rates that the operators have no choice but to deal with. However, one issue that some of the operators could not let slide was a clause in the legislation that shows a certain lack of equity across the state’s gaming industry.

What the Fuss Is All About

In the gaming expansion package that was passed in October 2017, there existed a provision that required the casino operators to part with 0.5 percent of all their slot revenues which would then be put into a Casino Marketing and Capital Development Account. The fancy language that defined this decree basically translated to taking from the better-performing operators and giving to the poorer ones. In other words, the funds that were collected in the account were distributed in a manner that favored the weaker casinos who would use the money for marketing and renovations.

Sands Bethlehem, the operator that filed the lawsuit with the state’s courts, was the first to realize that something was not right and whatever was going on was a violation of state and federal laws. The main complaint was that better performing casinos such as Parx Casino and itself were being forced to share portions of their profits with the weaker gambling properties which also happen to be their competitors.

Pa. Supreme Court to the Rescue

Thankfully, the funds were never distributed since the Supreme Court ordered the funds to be held in the account pending the ruling. Now, the Revenue Department will be required to refund all the casinos as the Supreme Court declared that the system is indeed illegal.

“Act 42 establishes a system specifically designed so that the taxpayers who pay the least into the CMDC Account are the most likely to receive a mandatory distribution from that account (and the less they pay, the more they receive), and vice versa,” Chief Justice Thomas Saylor wrote.

Even though the state is now expected to dole out refunds to the operators, the spokesman of the Revenue Department has said that the department is still in the process of reviewing the court’s decision. It is after this review that the funds will be distributed and, naturally, the biggest contributors are set to receive the largest amounts.

Latest Headlines

New Interstate Self Exclusion Technology Coming to Pennsylvania

Earlier this month, renowned gaming and entertainment operator GVC Holdings unveiled its Sustainability Charter, and shortly after that, the company began the journey towards its implementation. Now, GVC Holdings which will soon be known as Entain is the first-ever official partner of PlayPause, a new responsible gambling tool from a non-profit known as Conscious Gaming […]

BetMGM Announces Partnership with Pittsburgh Steelers

Ever since the federal ban on sports betting was lifted, there have been a ton of new developments in the sector. With more sports leagues and teams warming up to the idea of being a part of the industry, we have seen several team-ups that are set to push things even further. It was, therefore, […]

Wind Creek’s Betfred-Powered Sportsbook Now Live in Pennsylvania

Last Wednesday, Wind Creek Hospitality and Betfred USA Sports announced the debut of their sports betting operation in Pennsylvania. The new sportsbook is located at Wind Creek Bethlehem, one of the Keystone State’s most popular retail gambling destinations. Pennsylvania now has a total of 13 retail sportsbooks and this addition is bound to shake things […]

Pennsylvania Sports Betting Sets New Revenue Record in October

Things seem to be shaping up quite well for some sectors of the Keystone States gambling market despite the ongoing pandemic. Thanks largely to the rather dramatic surge in online betting traffic, the state recorded a double-digit revenue gain in October. This is the third consecutive record month for sports wagering since the launch of […]

Penn National Gaming Resumes Mini-Casino Construction in York County

 A lot of things are picking up pace in the Keystone State as efforts to reopen continue to ramp up. Lots of measures have been put in place to ensure smooth and safe operations despite the ongoing pandemic. One of the things that were temporarily halted back in March as part of the efforts to […]

Similar Stories in Gambling

New Interstate Self Exclusion Technology Coming to Pennsylvania

Earlier this month, renowned gaming and entertainment operator GVC Holdings unveiled its Sustainability Charter, and shortly after that, the company began the journey towards its implementation. Now, GVC Holdings which will soon be known as Entain is the first-ever official partner of PlayPause, a new responsible gambling tool from a non-profit known as Conscious Gaming […]

Wind Creek’s Betfred-Powered Sportsbook Now Live in Pennsylvania

Last Wednesday, Wind Creek Hospitality and Betfred USA Sports announced the debut of their sports betting operation in Pennsylvania. The new sportsbook is located at Wind Creek Bethlehem, one of the Keystone State’s most popular retail gambling destinations. Pennsylvania now has a total of 13 retail sportsbooks and this addition is bound to shake things […]

Pennsylvania Sports Betting Sets New Revenue Record in October

Things seem to be shaping up quite well for some sectors of the Keystone States gambling market despite the ongoing pandemic. Thanks largely to the rather dramatic surge in online betting traffic, the state recorded a double-digit revenue gain in October. This is the third consecutive record month for sports wagering since the launch of […]

PGCB Releases Coronavirus Data on The State’s Casino Workers

Last Thursday, the Pennsylvania Gaming Control Board (PGCB) released a report that detailed the COVID-19 situation and its relation to the Keystone State’s workforce. According to the figures from the gaming control board just 108 coronavirus cases were reported since casinos reopened back in June from among more than 16,000 casino workers across the state. […]