New tax could restrict casino growth
I am writing in reference to Mike Bradwell’s recent article, “Meadows GM sees free play tax proposal having ‘unintended consequences.'” It discussed Gov. Tom Wolf’s proposed 8 percent tax on Pennsylvania casinos’ promotional play. This promotional play is used by casinos as a marketing tool to drive new and recurring visitors to the entertainment facility, which results in substantial tax revenue, jobs and many other economic benefits for our commonwealth. As Washington County is a host county for a casino, we should be concerned that the proposed new tax will restrict growth and investment at The Meadows Racetrack and Casino.
Washington County’s top tourism attraction is The Meadows Racetrack and Casino. Last year, the casino hosted over 5.3 million people and spent $17.8 million on goods and services in Washington County. In addition to the $49.6 million the casino also spent on payroll, employing 1,357 people, Washington County has also received over $73 million in the Local Share Account (LSA) since 2008. These LSA funds are invested in new economic development, infrastructure and quality-of-life projects for Washington County. These substantial employment numbers and investments demonstrate the positive impact the casino has on tourism, economic development and our economy.
However, this economic impact is tempered by the commonwealth’s existing slot machine revenue tax of 55 percent, which is one of the highest in the nation. An additional 8 percent tax will not only further hinder the growth of this industry, but also negatively impact our local community by limiting future capital investment as well as reducing the number of visitors, jobs and eventually contributions to the Local Share Account. It will also reduce the annual amount of tax revenue – $125 million in 2015 – that goes to the biggest beneficiary of gaming, the Commonwealth of Pennsylvania.
The gaming industry is relatively new to our state, and yet, in its short history, its economic impact has been substantial. However, it is becoming apparent that the state is not viewing the industry as an economic driver, but as an unlimited source of tax revenue. That perception needs to change, and we need to promote policies that encourage and expand our entire business community, not penalize them for their success.
Jeff Kotula
Washington
Kotula is the president of the Washington County Chamber of Commerce.