PA Slot Machine Tax Revenue Increases Nearly 5% In FY 2011-2012

Casinos generated over $1.3 billion in tax revenue from slots play

HARRISBURG, Pa., July 3, 2012 /PRNewswire-USNewswire/ -- The Pennsylvania Gaming Control Board reported on its web site today that tax revenue produced from the play of slot machines during the 12-month period ending June 30, 2012 totaled $1,345,087,522, an increase of 4.76% from the same period in 2010-11 when tax revenue was $1,283,992,674.

To date, since the opening of the first slot machine casino in November of 2006, taxes just from slot machine play have totaled $6 billion.  That revenue is used by the Commonwealth to fund homeowner property tax reduction, increased purses and benefits to personnel in the horse racing industry, economic development including water and sewer projects, local fire and emergency company grants, and the General Fund Budget.  Additionally, counties and communities that host casinos receive a share of tax revenue.

Pennsylvania taxes gross revenue from slot machines at 55%.

"We are pleased with the annual slot machine revenue figures and optimistic about the future success of Pennsylvania casinos," said Board Chairman William H. Ryan, Jr.  "At the same time, we are fully aware that bordering states will provide more competition for gaming entertainment dollars which can affect the level of growth we are seeing."

Ryan added that the gaming industry in Pennsylvania employs more than 16,000 people and spends hundreds of millions of dollars annually to purchase goods and services from other Pennsylvania businesses.

*Tax revenue in this chart does not include approximately $193 million of Local Share Assessment "true-ups" that are made to assure that promised revenue per the Gaming Act are made to the communities that host a casino. The addition of the "true-up" tax brings total tax revenue from slot machines to $6 billion.

The Board also provided slot machine gross revenue comparison for each casino for the 2010/2011 and 2011/2012 Fiscal Years:

Additionally, the Board placed on its web site its monthly slot machine revenue report that showed the 11 operating casinos generated $110,873,124 in tax revenue from slot machine play in June of this year, a 6.24% increase compared to June 2011.

There was also an uptick in the measurement of revenue from slot machines for just the 10 casinos operating in June 2012 that were also open for the full month of June 2011.  That increase was 4.45% with $201,656,332 generated this year compared to $193,055,883 in June of last year.

Gross revenue for each of the casinos operating in June 2012 is as follows, with the percentage change reflected for those casinos that were operating in June of both years:

The average number of operating slot machines throughout Pennsylvania at the 11 casinos was 26,785 in June 2012 compared to 26,390 at 10 casinos in June 2011. 

About the Pennsylvania Gaming Control Board:

The Pennsylvania Gaming Control Board was established in 2004 with the passage of Act 71, also known as the Race Horse Development and Gaming Act. Pennsylvania's first new state agency in nearly 40 years, the Gaming Control Board is tasked to oversee all aspects of the state's casino industry. The 11 casinos in operation all offer both slot machine and table game gambling, employ over 16,000 people, and collectively have generated nearly $6.9 billion in tax and license fee revenue since the first casino opened in November 2006. A portion of that money has delivered property tax reduction in each of the past 5 years for all Pennsylvania homeowners; provided funding to the Commonwealth's horse racing industry, fire companies, water/sewer projects, and the state's General Fund; and, established a new stream of tax revenue to local governments for community projects.

A wealth of information about the Gaming Control Board's regulatory efforts and Pennsylvania's gaming industry can be found at www.gamingcontrolboard.pa.gov. At this website, visitors can watch Board meetings live or view videos of past meetings, look up future meeting schedules and past meeting transcripts, obtain information on identifying a gambling problem and gaining assistance, access an interactive map of casino locations, request a speaker for their group, along with much more information.  You can also follow the agency on Twitter by choosing @PAGamingControl.

CONTACT: Doug Harbach or Richard McGarvey
(717) 346-8321

SOURCE Pennsylvania Gaming Control Board