Costa, Colleagues Urge Approval of Small Games of Chance in Taverns

HARRISBURG, JUNE 9, 2010 — Surrounded by local tavern owners from across Pennsylvania, state Sen. Jay Costa and several Senate Democratic colleagues today announced their support for legislation that would permit small games of chance at taverns.

It’s a logical extension of what we're able to do with the small games of chance law,” said Costa (D-Allegheny). "I'm happy to lend my support to this effort as part of the budget process."

“This is a win-win for Pennsylvania,” Sen. Mike Stack (D-Philadelphia) said at the Capitol news conference. “At a time when we are faced with a gaping $1.2 billion state budget deficit and a looming June 30 deadline to balance the budget, this is a new way to raise new revenues without burdening the taxpayers with a tax increase.”

Senate Bill 1301, sponsored by Sen. Ted Erickson (R-Delaware/Chester), and its companion bill, House Bill 2379, sponsored by state Reps. Eugene DePasquale (D-York) and Ron Miller (R-York), would expand the Local Small Games of Chance Act to include licensed establishments like local bars and taverns. It would also would increase the individual prize limits for small games of chance from $500 to $1,000, and increase the weekly limits from $5,000 to $20,000, as well as allow clubs to use 50 percent of their proceeds for operating expenses.

Thirty percent of the funds raised by taverns would go directly back to Pennsylvania. It is estimated that this could generate up to $100 million dollars in state revenue. Twenty percent of what is raised by taverns would go to charitable organizations that are designated in a business’ license application, which could generate up to $80 million for charitable causes and local organizations.

An amendment has been proposed to give an additional 1 percent to the Pennsylvania State Police to enforce the measure and another 1 percent to the Pennsylvania Department of Revenue for administrative costs. The tavern owners would keep the remaining 48 percent of the revenues they raise.

The lawmakers are sending a letter to Gov. Ed Rendell to urge his support for the bills.

“If we’re going to hold the line on taxes we need new revenue sources and Senate Bill 1301 is a way to do that,” said Sen. Lisa Boscola (D-Lehigh/Monroe/Northampton). “This legislation offers a new revenue source that would not be put on the backs of taxpayers.”

“This issue must be on the table as we move forward toward the June 30 budget deadline,” said Sen. Sean Logan (D-Allegheny/Westmoreland).

“We need as many resources as possible in light of fiscal challenges,” said Hughes (D-Philadelphia/Montgomery). “It’s about preventing cuts to the budget.”

The Pennsylvania Tavern Association, Pennsylvania Fire and Emergency Services Institute and numerous Veterans of Foreign Wars posts support this legislation, among many other local organizations across the state.

“Senate Bill 1301 will achieve many goals: it will help our small businesses survive and grow, while at the same time helping charitable organizations in our communities; fraternal and social clubs, which each have their own missions and responsibilities to their communities; and the Commonwealth,” said Tom Berry, a tavern owner from Delaware County and president of the board of directors of the Pennsylvania Tavern Association. “On behalf of my colleagues across Pennsylvania, I want to thank Senator Stack for standing with us on this critical piece of legislation."

There are over 12,000 taverns in Pennsylvania, and they employ an estimated 216,000 Pennsylvanians. Statewide they generate $140 million in state and local taxes, as well as millions of dollars to charitable, educational and other causes in their communities, according to Amy Christie, executive director of the Pennsylvania Tavern Association.

“Unfortunately, our members have been struggling to keep up with increasing costs, declining revenues, and rules and regulations that are skewed in favor of others in the hospitality industry. One measurable consequence of these difficult times is the more than 900 licensees who have closed their doors or put their licenses in safe keeping until the economy rebounds,” Christie said. “This legislation is one way to help our members — and the communities they support — deal with these challenges. It includes a new revenue source that actually could spur growth in our industry and channel private resources to worthy causes.”

Currently, 16 other states have this law on their books, including border states Maryland, Ohio and West Virginia.

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Editor’s Note: Attached are two photos from the event with the suggested caption:

268M5982.jpg Sen. Mike Stack (D-Philadelphia), surrounded by tavern owners from across the state, talks about the importance of permitting small games of chance at taverns. He is also joined by Sen. Sean Logan (D-Allegheny/Westmoreland).
268M5990.jpg Sen. Mike Stack (D-Philadelphia), surrounded by tavern owners from across the state, talks about the importance of permitting small games of chance at taverns. To his left, he is also joined by (from left to right) Sens. Vince Hughes (D-Philadelphia/Montgomery), Jay Costa (D-Allegheny) and Sean Logan (D-Allegheny/Westmoreland).

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