Much has been made over the last 24 hours of the casino license granted to Majestic’s proposed North Shore casino. Speculation abounds on the possible affects on the Steelers, Pirates, Penguins and projects such as the North Shore Connector. In addition, possible appeals of the Gaming Board’s decisions will dominate the news cycle leading up to the holidays.
However, let’s keep in mind that when slots were first approved in 2004, the stated goal was to generate property tax relief, not to placate sports teams.
Returning to the original premise - now that a slot license has been awarded in Pittsburgh, how much property tax relief can Pennsylvanians expect and at what cost?
What eventually came out of the slots legislation is a projected average of $339 reduction in property taxes per household in PA. In order to realize an average of $339 reduction in property taxes, each household in PA must wager $6,289 a year in casinos. ($30 billion must be wagered to produce $3 billion in projected annual revenue at 10 to 1 odds, divided by 4.77 million households in PA.)
Some people will pin their hopes on out-of-state gamblers who will help casinos reach the $30 billion threshold, lightening the load on residents of Pennsylvania. Yes, there will no doubt be some out-of-state gamblers in the mix. But with Atlantic City to the east and Wheeling to the west, and the possibility of Ohio also legalizing slots, will PA pick up any significant interstate gambling traffic?
Aside from the social, economic and spiritual costs, the chances of achieving the numbers required for even the modest projected property tax reduction do not make for a good bet.
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