Harrah’s Casino and Chester Officials Claim Proposed Legislation Threatens Their Investment in Community

By

Chester CFO Nafis Nichols
Chester CFO Nafis Nichols, at podium, said that, if the Pennsylvania Supreme Court's current decision to return local assessment taxes back to casinos is upheld, it would be devastating for his city. Photo courtesy of Rick Kauffman, Digital First Media.

Legislation being considered by the Pennsylvania House of Representatives would allow for the proliferation of as many as 40,000 video gaming terminals (VGTs) at hundreds of local bars, restaurants, and social clubs throughout the state with minimal public debate and transparency.

Harrah’s executives and employees recently joined with the Delaware County Council, Chester Mayor, Pennsylvania Harness Horsemen’s Association, and other local elected officials at the Harrah’s Casino and Racetrack in Chester to voice strong opposition to the legislation.

VGTs, they claim, will take over communities and cannibalize funding for local economic development and property tax relief.

“Harrah’s is a strong partner with the City of Chester that has created more than 1,400 jobs, attracted more than 33 million visitors, and generated more than $1.6 billion in taxes and fees for the state, county, and city since we opened our doors,” said Ron Baumann, Senior Vice President and General Manager of Harrah’s Casino and Racetrack.

“Legislation to add thousands video gaming terminals in the region threatens our ability to continue investing in the community and undoubtedly will have a significant impact on local jobs and the revenue generated to support property tax relief and community projects.”

Baumann also highlighted that legislation to add what equates to 18 new casinos statewide over the next three years is being rushed through the Pennsylvania House of Representatives without the open and transparent debate, detail, and considerations that were taken during several legislative sessions when developing the regulations and consumer protections that are in place at Pennsylvania’s existing casinos today.

As it is written, the VGT legislation is severely lacking in consumer protections and regulations, including no requirements for 24-hour security protection, no limits on the total number of machines deployed or where they can be placed, and no local option available for local elected officials to ban VGTs in their communities.

According to mid-range projections in a new study conducted by The Innovation Group, by 2020, property tax relief, which relies solely on slot machine revenue, is expected to decline by $205 million, undoubtedly cutting into the more than $30 million in property tax relief anticipated to be distributed to Delaware County residents each year.

The study also shows that communities hosting Pennsylvania’s existing casinos could see as many as 1,750 total jobs lost.

“Harrah’s Philadelphia is a strong economic generator for Delaware County not only from a salary and wage perspective, but through its continued investment and commitment to local employees and vendors,” said John P. McBlain, Delaware County Councilman.

“The expansion of video gaming terminals to bars, restaurants and social clubs will take millions of dollars away from local community projects and will divert millions of dollars from local property tax relief. The General Assembly needs to stop moving video gaming terminal legislation forward.”

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