Tony Moscato, CommissionerDoug Harbach, Director of CommunicationsPA State Tax Collectors Assoc. – October 14, 2016

If You Thought I Was Going to Address…

Managing the deer population?

Raccoons under your deck?

A Bear in a tree?

I’m not.

Those subjects fall under the

“PA Game Commission”

Legal Gaming in PA and the PGCB’s Role in

Ensuring Integrity at Casinos

Revenue Generation from Casinos and

Where the Money Goes

Funding for Property Tax

Relief Programs

Taxpayer Knowledge of School Property Tax

Reduction from Gaming Revenue & Suggestions

Lottery Games (1972)

Small Games of Chance (Clubs1988; Taverns 2014)

Dept. of Agriculture Horse Racing Commission

Gaming Control

Board

There are 4 types

of gambling

legally permitted

in Pennsylvania

Who regulates

each of these

forms of legal

gambling?

PA Lottery (under Revenue Dept.)

Liquor Control, Revenue Dept., State Police,

County Treasurer

Horse Racing

Casinos (2006)

12 licensed and

in operation

1 licensed but

not in operation

Gaming Act currently permits 15 casinos

1 Racino & 1 resort

license available

A Staff of 300

Seven Member Board

Primary objective is to ensure that

casinos are safe and gaming is fair

Operates at No Taxpayer Expense -

Casinos Reimburse Commonwealth

$5,402,219Fines to

casinos and

other license

holders

575Number of

persons

banned from

PA casinos

The Board assures

integrity of gaming

through a comprehensive

regulatory framework and

when necessary fines for

various violations.

The board also bans

from the casinos certain

individuals who have

proven to be

detrimental to the

industry’s integrity.

The Gaming Control Board works with its partner

oversight agencies to protect the public interest in

areas such as…

Smoking

in Casinos

Crime

in Casinos

Problem

Gambling

Responsible

Gambling

Millions of dollars per year from casino’s revenues goes to outreach and

treatment services through PA Dept. of Drug & Alcohol Programs

Print

Ads

Hotline phone numbers to

get help must appear on all

ads and on all casino ATMs

Casino revenue trains treatment

providers across the state to provide free

outpatient counseling and therapy for

problem gamblers.

Web

Site

The PGCB offers a Self-Exclusion ListIndividuals request to be banned from entering all of PA’s casinos

To date, 10,134 persons have voluntarily requested placement on the list.

Each are subject to arrest for trespass and forfeiture of winnings if caught in casino.

2,277 individuals have been caught on the gaming floor at least once.

0

1000

2000

3000

4000

5000

6000

7000

60764058

Male

Female

Does not permit smoking in an

area adjacent to the gaming floor.

Partially Permitted under the Clean Indoor Air Act of 2008

Casinos are permitted to designate 50%

of the casino floor to permit smoking.

Patrons should report any

violations to PGCB or casino

security.

Areas must be clearly marked,

though separating walls are not

required.

Eyes on the FloorEach casino pays for:

10 PGCB Representatives

11 Full-time PA State Police

Dozens of casino security agents

“Worst Place to Commit a Crime”

Average of 13.6 arrests per month per casino1,965 arrests statewide in 2015* including:

Theft: 192

Disorderly conduct: 175

Non Aggravated Assault: 141

Forgery/Counterfeiting: 119

Public Drunkenness: 80

Eyes in the SkyAll patrons on gaming

floor are watched live

and recorded through

hundreds of cameras

Slot Machines

Introduced in 2006

26,229 machines in operation

All connected to central system

Table Games

Introduced in 2010

1,140 in operation

Not connected to central system

10%?

90%?

30%?

70%?

By law, minimum payout over “life of the machine”

must be 85%.

All slot machines and games are checked in the

PGCB’s Gaming Lab before deployment in casinos

Do you know, on the average, what slot machines pay out?

All 26,000+ slot

machines are

connected to a central

computer system in

Harrisburg

All taxes due are

invoiced and collected

daily by EFT from each

casino

…resulting in $1.4 billion yearly.

54% tax rate on slots and 14% tax rate on tables generates

$3.7 million of tax revenue per day …

The total yearly economic impact of the

commercial gaming industry

in PA is nearly $6.2 billion.American Gaming Association – “Impacts of the Commercial Gaming Industry in PA”

Where does the tax revenue go…

Property Tax Reduction

Sustainability of the Horse Racing Industry

New Dollars to Casino Host Local Governments

Statewide Economic Development Projects

General Fund - Lowering of Overall Tax Burden to Citizens

County Fairs & Fire Company Grants

$780 million

$255 million

$155 million

$120 million

$ 90 million

$ 32 million

Annual

Property Tax/Rent Rebate ProgramFunded jointly by lottery and slot machine revenue

Primarily to senior citizens

Can be received jointly with general property tax relief

General Property Tax Relief Under Act 1 of 2004Funded only by slot machine revenue

Applicable only to local school tax

Available to ALL homeowners for primary residence only

Open to claimants or spouses age 65 or

older, widows or widowers age 50 or older

and permanently disabled age 18 or older

Eligibility threshold determined utilizing

only ½ of Social Security Income

The deadline in 2016 is December 31st

Income Max Rebate

$0 to $8,000 $650

$8,001 to $15,000 $500

$15,001 to $18,000 $300

$18,001 to $35,000 $250

$278.3 million in

rebates to 590,000

households across

the state in 2015

Get info and forms at:

www.revenue.pa.gov/GeneralTaxInformation/PropertyTaxRentRebateProgram

Forms and assistance in completing is normally available through

the district offices of PA State Senators and Representatives

Based on each school district’s 2003-2004 average daily membership and

property tax reduction index (PTRI). The PTRI for each school district

is the sum of its rankings on the following four factors divided by 1,000:

The district’s 2002 personal income per 2003-2004 average daily membership

The district’s 2004-2005 market value/personal income aid ratio

The district’s 2002-2003 equalized millage

The district’s 2002-2003 school tax ratio, which is the 2002-2003

local tax revenue collected divided by 2002 personal income

Determined through a formula in the 2004 Taxpayers Relief Act

For the 2016 general property tax reductions, approximately

$528 million was sent to 500 school districts

$86.3 million went to Philadelphia for wage tax reduction

The number of approved homesteads and farmsteads

to receive a reduction was almost 2.8 million with an

average reduction of $211

8 school district, through a referendum, elected to increase

Earned Income Tax for additional property tax relief

Smallest was $52 in Palmyra SD/Lebanon County

Highest was $569 in Allentown/Lehigh County

$19.1 million from slot machine revenue

to 16 area school districts and117,250 primary residences.

2016 will be 9th Year of School Property

Tax Reduction in York County

School

District

Est. 2016

Reduction

School

District

Est. 2016

Reduction

Central York $113 South Eastern $185

Dallastown Area $132 South Western $157

Dover Area $181 Southern York County $178

Eastern York $139 Spring Grove Area $125

Hanover Public $183 West Shore $84

Northeastern York $203 West York Area $177

Northern York $124 York City $539

Red Lion Area $190 York Suburban $121

The bill should clearly label

the reduction as the

Homestead Exclusion or

Credit including how much

reduction the homeowner

is receiving.

Almost ALL PA homeowners signed up properly to receive school

property tax reduction, but think they are not receiving. Why?

1) There is no rebate check – must look for reduction on bill

2) Don’t see their bill – escrow tax money

3) Bill does not clearly show casino revenue

as source of the reduction

Revenue for the reduction comes from taxes collected from

the play of slot machines in Commonwealth casinos.

…made available through tax

revenue from the play of slot

machines at Pennsylvania

casinos.

The reduction is paid for from revenues collected by the

Commonwealth from casinos and slot machine gaming.

Tax revenue from the play of slot machines at

Pennsylvania casinos funds this reduction.

www.gamingcontrolboard.pa.gov

Available at this address as a PDF

gamingcontrolboard.pa.gov/?p=273

The Pennsylvania Gaming Control Board

Doug Harbach, Director of Communications

dharbach@pa.gov

www.gamingcontrolboard.pa.gov

@PAGamingControl