The senate for the US state of Pennsylvania has approved a temporary solution to restructure how casinos share revenue with local communities.
The restructuring means the casinos will pay $1m - or 20 per cent of their initial $5m slot licence fee - per year to local governments until May 1. After that, legislators will need to find a permanent solution.
The current law requires casinos to pay the greater of two per cent of slot revenues or $10m to host communities. Due to the varied amounts of revenue generated by casinos, the $10m minimum equates to a tax rate between 4.55 and 10.43 per cent.
The amendment changes the payment to a flat fee, for now.
Source: Fantini Report
