Pennsylvania approved new gambling laws in 2017 which paved the way for gambling expansion in the state. However, some casinos challenged a part of the new legislation and filed a lawsuit which was being heard by the Supreme Court of Pennsylvania.
The apex court has now ruled that the provision in the law which allowed the state to collect 0.5 percent of all slot revenues from casinos to fund a Casino Marketing and Capital Development Account be struck off.
The purpose of the account was to fund the casinos struggling financially in their marketing and promotion plans. The casinos against the provision called the bluff of the new regulation and argued that this provision is merely charging better performing and money-making casinos to fund those that aren’t. In other words, they claimed it was denting their profits only to support other struggling businesses in the same competitive industry.
Ruling in favor of casinos the Supreme Court ruled that the particular provision in the law violates the existing state and federal laws.
Supreme Court Justice Thomas Saylor, pointed out that, “Act 42 establishes a system specifically designed so that the taxpayers who pay the least into the CMCD Account are the most likely to receive a mandatory distribution from that account (and the less they pay, the more they receive), and vice versa.”
Following the judgment, the casinos who have contributed a part of their profits to the “Casino Marketing and Capital Development Account” will be reimbursed their contributions. Also, the state is directed to stop with their collections according to the provision which has now been deemed illegal.