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In the UK they were hailed as the route to regeneration before facing an immovable road block in the shape of 3 votes and a new Prime Minister. In Massachusetts and Kentucky they still invite controversy in a seemingly ceaseless battle. In Pennsylvania they are a done deal and life has moved on. In Australia a previous lack of foresight has brought them once again into the public eye. The slot machine saga may ignite passions but many still believe that properly regulated gaming machines can and do bring economic advantages.
Yesterday was the groundbreaking ceremony for a US$350 million slots casino at Philadelphia Park racetrack in Pennsylvania. Back in July 2004 legislation was passed that allowed the development of slots venues in the state, legislation that was part of Governor Rendell’s economic plan. The new casino will replace a temporary slots facility that opened in December 2006, a facility that has already seen US$4.5 billion wagered, and return it to the racing venue. Pennsylvania’s slot machines have made US$1.2 billion in gaming revenue and total tax is 55%.
The tax is split into Local Share Assessment (4%), which benefits the local communities; the Economic Development and Tourism Fund (5%) and the Pennsylvania Race Horse Development Fund (12%), which benefits the racing industry. The other 34% of gaming revenue is state tax used to give property tax relief and fund other programmes.
Yesterday the Chairman of Philadelphia Park applauded Governor Rendell for his vision in pushing for slot machines to benefit Pennsylvanians. Bob Green said it was time to say, “You were right and they were wrong. All of the critics . . . Where are they today? I don't hear them."
It would be naïve to think that all criticism has been silenced but the move to allow slot machines has created jobs and improved the economy of Pennsylvania. Last week was National Problem Gambling Awareness Week, actively promoted by Governor Rendell and the Pennsylvania Gaming Control Board. The Board is only the second jurisdiction in the nation to have established an Office of Compulsive and Problem Gambling to address the issues of how gambling affects some individuals.
Pennsylvania and the majority of its residents have taken a view that balances economic advantages from gambling with due consideration for the small minority that find gambling problematic. With the necessary tight controls and regulations in place, it seems to be paying off for them. Progressive slots can bring jackpots to more than just a few lucky punters. (E-03.19.08)
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