“The overall fiscal impact of Governor Tom Wolf's tax increase proposal will not be what the administration hopes for”

Did Wolf's announcement take you by surprise? How have both casino operators and legislators reacted to Wolf's proposal bearing in mind that free-play is a marketing tool that allows PA's casinos to compete?

Yes, it was something we had not heard about until just prior to his budget address. Both the casinos and some legislators have expressed concerns about how this proposal will affect the competition our casinos face with those in neighboring states.

If this activity is taxed, many casinos will rethink using the tool. How will this impact Pennsylvania's economy?
I am certain if this proposal finds it way into law, our casinos will change their business model. As proposed the 8% tax will only be on promotional play, it will not be applicable to other comps like food or lodging. My guess is that casinos would then increase comps in the non-taxed area. If that is the case the administrations revenue estimates that this tax could generate will never be reached. Currently the admins estimates are revenues of 19.9 million in 15-16 budget and 50.9 million in 16-17 budget. In testimony Monday by the department of revenue (during appropriations hearings) in response to my inquiries the Secretary of Revenue testified that these estimates were based on taking current levels of promotional play times the 8%. I asked if they considered that the casinos will change their business models and would reduce their promotional offers, she answered that they had not considered that. So in my opinion the overall fiscal impact will not be what the administration hopes for.

Pennsylvania already pays one of the highest tax rates on slots in the nation. What other measures would you suggest to boost state's revenue?

Although some states do tax promotional play, as you stated Pennsylvania’s high tax rate on slots makes this tax extremely onerous on our casinos. There are other revenue generators we can look at to address our budget shortfall. This proposal is relatively small in comparison to others. I find it disconcerting that the administration would consider taxing promotional play in addition to a plethora of other broad based tax increases while not proposing to legalize internet gaming. I was hopeful the administration would embrace the industry as opposed to proposing barriers to its growth. The majority leader of the House has empaneled a small task force of both Republican and Democratic members to come up with a final gaming proposal to address internet gaming and other issues to help with revenues and the competitiveness of our casinos (yes I’m on the task force).

What do you think about North Jersey casinos and Atlantic City? Do you support the gambling expansion in North Jersey or do you believe it will only be -even more- bad news for Atlantic City, which has been struggling to survive the financial crisis? What are your thoughts on Governor Chris Christie's action plan to stave off bankruptcy?

As a PA legislator, New Jersey's proposed expansion to Northern New Jersey is a concern. For those who may be geographically challenged, Northern New Jersey borders Southeast Pa where our largest city, Philadelphia, has multiple casinos. This would be a threat, so I believe we need to take steps to insure our casinos remain competitive.

A lot of US states are reviewing DFS regulation. How are Pennsylvania's efforts coming along?

I guess you could say I am the DFS guy in the Pa legislature. At the request of the other side of the aisle before pursuing any further action on my legislation we have requested our gaming control board to do a study on the DFS industry. That study is due back 90 days. I can assure you that at a minimum we will be looking at regulating the industry, and the industry seems fine with that. Any further legislative action will be predicated on the aforementioned study as well as the outcome of ongoing legal challenges the industry faces (most notably New York).