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Critics: Pennsylvania Governor Overly Optimistic about Slots

PENNSYLVANIA – As reported by the Pittsburgh Tribune-Review: "Pennsylvania slot machine proponents are wagering that 12 Pennsylvania slot parlors would generate profits of $3 billion a year. That's about a third of the profit that slots at 347 Nevada casinos raked in last year.

"The $3 billion figure is what it would take for Pennsylvania to net $1 billion in new tax revenue, a figure Gov. Ed Rendell has floated in his latest proposal to license 12 slot parlors and take 34 percent of the profits for the state.

"Slots opponents, such as state Sen. Gibb Armstrong, R-Lancaster, question Rendell's math, comparing the projected Pennsylvania revenue with the actual profits of a state that has had legalized gambling for years.

"'If ($9.56 billion) is all Nevada is doing, how are we possibly going to get to $3 billion? We'd love to know the answer,' said Armstrong aide Chris Latta.

"…The parlors would generate $1 billion to be used to reduce school property taxes -- according to Rendell. That would mean an average of $339 a year in property tax relief for each homeowner, he said.

"Advocates insist slots are a natural revenue generator for a state whose residents, according to Harrah's 2003 Survey of the American Casino Gambler, make 8.8 million trips outside the state every year to gamble…"

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