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Pennsylvania Slots No Worry to A.C. Casinos

ATLANTIC CITY, New Jersey – As reported by the Press of Atlantic City: "Like church bingo, Pennsylvania's relatively modest slot parlors will be strictly the minor leagues of gambling and should pose little threat to the bigger, more extravagant Atlantic City casinos, political leaders told an industry conference Tuesday.

"Initially, there were fears that the introduction of 61,000 new slot machines at 14 locations across Pennsylvania in 2005 or 2006 would be a major blow to the Atlantic City market, but now it appears the impact will be far less serious, they said.

"…Speaking at the annual Gaming & Technology Conference, [state Sen. Bill Gormley, R-Atlantic] said the casinos are building hundreds of millions of dollars of Las Vegas-style attractions, while Pennsylvania's fledgling slot operations are mired in political infighting and hampered by high state taxes.

"…Unlike Atlantic City's megaresorts, the Pennsylvania slot parlors are expected to be relatively humble stand-alone operations or companion sites at horse-racing tracks.

"…Mayor Lorenzo T. Langford, another key political supporter of the casino industry, also predicted that Pennsylvania's slot parlors won't be able to match the array of tourist attractions offered by the seaside resort.

"…Gaming executives also downplayed the impact of Pennsylvania slot parlors, saying that the full-service casinos pamper gamblers with the types of amenities that they really want.

"…Atlantic City would lose a large chunk of business if Pennsylvania gamblers decide to spend their money at the slot parlors instead of patronizing the casinos. Pennsylvania customers represent about 25 percent of the Atlantic City market, according to Michael Pollock, publisher of Michael Pollock's Gaming Industry Observer, an industry newsletter.

"Pollock, however, predicted that Pennsylvania's tax rate on slot parlors will discourage developers from jumping into that market. Pennsylvania's slot taxes will amount to about 52 percent, compared to New Jersey's tax rate of 9.25 percent on the Atlantic City casinos, he said…"

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