PA Casinos Challenge Tax System

In a new legal challenge, twelve Pennsylvania casinos have asked the state’s highest court to rule that the current tax system, which imposes a 54% tax on slot machine revenue but exempts skill games in bars and stores, is unconstitutional. The casino owners argue that the unequal tax treatment violates fairness principles and could jeopardize over $1 billion in annual state revenue used for property tax rebates and development projects. The outcome may hinge on a related case determining whether skill games should be classified as illegal gambling machines. The state Department of Revenue has yet to comment on the lawsuit.