Predictions of Slots Local and Statewide Impact on PA.

The Pennsylvania Legislature has already passed the gambling bill that will create new slots parlors across the state, but they are still torn on the potential economic impact.  On one hand, area development officials push the positive impact of slot machines as numerous and obvious, on the other, watchdog groups are not so quick to shine a positive light on the new legislature. 

The gambling legislation will only issue licenses for two slots resorts in the entire state.  As of last month’s application deadline, Nemacolin Woodlands Resort & Spa in Farmington and Seven Springs Mountain Resort were the only two applicants remaining.  Licenses could be awarded by the end of the year, but there is sure to be a public hearing about the applications in the coming spring. 

Fay-Penn Economic Development Council president, Mike Krajovic, has a host of reasons to support the positive impact argument.  Slot machines “would be another reason for people to come visit the Nemacolin resort, and those increased visitations will result in new job creations and tourism expenditures in the county.”

Increased visitation to slots parlors and resorts from inside and outside of the state, according to Mike Krajovic, will have a tremendous, financial effect on many businesses in the area.  Everything from the local hospitality business to retail stores will be forced to expand in order to handle the great influx of people that will be drawn by a new slots resort. 

Krajovic points out that neighboring states receive a lot of money from Pennsylvania residents that are forced to travel to out of state gambling destinations.  With slots parlors and resorts in Pennsylvania, that money will stay in the state.  Not only that, Pennsylvania will begin drawing revenue from other states as gamblers begin to migrate.   

Wheeling, West Virginia, is a living example of Krajovic’s predictions.  The Wheeling Island Racetrack and Gaming Resort offers the closest gambling in the entire region.  West Virginia collected more than $110 million in fees and taxes from the resort in 2004.  $110 million translates into 58% of the city of Wheeling’s gross terminal income. 

Wheeling Island’s spokesperson, Kim Florence, also points out that Wheeling Island makes an additional contribution to the economy by providing nearly 1,000 jobs. 

Matthew Brouillette, president of the Commonwealth Foundation, a Harrisburg watchdog group, does not contest the positive economic impact of communities that house slots.  He does, however believe that it will through a wrench into the statewide economy.   

“Locally, there will be an impact on the economy, but statewide there will not be a benefit.  This proposal is addition.  We need multiplication,” say Brouillette of the new slots legislation. 
 
Governor Ed Rendell has boasted that the coming slots revenue will create a $300 relief in real estate tax for each Pennsylvania homeowner.  Brouillette says the money generated from slots will not be remotely enough to help Pennsylvania’s more than 12 million residents even though Legislature made the increase in slots venues from four to 14. 

"The taxpayers are the last ones in line for this money," Brouillette said. "State projects like the Philly Convention Center and the Pittsburgh International Airport are first."

Brouillette also feels this legislation is similar to opening a can of worms.  Slot machines seem only to be a gateway into more statewide gambling.  "They consider this free money, so they will push table gaming and other forms of gambling," Brouillette said.

Brouillette says the state is making a mistake in relying on unstable slots parlor income as revenue.  Nationwide gambling is on the rise.  That alone will counteract the potential of drawing in money from other states. 

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