Pennsylvania casinos are asking the court to allow them to tax the gray machines that have been operating in the state. The gray machines are similar to slot machines but are unregulated and untaxed, meaning they are cutting into the profits of the state’s legal casinos.
The Pennsylvania Gaming Control Board estimates that there are around 40,000 gray machines in the state, generating roughly $200 million in untaxed revenue. This is money that could be going to the state’s legal casinos, which are heavily regulated and taxed.
The casinos argue that the gray machines are operating in a legal gray area, as they are not regulated by the state and therefore do not pay any taxes. This puts the legal casinos at a disadvantage, as they must adhere to strict regulations and pay hefty taxes on their revenue.
The legal casinos are now asking the court to level the playing field by allowing them to tax the gray machines. They argue that this will not only help increase state revenue, but also help protect consumers who may be unknowingly playing on unregulated machines.
The court will have to decide whether the gray machines should be subject to the same regulations and taxes as the state’s legal casinos. This decision could have major implications for the gambling industry in Pennsylvania, as well as for the state’s overall revenue.
In the meantime, the legal casinos are feeling the pinch of competition from the gray machines. They are hopeful that the court will rule in their favor and help ensure a fair and level playing field for all gambling establishments in Pennsylvania.
