Fontana Discusses Impact of Gaming on PA Lottery

Throughout its more than 40 years in existence, the Pennsylvania Lottery has funded approximately 75 percent of the state's Department of Aging budget through programs that offer low-cost prescription drugs, free and reduced-fare transit, property tax and rent rebates, long-term living services and senior centers. Today, our Lottery is one of the most profitable in the nation.

When Pennsylvania legalized slots gaming in 2004 and expanded to table games in 2010, one of the issues the Legislature faced was how the state's lottery would be affected by these additions to the gambling industry. Recognizing the concerns, a provision was included in Act 71 of 2004 that requires the Legislative Budget and Finance Committee (LB&FC) to issue annual reports to the General Assembly analyzing the impact, if any, of implementing slots gaming on the Pennsylvania State Lottery.

The latest report that was recently released by the LB&FC shows very good news for our state and our residents. Despite rapid growth in casino wagering, lottery sales remained stable during the initial years and have increased significantly during the past two years. Lottery sales increased by 5.3 percent in 2011 and by 9.9 percent in 2012, indicating that the impact casinos have had on the Lottery have not deterred sales. Part of this growth is due to substantial expansion of the lottery retailer network and Pennsylvania's entry into the multi-state Powerball jackpot game.

The gaming industry also released figures recently that show how beneficial casinos are for our state's budget and economy. In March, the Pennsylvania Gaming Control Board announced that the state's 11 casinos generated $67.4 million in gross revenue from table games. That figure was up 9 percent from March 2012, when the casinos set the previous monthly record of $61.9 million. Combine this with March's slot revenue; the total gross revenue from gaming in Pennsylvania was up 1 percent over last March, to $296.7 million. With an average of 1,041 table games in operation on a daily basis, tax revenue produced in March was over $9 million.

Just like the state's Lottery, gaming proceeds go directly back to residents of the state through things like property tax relief, local and county government shares, economic development and the tourism fund. The horse racing industry and the state budget also receive a share of the gaming funds.

The LB&FC report once again proves that these two programs are thriving and the residents of our state are the ones who are truly reaping the benefits. Our focus should continue to be on growing these profitable markets rather than trying to dismantle successful assets.

You may view the LB&FC's entire report at the LB&FC website (http://lbfc.legis.state.pa.us/).

Senator Wayne D. Fontana

42nd Senatorial District

www.senatorfontana.com