As the amended deadline for a legislative fix for the gaming law’s language on county and municipal host fees approaches, the House committee in charge of gaming issues held a meeting in Erie County to hear testimony on the impact of the host fees. Erie hosts a category 1 casino, meaning it is connected to a horse racing facility.
It is located in a county of the third class, and by the law’s language on the host fee the casino pays 2% of its gross terminal revenue to the county for grants, and 2% or $10 million, whichever is greater, to the municipality. Those provisions were struck down by the Supreme Court last year and were to be fixed by late January but that deadline was extended.
At the hearing there was some talk about extending the host fee to places where a casino might not be located, the impact of expanded gambling options on casino activity, and what the money is used for. Our 2013 report examined the local distribution in Allegheny County from the Rivers Casino.
