Select games of chance were legalized in November.
Lehigh Valley tavern owners packed an information session this afternoon to learn about Pennsylvania's new tavern gaming law.
And many left disenchanted about the costs -- at least $4,000 for the license and the 65 percent tax on net revenue from the games.
Gov. Tom Corbett signed Act 90 into law Nov. 27. Applications for licenses become available Jan. 27. The law specifies three types of games are permissible: pull tabs, raffles and daily drawings.
Diamonz owner Lenora Johnson said the fees seem very high. She's going to have to give it some thought and see if it makes sense for her establishment in West Bethlehem.
Lex and Patty Wilkinson, the owners of West Easton's Dubs on 5th, agree they've got a major analysis ahead of them.
"The presentation was very interesting," Lex Wilkinson said. "It's very highly taxed and very little of the proceeds will get to charity or to us."
Taking on the games would require a huge amount of record-keeping and that comes with labor costs, the couple said.
Olde Homestead Golf Club owner Glen Smith said he came for information but decided the games of chance aren't something the Lynn Township club would get involved in.
"It doesn't fit in," Smith said.
The tavern games come with strict rules. With the three games that can be offered, no single prize can pay out more than $2,000. No more than $35,000 can be awarded through the games in a consecutive seven-day period.
To get a license, applicants must submit their paperwork and undergo a background check of the licensee and all officers of the establishment. It costs $2,000 just to apply and the fee is nonrefundable.
If the background check costs exceed $2,000, the applicant must cover them. If a license is awarded, it is another $2,000. It costs $1,000 annually to renew the fee and the licenses are not transferable.
"It's a very complicated law," said Todd Merlina, an enforcement officer with the Pennsylvania State Police Bureau of Liquor Control.
Merlina reminded attendees that the law does not legalize sports pools.
"That is illegal gambling," he said.
While the liquor control board will process the applications and ultimately approve them, other state agencies will have a role in tavern gaming. The Pennsylvania Gaming Control Board will conduct background checks on applicants, while enforcement will be the responsibility of the Bureau of Liquor Control. The Pennsylvania Department of Revenue will oversee tax filings and other payment obligations.
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