Supreme Court ruling could cause financial issues for municipalities

Local News

ERIE, Pa. – A ruling by the Pennsylvania Supreme Court could spell financial trouble for local municipalities that depend on revenue from Presque Isle Downs and Casino.

The court has ruled that host fee’s paid by the Summit Township casino and others across the state are unconstitutional.

The Supreme Court’s decision is final and there’s no opportunity for appeal.

However, the court has given the legislature 120 days to fix the problem before the ruling takes affect.

State gaming law imposes a 2 percent fee on gross slot machine revenues to be paid to the municipalities where the casinos were built.

However, the law also set a minimum of $10 million that must be paid.

The general assembly will be addressing the issue to correct the local share accounts to meet constitutional standards.

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