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Thanks to a lawsuit from Sands Bethlehem, an element of the 2017 Pennsylvania gambling expansion law was struck down by the state’s Supreme Court.
The Sheldon Adelson-owned casino sued the state over the element of the legislation that created the Casino Marketing and Capital Development Account.
The state took 0.5 percent of slot tax revenue from each property and put it into that fund. Those funds would be redistributed and given to the state’s poorest performing casinos so that they could spend more on marketing and improve their bottom line.
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Sands argued that the due process and equal protection clauses of both the state and U.S. Constitution were violated by the law. The court agreed.
The fund held $21 million at the time the court struck down the law. Now that money will be refunded to the casinos that paid it.
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According to the Associated Press, Chief Justice Tom Saylor wrote that the benefit received and the tax burden imposed made the provision unconstitutional.
In December, the state put a freeze on collecting for this fund. Mount Airy Casino Resort and Preque Isle Downs and Casino were both set to receive the lion’s share of this fund at $4 million each. Three other casinos were going to receive smaller amounts and seven casinos wouldn’t receive anything.