In a move meant to increase Pennsylvania's state and local tax base, Pennsylvania Governor Tom Corbett signed into law a bill that allows bars and taverns throughout the commonwealth to offer certain games of chance, known as tavern games. They include pull-tabs, daily drawings and certain raffles. Pull-tabs are games of chance that involve a ticket in which a player pulls, peels or pops open a selected part of the ticket to reveal images for a chance to win a prize based on what the ticket shows. These games may not offer a single prize higher than $2,000 or $35,000 in any consecutive seven-day period.
Pennsylvania collects a 60-percent tax on net revenue from tavern games, and local municipalities collect a 5-percent tax on net revenues. The Corbett administration was hopeful that the 60-percent state tax would have a significant impact on Pennsylvania's budget—a revenue boost in excess of $100 million per year. To meet these goals, thousands of Pennsylvania bars would need to seek a license to operate tavern games.
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Originally published in Philadelphia Business Journal.
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