Pennsylvania SC strikes down local slots tax

Pennsylvania is putting $50 million on the line after the state Supreme Court declared the local slots tax illegal.

Philly.com reported that the Supreme Court (SC) has given the general assembly to fix the 2004 law that legalized casinos in the Keystone State and paved the way for the state to impose different rates on casinos depending on their size.

The ruling, which declared that the municipal portion of tax on slot machines outside Philadelphia violates the state constitution, has dealt a heavy blow to the cash-strapped state that is now desperate for revenue. It is estimated that the state will be staking nearly $50 million.

It also comes as Pennsylvania mulls on introducing video-gaming terminals in bars and online gaming.