Board reluctant to gamble with $745k in slots revenue
According to its treasurer, Tom Nolan, Northampton County’s Gaming Board is sitting on a $745,128 mountain of cash. That’s how much was in its restricted account, i.e.; the one that pays municipal grants, at the end of August. At their Sept. 25 meeting, board members made clear that they are in no hurry to award grants. That’s because, if they do, the state could ask that the money be refunded.
A year ago, the Pennsylvania Supreme Court ruled that the tax imposed on slots revenue is unconstitutional. The court found that the tax, which could impose different rates on different casinos, violates the uniformity clause in the state constitution.
The court has stayed its decision while a legislative fix is attempted. But until that happens, the funds collected are in legal limbo. Solicitor Graham Simmons cautioned the board that “the money collected is an unconstitutional tax” and “there could come a day when the state calls this money back.”
Though Bethlehem Township commissioners recently adopted a resolution asking the Gaming Board to start awarding grants again, the board took their lawyer’s advice.
Nolan at first said he would be filing a motion to establish a round of grants for the municipalities surrounding the casino, which includes his own Bethlehem Township. He noted that Lehigh County distributed its casino funds. Mayor Gerald Yob of Freemansburg agreed with Nolan. His argument was that if they don’t spend the money, the state will certainly want it back.
But other Gaming Board members urged caution. Tony Pristash (Northampton) observed that this issue has already been decided, and Dave Heintzelman (Hellertown) warned that Nolan’s proposal is “playing with fire.”
Joe Kelly, representing Bethlehem, played peacemaker. He suggested waiting until a legislative fix is in place and then calling a special meeting.
After hearing this compromise, Tom Nolan withdrew his motion.








