Senior agency: VGTs in taverns a losing play
The Pennsylvania Association of Area Agencies on Aging has weighed in on proposed legislation that would permit video gaming terminals in bars and taverns across Pennsylvania.
The association said in a news release Tuesday it is concerned if the measure passes, it would negatively impact funding from the Pennsylvania Lottery for programs benefitting the state’s seniors.
The organization, which represents the state’s 52 community service agencies for older adults, noted a report released Friday by the state Department of Revenue projects that legalization of VGTs will result in a $923 million to $2.3 billion decrease in Pennsylvania Lottery sales over the next decade.
“One of the major intents of the Pennsylvania Lottery is to provide support to Pennsylvania seniors to enable them to stay in their homes and local communities as long as possible,” said Holly Lange, chief executive officer and board president of Philadelphia Corporation for Aging.
“Many seniors depend on lottery-funded programs to remain in their own homes. If VGTs have the negative impact on lottery sales that the Department of Revenue projects, we won’t be able to meet the demand for these services and many seniors would be prematurely admitted into institutional care.”
The state’s 52 Area Agencies on Aging provide information and services to help seniors remain independent in the community for as long as possible. Every year, the lottery fund helps thousands of seniors that are not eligible for Medicaid to receive meals, transportation, prescriptions through the PACE program, home care, and other community-based services that help keep seniors out of institutional care.
Revenues from the lottery also help fund senior centers which provide social connections for isolated seniors, congregate meals, and other important health benefits and funds property tax/rent rebates.
Estimates on the actual impact VGTs will have on existing legal wagering in Pennsylvania vary widely, depending on who is calculating the effect.
The VGT measure is also opposed by the state’s 11 operating casinos, who say the placement of VGTs in thousands of locations across Pennsylvania would cause a loss of revenue at their gaming venues. Last year, the state received $1.4 billion from slot machines and table games taxes, which have totaled $11.4 billion since the first casino opened in November 2006.
Some in the casino industry said passage of the legislation could result in the placement of 85,000 VGTs in 17,000 locations. The organization that supports the measure — the Pennsylvania Licensed Beverage & Tavern Association — said there would be 23,000 terminals in use at around 6,000 locations, which the group says would generate about $200 million in taxes for the state.