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"It won't cause a mass exodus from casinos, but they will feel the pain, no doubt." Cunnane explained that because Pennsylvania's casino model is built on the convenience gambler — rather than Las Vegas or even Atlantic City, which cater to the destination gambler — adding thousands of more convenient locations will have a major impact on the bottom line. In Illinois, for example, its 10 riverboat casinos had $1.6 billion in gross revenues in 2012, before VGTs arrived. Last year, revenues were down to $1.4 billion, and the tax to the state fell nearly $100 million, to $477 million, according to figures compiled by the Illinois Gaming Board. VGT proponents say there are 40,000 machines being played illegally in private clubs and bars, though state police put the number closer to 15,000. House estimates say it will produce $100 million in the first year and up to $500 million more in taxes down the road. Based on testimony during gambling hearings in March, it appears that 11 of the state's 12 casinos will oppose the terminals. Hollywood Casino in Dauphin County supports them, largely because its owner, Penn National Gaming, owns a VGT business that includes more than 1,500 machines in Illinois. There are some carrots in the bill to entice casinos to endorse it. The latest version would reduce the 54 percent slot machine tax in casinos to 49 percent, but that has not swayed Sands. What House Bill 1010 legalizes: Up to five video gaming terminals similar to slot machines in liquor-licensed facilities, such as bars and restaurants, and up to 10 VGTs in truck stops and off-track betting facilities.
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