The casino-fee gravy train could be rolling again in Bethlehem, Allentown and elsewhere in the Lehigh Valley as part of a massive gambling bill that awaits Gov. Tom Wolf’s signature.

House Bill 271 restores the “local share” tax that had generated $142 million for municipalities and counties with casinos within or near their borders. In Bethlehem, home to the Sands Casino Resort, it accounted for 13 cents of every dollar the city spent.

The 2004 law legalizing casino gambling required casinos to pay host communities 2 percent of slot machine revenues or $10 million, whichever was greater. In practice, no casino exceeded the $10 million base fee.

But Mount Airy Casino Resort in Monroe County sued to stop the fee, arguing the $10 million price tag represented a far greater piece of its revenue than more successful casinos such as Sands. In fall 2016, the state Supreme Court sided with Mount Airy, declaring the fee structure unconstitutional.

As state legislators fought over a fix, many casinos continued paying fees to their host and neighboring municipalities. But Sands did not, instead putting its local share into an escrow account until the law is changed.

A fix in the new gambling expansion bill requires four casinos — Sands, Mount Airy, SugarHouse in Philadelphia and Rivers Casino in Pittsburgh — to pay the $10 million fee, but drops the 2 percent alternative. The same straight fee applies to the six casinos with horse-racing tracks, including Parx Casino in Bensalem, Bucks County, and Mohegan Sun Pocono near Wilkes-Barre.

Smaller casinos, Valley Forge in Montgomery County and Lady Luck in Fayette County, would pay 2 percent and no longer have to worry about the $10 million alternative.

“Requiring licensed facilities to make annual payments for the privilege of operating in this commonwealth's counties and municipalities furthers a legitimate government interest of ensuring benefits to not only the host county and host municipality but the region where the licensed facility is located,” the bill states.

The bill also gives the state’s 12 existing casinos first dibs at 10 mini-casinos — each of which also would have to pay a portion of the local fee.

The bill is retroactive, meaning municipalities can keep or will get the host fees they expected.

“This gives us clarity,” Bethlehem Mayor Bob Donchez said, “and it gives Allentown clarity.”

Bethlehem would have needed a line of credit for 2018 without restoration of the fees.

The bill includes sweeteners meant to dissuade Mount Airy from further legal action. Those include requiring Sands and other better-off casinos to pay an additional tax to shore up finances of any less profitable casinos. Mount Airy also got protections limiting where mini-casinos could be opened in northeastern counties.

Spokesmen for Sands and Mount Airy were unavailable for comment on Thursday.

Under the bill, the local share money would no longer be allotted directly to counties for distribution among the municipalities. Instead, the Commonwealth Financing Authority, an arm of the state legislative and executive branches, will dole out the money to the counties.

Before the court ruling, Bethlehem got about $8.8 million annually; Allentown $3.5 million; Northampton County $2.9 million and Lehigh County $960,000.

State Sen. Lisa Boscola, D-Northampton, voted for the bill even though it would allow internet gambling, something Sands greatly opposes.

“My whole point was fixing the local share,” she said. “So Bethlehem, Allentown and Easton could get their money.”

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