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Pa. Senate passes slot bill

By Brad Bumsted, STATE CAPITOL REPORTER
Thursday, June 26, 2003
HARRISBURG -- Dropping quarters into one-armed bandits is nothing new to many Pennsylvanians who already do it in West Virginia, New Jersey, New York and Delaware.

They may be able to play slot machines at Pennsylvania racetracks under a bill approved by the state Senate this morning.

A staggering $3.2 billion annually is spent by Pennsylvanians on gambling in neighboring states, Las Vegas and Canada, according to gambling-industry figures.

Under the Senate measure sponsored by state Sen. Tommy Tomlinson, a Bucks County Republican, some of that money -- the state's share is an estimated $300 million -- would remain in Pennsylvania to reduce property taxes.

"This is money that is leaving this state," Tomlinson said.

The bill now goes to the House.

The legislation would provide for 3,000 slot machines eventually at each of eight tracks in Pennsylvania -- four existing tracks; two where racing licenses have been granted; and two others where licenses haven't yet been awarded. Following a year of operation, tracks could apply for up to 5,000 slot machines -- more than most Atlantic City casinos.

The entry fee for track owners would be $50 million for a slots license. "It's their poker chip into the game," said state Sen. Jim Ferlo, a Highland Park Democrat.

Legislation to provide slots at tracks is a key component of Gov. Ed Rendell's tax plan that would also raise income taxes to cut property taxes and to boost education spending.

"This is a major step toward legalization of slots in Pennsylvania," said Kate Philips, Rendell's press secretary. The Senate bill was approved 27-22 on a bipartisan vote.

The slots bill has been cobbled together in recent weeks by Tomlinson and Senate Democrats.

The agreement to pass a bill rested on a fragile balance between track owners, horse owners and breeders -- and Senate Democrats who pushed for the $50 million fee for a slots license.

"For the first time anywhere in the United States, there is an upfront fee for a license," said state Sen. Vincent Fumo, a Philadelphia Democrat and key supporter.

Under Tomlinson's original proposal, which reflected Rendell's priorities, track owners essentially would have been given the licenses.

"This has been a negotiated process," Tomlinson said, noting that the bill has "very strong safeguards to make sure it is a clean operation."

Pennsylvania used New Jersey's standards for overseeing gambling operations through a state commission, Fumo said.

The bill also would provide $25 million to volunteer fire companies statewide.

Fumo said the bill "in and of itself is an economic-stimulus package" that would create 15,000 jobs -- good jobs, not "hamburger-flipper jobs."

Some believe the state House may add a plethora of measures to legalize gambling -- from riverboat gambling to casinos. Lobbyists say that would cause the bill to sink of its own weight.

The final slots package is expected to be a deal crafted between Rendell and legislative leaders.

State Sen. Noah Wenger, a Republican from Lancaster County and a gambling opponent, said: "Potential revenues through expanded gambling could be offset by the social ills it (gambling) could produce."

Wenger predicted the bill, if passed, would increase gambling addiction.

"A vote for this amendment is a vote for casino gambling in Pennsylvania," said state Sen. Charles Dent, a Lehigh County Republican, adding that full-blown casinos with gaming tables would be the next step. "We know what's coming."

"This is devastating to poor people," said state Senate Majority Leader David "Chip" Brightbill, a Lebanon Republican who opposed the bill. He said he does not want up to 5,000 slots 17 miles from his hometown.

Said Brightbill: "Ed Rendell should hang his head in shame to be the enabler of this legislation."

Slots at racetracks


Details of a proposed slots-at-tracks bill emerged yesterday:

  • License fees for slot machines would cost each track $50 million.

  • Three thousand machines would be allowed at each of the state's tracks (four now operating, with four more to follow).

  • Players would have to be at least 21 years old, and slots parlors would be open 20 hours a day.

  • Credit or debit cards could not be used to buy tokens to play slots.

  • ATMs would not be permitted near slot machines.

  • The state would get 36 percent of slots revenue, with the money dedicated to local property tax reduction.

  • Forty-six percent of revenue would go to tracks, and 18 percent would go to horse owners and their employees.

  • When a track is sold, its slots license would not be transferable. The buyer would have to pay $50 million for a new license from the state.

  • A seven-member Pennsylvania Gaming Control Board would be created to oversee gambling operations. At first, the governor would appoint three members and legislative leaders would appoint four. In two years, the governor would appoint all members subject to Senate confirmation.

  • Track owners and top gambling industry officials would be prohibited from contributing to political candidates in Pennsylvania.

  • Any Native American gambling facilities would have to be approved by the Legislature.

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