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PrintHARRISBURG -- The Pennsylvania Gaming Control Board won't be able to issue conditional slot machine licenses for racetracks in the state before late April, or about a month later than previously forecast.
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The delay results from a serious disagreement on the seven-member board over how to license slot machine suppliers.
These will be newly created distribution firms that will act as middlemen between casino operators and slot machine manufacturers, providing sales and service for thousands of high-tech gaming devices.
"The board is at a total impasse in approving these [supplier] regulations," Chairman Tad Decker said at a meeting yesterday.
The board had hoped to issue conditional, or temporary, slot machine licenses by late March for up to seven racetracks. But even after the licenses are issued, the new casinos likely won't open for at least another six months because time will be needed to build the multimillion-dollar slots parlors.
Mr. Decker now says it likely will be late April before the licenses can be issued. And the deadline could slip even further.
The July 2004 slots law says that at least 90 days must elapse between when the board issues licenses to slot machine makers and suppliers and when it issues the temporary racetrack slots licenses.
The board had hoped to issue licenses to slots manufacturers and suppliers by late December or early January. But now, it isn't known when the manufacturers' and suppliers' licenses will be issued.
The board has received license applications from 10 slots makers, including major national firms Bally Gaming, International Game Technology and GTECH.
But the board can't begin the application process for suppliers because it hasn't decided whether to divide the state into regions, where different suppliers would have to operate.
Some board members want to slice the state into five regions, with suppliers providing slot machines only to casinos in a particular region. Advocates say that would create more supplier firms and thus more new jobs.
Other gaming board members want only two regions, an eastern and a western, while others think any supplier should be able to sell slot machines to casinos anywhere in the state.
Board member Jeffrey Coy, a former Democratic state legislator, has been pushing for five regions, but said yesterday he could compromise at two. But some members are firm about opening the entire state to all suppliers.
The 2004 gaming law calls for four members to be named by General Assembly leaders and three by Gov. Ed Rendell. Any decision by the board must have all four legislative appointees in agreement, with at least one gubernatorial appointee agreeing also.
Before the board can issue licenses to slots suppliers and manufacturers, state police and the board's Bureau of Investigations and Enforcement must complete criminal and financial background investigations of officials of the manufacturers and supplier companies. That will almost certainly take a few weeks or even several months.
Racetrack/casino licenses are expected to be sought by The Meadows in Washington County; another harness track near Wilkes-Barre; two thoroughbred tracks, one near Philadelphia and one near Harrisburg; new tracks being built in Chester and Erie; plus a seventh track that will either be in Beaver or Lawrence County.
Mr. Decker said the gaming board will again take up the issue of how to issue supplier licenses at its next meeting Oct. 20, but couldn't say when the dispute will be settled.
In other business yesterday, the board said it will soon publish on its Web site, www.pgcb.state.pa.us, ethics regulations for board members. These will prohibit any "ex parte," or private, conversations between board members and gaming operators, slots makers/suppliers or non-gaming vendors doing business at casinos.
Board members also are prohibiting themselves from accepting "anything of monetary value" from officials of gaming-related companies, although the exact definition of what constitutes "value" wasn't specified.
