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Slots link to lobbyist decried
His young children partly own supplier
Saturday, July 22, 2006

HARRISBURG -- Gaming officials are under fire for licensing a slot machine supplier even though it is partly owned by young children of a lobbyist who contributed $68,000 to political campaigns so far this year.

State law prohibits political contributions from those involved in casino gambling in Pennsylvania, but gaming officials said there is no conflict of interest. The lobbyist, Stephen R. Wojdak, of Philadelphia, will not be a direct beneficiary of the Liberty Gaming Distributor's profits, gaming officials said.

Mr. Wojdak is not named on Liberty Gaming's supplier application, although he has acknowledged that the applicants listed as "Minor Child 1" and "Minor Child 2" are his children.

Other applicants for both casino and distributor licenses also list unnamed minor children as having a financial interest.

That caused state Sen. Jane Orie, R-McCandless, to ask Gov. Ed Rendell to call a special session to deal with what she considers loopholes in the gaming law. Mr. Rendell refused.

Mr. Wojdak was traveling yesterday and unavailable for comment on his role in Liberty Gaming, his office said.

Liberty Gaming, based in Plymouth Meeting, was one of four companies that Wednesday received licenses to distribute slot machines to the 14 casinos on their way to Pennsylvania.

Liberty Gaming's license came with conditions. The children's portion of proceeds must be kept in a trust that cannot be used for their food, shelter, education, medical care or any other expenses parents normally pay.

Ms. Orie and others say Mr. Wojdak will likely profit from the distributorship anyway and that the Legislature should close the loophole that allows minor children of campaign contributors to operating gaming companies. To her, it's a way for power-brokers to skirt state law.

"The only reason these children are listed is because their parents can't be," she said. "You have to be 18 to even play the lottery in Pennsylvania and here we are allowing [children] to have direct ownership of gaming."

She asked Mr. Rendell to convene a special legislative session to examine loopholes in the gaming law. The Legislature is on its summer break and is scheduled to return to Harrisburg at the end of September.

Mr. Rendell has no intention of calling members back sooner, said spokesman Chuck Ardo.

"He sees no need for doing that," Mr. Ardo said. "He's concerned that the gaming board follow the rules as written, and it is. The gaming board is obliged to follow the law as the Legislature wrote it."

If lawmakers want to change the gaming law, they can do that without a special session, Mr. Ardo said.

Ms. Orie, though, said there is an urgent need for action before the gaming board begins awarding casino licenses later this year.

Mr. Wodjak, a former state representative, made $68,300 in political contributions to both Democrats and Republicans so far this year. Last year, he contributed more than $113,000, including $16,577 to Mr. Rendell.

Mr. Ardo said the contribution is "absolutely not" a factor in Mr. Rendell's reluctance to call a special session.

The Legislature in 2004 approved the law providing for casinos and requiring them to buy equipment from middlemen distributors. Pennsylvania is the only state with legalized gaming that requires casinos to buy machines from intermediaries instead of directly from manufacturers.

Critics, including Ms. Orie, view the unique requirement as a way to direct casino profits to politically connected people, while advocates say the requirement will create jobs.

So far, 15 distributors have been licensed, including New Century Entertainment, a firm headed by Pittsburgh businessman and former Allegheny County Chief Executive Jim Roddey. Six other applicants are awaiting decisions from the gaming board.

First published on July 22, 2006 at 12:00 am
Tracie Mauriello can be reached at tmauriello@post-gazette.com or 717-787-2141.
Read the PG's Casino Journal by Bill Toland
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