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Children dropped from slots role
Friday, July 28, 2006

HARRISBURG -- In the face of widespread criticism, a prominent state Capitol lobbyist has dropped plans to have his two minor children be part of a middleman firm that will supply slot machines to state casinos.

Yesterday's sudden about-face by lobbyist Stephen R. Wojdak came as a group of anti-gaming Republican senators was announcing a campaign to amend the slots law when the Legislature reconvenes Sept. 19.

Ongoing problems with creating casinos, including the arrests of five state Gaming Control Board employees on various charges, are turning gambling in Pennsylvania "into an embarrassment for the state," claimed Sen. Jeffrey Piccola, R-Dauphin, a frequent critic of slots.

"We have to reform the gaming law,'' added Sen. Jane Orie, R-McCandless, who was incensed by the effort by Mr. Wojdak to list his two young children among applicants for a slots supplier license.

Mr. Piccola, Ms. Orie and several other GOP senators will hold a news conference next Thursday to outline at least 20 amendments they want to make to the 2004 law, including eliminating what they see as a loophole that lets minor children be part of applications for slots supplier licenses and even for casino operating licenses.

In a phone interview, Mr. Wojdak said he hadn't done anything wrong by having Petersburg Trust, a private trust set up for his children, ages 11 and 13, as part of Liberty Gaming Distributors, a slots supplier. He said various types of business trusts and private trusts are permitted to apply for supplier licenses, a view that gaming board Chairman Tad Decker agreed with.

Mr. Decker said the Legislature wrote the slots law and if legislators aren't happy with it, they should change it.

Liberty Gaming is a slot machine supplier firm based in Plymouth Meeting, outside Philadelphia. It's one of 15 so-called middleman firms licensed by the gaming board to buy slot machines from manufacturers and re-sell them to casinos.

Mr. Wojdak said he'd changed his mind about involving the children's trust in Liberty Gaming because of ongoing criticism from some legislators and news media outlets. Now, no one from his family is involved in Liberty Gaming.

"What I did was perfectly legal, but what I didn't see coming was the kind of public and political uproar that occurred over it," he said. "There was too much controversy. I just want to get rid of the controversy surrounding the whole issue because of the impact it was having on my family."

Mr. Decker agreed that removing the trust from Liberty Gaming is "the right decision for Pennsylvania, for the two children and for Mr. Wojdak as well."

Ms. Orie said the negative publicity that resulted from Mr. Wojdak's efforts could boost her ongoing efforts to completely eliminate the provision in the 2004 law for slots suppliers. She said no other state requires such middleman companies to sell slots to casinos.

Ms. Orie got such a bill to eliminate suppliers through the Senate in June but the House adjourned for the summer without acting on it.

Ms. Orie said she was glad to hear about Mr. Wojdak's change of mind, but she continues to be unhappy about two other situations involving minor children in would-be slots operators.

Two applicants for casino licenses, HSP Gaming of Philadelphia and Pocono Manor Gaming of Monroe County, have listed several minor children as being part of their operator license applications. HSP wants to build a casino on an old sugar-making plant along the Delaware River in Philadelphia, and Pocono Manor has a casino proposal for the Pocono resort area of northeastern Pennsylvania.

Republicans want to eliminate the involvement of minors in all casino enterprises, as well as:

eliminating the current provision in the law that allows elected officials to own up to 1 percent of a casino operation.

amending the law to give the state attorney general a greater role in investigating charges of casino corruption. Currently most investigative power is given to county district attorneys.

barring the seven gaming board members from outside employment. Currently, two members still have outside income besides their $145,000-a-year state salary.

The state House, which like the Senate is controlled by Republicans, also is considering changes to the slots law.

Slots advocates in Pennsylvania "are going out of their way to prove the critics were right when they said slots would lead to problems. Our gaming law is the laughingstock of the nation," contended Stephen Miskin, spokesman for House Republican leader Sam Smith of Punxsutawney.

The 2004 slots law was principally supported by Democrats, both in the House and the Senate, with strong backing from Democratic Gov. Ed Rendell, who wants to use up to $1 billion in new slots revenue to lower property taxes.

Sen. Vincent Fumo, D-Philadelphia, who helped write the 2004 law, said Senate Republicans are being "hypocrites" in their criticism now.

He had tried, in the face of GOP opposition, to make changes to the slots law late on the evening of July 1, as the Legislature was completing work on the 2006-07 state budget and preparing to adjourn for the summer.

Mr. Fumo was able to delay budget action for several hours, into the early morning hours of July 2, as he tried to get the Senate to vote on amendments to the slots law. Senate Republicans complained that Mr. Fumo never was clear on exactly what changes he wanted to make and several more days would have been needed to study his changes, so they voted on the budget and went home.

First published on July 28, 2006 at 12:00 am
Bureau Chief Tom Barnes can be reached at tbarnes@post-gazette.com or 717-787-4254.
Read the PG's Casino Journal by Bill Toland
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