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Republicans want attorney general in on slots licensing
Friday, August 04, 2006

HARRISBURG -- Republican senators want the state attorney general to be more closely involved in the licensing of casinos and slots-related companies to make it harder for minor children and prominent politicians to qualify for licenses.

A group of anti-gambling GOP senators, including Jane Orie of McCandless, Jeffrey Piccola of Dauphin, Jake Corman of Centre and Pat Vance of Cumberland, said yesterday they were alarmed by two licenses given recently to slot machine supplier companies, middlemen who will buy slots from manufacturers and resell them to casinos. They want to add attorney general oversight along with a list of other changes to the slots legislation passed in July 2004.

One supplier license went to Liberty Gaming of suburban Philadelphia, whose investors included a trust for two minor children of a prominent Capitol lobbyist, Stephen Wojdak.

"That was a disgrace,'' said Ms. Orie. Mr. Wodjak has since withdrawn the children's trust from involvement in the supplier firm.

The state Gaming Control Board also issued a supplier license to CGR Gaming Associates of Philadelphia, which includes Pennsylvania Turnpike Commission Chairman Mitchell Rubin.

"Mr. Rubin's position as a public official certainly raises a lot of questions" about whether politics influences the slots licensing process, said Mr. Piccola.

The Gaming Control Board has maintained that politics didn't play a role in that or any other licenses for suppliers or manufacturers.

Mr. Piccola and Ms. Orie said they also were concerned that Mr. Rubin's wife, Ruth Arnao, is a former aide to Sen. Vincent Fumo, D-Philadelphia. Mr. Fumo's staff wrote the slots legislation.

Along with Mr. Fumo, Ms. Arnao is said to be the subject of a federal corruption investigation by the U.S. attorney in Philadelphia concerning a neighborhood development group.

The involvement of Mr. Rubin and Ms. Arnao in the supplier firm "is a big concern, is a big red flag,'' said Ms. Orie. "This is why the attorney general should be looking into these slots-related licenses."

Currently, Attorney General Tom Corbett has almost no role in background investigations of prospective licensees or issuing the licenses. The gaming board and state police do the investigations and the board issues the licenses.

Gaming board spokesman Nick Hays and Christopher Craig, staff counsel for Mr. Fumo, said nothing wrong was done in issuing supplier licenses. Mr. Hays said the slots law, Act 71 of 2004, permits Mr. Rubin to apply as part of a supplier company.

"The board's job is to implement the gaming law as written. If the Legislature chooses to change the law, we will implement whatever changes are made," Mr. Hays said.

The license that the board gave to CGR contains conditions banning Ms. Arnao from having any role in or benefiting from CGR Gaming.

The board said, "In the event Ruth Arnao enters a plea of guilty or no contest to, or is convicted of, a felony offense,'' then the board could direct Mr. Rubin to divest his interest in CGR.

Mr. Craig said Mr. Fumo had no influence over who received supplier licenses.

"Yes, Vince Fumo is a friend of Mr. Rubin and his wife,'' said Mr. Craig. "Vince Fumo didn't tell Mr. Rubin to apply for a license. No one has accused Mr. Rubin of using influence to get the license. He didn't threaten to raise turnpike tolls if he didn't get it.''

Mr. Craig said that Ms. Arnao hasn't worked on the senator's staff for more than two years. She resigned in June as director of the Citizens Alliance for Better Neighborhoods, a Philadelphia charitable and community group that some Philadelphia newspaper reports have linked to Mr. Fumo.

Mr. Craig said, "There is no link between Vince Fumo and the Citizens Alliance.''

Mr. Craig blamed the Republican criticism of the slots law on "bitter partisanship and election-year campaigning'' aimed at embarrassing Gov. Ed Rendell, a Democrat and backer of slots.

First published on August 4, 2006 at 12:00 am
Bureau Chief Tom Barnes can be reached at tbarnes@post-gazette.com or 717-787-4254.
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