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Senate panel proposes slots law amendments; debate on bill next week
Wednesday, September 20, 2006

HARRISBURG -- The state Senate took the first step yesterday toward amending the 2-year-old slot machine law, but it left the heavy lifting for next week.

The Senate Rules Committee approved Senate Bill 862, which consists of two dozen changes to Act 71 of 2004, the law that authorized 14 slots casinos in the state.

Senate Majority Leader David Brightbill, R-Lebanon, characterized those changes as "noncontroversial."

But he said additional changes, which almost certainly will provoke heated debate, could be added when the full Senate takes up the amendment bill next week.

Yesterday's amendments included removing a provision in the current law that lets elected officials own up to 1 percent of a casino or gambling company.

That change, sponsored by Sen. John Pippy, R-Moon, has been discussed for two years.

Other widely accepted changes include giving the state attorney general joint jurisdiction with county district attorneys on investigations of alleged casino wrongdoing, and allowing him to use the Racketeer Influenced and Corrupt Organizations in such probes.

Another amendment would prohibit all private conversations between gaming board members and anyone who has an interest in casinos, including legislators or members of the governor's staff.

Next week, things will get more difficult. Sen. Jane Orie, R-McCandless, said she'll again try to eliminate slot machine suppliers and distributors. Such middlemen are now required by the slots law; casinos must buy machines from a supplier rather than going directly to a manufacturer.

Ms. Orie also said she'll try to ban trusts that include young children from investing in any aspect of casinos. Currently, two casino applicants, one in the Poconos and one in Philadelphia, have several unnamed "minor children" listed as investors.

Sen. Vincent Fumo, D-Philadelphia, said he'll try to get a "market cap" measure enacted. That would limit the number of slot machines that any single manufacturer can sell to Pennsylvania casinos.

Currently, he said, International Game Technology -- or IGT -- sells about 70 percent of the slots in America, which makes it difficult for other manufacturers to compete.

He wants to limit the percentage of the market IGT can have in Pennsylvania as a way of giving competing companies more chance to sell their machines. He didn't say what the size of his cap would be.


Correction/Clarification: (Published Sept. 21, 2006) The state Legislature in late 2004 approved several amendments to Act 71, the slots law, including banning elected officials from owning up to 1 percent of a casino, but the amendments were vetoed by Gov. Ed Rendell. This article as originally published Sept. 20, 2006 incorrectly said the Legislature had not yet acted on the 1 percent ban.

First published on September 20, 2006 at 12:00 am
Bureau Chief Tom Barnes can be reached at tbarnes@post-gazette.com or 1-717-787-4254.
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