HARRISBURG -- House Republicans are calling for more stringent financial requirements for casino operators who renew, transfer or apply for new gaming licenses.

The Republican Policy Committee invited experts in gaming and public policy to testify during a hearing yesterday. Both were critical of the gaming board's licensing procedures and said state law should be changed to require more thorough vetting of financial qualifications. Current law allows the board too much flexibility in deciding which criteria to use, said Jake Haulk, president of the Allegheny Institute for Public Policy, and Wayne Marlin, of the consulting firm Spectrum Gaming Group.

"All this could be categorized as closing the barn door after the horse is gone, and to some extent that is true," Mr. Haulk said.

Financial problems of Don Barden, owner of Majestic Star Casino in Pittsburgh, provided the impetus for the hearing. Committee members questioned whether Mr. Barden should have been awarded a license when he had substantial personal gambling debts, had no stable source of financing for Majestic Star and was losing money at casinos he owns in other states.

"There were red flags all over," Mr. Haulk said.

Mr. Barden has begun construction of the North Shore facility, but he has been working for several months to secure $780 million in financing.

Doug Harbach, spokesman for the Gaming Control Board, said his agency used "a myriad of criteria" to vet license applicants. Financial suitability was just one of the criteria, he said.

Mr. Barden's casinos in other states are at least $550 million in debt and he has racked up more than $11 million in personal gambling debts.

"If he doesn't have the wherewithal to complete the job, what's the remedy? I think there's a significant problem in this Barden situation," said the committee's chairman, Rep. Michael Turzai, R-Bradford Woods.

Mr. Haulk said casino regulators should be concerned.

"The situation now is that the casino -- the steel structure -- is almost completed [and there are questions about financial suitability.] This represents a real nightmare for everyone," he said.

He suggested that casino applicants should not be allowed to borrow money for the $50 million licensing fee. Second, he said, casino operators should be required to use their own money or equity investments -- not borrowed funds -- to pay for a third of construction costs.

Mr. Harbach said that sort of unilateral requirement is not supported by the state's gaming law.

Mr. Turzai is looking to see changes in licensing procedures.

"The way the existing law is written, and the way the present law is being executed leaves much to be desired," he said.

Gaming board officials also were invited but did not attend. Mr. Harbach said board officials regularly attend House and Senate oversight committee meetings and a bipartisan Senate/House Task Force on gaming.

Mr. Barden could not be reached for comment yesterday.

Mr. Turzai expects that yesterday's testimony will lead to Republican-sponsored legislation. Changes may include not allowing borrowed money to be used to pay the license fee and as least a 33 percent developer's equity in a slots facility.