HARRISBURG -- Some state legislators from Allegheny County want to generate funds from a new source -- by legalizing video poker and other gambling machines for bars, taverns and clubs in the county.
Although the current two-year legislative session is nearing an end, Democratic Reps. Frank Dermody of Oakmont, Dan Frankel of Squirrel Hill, Don Walko of the North Side and others introduced a measure this week to permit bars, taverns, restaurants, clubs, hotels and other Allegheny County establishments with state liquor licenses to have up to three legal video gambling devices each.
House Bill 2834, as now drafted, would allow video gambling only in Allegheny County liquor establishments, but that could change if other parts of the state are interested, Mr. Frankel said yesterday.
Legalizing video poker machines "could generate significant revenue for county and municipal governments" at a time when tax revenues are lagging due to the national economic slowdown, Mr. Frankel said.
Mr. Walko said the House may debate the video gaming bill in November. No final action could be taken because the Senate won't meet and the current session will end Nov. 30, but the bill could be re-introduced when the 2009-10 session opens in January.
"There has been a call for legalized video gaming from many tavern owners in my legislative district,'' Mr. Walko said.
Legalizing video poker could boost bar owners' business and ease the anger of some tavern owners over the 10 percent tax on alcoholic drinks in Allegheny County and the new statewide smoking ban, he added. The county already is considering a proposal to reduce the tax.
Kevin Joyce, owner of The Carlton restaurant, Downtown, and strong opponent of the drink tax, said, "We are certainly interested in any alternative to the drink tax. We hope legislators are getting the message that this drink tax has been devastating to hospitality industry."
Kevin Evanto, a spokesman for County Executive Dan Onorato, said Mr. Onorato "supports the concept" of legalizing video gambling for bars.
"It would be an additional source of revenue for county government that would enable us to hold the line on property tax revenue."
Machines could include video poker, bingo, keno, blackjack or others, under the measure.
If Allegheny County bars each get three legal video gambling machines, it could hurt the new slots casino being built on Pittsburgh's North Shore and due to open by August.
"I'm sure the casinos won't be happy about this,'' said Mr. Frankel. "There will be some resistance."
Doug Harbach, a spokesman for the state Gaming Control Board, declined to comment on the proposal.
