HARRISBURG -- A Republican legislator wants state and federal law enforcement officials to investigate whether distributors of illegal video poker machines owe the state thousands of dollars in unpaid taxes.
Rep. Curt Schroder of Chester County, the ranking Republican on the House Gaming Oversight Committee, noted that state police officials have estimated there are as many as 17,000 illegal video poker machines now operating in bars, taverns and clubs around the state. The profits are split between the bar owners and the machine owners, who aren't paying taxes, Mr. Schroder said.
The existence of the illegal machines is one of Gov. Ed Rendell's main arguments in pushing for his sweeping new plan to legalize video poker machines in bars, as a way to raise money for college student loans.
Mr. Schroder told reporters today that according to state police, "Vendors who provide the illegal video poker machine machines can make well into the millions of dollars per year in untaxed revenue through this criminal enterprise."
He is sending letters to the FBI, U.S. Attorney Eric Holder, the three U.S. attorneys in Pennsylvania and state Attorney General Tom Corbett to investigate whether the video machine owners owe income taxes.
If state police are correct about the 17,000 illegal machines, Mr. Schroder said, "This scheme has become a highly developed criminal syndicate. These video machine vendors are committing tax evasion and fraud on a massive scale."
