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Odds better on Pa. adding table games at casinos
Thursday, August 13, 2009

HARRISBURG -- Slowly but surely, momentum is building in the state Legislature to let slots casinos in the state add table games such as poker, blackjack, roulette and dice.

Much of the pressure for expanded gambling stems from the state's ongoing financial crisis and the need to generate more tax revenue to balance the 2009-10 state budget.

Many legislators, mindful of running for re-election in 2010, say they'd rather legalize table games than anger constituents by increasing the personal income tax or removing exemptions from the sales tax.

"We are looking for additional revenues because we are in a serious budget impasse," Rep. Dante Santoni, D-Berks, chairman of the House's Gaming Oversight Committee, said yesterday, just before hearing from casino executives who want table games.

House Majority Leader Todd Eachus, D-Luzerne, supports adding table games. He said that one of two bills to do that could come up for a vote in the next few weeks, as part of the 2009-10 budget process, or else this fall, when the Legislature returns to session.

Adding table games "needs to be done correctly," Mr. Eachus said, "in order to maximize revenue for taxpayers. It will further attract people from outside Pennsylvania to spend their resources here. Table games will add good jobs such as card dealers and pit bosses."

One table games measure, House Bill 21, is sponsored by House Democratic Whip Bill DeWeese of Waynesburg. In the past, he has given the bill "a 50-50 shot" of being enacted, he said, but now, "because of the urgent need for state revenue, I have upped the ante to a 70-30 chance of getting the bill through the Legislature and signed by the governor this year."

Many House Republicans, such as Reps. Curt Schroder of Chester and Paul Clymer of Bucks, oppose adding table games. But House Republican leader Sam Smith of Punxsutawney acknowledged yesterday that "it's inevitable that table games will come along," although he didn't agree with the expedited timetable outlined by Mr. Eachus.

Before table games are allowed, Mr. Smith said, the House should adopt Senate Bill 711, which the Senate approved in June. It would amend the 2004 slots law by banning political contributions by casino officials, barring outside employment for members of the Gaming Control Board and prohibiting anyone with a felony conviction from getting a gaming license.

Another needed change, Mr. Smith said, would be to remove the Bureau of Inspections and Enforcement (which investigates slots applicants) from the Gaming Board and put it under the state police or attorney general.

Mr. Clymer said, "We've already got major addictions with slot machines," claiming table games will just worsen gambling addictions for many people, who gamble with money they can't afford to lose.

Stephen Drachler of the United Methodist Witness in Pennsylvania said table games would be "one more example of Pennsylvanians falling into the dark pit that organized gambling represents. With full-service casinos everywhere, Pennsylvania will become 'Pennsyl-Vegas.'"

Besides the DeWeese bill, a second table-games measure, Senate Bill 1033, is sponsored by Sen. Robert Tomlinson, R-Bucks. Three casino executives, Robert Soper of Mohegan Sun (near Wilkes-Barre), Robert DeSalvio of Sands Bethworks (in Bethlehem) and Dave Jonas of Philadelphia Park (in Bucks County) told a House committee yesterday they would double their current employment of 600-700 if table games were authorized. In written testimony, Bill Paulos of The Meadows casinos agreed.

"Table games are very labor intensive," said Mr. Jonas. "We hear from customers every day: 'When are live table games coming to Philadelphia Park?' "

Initially, Gov. Ed Rendell wanted to wait until all 14 casinos permitted by the 2004 law were up and running before adding table games. So far, nine casinos are open, six at racetracks and three at stand-alone locations, including the new Rivers Casino in Pittsburgh.

The governor, a supporter of slots, isn't pushing for table games, but in view of the state's serious budget problems, he has said he'd consider signing a bill if the Legislature approved one.

Mr. Tomlinson's bill calls for a casino to pay a one-time, upfront fee of $10 million for a table games license, and then the state would apply a 12 percent tax rate to a casino's take from table games. The casino executives supported that tax rate, saying that if it's more than 12 percent, they wouldn't be able to hire as many new workers. The state's tax rate on slots is 55 percent.

Mr. DeWeese's bill also calls for a $10 million licensing fee for table games but he proposed a tax rate of 21 percent. He said yesterday, though, that his suggested rate is "flexible" and he would consider a rate closer to 12 percent.

If table games are enacted this year, the principal revenue would come from the $10 million licensing fees. With nine casinos, that would generate $90 million for the state.

A study done for the casino industry estimated that once all the state's casinos had table games, at least $165 million in new revenue would be generated yearly.

For the first three years of table games, Mr. DeWeese said the money could be shifted into the state's general fund to help balance the state budget. But after that, he would like the table games money to provide property tax relief, as does 34 percent of the tax revenue now produced by slots.

Harrisburg Bureau Chief Tom Barnes can be reached at tbarnes@post-gazette.com or 717-787-4254.
First published on August 13, 2009 at 12:00 am