Stevenson Votes ‘No’ on Flawed Table Games Bill
12/15/2009
Pointing to the numerous flaws in the legislation to allow table games at the state’s slot machine casinos, Rep. Dick Stevenson (R-Mercer/Butler) today voted against Senate Bill 711, a proposal to expand gaming to include roulette, blackjack and poker.
“With the passage of legislation expanding gaming, I am concerned about the short-term and long-term impacts of the gaming industry and how it will affect our Commonwealth,” Stevenson said. “In the short term, the inherent flaws in the proposal could lead to several lawsuits, and in the long term, the measure does not address weaknesses within the industry that must be corrected.”
Under Senate Bill 711, Category 1 and Category 2 licensed slot machine facilities can operate up to 250 table games at any one time, while Category 3 licensees could operate up to 50. Licensees approved by the Pennsylvania Gaming Control Board to operate table games would pay a one-time fee of $16.5 million. The fee for Category 3 licensees would be $7.5 million, and a new, 15th location for gaming would fall into a Category 3 license.
In total, licensees would pay a tax rate of 16 percent until June 1, 2011, and then 14 percent thereafter. Of that amount, 14 percent would be directed to the Commonwealth until June 1, 2011, and then 12 percent after that date. Two percent of all daily table game revenues will be directed to local governments, 1 percent for the host municipality and 1 percent for the host county. Finally, a tax rate of 34 percent is set for fully automated electronic gaming tables.
Stevenson also noted that this legislation does next to nothing to respond to Pennsylvanians’ need for property tax relief. All of the proceeds in the first few years will be used to plug holes in the state’s budget.
In future years, if the state’s Rainy Day Fund reaches $750 million – the amount withdrawn from the fund for this year’s budget – table games proceeds will be deposited into the Property Tax Relief Fund, an action which could take years to come to fruition.
The proposal also lacked an important reform that would change the way in which gaming licenses are awarded. Currently, the Gaming Control Board conducts background investigations, and that has led to significant controversy, especially since the board and its employees do not have law enforcement powers.
“I am disappointed that this legislation did not contain many of the reforms my colleagues and I fought for in order to clean up the industry and ensure it is being operated in the highest ethical standards,” Stevenson said. “The way in which this legislation was passed through the House – with substantive amendments denied and important open debate curtailed – leads people to continue questioning state government. This does nothing to restore the trust and faith people need to have in their leaders and government. The people of this state deserve better.
“Instead of curtailing state spending and living within our means in state government, the governor and his allies are yet again advancing legislation that will lead to greater spending, especially at a time when our hard-working taxpayers can least afford it,” Stevenson remarked. “The inclusion of table games at our state’s casinos is not needed to fill budget holes if responsible, meaningful budgeting was a priority of this administration.”
Senate Bill 711 must return to the state Senate for its review. Stevenson anticipates that chamber making changes to the bill and the proposal will then need to return to the House.
Rep. Dick Stevenson
8th District
Pennsylvania House of Representatives
(724) 458-4911
(717) 783-6438
Contact: Jennifer Algoe Keaton
jkeaton@pahousegop.com
(717) 705-2094
Member site: DickStevenson.com
Caucus site: PAHouseGOP.com