Lawmaker says gaming bill must include industry reforms

Rep. Dick Stevenson (R-Mercer/Butler) continued his opposition against an expansion of the state’s gambling industry by voting against Senate Bill 711, legislation that allows table games at Pennsylvania’s slot machine casinos.

“Since before 2004 when the slot machine legislation was passed, I have been a firm believer that relying on such a volatile industry as gambling is not sound public policy,” Stevenson said. “We should not be balancing our state’s budget on how much Pennsylvanians and other visitors gamble. Instead of opening the door to increased spending and funding pet projects – as this legislation will undoubtedly do – the Commonwealth must reduce its expenses, spend tax dollars more wisely and be accountable to the people who foot the bills.”

Under Senate Bill 711, as amended by a joint House-Senate conference committee on Tuesday, up to 250 table games can operate at any one time at most of the state’s stand-alone casinos or those that operate in conjunction with a horseracing facility. Gaming licensees at resort locations could operate up to 50 table games.

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 resort licensees would be $7.5 million. It would allow a resort to apply for a table games license in 2017 if all of the existing casino licenses are fulfilled and operational and there is no other casino within 30 linear miles.

The legislation also stipulates that licensees would pay a state tax rate of 14 percent until June 1, 2011, and then 12 percent thereafter. Two additional percent of all daily table game revenues will be directed to local initiatives.

“Aside from my philosophical views about gambling, I am disappointed by the way in which this legislation has advanced,” Stevenson said. “Every time the legislation has been significantly changed, its supporters change the rules to push the bill through, even though it has not been thoroughly reviewed and contains serious flaws.

“I am also greatly concerned about the precedent this sets as far as the direction for gaming proceeds,” Stevenson continued. “This year’s General Fund budget did not contain any legislative discretionary money, but somehow, gaming proceeds are being directed to very specific pet projects that may not even be in the same municipality or county where the casino is located. This is political opportunism at its worst and does not serve the best interests of the people of Pennsylvania.”

Stevenson also was upset that the measure does not contain enough reforms to improve the integrity of the gaming industry in Pennsylvania. The industry has come under considerable scrutiny regarding the awarding of licenses and contracts, as well as the way in which background investigations are conducted. Senate Bill 711 lacks language that would address those outstanding and ongoing issues.

Senate Bill 711 passed the House on Wednesday evening. The governor has indicated he will sign it immediately.

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