A PricewaterhouseCoopers study commissioned by the Pennsylvania Gambling Control Board (PGCB) is the source of a dispute over the public’s right to know. At a hearing before House and Senate panels yesterday PGCB Chairman Tad Decker defended the decision to keep details of the report secret. Pennsylvania Governor Ed Rendell, Democrat and Republican lawmakers, and the press are calling for the study to be released.

Until the details are made public, questions arise over the findings of the report. It is anticipated that slot machine operations will raise around US$3 billion each year in taxes, with US$1 billion assigned for property tax relief. There is speculation that the study could predict a smaller return. The PGCB maintains that it contains proprietary information that it would be unlawful to reveal, including business planning and competitive analysis of potential operators.

The Senate Rules Committee also met yesterday to consider amendments to Pennsylvania’s 2004 slots law. Legislators are debating changing the law to require the PGCB to comply with the state’s Right to Know Law. House legislators also criticised the PGCB decision to use an independent contractor to conduct background investigations instead of the Pennsylvania State Police. Previously the state police had found that one of PGCB’s employees had falsified educational credentials. Tad Decker called the attacks on the Board’s integrity ‘outrageous’ and said the decision was taken because the lack of police manpower was causing delays.

The Senate Rules Committee yesterday approved a bill with 24 amendments to the Slots Act. Next week the full Senate will debate more controversial changes, including a ‘market cap’ that would limit IGT’s share of the Pennsylvania market, eliminating slot machine middlemen to allow casinos to deal directly with manufacturers, and a ban on trusts whereby unnamed minor children are listed as investors.

On 27 September the first conditional slots licences for horseracing tracks should be awarded. The PricewaterhouseCoopers report is important because financial estimates will be used by the PGCB in awarding the licences. Overall revenue projections are expected to be released next week. (E-09.20.06)

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