Calls for a delay in issuing Pennsylvania slots licences

LAW REFORM SOUGHT

The Pennsylvania Gaming Control Board is being urged to delay its proposed 27 September 2006 issuing of up to six racino licences. Five senators have outlined 21 changes they want to make to the gaming law passed in July 2004 in order to improve gaming, and they are not alone in calling for a revision before any licences are granted. The Legislature is not due to reconvene until 19 September, leaving little time before the proposed licensing date.

Described by some as ‘election year politicking’, there are nevertheless some important considerations in the list of changes. These include prohibiting officials and their immediate families from holding any interest in licensed casino related firms, and requiring Legislative approval for Gaming Board expenditure. It is also suggested that the contentious ‘middlemen’ rule be eliminated as no other state requires the creation of supplier/distributor firms in the sale between slots manufacturers and casinos.

The proposed changes to the 2004 Act are described as measures that will make gaming operations more accountable to the public and lessen the possibility of corruption. A prospective candidate for Governor is expected to call for a complete overhaul of the gambling law to tighten present loopholes. The applicants for Pennsylvania’s slot machine licences can only await the outcome of these moves and put their projects on hold until the relevant decisions are made and licences issue. (E-08.04.06)

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