The 2007 Gaming Diversity Study published by the Pennsylvania Gaming Control Board (PGCB) is the first such study of the state’s gaming industry “to ascertain whether effective and meaningful action has been taken to enhance the representation of diverse groups in the ownership, participation and operation of licensed facilities in the Commonwealth, through ownership and operation of business enterprises associated with or utilized by slot machine licensees, through the provision of goods and services utilized by slot machine licensees (“Licensees”) and through employment opportunities.”

The PGCB monitors the activities of its Licencees to ensure the creation of quality, living-wage jobs and full-time jobs for residents of Pennsylvania, and a report is required each year by the Pennsylvania Racehorse Development and Gaming Act. The PGCB is committed to promoting and ensuring diversity in all aspects of gaming as required by the Act. To achieve this goal the PGCB appointed a Chief Diversity Officer (CDO), Mozelle Daniels, to work closely with Licensees to support them as they recruit, hire and train employees. The CDO is also required to monitor the interaction between Licensees and their suppliers and vendors.

Over the past year, the Licensees demonstrated their commitment to vendor diversity by taking steps to obtain goods and services from qualified Minority and Women’s Business Enterprises. A vendor is defined as a person who provides non-gaming related goods or services to a slot machine applicant or licensee. The Licensees, as responsible corporate citizens, have extended support to numerous organizations that provide service to those who are less fortunate and in need of assistance in their communities. Employees are encouraged to become personally active in civic organizations by donating their time and resources to help improve the quality of life in the communities where they work and live.

Diversity is taken into consideration when reviewing requests for charitable contributions. Charitable contributions are directed toward funding to children, public education related activities and community development initiatives. Philadelphia Park expended over US$3.9 billion on charitable contributions and community outreach in 2007, far more than the next highest funding from Harrah’s Chester Downs with just under US$297,200.

The PGCP concluded in its report that “the Licensees have demonstrated substantial efforts and sincere commitment over the past year in promoting diversity. The foundation has been laid. However, the PGCB must continue to take steps to ensure that the policies and procedures spelled out in the preceding pages of this document are fully integrated into the daily operations of each gaming facility. A great deal has been accomplished, and the PGCB is committed to promoting and ensuring diversity in all aspects of gaming.”

In an effort to address the concerns of minority, women and small business enterprises, the PGCB revised its vendor certification process. Prior to the revision, vendors were required to pay a $2,000 registration fee. The registration fee has since been reduced to $500. The PGCB also increased the threshold for registered vendors doing business with Licensees from $2,500 to $15,000. As a result of this, small and minority owned businesses seeking to do business with Licensees are no longer required to pay registration fees to do business with a Licensee for contracts less than $2,500.

Of the six slots facilities presently functioning in Pennsylvania, two operators – Harrah’s and Philadelphia Park - declined to provide data regarding employment of women and minorities. In 1999 a Court of Appeals in New Jersey ruled that regulations addressing employment goals for women and minorities were unconstitutional, and the ruling is a binding precedent for Pennsylvania. In 2001 Harrah’s Entertainment settled a lawsuit by agreeing to discontinue the practice of setting such goals.

Mount Airy Casino and Resort had the most minority employees with 346 out of a total 950 work force. Mohegan Sun at Pocono Downs had the least with just 40 out of a total 669. As might have been expected all four reporting companies had more female workers than male. 2007 percentages of vendor and construction expenditure for eight slots facilities show only small amounts for minority and women’s businesses. Sands Bethworks shows the highest vendor data at 14% and Presque Isle Downs the highest construction data at 7.7%.

The report concludes: “The PGCB and its Licensees continue to maintain a critical role in building on an attitude of open-mindedness and respect for individuality. As the PGCB moves forward, the agency must sustain its focus on the diversity related accomplishments of the Licensees and address the challenges to diversity that lie ahead.” (E-03.05.08)

© Copyright 2008 CasinoCompendium



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