A judge in Pennsylvania has ensured that the state’s five slots operations remain open, but that could be a temporary measure. Yesterday Governor Ed Rendell placed around one-third of state employees on unpaid furlough as budget negotiations broke down. So far the slots parlour systems inspectors, necessary by law for the slots operations to open, remain working following the judge’s decision but a new hearing is scheduled for Tuesday 10th July.

All other state employees not considered critical to the maintenance of health and safety will be unable to work or get paid until the Democrat Governor and the Republican controlled Senate can reach agreement on the Pennsylvania budget. The labour unions are angry that their members are caught in the middle of a political dispute – Pennsylvania has a US$650 million budget surplus and it is other issues, not money, which has caused the stalemate.

A special meeting yesterday of the Pennsylvania Gaming Control Board (PGCB) was arranged to permit it ‘to take any necessary action should the Central Control Computer System be unavailable the following day.’ The system, operated by the Department of Revenue, controls and links all slot machines to one central computer.

If the budget dispute drags on, as predicted by some analysts, and the slots operations are forced to close until the issue is finally resolved, Pennsylvania stands to lose millions of dollars. In the week of 25 June to 1 July, the total tax revenue collected by the state, at 55% of gross terminal revenue, was nearly US$12,325. A number that should concentrate a few minds in the search for a rapid budget solution. (E-07.09.07)

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