The definition of the 15-mile distance requirement between slots operations in Pennsylvania will be considered by a state commission next week. The significance of the regulation has so far not been an issue but now it must be decided if the 15 linear miles between slots facilities must be measured from property boundaries or gaming floors. Whatever the Independent Regulatory Review Commission decides there are bound to be winners and losers.

The Pennsylvania Gaming Control Board needs to clarify the legal definition for ‘licensed facility’. Up until now distances between property boundaries have been used without problem but the proposed resort casino licence application by Fernwood Hotel and Resort would need to measure from casino floor to be beyond the 15-mile limit from Mount Airy Casino Resort. The PGCB takes the view that the development should be allowed because the gaming areas would be over 15 miles apart.

This could cause problems on two fronts. Future expansion plans of slots areas at gaming properties could be affected if two so narrowly comply with the distance rule. Also the matter will be of crucial importance where casino properties cover more than one county, as in the case of Lebanon County. If the commission decides to support the PGCB’s definition then Lebanon County would no longer be eligible for a share of slots revenue from the Hollywood Casino at Penn National racetrack.

Several prominent members of the legislature have already urged the commission to reject the rule change, saying it would not be in the public interest and would deprive local municipalities of the benefits outlined under the slots law. The commission will take a majority vote on 6 November. If the decision goes against the PGCB it will have 40 days to submit a revised proposal.
(E-10.29.08)

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