State Attorney General Tom Corbett has told a policy committee that a minimum of US$799,000 is needed by his office to keep a watchful eye on Pennsylvania’s new slot machine industry. Originally the Attorney General was given very few powers by the Gambling Law, but last year the Legislature voted for a change in the law and granted expanded oversight. A bill to further amend the law would see substantial cuts in salaries for gambling board members, if approved.

The new slots industry is certainly making headway in Pennsylvania. In its first week of operation Harrah’s Chester Casino and Racetrack took bets valued at US$66.4 million. With a 90% payback to players, gross gaming revenue was US$6.4 million, of which 55% goes to the state’s property-tax relief fund. Average revenue generated per machine per day was US$332, higher than anticipated. At PhiladelphiaPark and Mohegan Sun at Pocono Downs the machines last week averaged US$317 and US$378 respectively.

Racino profits are expected to see a decline once the stand-alone operations in Philadelphia, Pittsburgh and elsewhere open. However, the racinos have a head start on marketing and encouraging customer loyalty. With millions of dollars at stake the regulators must maintain public confidence in the industry. Attorney General Tom Corbett is concerned about the possibility of organised crime being involved and has also recommended that gaming enforcement becomes an independent unit, or under state police or his office. He commented that the present Bureau of Investigations and Enforcement, under the Gaming Control Board, should not oversee law enforcement at the casinos. (E-02.01.07)

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