Last July the approval of Act 71 gave the go-ahead for up to 61,000 slot machines at 14 locations in the state of Pennsylvania. Opponents to the Act challenged its legality in December, on the grounds that the approval process was unconstitutional. Yesterday the Supreme Court disagreed and upheld the slot machine law.

The court did make some alterations to Act 71, finding that some provisions were not pertinent. Gaming Control powers to override local gaming ordinances; allowing casinos to ‘comp’ drinks or offer them at below cost price; and a provision for an annual $25 million to volunteer fire fighting companies and reimbursement to rural counties for forest lands were all removed. The restoration of some or all of these provisions is likely to be pursued through separate legislation. Of greatest importance would seem to be the Gambling Commission powers to decide on the location of the operations.

Yesterday Penn National Gaming Inc, which announced plans to invest around $240 million in Grantville when the Gaming Act was signed into law last year, saw its shares on the Nasdaq rise by 13.7%. If the company obtains a licence it will become part of an anticipated $3 billion industry and create some 800 local employment positions.

Following the Supreme Court ruling, the Gambling Commission can get on with the task of considering applications for slots parlours and issuing licences by the end of the year. Seven of the fourteen licences must go to the Pennsylvanian racetracks, two to resorts and the final five licences to stand-alone sites. It is expected that two stand-alone operations will be in Philadelphia and one in Pittsburgh, leaving just two licences for the rest of the state. (E-06.23.05)

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