"Why take $17 million when you could have $250 million?"

A GAMBLE IN PITTSBURGH

With the Pennsylvania Gaming Control Board setting the time frame for slots parlour applications as between 1 November and 28 December, the competition and the arguments are getting more heated. Applications for seven other licences, for racetracks, are already being submitted. Philadelphia is to get two slot machine licences, Pittsburgh one and two other licence locations will be decided when the applications are considered. A project for historic Gettysburg has already received considerable condemnation and in Bethlehem a rezoning vote next week may mean the end to one development proposal.

BethWorks Now and partner Las Vegas Sands are campaigning hard to get approval for an $879 million casino, hotel, retail and residential development. A ‘Musikfest’ was sponsored last month, there is an automated telephone transfer to the City Council switchboard for gambling supporters, and a 12-page booklet has gone out in local newspapers. Two council members are seeking a zoning change that would ban a slot machine operation on land at the former Bethlehem Steel. A public hearing is scheduled for Monday and the council will vote the following day. Neither side is confident of winning.

In Pittsburgh a radical idea has received tentative support from the City Council. Members this week voted unanimously for a resolution directing the mayor to apply on behalf of the city for the one Pittsburgh slot machine licence. As the Council President says, “Why take $17 million when you can take $250 million?” The proposal will meet with strong opposition not only from the anti-gambling lobby but also from private interest groups. Harrah’s Entertainment is just one of the potential applicants for the Pittsburgh licence.

The actual amount a slot machine operation would make for the city has been disputed, but the council 5-year fiscal plan for anticipated tax revenue of $17.7 million from 2007 onwards pales in comparison to the gaming revenue figures for an operator. The council envisages being able to build a new arena, eliminate property taxes, pay down debt and fix infrastructure – all potential vote winners. The final decision to make a licence application on behalf of the city rests with the mayor, who has yet to make up his mind on the matter.

When people in Pittsburgh gamble on the slot machines it would seem logical that they should benefit the most from the proceeds. Final approval for the Council resolution will be sought next Tuesday, but there is already doubt that the plan will ever see the light of day. The state Legislature could also veto the idea, but in the meantime councillors can dream. (E-09.15.05)

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