Having unanimously voted on 28 February to award six slot machine manufacturers with licences, albeit with 40 conditions, the Pennsylvania Gaming Control Board now has to tackle the thorny issue of distributor licences. The seven members of the Board have been arguing over whether to limit slots suppliers to one of two regions or to allow them statewide access, but the dissent is delaying the day when the state can start collecting the gaming taxes and the one-time fee of US$50 million payable by the recipients of the 14 operators’ licences.

The six manufacturers’ licences will be issued to Aristocrat Technologies Inc, Aristocrat Technologies Australia Pty Ltd, IGT, NRT Technology Corp, Western Money Systems and WMS Gaming Inc. Another seven companies that applied for licences, including well-known names such as Atronic and Bally Gaming, will be assessed at a later date. Of the six awarded licences, chairman of the Board Tad Decker said, ““These are the first licenses of any sort approved by the Board since we began work on the implementation of the Pennsylvania Race Horse Development and Gaming Act.” He added, “This is a major step for expanded gaming in Pennsylvania.”

At a budget hearing yesterday, the chairman forecast that one or two of the Pennsylvania racetracks could have slot machines operating by mid-November. He anticipated that the gaming licences could be issued by Labor Day on 4 September. The Mohegan Tribe’s Pocono Downs and the Harrah’s project at the new Chester track opening in September will likely be the first operational racinos. Another four racetracks should have slot machines by early 2007 or before, and the seventh licence will be awarded in due course to a new harness track to be built at either Beaver or Lawrence county.

Licences for five stand-alone and two resort slots parlours are expected to be issued by the end of this year. At the budget hearing the Board requested the Legislature to advance it a minimum US$10 million as licences will not be issued prior to 1 July, the start of the 2006/07 fiscal year. The Board anticipates it will spend US$24 million for the fiscal year, and that its cash flow from July to December would be a problem. The law requires all four General Assembly appointees to the Board to agree on any matter, so the faster the dispute over distributor licences can be resolved the quicker Pennsylvania will be getting gaming dollars to reduce property taxes. (E-03.02.06)

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