Last week the Pennsylvania Gaming Control Board released its 28-page 2009/2010 Annual Report. With the stated vision of being the premier gaming regulator in the United States, the PGCB seeks to fulfil the objectives of legalized gaming in the Commonwealth to deliver a significant source of revenue, assist the horse racing industry, provide broad economic opportunities and enhance tourism. Gregory C Fajt, Chairman, comments that in under four years from the first casino opening, legalised gaming has created not only 12,000 living wage jobs in the state and a steady reduction of property tax bills but also reinvigorated the horseracing industry and pumped millions of dollars into improvements for communities.

He adds, “We have worked to heighten the transparency of our work so the public has the opportunity to view and understand our reasoned decisions. This includes placing videos and transcripts of our meetings, agency expenses, casino revenue, hearing calendars, non-confidential legal filings, reports and regulations on the PGCB web site. We understand that we are stewards of the people’s business and work to provide timely and easy access to information about that business.”

The major focus of Pennsylvania’s Bureau of Licensing for 2010 was ensuring that enough new entities and employees were properly licensed, permitted or registered to allow for the successful expansion to table games at Pennsylvania’s nine existing casinos. During the year the Bureau oversaw the opening of two new casinos, the expansion of two existing casinos into their permanent facilities, approval of Pennsylvania’s first Category 3 resort casino, the processing of applications for the remaining Category 3 license, development of a more paperless application system for gaming and non-gaming employees and amendments to PGCB regulations regarding application filing requirements for gaming service providers (vendors)>

The Bureau of Gaming Laboratory Operations (GLO) responsible for the technical compliance of the slot machine floor, table game floor and the IT room of every casino. All products are thoroughly tested in a state-of-the- art lab at the PGCB’s Harrisburg office to certify regulatory compliance with all minimum design standards regarding security and the 85% minimum payback mandated by law for gaming machines. From 1 July 2009 to 30 June 2010 11,146 paytables were reviewed and 2,180 rejected.

According to Mozelle E. Daniels, Director of Diversity at the PGCB, casino employee profiles for the nine licensees operating during 2009/10 show that the number of minority and women employees exceed the demographic data and county profiles for the host counties and neighboring counties from which most of the licensees hire. The statistical data compiled for minority and women employees at the various facilities range between 28% and 45% depending upon the geographical location. The licensees have demonstrated commitment to vendor diversity by taking steps to obtain goods and services from qualified Minority- Owned Businesses (MBEs) and Women-Owned Businesses (WBEs).

The Bureau of Gaming Operations works closely with the Executive Director and other PGCB staff to oversee casino openings and expansions and to provide ongoing oversight of slot machine and table game operations. The Bureau consists of a Compliance Unit, Audit Unit, Gaming Operations Liaisons and the Office of Racetrack Gaming. Gaming Operations staff are responsible for the review and approval of accounting and internal controls, regulatory compliance audits and the review of table game rules and equipment submissions including cards, dice and gaming chips.

In March 2010, the Office of Racetrack Gaming released its third benchmark report to determine the impact of slot machine play on Pennsylvania pari-mutuel wagering. The report, which compares the status of pari-mutuel wagering between the years of 2006 , 2007 and 2008 focused on revenue from the slots play and the various indicators of pari-mutuel health such as purse amounts, racing handle (the total amount wagered by patrons) and exporting of live racing signals to other properties both inside and outside Pennsylvania.

With the opening of The Sands Casino Resort Bethlehem in May 2009 and The Rivers Casino in August 2009, nine facilities were operating approximately 24,100 slot machines across Pennsylvania by June 30, 2010. During fiscal year 2009-10, slot machines generated $2.2 billion in gross terminal revenue and funded $772.5 million in 2010 state-wide property tax relief. Table games, authorized by Act 1 of 2010, generated $165 million in General Fund revenue through certification fees during fiscal year 2009-10 and are expected to generate $76.4 million in General Fund tax revenue for fiscal year 2010-11.

The Bureau of Casino Compliance is charged with the responsibility of protecting the integrity of gaming within each casino in the Commonwealth. Casino Compliance Representatives enforce PGCB regulations and respond immediately to investigate all patron complaints and disputes that arise in the gaming environment. It provides each casino with one supervisor and nine Casino Compliance Representatives twenty-four hours a day, seven days a week. With the opening of table games, the Casino Compliance Representatives are 100% involved with the collection and accounting of all revenue derived from table games.

PGCB Executive Director Kevin F O’Toole says there is still much to be accomplished. “I can assure you that in the years ahead, we will continue to work in the best interests of all citizens of the Commonwealth. This will be accomplished through an efficient and balanced regulatory framework, that contributes to the tremendous growth in jobs and tax revenue that this new state-wide industry is producing.” (E-10.04.10)

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