Senate passes table games
HARRISBURG — A six-month push to add table games such as poker and blackjack to Pennsylvania's slots casinos headed into the homestretch Tuesday with Senate passage of a compromise bill.
The Senate's 28-22 vote sent the measure over to the House, which was expected to take it up today. House passage would avert the looming layoff of nearly 1,000 state workers that has been threatened by Gov. Ed Rendell.
Three of the four senators representing parts of Butler County voted against the bill, including Sens. Mary Jo White, R-21st, Jane Orie, R-40th and Bob Robbins, R-50th. The lone local senator to vote in favor of the bill was Sen. Don White, R-41st.
The lengthy bill would allow a third resort casino license to be awarded in 2017. It would divert a portion of the income to benefit the communities where casinos are located. And it would change gambling regulations to make the licensing process more transparent and impose new ethics rules for employees of casinos and the Gaming Control Board.
Table games would be taxed at 16 percent of gross revenue, with 2 percentage points going to the communities in which the casinos are located. In the second year, the gross tax rate would drop to 14 percent.
To install table games, stand-alone casinos and casinos at racetracks would have to pay a fee of $16.5 million, while resort casinos would pay $7.5 million. Those fees would increase for applications after June 1.
Rendell needs the revenues to plug an enormous hole in the state budget that continues to grow, as revenues are still coming in below expectations because of the national recession.
The larger casinos would be allowed 250 tables, while resorts could have 50. Resorts could also add 100 slot machines.
Under current law, resort casinos may have as many as 500 slot machines, compared to the maximum 5,000 machines allowed at the largest casinos.
During the brief Senate debate, Orie said she had numerous concerns about the bill, but focused most of her remarks on the Pennsylvania Casino Association.
The association has drawn scrutiny because it has not registered under the state's lobbying disclosure law, saying its activities do not meet the legal definition of lobbying. Orie said they should register.
"The reforms we are considering today could and should have been better and more expansive," she said before voting against the bill.
Ten Republicans voted for the bill, while only two Democrats were opposed.
Rep. Curt Schroder, the single House Republican on the conference committee, cast the vote against the deal.
He said law enforcement functions should be transferred from the Gaming Control Board to the attorney general's office and state police, and that casinos should not be allowed to extend unsecured credit to gamblers on the casino floor.
Schroder also said he opposed the diversion of casino proceeds for particular projects, such as colleges and hospitals. Schroder said those earmarks were akin to the walking-around money, or WAMs, that are a favorite target of critics of legislative pork.
"This is something I and many of us within our caucus find objectionable and I don't think it's the way we should be doing business," he said.
House Majority Leader Todd Eachus, D-Luzerne, said a final vote in his chamber probably would not occur until later in the day today.
"The biggest piece of this for us is jobs, thousands of jobs statewide," Eachus said.
Six of the seven racetrack casino licenses have been awarded. Stand-alone licenses have been granted for Pittsburgh, Bethlehem, the Poconos and two in Philadelphia. A single resorts license has been handed out, for Valley Forge.
BETTING ON GAMES
Elements of the table games bill that passed the Pennsylvania Senate on Tuesday and awaits House action:
• Games such as blackjack and poker would be allowed at slots casinos.
• Licenses would cost larger casinos $16.5 million, and resort casinos $7.5 million. Those fees would increase after June 1.
• A third resort casino license could be added in 2017.
• Gross revenue tax rate would start at 16 percent, dropping to 14 percent in the second year. Two percentage points would go to local government, the rest to the state.
• Gambling Control Board and casino employees would be subject to additional ethics rules.
• Larger casinos would be allowed 250 tables, resorts 50. Resort casinos also may add 100 slot machines to the 500 they are allowed now.
• $3 million would go to treat compulsive gambling and substance abuse.
• Casinos would be allowed to conduct poker tournaments
• All fees and taxes would go into the state's general fund until the Rainy Day contingency fund reaches $750 million. After that, the money would go into the Property Tax Relief Fund.
Source: Pennsylvania Senate Republicans.
