Video gaming alone won't replenish Pa. state treasury
We’re certain the contenders see themselves engaged in some bitter knock-down brawl for the future of Pennsylvania’s economic health. It’s more like a shadow box — with neither adversary willing to step out of the shadows for thorough scrutiny.
On one side are proponents of expanded gambling. House Bill 271 and Senate Bill 628 would allow the licensed operation of video gaming terminals at specific liquor-licensed locations. Video gaming terminals, or VGTs, are a lot like slot machines, only with digital innards instead of mechanical.
The proponents, who are primarily Republican and pro-small business, see the expansion as a way to close a $2 billion gap in the pending state budget that is due at the end of this week. They are in league with the Pennsylvania Video Gaming Association, a group founded in January and whose board of directors represents manufacturers and distributors of video gaming machines.
On the other side are Democrats including Gov. Tom Wolf, who has said any gain in revenue from VGTs would come at the expense of brick-and-mortar casinos and the Pennsylvania Lottery — both of which entities also are in the midst of a heated campaign against HB271 and SB 628.
As previously mentioned, the VGTs are a lot like slot machines with the moving parts yanked out and digitalized. For that matter, they’re exactly like lottery tickets — again, the moving parts removed and digitalized. What’s the big deal? We already have that across Pennsylvania.
In fact, upon closer inspection the VGT scheme resembles lottery tickets, right down to instant payoffs. Just like the lottery, all of the video gaming terminals will be linked to a central computer system under state control and using authorized hardware and software; there’s a set maximum wager ($5) and jackpot ($1,000); each VGT must pay out a minimum of 85 percent of the amount wagered; no one under 21 can play; and set shares of the proceeds go to the state (37.5 percent) county (2 percent) and municipality (2 percent).
The only essential difference is the added excitement of a video screen telling the user whether he or she has one or lost the bet.
There must be something about flashing lights. Go figure.
When the PaVGA formed in January, RePlay, a trade magazine, reported: “The group is working to promote legislation intended to be ‘very similar, but improved, to the law enacted in Illinois,’ legislation they assert will help grow small businesses and add critically needed revenue to the commonwealth.”
Let’s hope that if the push succeeds, that it’s a vast improvement over Illinois’ legislation. It might not be the best template. Eight years after approving VGTs, Illinois’ state government stands at the brink of bankruptcy, according to news reports published last week.
It’s admittedly prudish to say so, but the governor is right: any gain in state revenue from VGTs is likely to come at the expense of the lottery and casinos. There has to be a better way to replenish the treasury — and to plug some of the leaks in it.
