Slots Line News - May 25, 2006

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 Pennsylvania to be Rid of Slots Middlemen

Due to 2004 legislation, Pennsylvania casinos are required to buy their slot machines from suppliers as oppose to purchasing them directly from slot machine manufacturers.  Two Pittsburgh-area lawmakers are prepared to rid the state of that provision.

Senator Jane Orie (R) of McCandless and Representative Mike Turzai (R) of Bradford Woods have brought it to public attention that Pennsylvania is the only state required to attain their slot machines through middlemen.  These two lawmakers believe it is completely unnecessary.

Both GOP legislators are critics of slot machine gambling.  “The use of middlemen does not benefit the state and will simply ensure that politically well-connected individuals profit from the new gambling law,” said both lawmakers in a released statement.

Mr. Turzai says his greatest concern with the state’s slot machine arrangement is “influence-peddling and corruption in a process that is ripe for such behavior.”

On the other side of the slot machine argument are Democrats like Senator Vincent Fumo of Philadelphia and House Democratic leader H. William DeWeese of Waynesburg.  They support the supplier requirement, claiming it creates new employment opportunities in new Pennsylvania-based companies.

Unfortunately, the process of setting up slot machine suppliers, also referred to as slot distributors, has thrown yet another wrench in the licensing of 14 new casinos around the state.

The Pennsylvania Gaming Control Board is still deciding on the operational scale of slot machine suppliers.  The distributor system may be aloud to operate state wide or be restricted to an eastern or western region of the state.  State police have been another example of time consumption as they have burned months running criminal background checks on top officers and investors of 23 potential slot machine distribution firms.

The 2004 slots law has mandated that the issuing of casino licenses be delayed until at least 90 days after the awarding of supplier licenses.  The Pennsylvania Gaming Control Board currently expects to distribute supplier licenses by mid-June, but that of course is subject to change.

 

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