Bill Would Revoke Philly Casino License

A Pennsylvania Senate Committee wants to pull the state license for Foxwoods Casino to build and operate a casino in Philadelphia. Foxwoods was awarded a license in December 2006 but State Senator John Wozniak of Cambria County says the company has had 6 years, including the application period to come up with financing and a location for the casino. By a vote of 12-2, the Senate Community, Economic and Recreational Development Committee approved Wozniak's legislation which would void the license with Foxwoods. The bill would allow for an open competition for the license to locate a casino in any county but Allegheny since the Rivers Casino is already operating in Pittsburgh.
Wozniak says Foxwoods has encountered numerous problems including public opposition to its proposed location and financing difficulties.
Under the slots law, Philadelphia had been designated for two casino licenses; only one casino is prepared to open and that is expected to happen in September.
Senator Wozniak says while people who work in Philadelphia are getting a break on their wage tax as a result of tax revenue generated by slots gaming at casinos throughout Pennsylvania, the casinos proposed for Philadelphia are not yet contributing toward that pot of money.
Wozniak says Foxwoods has had long enough to get its house in order and his goal is his goal is to get a casino up and running in Pennsylvania that will produce revenue for additional school property tax relief, support of the horse racing industry in Pennsylvania, construction jobs, and permanent jobs at the casino.
The legislation now goes to the full Senate.

Tax Relief Changes Proposed

Pennsylvania Auditor General Jack Wagner is urging lawmakers to simplify the application process for gaming-based property tax relief.
Wagner says the current county-by-county property tax relief system is too confusing.
He says a major issue is the fact property owners need to fill out an application in order to receive a tax reduction funded by revenue from Pennsylvania’s casinos.
Wagner, a Democrat who’s running for governor, says a study of several counties shows many people just don’t get around to doing that, so lot of revenue is going unclaimed.

"And with those 49 counties alone, I stand up here and can absolutely say there are at least a hundred thousand property owners not getting property tax relief from gaming revenues in Pennsylvania."

The size of rebates fluctuates by school district, but Wagner says they averaged out to 189 dollars last year. County tax assessors process relief applications, but Wagner wants the Department of Revenue or another statewide agency to assume more oversight.

Keno Could Appear in PA Bars

Pennsylvania college students may soon receive state assistance based on revenue from a game of chance.

State Representatives Neal Goodman, Marc Gergely and Christopher Sainato want to start a fact-finding mission on the feasibility of allowing keno into bars.

Keno is a game where players select numbers from one to 80 and hope to match them with numbers that are drawn randomly.

The income Pennsylvania would receive would be split between student financial aid and local governments.

Allegheny County Representative Gergely says the Legislative Budget and Finance Committee should study the outcome of similar efforts in other states.

Gergely says he doesn’t expect opposition from casinos because keno is independent of them.

He says although similar efforts with video poker in bars have faltered, keno would work because its implementation is much simpler.

"PA Society" Gathered in NYC

The state’s political power players gathered in New York City over the weekend for an annual event. If you’re a Pennsylvania politician – or if you’re trying to win an election to join that club – then Pennsylvania Society is the place to be. It’s a tradition that dates back to 1899. Pennsylvania’s political scene migrates to the Waldorf-Astoria in Manhattan for a weekend of parties packed with schmoozing, black ties, cocktails and gossip. Nearly every gubernatorial candidate held a reception, and there was an unspoken attendance competition going on among them. It is believed a well-attended soiree means a strong campaign. Standing in the middle of a packed ballroom he had rented, Allegheny County Executive Dan Onorato said he was in New York to build relationships with supporters. He says, “Pennsylvania Society is a unique situation because you can get all corners of the state, the middle of the state, a lot of people from all over in one area for three days. And as you can see, I packed the room with a lot of supporters tonight. And I think it’s an indication of the viability of my candidacy.” Attorney General and Republican gubernatorial candidate Tom Corbett says it was worth the trip, “You know, there’s a lot of potential fundraising ability here, contacts here. Networking. I certainly like the reception that I have received this weekend, and continue to receive. I mean I’ve been coming to this since 1993 or 1994. It’s nice to get to see everybody. It is a lot of seeing the same people over and over again.” Along with campaigning there are a lot of discussions about upcoming legislative efforts. House Majority Leader Todd Eachus says Democrats have the votes they need to pass a table games bill. He says he is taking a different approach than the governor, “I always worry about the work. The governor’s got to worry about his press conferences. My focus is trying to get the job done.” At the same time, US Senator Arlen Specter of PA was talking about health care. Specter says the Senate will pass a health care bill by month’s end, but he shied away from declaring support for a compromise on the public health care option. He says, “We’ve talked a lot about it, but I want to read the fine print before I take a final stand on it. Getting 60 votes—getting 60 out of 60—is a tough job when you don’t have any Republican support.”

PA Dem Leaders Decide to Delay Vote on Table Games

State-related universities will have to wait at least another week for funding.
Pennsylvania House Democratic leaders canceled today’s voting session, saying too many of the caucus’ members weren’t able to show up.
At the close of Wednesday’s House session, Democratic leader Todd Eachus said the chamber would spend the next day debating and voting on a bill to legalize table games at Pennsylvania’s casinos.
Speaker Keith McCall admitted on Wednesday he was still looking for the votes to pass the measure, but Democratic spokesman Brett Marcy says enough support has now been rounded up.
Marcy says the bill could have passed Wednesday night, if Republicans hadn’t spent several hours debating parliamentary issues.

"I mean, it was patently obvious all night last night that Republicans were not interested in progress. They were not interested in compromise. They were not interested in bipartisanship. And if they were interested in getting the nonpreferreds done then they sure didn’t show it last night."

Republicans want the House to approve funding for state-related universities before it addresses table games. Bucks County Representative Katharine Watson says a vote to fund state-related universities needs to happen soon.
"Gambling has its own life to take, and table games. It is not related to students attending school. It really isn’t. Gambling and higher education, in anyone’s dictionary or thesaurus, they are not synonyms. They have no direct, or even indirect relationship."

But Democrats say that isn’t possible – they argue expanded gaming needs to be approved in order to generate the money necessary to pay the schools. Watson and other Republicans insist there’s enough money to fund the state-related schools without passing table games. That would involve tapping into a 350-million dollar surplus that’s been set aside for next year’s budget.
House Democratic leaders and Governor Rendell say they’re not willing to do that.
The Thursday session was canceled, though, and the House won’t meet again until Monday.
Governor Rendell says if the table games bill isn’t passed by the end of the month, he may have to lay off more state workers.

Table Games Debate Put Off Till Next Week

Pennsylvania House Republicans showed up this morning for a continuation of the debate over legalizing table games at casinos. But Democrats, who control the House, did not. Rank and file Democrats said that party leaders told them in a closed-door meeting they should not expect to be called back for a vote until next week. Democrats gave conflicting reasons for the delay. This comes a day after Governor Ed Rendell questioned whether the legislature will pass a table games bill which is a key piece to the state budget deal that was approved October 9.

PA House Bickers Over Table Games

Pennsylvania Governor Rendell says if the General Assembly doesn’t pass a table games bill by the end of the year, he’ll have to lay off more state workers.
The House debated until 11 o’clock last night, but failed to make any progress on the measure.
Before debate on the bill began, Speaker Keith McCall admitted he didn’t have the votes yet to pass the Democrats’ version of a bill legalizing table games in Pennsylvania’s casinos.
The first few hours of Wednesday's session were devoted to parliamentary squabbles.
Republican Whip Mike Turzai and Democratic Majority Leader Todd Eachus both took part in a debate over whether McCall was trying to skirt House rules by allowing amendments on the bill.

(Turzai) "Why am I not surprised that this kind of procedural gamesmanship would be played on the expanded gambling bill?"
(Eachus) "Anyone in this chamber who didn’t realize this is coming had to be on Mars."

Governor Rendell says he “never thought” it would take so long to approve the introduction of craps, blackjack and other games, and warns if the measure doesn’t pass by January 1, he’ll need to trim 200 million dollars from the state’s budget.

"When we cut government operations there’s only two things to cut: purchasing outside contracts or personnel costs. There’s not enough left in any of those lines. So when you say cut other areas you’re essentially saying layoffs."


McCall says the House will stay in session until the bill passes. The House returned to session this morning.

Loans to Gamblers Decried

As the House moves toward a vote on bill on legalizing table games at Pennsylvania casinos, opponents of the measure are voicing concern it would let casinos hand out loans to gamblers.
An amendment introduced by House Gaming Oversight Committee Chair Dante Santoni would allow casinos with table games licenses to extend lines of credit to gamblers.
Paul Boni of Casino-Free Philadelphia says he’s “horrified” by the provision.

"It’s 2 am, you’ve tapped out your ATM card and your Visa card, and you’ve been drinking the casino’s free drinks all night, and you’ve now lost everything you have at the slot machine. And now the casino would be allowed to grant you a line of credit so that you could lose even more, but this time on borrowed money."

Boni is also troubled by language reading the credit doled out by casinos “may be unsecured.”
Curt Schroder, the ranking Republican on the Gaming Oversight Committee, is also concerned. He says the way the bill is written, gamblers may be asked to put their cars, homes or other assets up against the loans they take out from casinos.

Tobacco Free Allegheny Holds Meeting

Tobacco Free Allegheny held their quarterly meeting on Thursday at The United Way Headquarters on Thursday. The meeting focused on the connection between the brain, smoking and gambling.

Casinos in Pennsylvania allow smoking which experts say fuels the urge to gamble in the brain. Two addiction specialists from Western Psychiatric Institute and Clinic made presentations.

In September, data from a casino air quality report revealed that nearly 300 nonsmoking casino workers in the state will die from illnesses stemming from secondhand smoke.

Rendell Again Urges Lawmakers to Pass Table Games Bill

Governor Rendell says legislative leaders have all but agreed on a 16 percent tax on table games in Pennsylvania casinos. He’s urging the General Assembly to send a bill to his desk in the coming weeks. Rendell says the tax would include a share for counties and municipalities hosting casinos.
Spokesmen for House Democratic leaders say negotiations are “in the ballpark” of the sixteen percent rate, but that details might change as talks continue. Under one plan being discussed, municipalities would receive one percent of casino’s table games profits, and counties would also get a one percent levy.
Rendell says he’s talked to legislative leaders about whether or not the bill would increase the number of slot machines allowed at “resort casinos,” or whether the state would issue more category three licenses.

"I said if they wanted to expand, I would sign the bill. That’s not a deal breaker for me. That’s up to them, but they have to get this done. They have to get this done when they return on the seventh of December. They simply have to get this done."

However, a month ago the governor said he wanted the bill on his desk November 9th when the legislature returned from an election recess, and lawmakers ignored that date.

Rendell has refused to sign a bill authorizing funding to state-related universities until table games legislation passes. This year’s budget relies on 200 million dollars from the

CLP Board Chair Will Ask Members to Hold Closures

Several state, county and Pittsburgh elected officials gathered in the regional enterprise tower this morning in an effort to find a way to keep the four Carnegie Library of Pittsburgh branches open for at least another year. The Library says it needs about one million dollars to keep the branches open in 2010. State Senator Jay Costa called the meeting. He says, “The task is now in our hands. The public officials need to work … to be able to develop the proceeds we need to keep them open.” Library Board Chair Jacqui Fiske Lazo says she will ask the board at its December meeting to put the closures on hold while the elected official look for the needed cash. She says if legislation is not in place by the February board meeting they will need to move forward with all portions of the cost saving plan. She says, "A check would be best. But we need some sort of firm commitment. We understand there is a process that the public officials need to go through. We would like to respect that." Costa is pushing for the use of table game revenues to fund the library’s shortfall next year. Legislation being debated in Harrisburg would give one percent of the taxes generated by expanded gaming to the host county and one percent to the host municipality. He says that would put about $860,000 into to city’s coffers and he would like to talk about how much of that would go to the libraries. Costa says he would like to see a portion of the county’s take to be earmarked for suburban libraries.

Costa’s money would only keep the libraries open for 2010. Lazo says the budget gap will grow to $2 million in 2011 and continue to get larger in the out years. To deal with the growing number Costa is putting together a taskforce to look at long term solutions. He says the taskforce would be made up of elected officials, library staff and community representatives. He says they need to take a look at more private funding, the city and state’s roll in the funding mix and how libraries of the future should look and be run. The Senator says the taskforce would spend the better part of 2010 grappling with those issues.

Rivers Casino to Hold Vendor Fair

The Sheraton at Station Square will host a Vendor Fair for the Rivers Casino today, where casino staff will present different possibilities for businesses on which to bid. Companies will learn the process of becoming licensed with both the Rivers Casino and the Pennsylvania Gaming Control Board. Spokesman George Matta says this process is not complicated, but can be rather lengthy. "Depending on the level of total gross sales, there's different types of licensing that's required by the state gaming board. Since casinos are new to the Pittsburgh area, some vendors don't realize what you need to do to become a licensed vendor, and we are not permitted to deal with vendors that don't go through the processing," says Matta. Matta says everything from snow removal to valet parking will be on the table. No special treatment will be given to local or minority businesses, he says; rather, the most competitive bids will receive the contracts.

Hearing on Legalizing Video Poker

The House Gaming Oversight Committee held a hearing at Kutztown University in Berks County on a controversial bill to legalize video lottery machines in Pennsylvania.
Education officials praised House Bill 1317 for attempting to bring down the cost of college tuition, but various interest groups raised a range of concerns about the implications of allowing every bar and tavern to have up to five video lottery terminals. Paul Boni led a small group of anti-gaming protesters who picketed the hearing. He says he rejects the argument that legalizing video lottery isn't an expansion of gaming.

"The fact that Representative Santoni's legislation defines the machine differently-well that's just a legislative trick. He can define it as a banana if he wants, but that's not going to change the nature of the machine."

Lehigh County tavern owner Kelly Shaffer told the Committee the measure imposes too many fees and taxes on licensees, to the point where she wouldn't be interested in applying for lottery terminals.
The Pennsylvania Tavern Association has lodged similar complaints against the measure.

AG Wants Slots to Pay for On Audit

Pennsylvania Auditor General Jack Wagner wants the slots licenses holders to pay for the audits his office is required to do. He has asked the General Assembly to amend the slots law so that slots gaming companies, and not taxpayers, are required to pay for state audits of the casinos. Wagner points out that the Attorney General and state police are being compensated for law-enforcement services resulting from the new casino industry. Wagner says, "We are not seeking special treatment; we are seeking equal treatment. The Department of the Auditor General plays a central role in making sure that Pennsylvania's gaming industry operates legally and that it provides all of the property tax revenue that has been promised to taxpayers." Wagner has already launched the first audit of the casinos and is expected to issue that report this summer. He says once all of the casinos are up and running he will probably have to assign 4 or 5 full time auditors to the task of watching to slots operations. Wagner says at $250,000 to $300,000 a year the slots operators should be able to absorb the costs. Wagner says he could probably just send the licenses holders a bill for the services but he would prefer to have the protection of having it written into the law.

Self-Exclusion Program Limits Problem Gamblers

Problem gamblers now have the option to ban themselves from Pennsylvania casinos, thanks to the voluntary Self-Exclusion Program introduced by the Pennsylvania Gaming Board in 2006. Over 500 Pennsylvanians have already joined the program, which disallows individuals from entering, receiving mail from, attending functions of, or cashing checks at state casinos. Office of Compulsive Gambling Director Nanette Horner says persons involved can choose to be excluded for one year, five years, or for life -- but they cannot be removed from the list until the time they choose has passed. Horner says spouses, parents, and even the state court cannot place one on the list; enrollment must be voluntary.

Problem Gambling Awareness

With more gambling opportunities sprouting throughout Pennsylvania, by casino slots and online games, it's more important than ever to pick up on symptoms of gambling addiction. The first week of March is "National Problem Gambling Awareness Week", and it comes during a great time to better understand the issue. State Department of Health Spokesperson Stacy Kriedman says it is estimated that 1 and 3 percent of people will develop a gambling problem at some point during their lives. There are state services offered to remedy these problems.

"Problem gambling is defined as an urge to gamble despite harmful, negative consequences or gambling despite an urge to stop," says Kriedman. She says if the losses are mounting, or if there are ramifications such as bills going unpaid and effects with family, there are services that can help.

A 24/7 hot line number is available for problem gamblers as well as family or friends of problem gamblers. Kriedman says hotline workers are trained to screen for crisis, substance problems and mental issues. It is a free service that lets its callers remain anonymous. The hot line number is 877-565-2112. Also, there are 42 facilities through Pennsylvania that offer outpatient treatment services. For more information, go to www.health.state.pa.us.

Rivers Casino talks Table Games

With table games being considered in Pennsylvania casinos, Rivers Casino President Ed Fasulo weighs the consequences. Although there is 120,000 square feet of space to open this August, Fasulo says there is 30,000 square feet of “shell space”. In other words, the space has exterior walls but no interior. It remained from the previous casino project, and it can quickly be utilized if such a bill passed. However, Fasulo says they would not be profitable unless the 55 percent tax rate could be lowered for table games. He suggested a 20 percent tax rate would still make them profitable. The lower rate would be in order to provide pay for the several hundred dealers that would need to be hired and trained, as well as having surveillance equipment for each table. Democratic House Whip Bill DeWeese of Waynesburg is preparing a bill to legalize table games.

Work to Resume on Pittsburgh Casino

The new owners of the Pittsburgh slots casino have finalized financing for the project. Chicago billionaire Neil Bluhm had hoped to close on the $600 million in loans Friday, a day after the Pennsylvania Gaming Control Board approved transfer of the slots license from Don Barden to Bluhm's group. Casino spokesman Dan Fee says the final details of the financing were worked out today. Fee says now Bluhm is arranging to pay the contractors and their workers who were owed $50 million. Contractors halted work on the project July 1st because they were not being paid. Fee says construction could resume this afternoon with full scale operations going by the end of the week. Fee says due to the 6 week work stoppage the casino's opening has been delayed until next August.

Construction on Casino Could Resume Tuesday

Construction on Pittsburgh's casino on the North Shore will not resume until at least Tuesday. Chicago billionaire Neil Bluhm and his company, Walton Group, are expected to close on $600 million in loans on Monday to help complete the project. Bluhm had anticipated wrapping up the financing yesterday. On Thursday, the Pennsylvania Gaming Control Board voted 7-0 to transfer the slots license from Don Barden to Bluhm and his company. Board Commissioner Ken McCabe said revoking the original license and re-bidding the project would have been disastrous for Pittsburgh "I think the $7.5 million (annually for 3o years) to the arena, the $3 million to the North Side leadership, and the $3 million to the Hill District would be off the table."

Don Barden, who was awarded the license December 20, 2006, will now have about a 16% stake in the casino. He says he's disappointed the difficult credit market has relegated him to a much smaller position in the deal "On the other hand I'm happy for the people of Pittsburgh and the Commonwealth that this project is going to go on as I originally dreamed it. It will be a dream fulfilled I just won't receive the benefits of what we had originally contemplated."

Bluhm told the Gaming Board that his company is pouring $205 million into the project to help pay off the original loan to get work started and to pay the contractors and workers. Contractors halted work July 1st when they didn't get paid. They are owed $50 million.

Lawmaker Calls Gaming Board "Incompetent"

State Senator Jane Orie of McCandless says the Pennsylvania Gaming Control Board is "incompetent" and beholden to political interests. That's why she says Don Barden was granted Pittsburgh's casino license despite his history of financial problems. Now Barden is seeking to transfer the license to a new ownership group.

Orie and fellow State Senator Vince Fumo are proposing several changes to the way the Gaming Control Board operates. They want to make board members full-time employees, and bar them from earning any outside income. Board members would also have to be confirmed by a 2/3 majority in the Senate. Currently, they are appointed by the governor and legislative caucuses.

Another amendment would bar casino applicants from borrowing the $50 million license fee. Orie says that would have put Barden out of contention. Licensees would also be required to that would allow construction work at casino sites to continue even in the event of financial problems. Construction of the Pittsburgh casino is currently on hold.

Orie and Fumo are also proposing that more documents relating to the licenses be made public. And they want to prevent gaming lobbyists from making political contributions. Gaming license holders are already barred from making those gifts, but Orie says a loophole allows them to funnel payments through lobbyists.

The Gaming Control Board is meeting Thursday in Harrisburg to decide whether to transfer the Pittsburgh casino license to a new ownership group led by Neil Bluhm of Chicago.