FOR IMMEDIATE RELEASE
April 22, 2009
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- News Conference

Senators Unveil Gaming Reform Package to Provide
 Stricter Oversight, Greater Accountability

(HARRISBURG) - Stressing that Pennsylvania needs to take the lead now to more tightly regulate the gaming industry and provide greater accountability and transparency, a bipartisan group of Senators today unveiled a wide-ranging package of reform bills.   

At a news conference today at the State Capitol, Sen. Jane Orie (R-40), Sen. John Rafferty (R-44) and Sen. Larry Farnese (D-1) said the package is necessary to address issues that have surfaced since slots gambling was legalized in Pennsylvania in 2004.  They were joined by Sen. Richard Alloway II (R-33), Sen. Pat Browne (R-16), Sen. John Eichelberger, Jr. (R-30), Sen. Jeff Piccola (R-15), Sen. Kim Ward (R-39), and Sen. Rob Wonderling (R-24). 

The package has the support of Senate Majority Leader Dominic Pileggi (R-9), who said the bills address a wide range of issues involving gaming oversight.  

"Efforts to implement the gaming law have run into problems on a number of fronts," said Pileggi. "This package of bills is a multi-faceted approach designed to correct that, and I congratulate all of the members involved in developing it." 

Among the measures are bills to more tightly regulate the Pennsylvania Gaming Control Board, protect against conflicts of interest, and prevent criminals from obtaining gaming licenses.  Other measures would put the State Police or Attorney General in charge of licensing investigations, rather than the Gaming Control Board, and establish tighter financial suitability rules for license applicants.  The bills would also require detailed audits and crack down on transportation costs. 

"There is no question that gaming is here to stay in Pennsylvania - so now we must do all we can to guarantee that the industry is strongly regulated and is not subject to fraud, criminal activity and conflicts of interest," Orie said.  "The reforms we are offering today would provide the strict oversight that we feel is necessary to protect against fraud, abuse and corruption.  We owe it to the citizens of this state to provide those much-needed protections."

Rafferty added that many of the bills were drafted as a result of public hearings and public comment on the gaming industry, which pointed to flaws and weaknesses in the current system. 

"Many of these commonsense measures will close loopholes that have been identified since gaming was legalized in Pennsylvania," Rafferty said.  "We now know that there are places where we need to strengthen the law to ensure that these facilities are operating in a manner that is open, aboveboard and accountable.  This package addresses all of these issues from the top down." 

Sen. Farnese believes reform is necessary and long overdue. "We need to change the way the Gaming Control Board operates and how we award casino licenses.  These bills make clear what Gaming Control Board members can and cannot do," he said.  "They also create a more open, transparent process moving forward, allowing residents of the Commonwealth of Pennsylvania to finally have their voices heard.  This gaming reform legislation ensures everyone operates from the same set of established, clearly-defined rules."

Contact:

Carol Maravic
(717) 787-6725

 Summary of Gaming Reform Legislation 

SB 805 - (Senators Orie and Farnese)

• Gaming Board members - full time/no outside income.
• Provides for two-thirds confirmation of Gaming Control Board members.
• Removal of direct appeals to the Supreme Court. 
• Removes the oral hearing exception to the Administrative Agency Law. 
• Confidentiality of Information. 
• Slot Operations in the City of Philadelphia - riparian rights.
• Affirms board’s Powers and Rights in Instances of Default or Failure of a Licensee. 
• Requires True Information on Controlling Interests in Gaming Facilities. 
• Co-mingling of prosecutorial and adjudicatory functions. Would require the board to adopt additional administrative regulations ensuring this separation.
• Provides for stronger enforcement of ethics and related issues.  In line with the above, the board should be authorized and encouraged to seek assistance and advice from the State Ethics Commission and the Attorney General when issues arise under the ethics laws such as conflict of interest and ex parte communications.  If necessary, the Attorney General should be authorized to intervene and investigate.
• Prohibits employment in the gaming industry of board officials for two years.

SB 806 – (Senators Rafferty and Orie) – Bans all felons from being licensed or allowed to provide services to a licensed entity. 

SB 807 – (Senators Orie, Rafferty and Farnese) – Allows for the disclosure and consideration of expunged criminal records. 

SB 808 – (Senator Orie) – Statutorily provides for personnel policies regarding the hiring and the conduct of employees, and dismissal for certain behavior. 

SB 809 – (Senator Orie) – Requires the establishment of procedures and remedies upon default of a licensee, and for forfeiture of slot machine license fees. 

SR 82 – (Senator Orie) – Directs the Legislative Budget and Finance Committee to conduct a review of the operating costs of the Pennsylvania Gaming Control Board and comparing these costs to other state gaming oversight bodies. 

SB 582 – (Senator Rafferty) – Prohibits the use of state funds for the relocation of licensed facilities. 

SB 583 – (Senator Rafferty) – Prohibits any person with an interest in a gaming license to be appointed by the governor to any other board or commission in the state.   

SB 578 – (Senator Piccola) – Creates a Division of Gaming Enforcement under the Attorney General to investigate licensees, decreases the number of board members from seven to five, limits their outside employment, and makes other reforms to the licensing and permit process.  Felons and those proven to be associated with organized crime including career criminals would also be prohibited from holding a gaming license.

SB 734 – (Senator Wonderling) – Requires a monthly win/loss statement be sent to enrollees in casino rewards or complimentary programs. 

SB 761 – (Senator Browne) – Prohibits virtual blackjack and virtual roulette.  

SB 810 – (Senator Ward) – Requires an annual report by the Auditor General on the amounts and uses of the distributions from the State Gaming Fund and the Gaming Economic Development and Tourism Fund, in addition to an internal audit of the expenses and revenues of the board. 

SB 811 – (Senator Ward) – Prohibits the use of leased vehicles.  

SB 813 – (Senator Alloway) – Requires prospective employees of the board to agree, as a condition of employment, that the employee shall not accept employment with any affiliate, intermediary, subsidiary or holding company of a gaming entity, for a period of two years – to address attorneys.  

SB 812 – (Senator Eichelberger) – Expands the current ban on campaign contributions to make sure licensees can’t use their paid lobbyists to make campaign contributions and expands the restriction on political contributions by gaming entities to include former candidates for office.