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FOR IMMEDIATE RELEASE
August 25, 2008
CONTACT:
Lee Derr
(717) 787-6538
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Orie Pushes to Fill More Gaps in Gaming Law To Protect Taxpayers and Ensure Accountability and Transparency

Today, Senator Jane Orie (R-Allegheny) announced the introduction of three bills designed to address inadequacies in the slot machine gaming law that have come to light in numerous recent media reports.

"The well-publicized problems with casino licensees, as well as controversies concerning "revolving door employment" and questionable uses of gaming tax revenues have made it clear that there still exists numerous deficiencies in the Gaming Act," commented Orie. "It is clear to all that the gaming industry, given its substantial financial temptations and potential gateway to criminal opportunity, requires the strictest of scrutiny and regulation to protect the citizens of the Commonwealth, and it cannot be reiterated enough that even the appearance of impropriety must be avoided." 

Numerous problems stemming from license determinations and the Board’s own conduct have arisen in just the few short years that slot machine gaming has been legalized in Pennsylvania.  In Lawrence County, financiers of the racetrack/slots casino are looking to halt that project due to Board inaction.  And in Pittsburgh, the licensee had on numerous occasions indicated its inability to obtain permanent financing, yet the licensee was never declared in default, nor any penalties imposed.  Instead, the situation was allowed to degenerate into a widely-reported crisis and a controversial bailout by Philadelphia licensee Neil Bluhm. 

Further, in both Erie and Allegheny County, disputes arose over the use of gaming tax revenues by county officials. Recent media reports have also publicized that the former Chairman of PGCB, and other former top Board lawyers, are now working for law firms where they represent casinos and work on other matters related to PGCB’s regulation of the gaming industry—some only days or months after leaving the agency that regulated their clients.

The first bill would establish routine audits by the Auditor General of the Gaming Control Board, and the distributions from the various gaming funds.  The second measure would require the board to establish procedures to: declare a licensee in default, place a casino in trusteeship, and forfeiture of license and other fees.  The third piece of legislation would require, as a condition of employment or appointment, that attorneys who work for the board limit their post-gaming board employment to the same standard as everyone else who works for the board.

"The Gaming Control Board needs to act promptly, consistently, and decisively when faced with problems arising from its licensing decisions," Orie stated.