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For Immediate
Release
6/22/06
CONTACT:
PA
Senate Republican Communications
(717) 787-6725
Committee Approves Orie Legislation to Eliminate Slot
Machine Middlemen
HARRISBURG -- Legislation
introduced by Senate Jane Clare Orie (R‑McCandless) to eliminate slot machine
middlemen was approved by the Senate State Government Committee today. "I am
pleased that members of the State Government Committee voted today in favor of
my bill to amend the state's 2004 Gambling Law," Senator Orie stated.
Senate Bill 1230 would eliminate the requirement that slot machine manufacturers
use licensed suppliers to distribute and service slot machines in the
Commonwealth.
"Mandating the use of supplier middlemen does not benefit the
Commonwealth, its citizens, customers of licensed casinos, or slot
machine manufacturers," said Orie. "To the contrary," Orie continued,
"the use of supplier middlemen is an unnecessary layer of bureaucracy,
as well as a drain on revenue that could be used for property tax
relief."
According to Senator Orie, no other state that has legalized casino
gambling requires casinos to use a middleman to purchase slot machines
from manufacturers or to repair and service these machines. Rather,
manufacturers are permitted to market and service their machines as they
choose within the requirements of law. "Unless the licensed slot
machine manufacturers have the ability to control who maintains and
repairs their machines, there is opportunity for fraud, corruption, and
criminal activity," stated Orie.
Also,
the supplier middleman provision has been viewed by many as simply a way
to ensure that politically well-connected individuals financially
benefit from the state's Gambling Law. As examples, supporters of
Orie's bill point to those who have applied for slot machine supplier
licenses, including a former lieutenant governor, a former Allegheny
County executive, a city councilman, lobbyists, and a former member of
the Steelers. "These individuals currently do not have experience with
selling, repairing, or maintaining slot machines or hiring individuals
with these skills," said Orie.
Earlier this year, the Pennsylvania House of Representatives considered
an amendment to eliminate slot machine "middlemen" and the amendment was
originally approved by a vote of 102‑96. Shortly thereafter, the House
reversed itself upon reconsideration of the amendment, and it was
defeated by a vote of 111‑89.
The
Gaming Control Board has not met its self-imposed June 15 deadline to
issue up to 23 licenses for slot machine suppliers. The delay has
occurred because members of the Gaming Control Board remain divided on
the issue of whether to have regional supplier licenses or statewide
supplier licenses. The impasse on the supplier issue has the potential
to delay the issuance of casino licenses, since the Gaming Control Board
cannot award casino licenses until 90 days after awarding the
manufacturer and supplier licenses.
Proponents of current law have stated that the supplier middleman
provision will create jobs in the Commonwealth. But those who view
supplier licenses as unnecessary have pointed out that slot machine
service and repair personnel are not dependent on this additional layer
of bureaucracy. "Personnel will be hired in the Commonwealth with or
without separate supplier licenses, and these personnel will work -- and
live -- in Pennsylvania, contributing to Pennsylvania's tax base," Orie
said.
Senate Bill 1230 now moves to the full
membership of the Senate for a vote.
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