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PA Considers Gambling Interlink, May 28, 2004, p.3 By Roger Thomas, Member WPA
Witness Team |
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Pennsylvania is considering racetrack
gambling under House
Bill 623. The Witness Team went
to the casino in Mountaineer, WV to see how things were going there. It is run by the same firm that wants to
operate our casinos. The idea in HB623 is that racetrack
owners could operate 3,000 slot machines at their track. There could be 40,000 machines
statewide. The Mountaineer casino has
3500 machines. The $50,000,000 Pennsylvania license
would only be available to the racetrack operators. Illinois offered open bidding, and received over three times
that amount. All slot machines revenue would be
transferred directly to the Pennsylvania Department of Revenue every
day. The Department would then 1)
deduct its administrative costs and expenses, 2) distribute 1% of the gross
to the host municipalities, 3) transfer 1% of the gross to the Department of
Community and Economic Development for "infrastructure improvements and
public safety expenses associated with the racetrack and slot machine
operations." After making the three deductions, the
Department of Revenue would deposit 34% of the remainder into the State
Gaming Fund. That leaves about 64%
of the gross revenue for the owner's account. West Virginia collects 38%. The state would move the money from the
Gaming Fund to the Property Tax Relief Trust Fund every month. HB623 does not say how the Property Tax
Relief Fund will be distributed. The State Gambling Fund would provide
for a Compulsive Problem Gambling Treatment Fund. The Department of Health would "develop program guidelines
for public education, awareness and training regarding compulsive and problem
gambling, and the treatment and prevention of compulsive and problem
gambling." Compulsive Gambling
would be authorized $1,500,000 per year for the entire program. HB623 prohibits "the use or
extension of credit to players."
West Virginia has the same provision, but Mountaineer has 10 MAC
machines and several credit card debit machines down the hall from the
casino. We interviewed a bus driver from
Northern Lights who drives loads of people to Mountaineer. He told us how even these drivers sell
"markers" to their customers.
Gamblers freely obligate their homes, cars, and other personal
property as collateral for the markers, and the lenders can forcibly collect
on them. There are instances in which
the casinos support the lenders with temporary funds. Markers are legally enforceable in
Pennsylvania. We met with Sen. Gibson
Armstrong (R-Lancaster) about these, and have offered him some proposed
statutory language. The Mountaineer casino is a stock corporation
that employs about 1500-1800 people.
Employees start at minimum wage and get merit - rather than seniority
- promotions. They tend to be full time employees, except for some people in
the food and beverage department.
They are open from 7:30 AM to 4:30 AM every day except Christmas. As shown in the photograph, about 75% of
their players are retirees. Players
get "points" for the number of games they play. These (green
stamps) may be applied to other services such as food and spa. We did a random sample in the parking
lot, and found 15 Pennsylvania plates in a row of 68 cars. We mentioned the absence of a third party liability provision in HB623 to Sen. Armstrong. Every product or service has protection for third persons who their product injures. Even bars and taverns have dramshop laws. If bartenders continue to serve drinks to customers who the ordinary person would know was intoxicated, the tavern can be liable for subsequent injuries. He had us send him some proposed language on that too. |
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The Western Pennsylvania
Conference of the United Methodist Church adopted the following Resolution,
75-3-7, on June 11, 2004 RS 102 Gambling Regulation 1) Whereas "Gambling is a menace to society, deadly to
the best interests of moral, social, economic, and spiritual life, and
destructive of good government. As an act of faith and concern, Christians
should abstain from gambling and should strive to minister to those
victimized by the practice. Where gambling has become addictive, the Church
will encourage such individuals to receive therapeutic assistance so that the
individual's energies may be redirected into positive and constructive ends.
The Church should promote standards and personal lifestyles that would make
unnecessary and undesirable the resort to commercial gambling-including
public lotteries-as a recreation, as an escape, or as a means of producing
public revenue or funds for support of charities or government." The Book of Discipline of The United
Methodist Church--2000, ¶163G 2) Whereas the "Pennsylvania Gaming Act of
2003" (House
Bill 623 of Session 2003, Printer Number 2473) would allow racetrack owners "to place
and operate slot machines."
There is a limit of 3,000 machines per track, and 40,000 machines
statewide. Only the racetrack owners can buy the permits. 3) Whereas the Bill requires that all revenue from the
slot machines be transferred directly to the Pennsylvania Department of
Revenue every day. The Department 1)
deducts its administrative costs and expenses, 2) distributes 1% of the gross
to the host municipalities, 3) transfers 1% of the gross to the Department of
Community and Economic Development for "infrastructure improvements and
public safety expenses associated with the racetrack and slot machine
operations," 4) then deposits 34% of the remainder into the State Gaming
Fund. The balance is transferred into the owner's account. 4) Whereas the State Gambling Fund transfers $1,500,000
into a Compulsive Problem Gambling Treatment Fund annually. This fund is to
provide for all compulsive gamblers in Pennsylvania. The Department of Health must develop program
guidelines for public education, awareness and training regarding compulsive
and problem gambling, and the treatment and prevention of compulsive and
problem gambling. 5) Whereas the Gaming Fund must transfer its remaining
balance into the Property Tax Relief Trust Fund. The Bill does not say how the Property Tax Relief Fund will be
distributed. 6) Whereas the Bill prohibits the use or extension of
credit to players, but it does not prohibit credit card machines on the
premises. Nor does it prohibit the
sale of "markers" by private loan sharks. 7) Whereas every vendor should be liable for injury
caused by the goods and services they provide. This Bill makes no provision for vendor liability. 8) Whereas a standard vendor liability provision could be
added to this Bill as follows:
9) Whereas gambling tends to create more social problems
than it compensates in jobs and revenue.
The Pennsylvania State Lottery, for example, was created as a
self-sustaining venture to fund prescription drugs and other programs for
seniors. The lottery has operated in
a deficit for several years, and taxpayers are paying its administrative
costs out of the general fund. Be it therefore resolved that the Western Pennsylvania Conference of the United Methodist
Church is opposed to the adoption of any gambling policy as inherently evil. Be it further resolved that if a gambling policy is adopted in Pennsylvania, we
encourage open bidding on the permits. Be it further resolved that if a gambling policy is adopted in Pennsylvania, we urge
that markers sold for gambling credit are unenforceable at law Be it further resolved that if a gambling policy is adopted in Pennsylvania, we urge
that it contain a vendor liability provision which will protect innocent persons
from the negligent acts of casinos or gamblers. Be it further resolved that if a gambling Act is adopted in Pennsylvania, we urge that
it contain a "sunset provision" which provides for the expiration
of the Act. Be it further resolved that if a gambling Act is adopted in Pennsylvania, we urge that
at least 80% of the employees in all pay scales be long standing residents of
the host municipality. Be it further resolved that that the clergy and the laity are encouraged to provide
testimony, support, and encouragement to the members of the Pennsylvania
legislature toward the introduction and passage of the legislation recited in
this resolution. Rand Edwards, Chair Witness Team |
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