GAMBLING

POSITION IN BRIEF

Oppose the legalization of additional forms of gambling in Pennsylvania.

BACKGROUND

After a one-year statewide study, consensus was reached in 1984 that LWVPA oppose any expansion of legalized gambling in the Commonwealth. In order to be able to comment on specific legislation, members also agreed that any bills to legalize additional forms of gambling must contain certain safeguards (see “Position in Detail” below).

CURRENT STATUS
After a decade of active lobbying for the expansion of gambling in Pennsylvania and the election of a Governor who strongly supported expanding gambling in Pennsylvania, legislation was passed and signed by the Governor in July, 2004 which permits a total of 61,000 slot machines in Pennsylvania in free standing casinos, slot machines at racetracks, and casinos run by existing resorts. Currently, if fully realized, this legislation would permit more slot machines in Pennsylvania than any other state except Nevada.

POSITION IN DETAIL

LWVPA, on its own and in coalition with other public interest groups has worked to oppose legislation to permit riverboat gambling, slot machines at race tracks, and any kind of land-based casinos. However, in the early morning hours of, Sunday, July 4, 2004 the PA House passed what eventually became Act 71. It permits 61,000 slot machines at five free standing casinos, seven racetracks, and two at already established resorts. This total of 61,000 machines is exceeded only by Nevada and initiated the single largest expansion of gambling in American history. LWVPA, Pennsylvanians Against Gambling Expansion, four State Representatives, five individuals and the Commonwealth Foundation sued the Governor and the majority and minority leaders of the House and Senate in Pennsylvania Supreme Court alleging that the law was passed in a manner that violated the original purpose and single subject rules of Article III of the State Constitution. What began as a one-page, unrelated bill, became145 pages of legislation. Legislators voted on this substitute amendment within a matter of hours. There were no public hearings, no committee votes – no real opportunity for citizens to provide meaningful input into the details of the bill. This procedure constituted an end run around the PA Constitution which specifies that bills be considered on three separate days in both the House and Senate before final passage. The court did not declare Act 71 to be unconstitutional but did reject a provision of the law which granted the Pennsylvania Gaming Control Board sole rights in selecting the sites of the casinos.

Location
The decision to permit the establishment of gambling operations in a particular locality should be made by the voters in the affected local communities.

Limits should be placed on the size of video game, slot machine, and casino gambling operations and on the number of such operations within a given area. Where a regularly operated gambling enterprise likely to attract large numbers of people is proposed, licensing should be contingent upon the existence of adequate municipal services and infrastructure. A report should be required assessing the impact the gambling enterprise will have on the environment.
Provisions should be made to mitigate the effects of land speculation and social and economic and residential dislocations that could result from the location of gambling enterprises.

With the exception of nonprofit bingo and small games of chance, gambling operations should not be located near schools, churches, or residential areas.

Regulation
All gambling, including nonprofit games, should be regulated at the state level with local government option regarding location and the setting of stricter rules. Gambling regulations should include prohibitions on access by minors, limits on credit and hours of operation, mandatory maximum take-out rates, and controls on advertising content. To prevent intrusion by criminal elements, regulations should also include, when appropriate: licensing of employees, licensing of ancillary industries, and prohibitions on access by persons with known ties to criminal elements.

Taxation
The state should levy special taxes on gross revenues in addition to corporate and other income taxes, and permit local governments to tax commercial gambling activities and devices.

The League opposes earmarking gambling revenue from state gambling operations, or from gambling taxes, for specific programs. Net revenues from gambling taxes should be deposited in the General Fund. Where appropriate, the revenues should be shared with communities impacted by the gambling activity. The state should not specify how local governments spend their share of state gambling revenues or locally generated gambling revenues.

Gambling for Nonprofit Fundraising
Gambling operations for nonprofit fundraising should be limited to bingo and small games of chance and should not be extended to slot machines and video games. The conduct and location of charity gambling should be strictly regulated to prevent its commercialization.

Conflict of Interest Projections
All elected and appointed public officials involved in setting gambling policy, or responsible for enforcing gambling regulations, should be covered by a strict code of ethics to prevent conflict of interest from entering into their decision making.

The code should include:
• Comprehensive financial disclosure for self, business, and immediate family, including amounts as well as sources of income, location and value of real estate holdings, directorships, clients, and customers.
• Rules prohibiting officials from making gambling decisions who have any financial interest in the gambling industry or establishments holding or seeking a gambling license.
• Rules restricting movement of personnel between gambling regulatory bodies and the gambling industry.

Compulsive Gambling
The Commonwealth should support a compulsive gambling prevention and rehabilitation program.

Revised, June 28, 2007

Updated 07/07

Where We Stand

Government
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Social Policy
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Natural Resources
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