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).
LWVPA, on its own and in coalition with other public interest groups, has opposed legislation to permit riverboat gambling, slot machines at racetracks, and any kind of land-based casinos. However, legislation (Act 71 of 2004) was passed in July 2004 to permit 61,000 slot machines at five free standing casinos, seven racetracks, and two established resorts. This total of 61,000 possible slot machines is exceeded only by Nevada. We continue to oppose legalization of additional forms of gambling and have worked to ensure that regulation of Pennsylvania gambling is conducted by appointees who have no financial interest in any casino or gambling related business.
In 2005, the League, along with the Pennsylvanians Against Gambling Expansion Coalition, 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 Act 71 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 became 145 pages of legislation.
Legislators voted on this substitute amendment within a matter of hours. There were no public hearings, no committee votes, and no real opportunity for citizens to provide meaningful input into the details of the bill. This procedure constituted an end run around Article III which specified the following:
“No law shall be passed except by bill, and no bill shall be so altered or amended on its passage through either House, as to change its original purpose.”
“No bill shall be passed containing more than one subject, which shall be clearly expressed in its title....”
“Every bill shall be considered on three different days in each House.”
“No law shall be revived, amended, by reference to its title only, but...shall be re-enacted and published at length.”
“All bills for raising revenue shall originate in the House of Representatives, but the Senate may propose amendments as in other bills.”
The court did not declare Act 71 to be unconstitutional. The League and Pennsylvanians Against Gambling Expansion lost on all counts. There have been several other suits relating to Act 71 since that judgment rendered in June 2005. They arose chiefly from community opposition to the riverfront site selections in Philadelphia chosen by the two casino operators granted licenses by the Pennsylvania Gaming Board, from the opposition to Philadelphia’s exclusion from site selection participation, and the granting of riparian rights. The Court’s decisions have affirmed that Act 71 placed control over site selection with the State or its Agency, giving little power to local governments to influence or modify site selection decisions, regardless of accompanying environmental, social or infrastructure impact of casinos on local communities. As the Gaming Control Board conducted hearings for applicants for casino licenses in 2006 in Pittsburgh, Gettysburg, Philadelphia, Bethlehem, and Allentown, local groups organized to oppose specific locations and/or to seek promises of Compensation from casino applicants.
Applicants for sites in Gettysburg and Lancaster County withdrew.
Several amendments to Act 71 have been proposed, however only Act 135 passed in November 2006. It removed the possibility for government officials or members of their immediate families to own any financial interest in a casino or related business and placed the investigations of license applicants and employees with a special Bureau within the Gaming Board and slightly strengthened the role of the Attorney General in oversight of casino operations. The League would support repealing Act 71, but short of that has supported proposals to place background investigations of applicants in a department of the Attorney General’s office rather than with the Bureau of Investigations within the Gaming Board.
In 2007 we supported passage of legislation amending the gaming law to implement a more thorough process for criminal background investigations of casino applicants. We supported placing responsibility for criminal background investigations of casino applicants under the direction of the Pennsylvania Attorney General. We pointed out that the Office of Attorney General and the Federal Bureau of Investigation had each determined that the Gaming Board and the Bureau of Investigations and Enforcement were not qualified to receive the confidential information needed for a full determination on the suitability of slots license applicants.
In July of 2008 we testified in support of legislation requiring casinos offering patrons total rewards cards to send those patrons monthly statements listing their gambling winnings and losses. We said the statement should include the toll-free number people can call for assistance with problem gambling. We pointed out that casinos can easily do this because they already track the money these customers spend gambling in order to determine what free services or “comp” to give them. We said that by providing frequent gamblers with timely financial feedback, this requirement would be another tool to help prevent problem gambling.
Updated February 2012
Position in Detail
The League of Women Voters of Pennsylvania continues to oppose the legalization of additional forms of gambling in the Commonwealth, except that the League takes no position on the legalization of small games of chance when used solely for the purpose of private nonprofit fundraising. The League finds no merit in arguments that extending opportunities for legal gambling is an acceptable method for increasing state and local government revenue, stimulating economic development, preventing gambling dollars from leaving the state, or reducing illegal gambling.
Should any bills to legalize additional forms of gambling be proposed, the League will work to ensure that they contain environmental, economic, and social safeguards to protect the best interests of the citizens of the Commonwealth.
Location
The decision to permit the establishment of gambling operations in a particular locality should be made in cooperation with the affected local municipal government and neighborhoods.
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 physical and social environment of prospective casino sites. 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 consideration 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 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. The revenues should be shared with the local governments of 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 and legislators who have any financial interest in the gambling industry or establishments holding or seeking a gambling license from participating in making laws or decisions involving the industry.
Rules restricting movement of personnel between gambling regulatory bodies and the gambling industry for at least one year.
Compulsive Gambling
The Commonwealth should support a compulsive gambling prevention and rehabilitation program.