Board to rule on slots suppliers

HARRISBURG - An issue that has divided the state Gaming Control Board for months - the need for in-state slot machine suppliers - is expected to be settled by board members today, a leading gambling proponent said.

"I'm just told they are going to resolve everything," said Sen. Vincent Fumo, D-Philadelphia, chief architect of the 2004 slots law.

The Senate in a 29-21 vote Tuesday approved legislation that would eliminate a provision in the law that requires casinos to purchase slot machines from Pennsylvania-based suppliers.

But the bill contains a measure authored by Fumo -- who argued against eliminating suppliers -- that could stall or kill the legislation in the House.

Fumo's amendment raises the tax on slots revenues by 4 percent -- to 48 percent -- with the extra money to be used to help pay for gambling-related law enforcement costs.

"That's a new dynamic," said House GOP spokesman Stephen Miskin, who said he "didn't know" whether the legislation would be considered in the House.

Sen. Jane Orie, R-McCandless, author of the bill eliminating suppliers, said she is confident the House will approve the bill. She said, "I think the message is loud and clear: The Legislature wants to do away with suppliers."

The Gaming Control Board meets today in an effort to approve either a statewide list of suppliers or one that divides the state into Eastern and Western regions. Fumo said he believes one statewide list will emerge.

Board Chairman Tad Decker has warned that failure to resolve the matter could thwart the board's ability to enact temporary regulations by July 5. The issues might be turned over to the state Independent Regulatory Review Commission, an action some observers think could delay slots licensing for a year or more.

Board member Jeffrey Coy, a former legislator from Shippensburg, hinted last week that he might be willing to drop his demand for regional suppliers.

Asked whether the dispute has been settled, Nick Hays, spokesman for the Gaming Control Board, said, "We'll know when the board meets."

"People are somewhat fed up with the supplier debacle. It's holding up the implementation of gaming," said Sen. Tommy Tomlinson, R-Bucks County, a key slots proponent. "Somebody's holding suppliers hostage."

Pennsylvania is the only state with a casino law that requires the use of in-state middlemen to sell their equipment.

Supporters say the provision creates business opportunities in Pennsylvania. Opponents say many supplier applicants are politically connected and the potential exists for patronage and criminal activity.

Tomlinson said the higher tax on slots revenue under the Senate-approved bill "is a killer."

The slots law provides for licenses at 14 locations statewide, including a casino in Pittsburgh.

Tomlinson said the General Assembly can still do away with suppliers even if the Gaming Control Board approves a list today.

Legislative action would trump any decision by the board , said Senate Majority Leader David "Chip" Brightbill, R-Lebanon County, a slots opponent.

Fumo disagreed, saying, "I don't know that it would."

Area senators voted mainly along party lines on eliminating suppliers, with all Republicans in favor and all but two Democrats against. The two Democrats who voted for the bill were Sen. Jim Ferlo, of Highland Park, and Sen. Gerald LaValle, of Rochester.

Meanwhile, the Gaming Control Board won't allow a Philadelphia resident who opposes gambling to speak at today's meeting, Hays said.

Jethro Heiko, who lives near proposed casino sites in Philadelphia, said he requested several weeks ago an opportunity to speak. He is a member of a group that opposes slots under the umbrella of Casino Free Philadelphia.

Hays said the section of the Sunshine Act that allows citizens to request time to comment at a meeting doesn't apply to the Gaming Control Board.

Hays said Heiko spoke at an April 12 hearing. "We just held 18 days of public hearings in which this gentleman participated," Hays said.