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June 30, 2006

 

● IRRC: Yet Another Hurdle For PA Slots  ●

 

The Pennsylvania Gaming Control Board is making efforts to get slot machines at state racetracks as soon as possible.  The board has been granted the responsibility/burden of distributing 14 slot machine licenses to various groups that are attempting to establish slot machine parlors.  As a response to the length of time it takes to hand out the permanent licenses, they have made plans to create and deliver temporary slot licenses.  This would put slot machines in Pennsylvania’s racetracks as early as Labor Day.

Before that happens, however, the board must hold a meeting about how slot machine suppliers are allowed to sell their products in the state.  If this meeting does not end in clarity, the issuing of temporary licenses will be delayed.  Unfortunately, things do not look promising, as the seven members of the board cannot agree on whether the state should be divided into supplier regions.  But, according to spokesperson Nicholas Hays, “The board continues to work to try to resolve the issue.”

The law that legalized slot machine gambling in Pennsylvania possessed a clause mandating the states 14 coming slots parlors purchase all slot machines from state suppliers; as opposed to manufacturers.  Bally Gaming Inc., Gtech Corp., and Konami Gaming Inc., are among the businesses looking to set up shop in Pennsylvania.

Though most of the big slots gambling questions will be decided on by the gaming control board, the board must still answer to the state Independent Regulatory Review Commission (IRRC).  The board has until July 5 to complete all final drafts of the new rules.  Should they miss the deadline, the IRRC will subject them to yet another level of scrutiny.  The board was given two years, since July 5, 2004, the day Governor Rendell signed the bill into law, to draft all rules without the approval of the IRRC. 

A lot rides on time during this process of quickly ushering slot machine gambling into the state of Pennsylvania.  A 90-day waiting period has been set in place by law to separate the licensing of suppliers and a board vote on license applications for slots parlors.

Hays fears the process could be dragged out by months, or even a year, if the IRRC becomes involved in regulations.  Reporters learned from Tad Decker, board chairman, a “substantial delay” would be the direct result of IRRC involvement. 

President and CEO of Mohegan Sun at Pocono Downs, Robert Soper, and other racetrack operators in his shoes are growing increasingly frustrated in the face of more potential delays.  Soper’s racetrack is one of seven promised to receive a conditional license to operate slot machines.  According to Soper, Pocono Downs had depended on receiving slot machine profits starting this coming fall. 

Soper said, “We are frustrated, but at the same time hopeful.”

 

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