Penn Senate Finalizes Bill in Slots Middlemen Dispute

The Pennsylvania state Senate approved legislation Tuesday that would abolish a requirement that slot-machine manufacturers use in-state middlemen to sell their equipment to Pennsylvania gambling casinos. However, the Republican-penned bill also carried a Democratic-sponsored amendment that would help pay for casino gambling related law enforcement costs by increasing the state's tax on the operators of the state's casino slots parlors.

The bill passed 29-21, largely on the strength of Republicans, who have criticized the distributor requirement in the state's 2004 slot-machine gambling law as an intrusion into the gambling industry intended to benefit well-connected businessmen. Democrats defended the distributor requirements as a way to create job opportunities for small businesses in Pennsylvania.

But the provision to raise taxes on slots revenues by 4 percent is sure to complicate the bill's prospects in the House, particularly with the 52 percent base tax rate on slots revenues already criticized by the industry as high.

June 29, 2006
Posted By Bob Hartman
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