Pennsylvania State Senate Votes to Get Rid of Middleman
The Pennsylvania State Senate has voted to make a major change in the 2004 law that legalized slot machines, eliminating a requirement for middleman companies called slots suppliers or distributors.
The move to get rid of suppliers -- approved last night in a 29-21 vote -- was led by Sen. Jane Orie, R-McCandless. She called slots suppliers "an unnecessary layer of bureaucracy'' between casinos and slot machine manufacturers.
Moreover, Ms. Orie said, requiring suppliers only benefits politically well-connected people. "No other state that has legalized casino gambling requires casinos to use a middleman to buy slot machines from manufacturers. It is very simply a way for those with influence to buy their way into the process."
Most anti-supplier sentiment came from Republicans, but two Western Pennsylvania Democrats, Jim Ferlo of Highland Park and Gerald LaValle of Beaver County, voted for her measure, Senate Bill 1230.
Sen. Rob Wonderling, R-Montgomery, said suppliers were "artificially created middlemen that add nothing to the end product [of slots]. It just provides insiders with a chance to gain wealth and opportunities.''
Some of the 22 firms that have applied for supplier licenses feature influential political figures, including former Lt. Gov. Mark Singel, former Allegheny County Chief Executive Jim Roddey and former Pittsburgh Councilman Sala Udin.
Sen. Vincent Fumo, D-Philadelphia, argued unsuccessfully that supplier/distributors would be Pennsylvania-based companies offering jobs to state residents. He said eliminating them would benefit out-of-state casino owners and slots manufacturers.
The Senate vote doesn't end the debate. Ms. Orie's bill now goes to the House, which could act on Friday.
June 28, 2006
Posted By Bob Hartman
Staff Editor, CasinoGamblingWeb.com
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