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Saturday, February 09, 2008
Posted 4:59 PM by

Have lobbying and partisanship trumped public protection in Slotsylvania?



There's slots of bills pending to change Pennsylvania's fledgling gambling industry, including one that would stop their millions of dollars in lobbying.There are plenty of bills pending in Pennsylvania's Legislature that would have reformed the state's slot machine gambling law before the indictment of slots parlor owner Louis DeNaples last week.

None of them have yet to see the light of day, much less been voted upon.

And if ever two guys needed to be stuck in an elevator together to find common ground for the public good, it's state senators Jeffrey Piccola and Sean Logan.

Logan (D-Allegheny) voted for the law legalizing slot machine gambling (Act 71) in 2004, but introduced a bill on March 22, 2007, to stop the state's fledgling gambling industry from lobbying lawmakers and to prevent lobbyists from serving as a pass-through for outlawed campaign contributions.

In effect, Senate Bill 658 would shut off the spigot of millions of dollars being spent annually with no public scrutiny to influence legislators into expanding legalized gambling (see H.B. 2121) and who knows what else.

However, Logan's bill has gone nowhere since it was introduced, remaining stuck in the Senate's Community, Economic and Recreational Development Committee.

Piccola (R-Dauphin), a former majority caucus administrator and whip, is a member of that committee and is no fan of the state's industry-written and hastily-passed slots law either - at least the way it exists currently.

Piccola voted against the slots law in 2004 and was one of 13 senators who fought in August 2006 for a package of 21 bills that would have: prohibited public officials and their families from holding any ownership interest in casino-related firms, created an entirely new Gaming Control Board with only five members appointed by the governor and confirmed by the senate, banned the board members from having any other salaried jobs, and rejected any slots license applicants who have felony criminal records (the 2004 slots law forgives convictions before 1991).

The senators urged the control board not to approve any more licenses - including one for DeNaples, a Dunmore billionaire who admitted a federal felony in 1978 - until their reform measures were heard. Some of them, including Piccola, even threatened to shut down the state government and all active casinos during budget wrangling in July 2007 to get their bills enacted.

They failed.

Piccola has since called DeNaples' indictment for lying to the control board about his allleged mob ties "a black eye on Pennsylvania" while standing on the floor of the Senate.

On Wednesday, the same day DeNaples was arraigned on the perjury charges, Piccola announced he will try again to reform the slots law.

Although his new bills have yet to be introduced, this time they appear far less sweeping. His proposed changes now include:

  • opening all portions of the application process relating to character and integrity of applicants, principals, and key employees to public scrutiny.


  • transferring the Gaming Board's Bureau of Investigation and Enforcement to the Office of the Attorney General (a move the state police commander has said won't make any difference)


  • requiring all applicants to make Freedom of Information Act requests regarding their criminal file and providing all documents obtained to the Bureau of Investigation and Enforcement.

If Piccola wants to be seen as a true reformer, then why hasn't Logan's bill made it out of his committee? Is the fact that Logan is a Democrat, and Piccola is a Republican, the reason?

The chairperson of that committee is state Sen. Jane Earll (R-Erie), a former candidate for lieutenant governor who voted in favor of the slots law in 2004 but told Project Vote Smart that she is against expanding it to include riverboat gambling.

Earll stopped an effort last October to put state police in charge of slot licensee background investigations, saying, "I don't see any glaring problems that have been brought to light by today's testimony that we need to rush to fix."

Her refusal to act came after the FBI informed the control board that it wasn't a law enforcement agency and therefore could not see the information bureau agents had collected on DeNaples, according to the Pittsburgh Tribune-Review.

Logan's bill is not the only reform-minded measure stuck in Earll's committee. Also pigeonholed there is S.B. 856, which merely adds "former candidates" to the list barred from receiving direct campaign contributions from gambling interests.

I don't know how much money Earll has accepted in campaign contributions from gambling interests. The state's online database lists 1,177 contributions to her since Jan. 1, 2000, but many of the contributors's occupations and employers have been left blank.

She did receive a total of $875 from William J. Bleill, a consultant for First Presque Isle Corp. I don't know what relationship, if any that company has with MTR Gaming Group Inc., the parent company of Presque Isle Downs & Casino near Erie. Earll also accepted $175 from Edson R. Arneault, president, CEO and chairman of MTR.

Earll's committee is similarly stymieing:

  • S.B. 113, which would require the control board to take a public vote among all seven members - not just a supermajority consisting of the governor's appointee and four legislative appointees - on whether to take enforcement actions against a slots parlor license holder.


  • S.B. 423, which allows slots parlors to issue rewards cards to frequent gamblers, but also requiring each casino to issue monthly statements that list patrons' gaming winnings and losses.


  • S.B. 855, which requires all Gaming Control Board appointees to be confirmed by the Senate.


  • S.B. 600, which bars the Gaming Control Board from hiring relatives, requires all prospective board employees to submit their "complete criminal history" and to take a drug test, and subjects all control board employees "who, while on duty or off duty, engages in scandalous or disgraceful conduct which may bring the service of this Commonwealth into disrepute" to prompt disciplinary action and immediate suspension.


  • S.B. 1031 and S.B. 1032, which would prohibit the location of a slots parlor within 1,500 feet of a school, church or home.

None of those measures are nearly as controversial as S.B. 683, which state Sen. John Rafferty Jr. (R-Montgomery County) introduced on March 23, 2007. It would require a binding referendum be approved in any municipality where a slots parlor has been proposed.

Yet, none of those bills have moved out of Earll's committee in nearly a year.

Stumbling blocks toward reform are not limited to the state Senate and are not only being erected by Republicans.

On Jan. 30, 2007, state Rep. Michael O'Brien (D-Philadelphia) introduced House Bill 14, which like Sen. Rafferty's bill, would require approval of a slots parlor in a local binding referendum. It has been stuck in the House Committee on State Government ever since.

Bottled up in the House Committee on Gaming Oversight since March 6, 2007, is H.B. 567, which would prohibit further gambling expansion without the approval of a statewide referendum or by a two-thirds vote of the General Assembly.

The chairman of the Gaming Oversight committee is Harold James (D-Philadelphia), who has been singled out for criticism by House Republicans for failing to move H.B. 1450. That bill would put the state police in charge of doing slots parlor licensee background checks (even though, again, the state police commander has said it won't make any difference).

James voted for the 2004 slots law. It was impossible to tell from the state's online database whether he received campaign contributions from gambling interests. It lists 337 contributions since Jan. 1, 2000, but many of the occupations, employers and even names have not been completed.

James' committee is also holding up:

  • H.B. 482, which would cut the pay of Gaming Control Board members to $64,178, except the chairman who would get $66,810. Currently, board members are paid $145,000 and the chairman gets $150,000. (There is currently no law or bill pending on what the board can pay its employees.)


  • H.B. 909, which would require an audit if a slots parlor fails to generate 85 percent of its anticipated revenue in a year.


  • H.B. 1181, which would reduce the potential number of stand-alone casinos from five to three.


  • H.B. 1477, which would prohibit the location of a slots parlor within 1,500 feet of a school, church or home.


  • H.B. 1715 and H.B. 1975, which would require $1.5 million to $3.5 million be transferred annually from the Pennsylvania Gaming Economic Development and Tourism Fund into the Compulsive and Problem Gambling Treatment Fund.

None of those measures are nearly as controversial as H.B. 2121, which would expand the state's definition of legalized gambling to include table games - including roulette, baccarat, blackjack, craps, big six wheel, mini-baccarat, red dog, pai gow, poker, twenty-one, acey-ducey, chuck-a-luck, fan-tail, panguingui, chemin de fer, sic bo, and any variations or composites of such games - in effect turning the slots parlors into full-fledged casinos.

The table games bill was introduced July 14, 2007, by Majority Floor Leader H. William DeWeese and immediately garnered 19 Democratic supporters. They include state representatives: James Wansacz (D-Lackawanna County), Thomas Caltagirone (D-Berks County), Todd Eachus (D-Luzerne County), Florindo Fabrizio (D-Erie County), Dan Frankel (D-Allegheny County), Michael Gerber (D-Montgomery County), R. Ted Harhai (D-Fayette County), Patrick Harkins (D-Erie County), John Hornaman (D-Erie County), Deberah Kula (D-Fayette County), Frank Louis Oliver (D-Philadelphia County), John Pallone (D-Armstrong County), Eddie Pashinski (D-Luzerne County), Dante Santoni Jr. (D-Berks County), Frank Andrews Shimkus (D-Lackawanna County), John Siptroth (D-Monroe County), Majority Caucus Administrator Dan Surra (D-Clearfield County), Jesse White (D-Allegheny County), and Edward Wojnaroski Sr. (D-Cambria County).

House Bill 2121 would turn Pennsylvania's slot parlors into full fledged casinos.DeWeese has accepted 4,401 campaign contributions from individuals and political action committes since Jan. 1, 2000. Again, it's unclear from the state's online database how many came from gambling interests because many of the employers and occupations have been left blank.

Like the rest of the bills pending before the Gaming Oversight committee, DeWeese's table games bill has been tabled since it was first introduced.

But given the continued flow of lobbying money and in-direct campaign contributions to lawmakers, which bill do you think will pass first?

I can tell you this, DeNaples, who has said he never placed a bet in his life, predicted in 2006 that table games would be a reality within two years.

Finally, one slots gambling-related bill was introduced this week by state Rep. RoseMarie Swanger (R-Lebanon) after Gov. Ed Rendell announced a state funding package designed to help lure a professional soccer team to the city of Chester .

H.B. 2225 would prohibit any money in the Gaming Economic Development and Tourism Fund from beng used for multipurpose recreational facilities or sports facilities.

MORE ABOUT LOUIS DENAPLES

For more about Louis DeNaples and to read my complete take on this long-predicted Slotsylvania snafu, click here.

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