PRINTER'S NO. 2339
No. 2121 Session of 2007
INTRODUCED BY DeWEESE, WANSACZ, CALTAGIRONE, EACHUS, FABRIZIO,
FRANKEL, GERBER, HARHAI, HARKINS, HORNAMAN, KULA, OLIVER,
PALLONE, PASHINSKI, SANTONI, SHIMKUS, SURRA, J. WHITE,
WOJNAROSKI AND SIPTROTH, JULY 14, 2007
REFERRED TO COMMITTEE ON GAMING OVERSIGHT, JULY 14, 2007
AN ACT
1 Relating to amusement; authorizing table games; imposing powers
2 and duties on the Pennsylvania Gaming Control Board;
3 providing for eligibility to conduct authorized table games,
4 for licensure of table game facilities, for conduct of
5 authorized table games, for statement of compliance, for
6 certificate of operation, for table game employees, for key
7 employees, for service industry employees and for licensure
8 of table game service industries; imposing powers and
9 conferring duties on the Bureau of Investigation and
10 Enforcement, the Pennsylvania State Police and the Attorney
11 General; providing for distribution of gross table game
12 revenue, for property tax relief, for corrupt organizations,
13 for prohibitions, for inspections, for enforcement and for
14 compulsive and problem gambling assistance; providing
15 penalties; making appropriations; and making related repeals.
16 TABLE OF CONTENTS
17 Chapter 1. Preliminary Provisions
18 Section 101. Short title.
19 Section 102. Legislative finding and declaration.
20 Section 103. Definitions.
21 Chapter 2. Table Games Authorized
22 Section 201. Authorization to conduct table games.
23 Section 202. Authorized locations for operation.
1 Section 203. Commencement of table game operations.
2 Section 204. Applicability.
3 Chapter 3. Duties of Board
4 Section 301. General powers.
5 Section 302. Powers and duties of board.
6 Section 303. Regulatory powers.
7 Section 304. Denials and sanctions.
8 Section 305. Annual report, study and recommendations.
9 Section 306. Application hearing process.
10 Section 307. Board minutes and records.
11 Section 308. Maintenance of information.
12 Section 309. Temporary regulations.
13 Section 310. Diversity goals and requirements of board.
14 Section 311. Application appeals.
15 Section 312. Issuance of license, permit or registration.
16 Chapter 4. Fees, Fines and Penalties
17 Section 401. Authority of board; imposition and collection of
18 fees, fines and penalties.
19 Section 402. Table game license fee.
20 Section 403. Deposit of fees.
21 Section 404. Ability to pay license fee.
22 Chapter 5. Authorized Licenses
23 Section 501. Table game licensing requirements.
24 Section 502. Statement of compliance.
25 Section 503. Table game license applicant eligibility.
26 Section 504. Requirements to manage.
27 Section 505. Eligibility of corporations.
28 Section 506. Restrictions on licensure.
29 Chapter 6. Table Game License Application
30 Section 601. Application for table game license.
20070H2121B2339 - 2 -
1 Section 602. Disqualification for licensure.
2 Section 603. Order approving or denying table game license
3 and investigation.
4 Section 604. Renewal of table game license.
5 Section 605. Bond.
6 Section 606. Confidentiality of information.
7 Chapter 7. Table Game Key Employee License
8 Section 701. Licensure of table game key employees.
9 Section 702. Denial of license.
10 Section 703. Petition for temporary license.
11 Chapter 8. Table Game Employee Occupation Permit
12 Section 801. Occupation permit required.
13 Section 802. Requirements for permit.
14 Section 803. Residency.
15 Section 804. Convictions not basis for denial of permit.
16 Chapter 9. Table Game Service Employees
17 Section 901. Table game service employees registration
18 required.
19 Section 902. Application requirements.
20 Section 903. Residency.
21 Section 904. Convictions not basis for revocation of
22 registration.
23 Section 905. Petition for registration.
24 Section 906. Registration fee.
25 Chapter 10. Table Game Service Industry
26 Section 1001. Licensure of table game service industry.
27 Section 1002. Qualifications of table game service industry.
28 Section 1003. Table game service industries.
29 Section 1004. Restrictions on exempted persons.
30 Section 1005. Disqualification.
20070H2121B2339 - 3 -
1 Section 1006. Proof of business license and taxes.
2 Section 1007. Subcontractor requirements.
3 Chapter 11. Approval or Denial of License, Permit or
4 Registration
5 Section 1101. Investigation.
6 Section 1102. Issuance or denial of license, permit or
7 registration.
8 Section 1103. Authority to deny application.
9 Section 1104. Issuance and renewal of license, permit or
10 registration.
11 Section 1105. Time for renewal; extension.
12 Chapter 12. Transfers
13 Section 1201. Transfer of property or security.
14 Section 1202. Request for interim authorization.
15 Section 1203. Trust agreements.
16 Section 1204. Obligations and responsibilities.
17 Section 1205. Time for determining qualification.
18 Chapter 13. Conditions of Operation
19 Section 1301. Operation certificate.
20 Section 1302. Condition of continued operation.
21 Section 1303. Hours of operation.
22 Chapter 14. Game and Facility Requirements
23 Section 1401. Authorized table games.
24 Section 1402. Wagers and payoffs.
25 Section 1403. Information to patrons and players.
26 Section 1404. Acceptance of tips.
27 Section 1405. Table game facility requirements.
28 Section 1406. Table game devices, apparatuses, equipment and
29 supplies.
30 Section 1407. Restrictions and prohibitions.
20070H2121B2339 - 4 -
1 Section 1408. Density requirement.
2 Section 1409. Approved hotels.
3 Chapter 15. Internal Controls
4 Section 1501. Internal controls.
5 Section 1502. Modification of internal controls.
6 Section 1503. Additional submissions to board.
7 Chapter 16. Credit
8 Section 1601. Restriction on provision of credit.
9 Section 1602. Acceptance of checks.
10 Section 1603. Prohibition on provision of credit.
11 Section 1604. Accounts, deposits and transactions.
12 Section 1605. Limitation on amount redeemed.
13 Chapter 17. Supplier and Manufacturer Licenses
14 Section 1701. Supplier and manufacturer licenses.
15 Section 1702. Additional eligibility requirements.
16 Section 1703. Issuance of license.
17 Section 1704. Additional supplier license requirements.
18 Section 1705. Records.
19 Section 1706. Inspections.
20 Chapter 18. Junkets and Complimentary Services
21 Section 1801. Junkets.
22 Section 1802. Temporary occupation permit.
23 Section 1803. Agreements.
24 Section 1804. Responsibility of licensee for conduct of
25 junket.
26 Section 1805. Violation of terms of junket.
27 Section 1806. Records of junkets.
28 Section 1807. Report of junket participants.
29 Section 1808. Junket arrangements; exemption determination.
30 Section 1809. Prohibitions relating to junkets.
20070H2121B2339 - 5 -
1 Section 1810. Complimentary services.
2 Section 1811. Prohibition on provision of complimentary
3 services.
4 Chapter 19. Professional Services
5 Section 1901. Definitions.
6 Section 1902. Reporting of professional services.
7 Chapter 20. Agreements, Leases and Contracts
8 Section 2001. Payments under agreement, lease or contract.
9 Section 2002. Maintenance of records.
10 Section 2003. Termination of agreement by board.
11 Section 2004. Transfer of license.
12 Chapter 21. Corporate Licensees
13 Section 2101. Disposition of securities.
14 Section 2102. Action upon finding of disqualification.
15 Section 2103. Prohibition upon disqualification.
16 Section 2104. Reports by public and nonpublicly traded
17 corporations.
18 Section 2105. Report of changes in corporation.
19 Chapter 22. Employment
20 Section 2201. Table game facility employment.
21 Chapter 23. Table Game Revenue
22 Section 2301. Accounts and deposits.
23 Section 2302. Gross table game revenue deductions.
24 Section 2303. Table game tax.
25 Section 2304. Distribution to Pennsylvania Race Horse
26 Development Fund.
27 Chapter 24. Administration and Enforcement
28 Section 2401. Authority and responsibility of department.
29 Section 2402. Powers and duties of bureau.
30 Section 2403. Duties of Pennsylvania State Police.
20070H2121B2339 - 6 -
1 Section 2404. Inspections.
2 Chapter 25. Prohibitions
3 Section 2501. Prohibitions.
4 Section 2502. Reports of suspicious transactions.
5 Section 2503. Specific offenses relating to table games and
6 penalties.
7 Section 2504. Underage gambling and prohibition.
8 Section 2505. Authority to detain.
9 Section 2506. Additional prohibitions and penalties.
10 Section 2507. Sanctions.
11 Section 2508. Continuing offenses.
12 Section 2509. Property subject to seizure, confiscation,
13 destruction or forfeiture.
14 Chapter 26. Racketeering and Corrupt Organizations
15 Section 2601. Racketeering and corrupt organizations.
16 Section 2602. Racketeering activity.
17 Chapter 27. Public Officials
18 Section 2701. Financial interest and prohibitions.
19 Section 2702. Political influence.
20 Chapter 28. Compulsive Gambling Assistance
21 Section 2801. Establishment of program; duties of licensee.
22 Chapter 29. Miscellaneous Provisions
23 Section 2901. Electronic funds transfer terminal; automatic
24 teller machines.
25 Section 2902. Liquor license.
26 Section 2903. Exclusive jurisdiction of Pennsylvania Supreme
27 Court.
28 Section 2904. Appropriations.
29 Section 2905. Severability.
30 Section 2906. Repeals.
20070H2121B2339 - 7 -
1 Section 2907. Effective date.
2 The General Assembly of the Commonwealth of Pennsylvania
3 hereby enacts as follows:
4 CHAPTER 1
5 PRELIMINARY PROVISIONS
6 Section 101. Short title.
7 This act shall be known and may be cited as the Table Game
8 Authorization and Control Act.
9 Section 102. Legislative finding and declaration.
10 The General Assembly finds and hereby declares that this act
11 is intended to benefit the people of the Commonwealth of
12 Pennsylvania by providing additional revenue for the support of
13 property and wage tax relief. The General Assembly further finds
14 that the authorization for and development of a controlled
15 gaming industry requires careful exercise of legislative power
16 to protect the general health, welfare and safety of the people
17 of this Commonwealth. Therefore, the General Assembly further
18 finds and declares that:
19 (1) It is the public policy of this Commonwealth that
20 the authorization to conduct and operate table games at
21 licensed slot machine facilities to generate revenue for
22 property and wage tax relief and promote investment, economic
23 development and tourism, including international tourism,
24 requires the enactment of comprehensive measures to ensure
25 that table games are free from criminal and corruptive
26 elements, conducted honestly and competitively, and in
27 suitable locations.
28 (2) The policy purposes of this act will not be achieved
29 unless public confidence and trust in the credibility and
30 integrity of table game operations and their regulatory
20070H2121B2339 - 8 -
1 process is maintained. Accordingly, the provisions of this
2 act are crafted to strictly regulate table game facilities
3 and persons, locations, associations, activities and
4 practices related to the conduct and operation of authorized
5 table games.
6 (3) Public trust and confidence in table game operations
7 can only be maintained by strict and comprehensive regulation
8 of all persons, locations, associations, activities and
9 practices related to the conduct and operation of licensed
10 table game facilities; the manufacture and distribution of
11 table game equipment, apparatuses, devices and supplies; and
12 the provision of goods, services and property used in the
13 conduct and operation of authorized table games at licensed
14 table game facilities.
15 (4) All table game operations, all individuals and
16 persons who have or will have a significant involvement in
17 table game operations, all licensed slot machine facilities
18 where table games will be conducted, all manufacturers,
19 suppliers and other approved persons that provide table game
20 equipment, apparatuses, devices and supplies and all
21 providers of goods, services and property used in the conduct
22 and operation of authorized table games and table game
23 facilities shall be approved, licensed or regulated to
24 protect the public health, safety and general welfare of the
25 residents of this Commonwealth as an exercise of the police
26 power of this Commonwealth.
27 (5) In order to effectuate the policy purposes of this
28 act, it is necessary and essential:
29 (i) that table game facilities, activities and all
30 equipment, devices, apparatuses and supplies used in the
20070H2121B2339 - 9 -
1 conduct of authorized table games and persons
2 participating in those activities be licensed, permitted
3 or registered or otherwise approved or qualified by the
4 Pennsylvania Gaming Control Board in accordance with the
5 provisions of this act;
6 (ii) that certain transactions, events and processes
7 involving licensed table game facilities and table game
8 licensees be subject to prior approval;
9 (iii) that unsuitable persons not be permitted to
10 associate with table game licensees and other persons
11 involved in the conduct and operation of authorized table
12 games at licensed table game facilities; and
13 (iv) that table game activities take place only in
14 licensed slot machine facilities.
15 (6) To ensure that table game operations are conducted
16 honestly, competitively and free of criminal and corruptive
17 elements. Any license, permit or registration or any other
18 approval issued or granted pursuant to this act is deemed a
19 revocable privilege and is not a property right.
20 Section 103. Definitions.
21 The following words and phrases when used in this act shall
22 have the meanings given to them in this section unless the
23 context clearly indicates otherwise:
24 "Account" or "player's account." A financial record
25 established by a licensed table game facility for an individual
26 patron to which the facility may credit winnings and other
27 amounts due to the patron and from which the patron may withdraw
28 moneys due to the patron for purchase of tokens, chips or other
29 things or representatives of value.
30 "Affiliate." A person that directly or indirectly, through
20070H2121B2339 - 10 -
1 one or more intermediaries, controls, or is controlled by, or is
2 under common control with the affiliated person.
3 "Applicant." A person who, on his own behalf or on the
4 behalf of another, has applied to the Pennsylvania Gaming
5 Control Board for approval to engage in any act or activity
6 authorized or regulated under the provisions of this act.
7 "Application." A written request for permission to engage in
8 any act or activity which is authorized or regulated under the
9 provisions of this act.
10 "Approve," "approved" or "approval." In the case of an
11 application submitted to the Pennsylvania Gaming Control Board
12 for qualification for a table game license and the authority to
13 conduct table games, the terms, regardless of usage, refer to
14 the date that the Pennsylvania Gaming Control Board grants the
15 table game license, regardless of the pendency of any
16 administrative or judicial appeal or other legal action
17 challenging the decision of the Pennsylvania Gaming Control
18 Board.
19 "Authorized game," "authorized table game" or "game." Any
20 banking, nonbanking or percentage game played with cards, dice,
21 tiles, dominoes or any mechanical, electronic, computerized or
22 electrical device used to play a table game for money, property,
23 checks, credit or any representation of value, including,
24 without limiting the generality of the foregoing, roulette,
25 baccarat, blackjack, craps, big six wheel, mini-baccarat, red
26 dog, pai gow, poker, twenty-one, acey-ducey, chuck-a-luck, fan-
27 tail, panguingui, chemin de fer, sic bo, and any variations or
28 composites of such games, provided that the variations or
29 composites are found by the Pennsylvania Gaming Control Board to
30 be suitable for use after an appropriate test or experimental
20070H2121B2339 - 11 -
1 period under terms and conditions as the Pennsylvania Gaming
2 Control Board may determine appropriate; and any other game,
3 including multiplayer electronic table games, which is
4 determined by the Pennsylvania Gaming Control Board to be
5 compatible with the public interest and suitable for use in a
6 licensed table game facility after the appropriate test or
7 experimental period as the Pennsylvania Gaming Control Board
8 deems appropriate. The terms include table game contests or
9 tournaments in which players compete against one another in one
10 or more of the table games authorized under this act or by the
11 Pennsylvania Gaming Control Board or approved variations or
12 composites of those games, provided the Pennsylvania Gaming
13 Control Board authorizes the contests or tournaments. The term
14 shall not include:
15 (1) Lottery games of the Pennsylvania State Lottery as
16 authorized under the act of August 26, 1971 (P.L.351, No.91),
17 known as the State Lottery Law.
18 (2) Bingo as authorized under the act of July 10, 1981
19 (P.L.214, No.67), known as the Bingo Law.
20 (3) Pari-mutuel betting on the outcome of thoroughbred
21 or harness horse racing as authorized under the act of
22 December 17, 1981 (P.L.435, No.135), known as the Race Horse
23 Industry Reform Act.
24 (4) Small games of chance as authorized under the act of
25 December 19, 1988 (P.L.1262, No.156), known as the Local
26 Option Small Games of Chance Act.
27 (5) Slot machine gaming and progressive slot machine
28 gaming as authorized under 4 Pa.C.S. Pt. II (relating to
29 gaming).
30 "Background investigation." A security, criminal, financial,
20070H2121B2339 - 12 -
1 credit and/or suitability investigation of a person who has
2 applied for the issuance or renewal of a license, permit or
3 registration under this act, or of a licensee who holds a
4 current license. The background investigation shall include the
5 status of any taxes owed to the United States, the Commonwealth
6 or political subdivisions of the Commonwealth or any other
7 jurisdiction.
8 "Board." The Pennsylvania Gaming Control Board.
9 "Bureau." The Bureau of Investigation and Enforcement of the
10 Pennsylvania Gaming Control Board established under 4 Pa.C.S.
11 Pt. II (relating to gaming).
12 "Cash." United States currency and coin or foreign currency
13 and coin that have been exchanged for its equivalent in United
14 States currency and coin.
15 "Cash equivalent." An asset that is readily convertible to
16 cash, including, but not limited to, any of the following:
17 (1) Travelers checks.
18 (2) Certified checks, cashier's checks and money orders.
19 (3) Personal checks or drafts.
20 (4) Credit extended by the table game licensee, a
21 recognized credit card company or banking institution.
22 (5) Any other instrument that the Pennsylvania Gaming
23 Control Board deems a cash equivalent. Other than recognized
24 credit cards or credit extended by the table game licensee,
25 all instruments that constitute a cash equivalent shall be
26 made payable to the table game licensee, bearer or to cash.
27 An instrument made payable to a third party shall not be
28 considered a cash equivalent under this definition.
29 "Cash equivalent value." The monetary value that a table
30 game licensee shall assign to a jackpot or payout that consists
20070H2121B2339 - 13 -
1 of merchandise or any thing of value other than cash, tokens,
2 chips or plaques. The Pennsylvania Gaming Control Board shall
3 promulgate rules defining "cash equivalent value" in order to
4 assure fairness, uniformity and comparability of valuation of
5 jackpots and payoffs that include merchandise or anything of
6 value.
7 "Chairman." The chairperson of the Pennsylvania Gaming
8 Control Board.
9 "Chip." A representation of value redeemable for cash only
10 at the issuing table game facility and issued by the table game
11 licensee for use in playing an authorized table game.
12 "Complimentary service or item." A service or item provided
13 at no cost or at a reduced price. The furnishing of a
14 complimentary service or item by a table game licensee shall
15 constitute the indirect payment for the service or item by the
16 table game licensee, and shall be valued in an amount based upon
17 the retail price normally charged by the table game licensee for
18 the service or item. The value of a complimentary service or
19 item not normally offered for sale by a table game licensee or
20 provided by a third party on behalf of a table game licensee
21 shall be the cost to the table game licensee of providing the
22 service or item, as determined in accordance with the rules of
23 the Pennsylvania Gaming Control Board.
24 "Control" or "controlling interest." For a publicly traded
25 domestic or foreign corporation, a controlling interest is an
26 interest in a legal entity, applicant or licensee if a person's
27 sole voting rights under State law or corporate articles or
28 bylaws entitle the person to elect or appoint one or more of the
29 members of the board of directors or other governing board or
30 the ownership or beneficial holding of 5% or more of the
20070H2121B2339 - 14 -
1 securities of the publicly traded corporation, partnership,
2 limited liability company or other form of publicly traded legal
3 entity, unless this presumption of control or ability to elect
4 is rebutted by clear and convincing evidence. For a privately
5 held domestic or foreign corporation, partnership, limited
6 liability company or other form of privately held legal entity,
7 a controlling interest is the holding of any securities in the
8 legal entity, unless this presumption of control is rebutted by
9 clear and convincing evidence.
10 "Conviction." A finding of guilt or a plea of guilty or nolo
11 contendere, whether or not a judgment of sentence has been
12 imposed as determined by the law of the jurisdiction in which
13 the prosecution was entered. The term shall not include a
14 conviction that has been expunged, overturned or for which an
15 individual has been pardoned or where an order of accelerated
16 rehabilitative disposition has been completed.
17 "Counterfeit chips or tokens." Chip-like or token-like
18 objects that have not been approved by the Pennsylvania Gaming
19 Control Board for use in authorized table games, including
20 objects commonly referred to as "slugs," but not including legal
21 coins of the United States or any foreign country or
22 jurisdiction.
23 "Count room." The room or rooms designated for counting,
24 wrapping and recording of a table game licensee's authorized
25 table game receipts.
26 "Creditor." The holder of any claim, of whatever character,
27 against a person, whether secured or unsecured, matured or
28 unmatured, liquidated or unliquidated, absolute, fixed or
29 contingent.
30 "Debt." Any legal liability, whether matured or unmatured,
20070H2121B2339 - 15 -
1 liquidated or unliquidated, absolute, fixed or contingent.
2 "Department." The Department of Revenue of the Commonwealth.
3 "Encumbrance." A mortgage, security interest, lien or charge
4 of any nature in or upon property.
5 "Equity security." Any voting stock of a corporation or
6 similar security; any security convertible, with or without
7 consideration, into a security; the carrying of any warrant or
8 right to subscribe to or purchase a security or any such warrant
9 or right; or any security having direct or indirect
10 participation in the profits of the issuer.
11 "Establishment." A single building or two or more buildings,
12 including an approved hotel, that are physically connected in a
13 manner deemed appropriate by the Pennsylvania Gaming Control
14 Board, containing a table game facility, a slot machine facility
15 or any other facility, as approved by the Pennsylvania Gaming
16 Control Board.
17 "Gaming activity." The dealing, operating, carrying on,
18 conducting, maintaining or exposing for play any authorized
19 table game.
20 "Gross table game revenue."
21 (1) The total of wagers received in the playing of an
22 authorized table game minus the total of:
23 (i) Cash or cash equivalents paid out to patrons as
24 a result of playing an authorized table game.
25 (ii) Cash paid to purchase annuities to fund prizes
26 payable to patrons over a period of time as a result of
27 playing an authorized table game.
28 (iii) Any personal property distributed to a patron
29 as the result of playing an authorized table game. This
30 does not include travel expenses, food, refreshments,
20070H2121B2339 - 16 -
1 lodging or any other complimentary services or items.
2 (2) The term does not include counterfeit money or
3 tokens, coins or currency of other countries which are
4 received in the playing of an authorized table game, except
5 to the extent that they are readily convertible to United
6 States currency; cash taken in fraudulent acts perpetrated
7 against a table game licensee for which the table game
8 licensee is not reimbursed; or cash received as entry fees
9 for contests or tournaments in which the patrons compete for
10 prizes.
11 "Holding company." Any corporation, association, firm,
12 partnership, trust or other form of business organization not a
13 natural person that, directly or indirectly, owns, has the power
14 or right to control, or has the power to vote any significant
15 part of the outstanding voting securities of a corporation or
16 other form of business organization which holds or applies for a
17 table game license. For the purpose of this definition, in
18 addition to any other reasonable meaning of the words used, a
19 holding company indirectly has, holds or owns power, right or
20 security if it does so through any interest in a subsidiary or
21 successive subsidiaries, however many subsidiaries may intervene
22 between the holding company and the table game licensee or an
23 applicant for a table game license.
24 "Institutional investor." Any of the following:
25 (1) Any retirement fund administered by a public agency
26 for the exclusive benefit of Federal, State or local public
27 employees.
28 (2) Any investment company registered under the
29 Investment Company Act of 1940 (54 Stat. 789, 15 U.S.C. §
30 80a-1 et seq.).
20070H2121B2339 - 17 -
1 (3) Any collective investment trust organized by banks
2 under Part Nine of the Rules of the Comptroller of the
3 Currency.
4 (4) Any closed-end investment trust, chartered or
5 licensed life insurance company or property and casualty
6 insurance company, banking and other chartered or licensed
7 lending institution or investment advisor registered under
8 the Investment Advisors Act of 1940 (54 Stat. 847, 15 U.S.C.
9 § 80b-1 et seq.).
10 (5) Other persons that the Pennsylvania Gaming Control
11 Board may determine consistent with this act.
12 "Intermediary company." Any corporation, association, firm,
13 partnership, trust or any other form of business organization
14 other than a natural person which:
15 (1) Is a holding company with respect to a corporation
16 or other form of business organization which holds or applies
17 for a table game license.
18 (2) Is a subsidiary with respect to any holding company.
19 "Issue," "issued" or "issuance." In the case of an
20 application submitted to the Pennsylvania Gaming Control Board
21 for qualification and authorization to conduct authorized table
22 games in accordance with this act, the terms refer to the date
23 on which the Pennsylvania Gaming Control Board approves the
24 application and on which the application becomes final, binding
25 and nonappealable and is not subject to a pending legal
26 challenge.
27 "Junket." An arrangement for which an individual is selected
28 or approved for participation on the basis of the individual's
29 ability to satisfy a financial qualification or the individual's
30 likelihood to participate in gaming, to come to a licensed table
20070H2121B2339 - 18 -
1 game facility for the purpose of gaming and pursuant to which,
2 and as consideration for which, any or all of the cost of
3 transportation, food, lodging and entertainment for the
4 individual is directly or indirectly paid by a table game
5 licensee or employee or agent thereof.
6 "Junket enterprise." Any person, other than the holder of or
7 an applicant for a table game license, who employs or otherwise
8 engages the services of a junket representative in connection
9 with a junket to a table game facility, regardless of whether or
10 not those activities occur within this Commonwealth.
11 "Junket representative." Any natural person who negotiates
12 the terms of or engages in the referral, procurement or
13 selection of persons who may participate in any junket to a
14 licensed table game facility, regardless of whether or not those
15 activities occur within this Commonwealth.
16 "License." Any license issued in accordance with or required
17 under this act.
18 "License or registration fee." Any moneys required under
19 this act or by law or regulation to be paid for the issuance or
20 renewal of a table game license, a supplier license, a
21 manufacturer license, service industry license or any other
22 license issued under this act.
23 "Licensed entity." A table game licensee, manufacturer
24 licensee, supplier licensee, service industry licensee or any
25 other person licensed by the Pennsylvania Gaming Board under
26 this act.
27 "Licensed facility." The physical land based location and
28 associated areas at which a licensed gaming entity is authorized
29 to place and operate slot machines pursuant to and in accordance
30 with 4 Pa.C.S. Pt. II (relating to gaming) and to conduct and
20070H2121B2339 - 19 -
1 operate authorized table games under this act.
2 "Licensed gaming entity" or "slot machine licensee." A
3 person that holds a slot machine license pursuant to 4 Pa.C.S.
4 Pt. II (relating to gaming).
5 "Licensed table game entity." A licensed gaming entity that
6 has been approved for and that holds a table game license under
7 this act.
8 "Licensed table game facility." The physical location and
9 associated areas, including areas in an approved hotel, of a
10 licensed facility where authorized table games are conducted by
11 a licensed table game entity.
12 "Licensee." A person who has been approved for and who holds
13 a table game license or any other license issued under this act.
14 "Manufacturer." A person who manufactures, builds, rebuilds,
15 fabricates, assembles, produces, programs, designs or otherwise
16 makes modification to table game equipment, apparatuses, devices
17 and supplies for use in or play of authorized table games in
18 this Commonwealth.
19 "Manufacturer license." A license issued by the Pennsylvania
20 Gaming Control Board in accordance with this act that authorizes
21 a manufacturer to conduct or engage in business in this
22 Commonwealth.
23 "Manufacturer licensee." A person who has been approved for
24 and who holds a manufacturer license.
25 "Municipality." A county, city, borough, incorporated town
26 or township.
27 "Occupation permit." A permit authorizing an individual to
28 be employed or work as a table game employee at a licensed table
29 game facility.
30 "Operation." The conduct of authorized table games as
20070H2121B2339 - 20 -
1 authorized under this act.
2 "Operation certificate." A certificate issued by the
3 Pennsylvania Gaming Control Board that certifies that the
4 operation of a licensed table game facility conforms to the
5 requirements of this act and regulations promulgated pursuant to
6 this act.
7 "Party." The Pennsylvania Gaming Control Board, the Bureau
8 of Investigation and Enforcement or any licensee, permittee,
9 registrant, applicant or any person appearing of record for any
10 licensee, permittee, registrant or applicant in any proceeding
11 before the Pennsylvania Gaming Control Board or in any
12 proceeding for judicial review of any action, decision or order
13 of the Pennsylvania Gaming Control Board.
14 "Patron." A person who plays an authorized table game at a
15 licensed table game facility in accordance with this act.
16 "Permittee." An individual who holds an occupation permit
17 issued in accordance with this act.
18 "Person." Any natural person, corporation, foundation,
19 organization, business trust, estate, limited liability company,
20 licensed corporation, trust, partnership, limited liability
21 partnership, association or any other form of legal business
22 entity.
23 "Principal employee." Any table game key employee who is an
24 officer or director or who, by reason of remuneration or of a
25 policymaking position or other criteria as may be established by
26 the Pennsylvania Gaming Control Board by regulation, holds or
27 exercises authority that, in the judgment of the Pennsylvania
28 Gaming Control Board, is sufficiently related to the operation
29 of a licensed table game facility so as to require
30 qualification.
20070H2121B2339 - 21 -
1 "Property." Real property, tangible and intangible personal
2 property and rights, claims and franchises of every nature.
3 "Publicly traded company." Any corporation or other legal
4 entity, except a natural person, to which any of the following
5 apply:
6 (1) Has one or more classes of security registered
7 pursuant to section 12 of the Securities Exchange Act of 1934
8 (48 Stat. 881, 15 U.S.C. § 78a et seq.).
9 (2) Is an issuer subject to section 15(d) of the
10 Securities Exchange Act of 1934 (48 Stat. 881, 15 U.S.C. §
11 78a et seq.).
12 (3) Has one or more classes of securities traded in any
13 open market in any foreign jurisdiction or regulated pursuant
14 to a statute of any foreign jurisdiction that the
15 Pennsylvania Gaming Control Board determines to be
16 substantially similar to either or both of the aforementioned
17 statutes.
18 "Qualification" or "qualified." A determination or finding
19 by the Pennsylvania Gaming Control Board that a person, other
20 than a person specifically required to obtain a license, permit
21 or registration under this act, meets the eligibility
22 requirements for a license under this act and the nature of the
23 person's employment or association with or ownership interest in
24 an applicant or table game licensee will require the person to
25 qualify for a license under this act.
26 "Qualified licensed facility." A licensed facility under 4
27 Pa.C.S. Pt. II (relating to gaming) that is approved by the
28 Pennsylvania Gaming Control Board to operate authorized table
29 games under this act.
30 "Registrant." A person who is registered with the
20070H2121B2339 - 22 -
1 Pennsylvania Gaming Control Board pursuant to this act.
2 "Registration." Any requirement, other than one that
3 requires a license or permit, that requires a person to qualify
4 and register as a prerequisite to the conduct of a particular
5 business or activity specified in this act.
6 "Regulated complimentary service account." An account
7 maintained by a table game licensee on a regular basis that
8 itemizes complimentary services and includes, without
9 limitation, a listing of the cost of junket activities and any
10 other service provided by a table game licensee at no cost or at
11 a reduced price.
12 "Resident." Any individual domiciled and living within this
13 Commonwealth having a present intent to remain within this
14 Commonwealth for a period of time and manifesting the
15 genuineness of that intent by establishing an ongoing physical
16 presence within this Commonwealth, together which indicate that
17 the individual's presence within this Commonwealth is not merely
18 transitory in nature.
19 "Restricted table game area" or "restricted area." The
20 cashier's cage, the soft count room, the hard count room, the
21 interior of table game pits, the surveillance room and catwalk
22 areas, and any other area specifically designated by the
23 Pennsylvania Gaming Control Board as a restricted area in a
24 table game licensee's operation certificate.
25 "Security." Any instrument evidencing a direct or indirect
26 beneficial ownership or creditor interest in a corporation or
27 other form of business organization, including, but not limited
28 to, common or preferred stock, bonds, mortgages, debentures,
29 security agreements, notes, warrants, options and rights.
30 "Slot machine license." A license issued to an applicant to
20070H2121B2339 - 23 -
1 place and operate slot machines in a licensed facility pursuant
2 to 4 Pa.C.S. Pt. II (relating to gaming).
3 "Statement of compliance." A statement by the Pennsylvania
4 Gaming Control Board that may be issued to an applicant for a
5 license under this act that indicates satisfactory completion of
6 a particular stage or stages of the application or license
7 consideration process, and that states that unless there is a
8 change of any material circumstance pertaining to the particular
9 stage or stages of license consideration involved in the
10 statement, the applicant has complied with the requirements of
11 this act for licensure and is therefore approved for license
12 qualification to the stage or stages for which the statement has
13 been issued.
14 "Subsidiary." Any corporation, any significant part of whose
15 outstanding equity securities are owned, subject to a power or
16 right of control, or held with power to vote, by a holding
17 company or an intermediary company or a significant interest in
18 a firm, association, partnership, trust or other form of
19 business organization, not a natural person, that is owned,
20 subject to a power or right of control, or held with power to
21 vote, by a holding company or an intermediary company.
22 "Supplier." A person who sells, leases, offers or otherwise
23 provides, distributes table game devices, equipment, apparatuses
24 or supplies or who repairs or services any table game devices,
25 equipment, apparatus or supplies for use or play of authorized
26 table games in this Commonwealth.
27 "Supplier license." A license issued by the Pennsylvania
28 Gaming Control Board authorizing a supplier to provide products
29 or services related to table games to a table game licensee.
30 "Supplier licensee." A person who holds a supplier license.
20070H2121B2339 - 24 -
1 "Table game device," "equipment," "apparatus" or "supplies."
2 Any cards, dice, chips, shufflers, tiles, dominoes, wheel, drop
3 boxes or any electronic, electrical, mechanical or computerized
4 contrivance or device, mechanism, machine, equipment or related
5 supplies used or consumed in operation or connection with
6 authorized table games at a licensed table game facility.
7 "Table game employee." Any natural person employed in the
8 operation of a licensed table game facility, including, but not
9 limited to, boxmen, dealers or croupiers, floormen, device or
10 equipment technicians, security employees, count room personnel,
11 cage personnel, collection personnel, surveillance personnel and
12 data processing personnel, or any other natural person whose
13 employment duties predominantly involve the maintenance or
14 operation of table games or table game devices, equipment or
15 apparatuses and assets associated therewith or who, in the
16 judgment of the Pennsylvania Gaming Control Board, is so
17 regularly required to work in a restricted table game area that
18 issuance of an occupation permit as a table game employee is
19 appropriate.
20 "Table game key employee." Any natural person employed in
21 the operation of a licensed table game facility in a supervisory
22 capacity or empowered to make discretionary decisions that
23 regulate table game facility operations, including, but not
24 limited to, pit bosses, shift bosses, credit supervisors,
25 cashier supervisors, table game facility managers and assistant
26 managers or supervisors of security employees, or any other
27 natural person empowered to make discretionary decisions,
28 including entertainment directors, and food and beverage
29 directors or any other employee designated by the Pennsylvania
30 Gaming Control Board for reasons consistent with the policies of
20070H2121B2339 - 25 -
1 this act.
2 "Table game operations" or "table game activities." The
3 exposing for play of one or more authorized table games that are
4 dealt, operated, carried on, conducted or maintained for
5 commercial gain in a licensed table game facility.
6 "Table game service employee." A natural person employed to
7 perform services or duties in a licensed table game facility or
8 restricted area of the licensed facility but who is not included
9 within the definition of "table game employee," "table game key
10 employee" or "security employee" as those terms are defined in
11 this section.
12 "Table game service industry." Any form of enterprise which
13 provides applicants or table games licensees with goods or
14 services regarding the realty, construction, maintenance, or
15 business of a proposed or existing licensed table game facility
16 on a regular or continuing basis, including, without limitation,
17 junket enterprises, security businesses, gaming schools, garbage
18 haulers, maintenance companies, food purveyors, and construction
19 companies, or any other such enterprise which purchases goods or
20 services from or which does any other business with licensed
21 table game facilities on a regular or continuing basis.
22 "Table game service industry license." A table game service
23 industry that obtains a table game service industry license
24 under this act.
25 "Transfer." The sale and every other method, direct or
26 indirect, of disposing of or parting with property or with an
27 interest in property, or with the possession of property, or of
28 fixing a lien upon property or upon an interest in property,
29 absolutely or conditionally, voluntarily or involuntarily, by or
30 without judicial proceedings, as a conveyance, sale, payment,
20070H2121B2339 - 26 -
1 pledge, mortgage, lien, encumbrance, gift, security or
2 otherwise. The reduction of a security interest in property
3 delivered to a corporation shall be deemed a transfer suffered
4 by the corporation.
5 "Wager." A sum of money, thing or representative of value
6 risked on an uncertain outcome of the play of an authorized
7 table game.
8 CHAPTER 2
9 TABLE GAMES AUTHORIZED
10 Section 201. Authorization to conduct table games.
11 Notwithstanding any other provision of law to the contrary,
12 the operation of table games and the system of wagering
13 associated with table games are hereby authorized to the extent
14 that table games are conducted in accordance with this act and
15 guidelines, policy statements, rules or regulations adopted and
16 promulgated by the board pursuant to this act.
17 Section 202. Authorized locations for operation.
18 Table games authorized pursuant to this act shall only be
19 operated by a licensed gaming entity that holds a license to
20 conduct slot machine gaming at a licensed facility pursuant to 4
21 Pa.C.S. Pt. II (relating to gaming).
22 Section 203. Commencement of table game operations.
23 Notwithstanding any provision of this act to the contrary, a
24 license to operate authorized table games issued under this act
25 shall not be construed to permit the operation of authorized
26 table games until one year subsequent to the operation of slot
27 machines by a licensed gaming entity at a licensed facility.
28 Section 204. Applicability.
29 This act and any guidelines, rules or regulations promulgated
30 pursuant to this act shall apply to all persons licensed,
20070H2121B2339 - 27 -
1 permitted or registered by the board to conduct authorized table
2 games or to otherwise participate in table gaming authorized
3 under this act.
4 CHAPTER 3
5 DUTIES OF BOARD
6 Section 301. General powers.
7 In addition to general jurisdiction over all gaming and
8 related activities conferred upon the board under 4 Pa.C.S. Pt.
9 II (relating to gaming), the board shall be responsible for
10 ensuring integrity in the conduct, establishment and operation
11 of authorized table games and shall have overall jurisdiction
12 over every aspect of the authorization, conduct, establishment
13 and operation of table games in this Commonwealth.
14 Section 302. Powers and duties of board.
15 The board shall implement the provisions of this act and
16 shall adopt any guidelines or policy statements and promulgate
17 any regulations necessary to carry out the provisions of this
18 act. The board shall have the duty, without limitation, to:
19 (1) Hear and decide in reasonable order all applications
20 for a table game license, manufacturer license, supplier
21 license and any other license, registration or permit
22 authorized under this act.
23 (2) At its discretion issue, approve, renew, revoke,
24 suspend, condition or deny issuance or renewal of any
25 license, permit or registration or any other qualification
26 authorized under this act. The board may deny, revoke,
27 condition, suspend or refuse to renew a license if it finds
28 that an applicant or a licensee or an officer, employee or
29 agent of an applicant or licensee has furnished false or
30 misleading information to the board or failed to comply with
20070H2121B2339 - 28 -
1 this act or any guidelines, policy statements, rules or
2 regulations of the board adopted and promulgated pursuant to
3 this act or under 4 Pa.C.S. (relating to gaming) and that it
4 would be in the public interest to deny, deny the renewal,
5 revoke, condition or suspend the license, permit or
6 registration.
7 (3) Require background investigations on prospective or
8 existing table game licensees, manufacturer licensees,
9 supplier licensees, permittees, registrants or other persons
10 holding a controlling interest in any prospective or existing
11 licensee, permittee or registrant or other person required to
12 be qualified for licensure, permitting, registration or
13 qualification under this act.
14 (4) Receive criminal history record information from the
15 Pennsylvania State Police and other law enforcement agencies.
16 Notwithstanding any other provision of law to the contrary,
17 the board is hereby authorized to receive criminal history
18 record information which is otherwise protected under the
19 provisions of 18 Pa.C.S. Ch. 91 (relating to criminal history
20 record information).
21 (5) The board is hereby designated as a law enforcement
22 agency for the purpose of 18 Pa.C.S. Ch. 91 and any other
23 statute of this Commonwealth or other jurisdiction providing
24 for the sharing, transmittal or receipt of information to or
25 from law enforcement agencies.
26 (6) Restrict access to confidential information in the
27 possession of the board which has been obtained under this
28 act and assure that the confidentiality of information
29 received by it is maintained and protected. Records shall be
30 retained by the board for seven years.
20070H2121B2339 - 29 -
1 (7) At its discretion, to suspend, revoke, condition or
2 deny the issuance or renewal of any license, permit or
3 registration or levy fines or impose sanctions for any
4 violation of this act.
5 (8) Require each applicant for a license, permit,
6 registration or qualification to submit to fingerprinting by
7 the Pennsylvania State Police. The Pennsylvania State Police
8 shall submit fingerprint images to the Federal Bureau of
9 Investigation to verify the identity of the applicant and
10 obtain criminal history record information.
11 (9) Determine the suitability of table game service
12 industries, including junket enterprises, junket
13 representatives or any other person who furnishes or seeks to
14 furnish to an authorized table game licensee, directly or
15 indirectly, any goods, service or property related to the
16 conduct, play and operation of table games and related
17 activities or through any arrangement under which a junket
18 enterprise, junket representative or any like person receives
19 payment based, directly or indirectly, on earnings, profits
20 or receipts from the conduct, play or operation of table
21 games. The board may require that a junket enterprise, junket
22 representative or like person comply with the requirements of
23 this act and the regulations of the board and may prohibit
24 the person from furnishing the goods, service or property.
25 (10) Conduct all hearings pertaining to administrative
26 violations of this act and regulations promulgated under this
27 act.
28 (11) Collect all application, license, permit and
29 registration fees and any other fees established by
30 regulation of the board.
20070H2121B2339 - 30 -
1 (12) Levy and collect penalties for the violation of
2 this act and the regulations promulgated under this act.
3 (13) Establish times as are necessary for agents of the
4 board to be present at a licensed table game facility for the
5 purpose of certifying the revenue, receiving complaints from
6 the public relating to the conduct of authorized table games,
7 examining records of revenues and procedures, and conducting
8 periodic reviews of table game and facility operations for
9 the purpose of evaluating current performance and compliance
10 with the requirements of this act and regulations promulgated
11 pursuant to this act.
12 (14) Refer to the Pennsylvania State Police or the
13 Attorney General for investigation and prosecution of any
14 evidence of a suspected or alleged violation of this act or
15 the regulations promulgated under this act.
16 (15) Review and rule upon any complaint by a table game
17 licensee regarding any investigative procedure of the bureau
18 or the Pennsylvania State Police, that is unnecessarily
19 disruptive of table game facility operations. The need to
20 inspect and investigate shall be presumed at all times. The
21 disruption of a table game licensee's operations shall be
22 proved by clear and convincing evidence, such evidence shall
23 establish the following:
24 (i) The procedures had no reasonable law enforcement
25 purpose.
26 (ii) The procedures were so disruptive as to
27 unreasonably inhibit table game facility operations. The
28 board may seek advice from the Attorney General when
29 reviewing any investigative procedures or practices of
30 the Pennsylvania State Police.
20070H2121B2339 - 31 -
1 (16) Review applications for licenses to operate
2 authorized table games.
3 (17) Prescribe and require periodic financial reporting
4 and internal controls for all table game facilities.
5 (18) Require each table game licensee to transmit to the
6 board an audit of the financial condition of the table game
7 licensee's total operations within 30 days after the end of
8 each quarter of each fiscal year. All audits shall be
9 conducted by a certified public accountant in a manner and
10 form prescribed by the board. Each certified public
11 accountant shall be licensed in this Commonwealth. The
12 compensation for each certified public accountant shall be
13 paid directly by the licensee to the certified public
14 accountant.
15 (19) Establish and enforce prescribed hours of operation
16 of authorized table games, notwithstanding that authorized
17 table games may be operated on any day of the year in order
18 to meet the needs of patrons and to promote competition.
19 (20) Require that each licensed table game entity
20 prohibit individuals under 21 years of age from playing or
21 participating in the play of authorized table games.
22 (21) Require each applicant for a table game license to
23 provide detailed site plans of its proposed table game
24 facility, which the board shall review and approve to
25 determine the adequacy of the proposed internal and external
26 security and surveillance measures proposed for the facility.
27 Applicants shall cooperate with the board in making any
28 board-recommended modifications to the site plans and will
29 assure that the site plans, as modified and approved by the
30 board, are implemented.
20070H2121B2339 - 32 -
1 (22) Require table game licensees to provide onsite
2 facilities for use by the board and the bureau and other
3 appropriate persons to facilitate their ability to perform
4 their respective responsibilities under this act.
5 (23) Consult with members of the Pennsylvania State
6 Police, the Office of Attorney General and other persons it
7 deems necessary for advice regarding various aspects of the
8 powers and duties imposed on the board under this act and its
9 jurisdiction over the operation of authorized table games at
10 licensed facilities.
11 (24) Adopt regulations for the conduct of all authorized
12 table games proposed to be operated by a table game licensee.
13 (25) Investigate applicants for a license, permit or
14 registration, and other persons to determine qualification
15 and eligibility for licensure, permitting and registration.
16 (26) Require applicants for the issuance or renewal of a
17 table game license, manufacturer license, supplier license or
18 service industry license to provide the board with a
19 statement listing the names and titles of all public
20 officials who, directly or indirectly, own any financial or
21 beneficial interest in, are the creditors of or hold any debt
22 instrument issued by, or hold or have any interest in any
23 contractual or service relationship with the applicant or
24 table game licensee, manufacturer licensee or supplier
25 licensee. The list shall be updated annually.
26 (27) Not issue or renew a license, permit or
27 registration unless it is satisfied that the applicant is a
28 person of good character, honesty and integrity and is a
29 person whose prior activities, criminal record, if any,
30 reputation, habits and associates do not pose a threat to the
20070H2121B2339 - 33 -
1 public interest or the effective regulation and control of
2 table game operations in this Commonwealth or create or
3 enhance the danger of unsuitable, unfair or illegal
4 practices, methods and activities in the conduct of table
5 game operations or the carrying on of the business and
6 financial arrangements incidental to table game operations.
7 (28) Submit an annual report of its licensing and
8 regulatory activities to the General Assembly by January 31
9 of each year.
10 (29) Not issue a table game license to a licensed gaming
11 entity that is also a holder of a Category 1 slot machine
12 license if it determines that the licensed gaming entity is
13 not in full compliance with any of the following:
14 (i) The provisions of its application for a slot
15 machine license as approved by the board.
16 (ii) The provisions of its application for a
17 thoroughbred or harness horse racing license as approved
18 by either the State Horse Racing Commission or State
19 Harness Racing Commission, as the case may be.
20 (iii) The requirements of 4 Pa.C.S. § 1302 (relating
21 to Category 1 slot machine license) and section 1303
22 (relating to additional Category 1 slot machine license
23 requirements).
24 Section 303. Regulatory powers.
25 The board shall adopt and promulgate regulations to carry out
26 the provisions of this act. The regulations shall include
27 specific provisions that:
28 (1) Prescribe the methods and forms of application that
29 an applicant shall follow and complete prior to consideration
30 of an application for a license, permit or registration.
20070H2121B2339 - 34 -
1 (2) Prescribe the methods, procedures and forms for
2 delivery of information that may be required by the board
3 under this act.
4 (3) Define and limit the areas of operation, the rules
5 of authorized games, odds and the method of operation of
6 authorized games.
7 (4) Prescribe the grounds and procedures for the denial,
8 revocation, suspension of or refusal to renew licenses,
9 permits or registrations.
10 (5) Establish the minimum level of insurance to be
11 maintained with respect to a licensed table gaming facility.
12 (6) Prescribe standards to govern the conduct of all
13 authorized table games.
14 (7) Establish standards for table game devices,
15 equipment, apparatuses and supplies, including electronic or
16 computerized table game devices.
17 (8) Establish standards to govern the operation of
18 licensed table game facilities, including the maintenance of
19 financial books, records and audits.
20 (9) Designate appropriate classifications of personnel
21 to be employed in the operation of table games at a licensed
22 table game facility and establish appropriate licensing,
23 registration and permitting standards within each
24 classification.
25 (10) Regulate the practices and procedures for
26 negotiable instrument transactions involving patrons of table
27 games, including limitations on the circumstances and amounts
28 of the transactions, including credit transactions, and the
29 establishment of forms and procedures for negotiable
30 instrument transactions, redemptions and consolidations.
20070H2121B2339 - 35 -
1 (11) Prescribe for authorized table game operations
2 procedures, forms and methods of management controls,
3 including employee and supervisory charts or organizational
4 structure, alarm and other electrical or visual security
5 measures. The board shall grant an applicant a table game
6 license discretion concerning the organization and
7 responsibilities of management personnel who are not directly
8 involved in the operation or supervision of authorized table
9 games.
10 (12) Provide for a minimum uniform standard of
11 accountancy methods, procedures and forms, a uniform code of
12 accounts and accounting classifications and other standard
13 operating procedures as may be necessary to ensure
14 consistency, comparability and effective disclosure of all
15 financial information, including calculations of percentages
16 of profit by authorized table games, tables, apparatuses and
17 devices.
18 (13) Require quarterly financial reports and the form of
19 financial reporting, and an annual audit prepared by a
20 certified public accountant licensed to do business in this
21 Commonwealth, attesting to the financial condition of a table
22 game licensee and disclosing whether the accounts, records
23 and control procedures examined are maintained by the table
24 game licensee as required by this act and the regulations
25 promulgated under this act.
26 (14) Prescribe the qualifications of and the conditions
27 pursuant to which engineers, accountants, architects or any
28 agents or representatives of such persons and others shall be
29 permitted to practice before the board or to submit materials
30 on behalf of any applicant or licensee. No member of the
20070H2121B2339 - 36 -
1 General Assembly, nor any firm with which a member of the
2 General Assembly is associated, shall be permitted to appear
3 or practice in any capacity whatsoever before the board
4 regarding any matter whatsoever, nor shall any immediate
5 family member of an executive level State employee or of a
6 member of the General Assembly be permitted to so practice or
7 appear in any capacity whatsoever before the board regarding
8 any matter whatsoever.
9 (15) Provide minimum procedures for the exercise of
10 effective control over the internal fiscal affairs of a table
11 game licensee, including provisions for the safeguarding of
12 assets and revenues, the recording of cash and evidence of
13 indebtedness, and the maintenance of reliable records,
14 accounts, and reports of transactions, operations and events,
15 including reports to the board.
16 (16) Govern advertising by and the advertisement of
17 authorized table games by table game licensees, their
18 employees and agents, with the view toward ensuring that
19 advertisements are in no way deceptive, misleading or
20 designed in a manner to unduly induce, entice or otherwise
21 cause a person to play an authorized table game.
22 (17) Prescribe the standards and procedures for
23 quarterly reporting of professional services information.
24 Each holder of a table game license or person acting on
25 behalf of a table game licensee shall submit an annual report
26 to the board of each entity that furnishes professional
27 services to the table game license holder.
28 (18) Provide for the establishment of a list of persons
29 that a table game licensee may exclude or eject from a
30 licensed table game facility, and the establishment of a list
20070H2121B2339 - 37 -
1 of persons who may self-exclude themselves from a licensed
2 table game facility. The lists authorized in this paragraph
3 shall conform with the standards, criteria and requirements
4 of 4 Pa.C.S. §§ 1514 (relating to regulation requiring
5 exclusion of certain persons), 1515 (relating to repeat
6 offenders excludable from licensed gaming facility) and 1516
7 (relating to list of persons self excluded from gaming
8 activities).
9 (19) Establish any other procedure, standard, condition
10 or requirement the board deems necessary to ensure the
11 integrity of table game operations and which effectuate the
12 provisions of this act.
13 Section 304. Denials and sanctions.
14 (a) General rule.--The board shall ensure, to the extent
15 required by this act, that licenses, permits or registrations
16 shall not be issued to nor held by, nor shall there be any
17 material involvement, directly or indirectly, with the licensed
18 table game operation or the ownership of the licensed table game
19 operation by unqualified or disqualified persons whose
20 operations are conducted in a manner that is inconsistent with
21 or do not conform with the requirements of this act or
22 regulations promulgated pursuant to this act.
23 (b) Enforcement.--In implementing and enforcing this act,
24 the board shall have the power and authority to:
25 (1) Deny any application for a license, permit or
26 registration.
27 (2) Limit, condition or restrict any license, permit,
28 registration or approval.
29 (3) Suspend or revoke any license, permit, registration
30 or approval.
20070H2121B2339 - 38 -
1 (4) Impose a penalty on any person licensed, permitted,
2 registered or previously qualified for any cause deemed
3 reasonable by the board pursuant to regulations promulgated
4 by the board.
5 (c) Definitions.--As used in this section, the following
6 words and phrases shall have the meanings given to them in this
7 subsection:
8 "Disqualified person." Any person found by the board to be
9 disqualified pursuant to the criteria set forth in section
10 602(b).
11 "Unqualified person." Any person who is found by the board
12 to be unqualified pursuant to section 602(a).
13 Section 305. Annual report, study and recommendations.
14 (a) Annual report required.--Twelve months after the
15 commencement of table game operations at licensed table game
16 facilities and on December 31 of every calendar year thereafter,
17 the board shall make an annual report to the Governor and the
18 General Assembly. The report shall be filed with the Governor
19 and submitted to the Chief Clerk of the Senate and the Chief
20 Clerk of the House of Representatives and to the chairmen of the
21 legislative committees that have oversight of gambling-related
22 issues on or before January 31 of the year following the year
23 that the report covers. The report shall include an account of
24 the board's actions, its financial position, the results of
25 table game operation under this act and any recommendations for
26 legislation that the board considers advisable. The report shall
27 also include the information required under subsections (b) and
28 (c). The report shall include, but not be limited to, the
29 following:
30 (1) The number and win per table game at each licensed
20070H2121B2339 - 39 -
1 table game facility during the previous year.
2 (2) All taxes, fees, fines and other revenue collected
3 and revenue disbursed during the previous year. The board
4 shall collaborate with the State Treasurer and the department
5 to carry out the requirements of this paragraph.
6 (3) A descriptive summary of the board's diversity
7 activities, including, but not limited to, contracting and
8 subcontracting, employment data and recruitment and retention
9 programs of the board which are designed to promote and
10 ensure diversity.
11 (4) A descriptive summary of licensed table game
12 entities' diversity activities for the previous year,
13 including, but not limited to:
14 (i) Employment and salary information, including any
15 recruitment and retention programs.
16 (ii) Minority-owned business enterprises and women-
17 owned business enterprises contracting and subcontracting
18 data.
19 (iii) Minority and women facility ownership and
20 participation data.
21 (iv) Any other information the board deems
22 appropriate.
23 (5) Administrative and operational expenses and costs of
24 the board.
25 (6) Administrative hearings or any other proceedings
26 convened by the board relating to the approval, issuance,
27 denial, conditioning, renewal or refusal to renew, suspension
28 or revocation of a table game license.
29 (7) Additional information the board may deem necessary
30 and appropriate.
20070H2121B2339 - 40 -
1 (b) Report by table game licensee.--
2 (1) Each table game licensee shall annually have a study
3 conducted on minors and unauthorized gaming and compile all
4 of the following information for the table game facility that
5 the licensee is licensed to operate:
6 (i) The number of minors who were denied entry into
7 the table game facility.
8 (ii) The number of minors who were physically
9 escorted from the premises of the table game facility.
10 (iii) The number of minors who were detected
11 participating in gambling games other than slot machines
12 and the number of minors who were detected using slot
13 machines.
14 (iv) The number of minors who were taken into
15 custody by a law enforcement agency on the premises of
16 the table game facility.
17 (v) The number of minors who were detected illegally
18 consuming alcohol on the premises of the table game
19 facility.
20 (vi) The number of disassociated persons who were
21 denied entry into the table game facility.
22 (vii) A summary of the action taken by the table
23 game licensee in resolution of incidents under
24 subparagraphs (i), (ii), (iii), (iv), (v) and (vi),
25 including any action, resolution or disposition of any
26 violations of section 2504.
27 (2) As used in this subsection, the term "minor" shall
28 mean an individual who is under 21 years of age.
29 (c) Recommendations.--
30 (1) The board shall conduct continuous study of the
20070H2121B2339 - 41 -
1 operation and administration of gaming laws of other
2 jurisdictions, available literature, Federal laws which may
3 affect the operation of table games in this Commonwealth, and
4 the reaction of Pennsylvanians to existing and potential
5 features of authorized table games under this act. In
6 conducting such study, it shall be the duty of the board to:
7 (i) Determine any defects in this act or in the
8 regulations promulgated under this act.
9 (ii) Compile and submit to the General Assembly
10 recommendations for changes in this act to prevent
11 abuses, guard against the use of this act as a cloak for
12 the carrying on of illegal gambling or other criminal
13 activities.
14 (iii) Ensure that this act and the regulations
15 promulgated under this act shall be in a form and be
16 administered to serve the true purposes of this act.
17 (2) The board shall report immediately to the Governor
18 and the General Assembly any matters which, in its judgment,
19 may require immediate changes in the laws of this
20 Commonwealth in order to prevent abuses and evasions of this
21 act or any regulations promulgated under this act, or to
22 rectify undesirable conditions in connection with the
23 administration, operation and regulation of authorized table
24 games.
25 (d) Consolidation of reporting.--Subsequent to its
26 submission of the initial annual report under subsection (a),
27 the board may consolidate the information required to be
28 reported under this section with the annual report it is
29 required to submit pursuant to 4 Pa.C.S. § 1211 (relating to
30 reports of board). Any consolidated report shall accurately and
20070H2121B2339 - 42 -
1 separately reflect the administration, enforcement, operation
2 and conduct of authorized table games from the administration,
3 enforcement, operation and conduct of slot machine gaming.
4 Section 306. Application hearing process.
5 The board's consideration and resolution of all applications
6 for a license, permit or registration under this act shall be
7 conducted in accordance with procedures adopted by order of the
8 board. Notwithstanding the requirements of 2 Pa.C.S. §§ 504
9 (relating to hearing and record) and 505 (relating to evidence
10 and cross-examination), the procedures adopted by order of the
11 board shall provide parties before it with a documentary
12 hearing, but the board may, at its discretion, resolve disputed
13 material facts without conducting an oral hearing when
14 constitutionally permissible.
15 Section 307. Board minutes and records.
16 The board shall make and keep records of all proceedings held
17 at public meetings of the board. A verbatim transcript of public
18 meetings of the board shall be prepared by the board upon the
19 request of any board member or upon the request of any other
20 person and the payment by that person of the costs of
21 preparation.
22 Section 308. Maintenance of information.
23 (a) Applicant information.--
24 (1) The board shall maintain a list of all applicants
25 for licenses, permits and registrations under this act
26 together with a record of all actions taken with respect to
27 the applicants. The list and record shall be open to public
28 inspection.
29 (2) The applicant information required under paragraph
30 (1) relative to any applicant whose license, permit or
20070H2121B2339 - 43 -
1 registration is denied, revoked or not renewed by the board
2 shall be removed from the list after seven years from the
3 date of the denial, revocation or refusal to renew.
4 (3) The board shall maintain other files, records and
5 information as it may deem necessary and appropriate.
6 (b) Confidentiality.--Information obtained in the
7 application process in accordance with this act and regulations
8 promulgated under this act, the report of an applicant's
9 background investigation and personal information furnished to
10 or obtained by the board, the bureau or the Pennsylvania State
11 Police from any source shall be considered confidential and
12 shall be withheld from public disclosure in whole and in part,
13 except that any information shall be released upon the lawful
14 order of a court of competent jurisdiction or, with the approval
15 of the Attorney General, to an authorized law enforcement agency
16 or shall be released to the public, in whole or in part, to the
17 extent that the release is requested by the applicant and does
18 not otherwise contain confidential information about another
19 person. The board may not require any applicant to waive any
20 confidentiality provided for in this subsection as a condition
21 for the approval, issuance or renewal of a license, permit or
22 registration or any other action of the board. Any person who
23 violates this subsection shall be administratively disciplined
24 by discharge, suspension or other form of disciplinary action as
25 the board deems appropriate.
26 Section 309. Temporary regulations.
27 Notwithstanding any other provision of law to the contrary,
28 in order to facilitate the prompt implementation of this act,
29 the board shall have the power and authority to promulgate,
30 adopt and use temporary regulations to implement this act. The
20070H2121B2339 - 44 -
1 temporary regulations shall be published in the Pennsylvania
2 Bulletin and shall be subject to review pursuant to sections
3 204(b) and 301(10) of the act of October 15, 1980 (P.L.950,
4 No.164), known as the Commonwealth Attorneys Act. The temporary
5 regulations shall not be subject to sections 201 through 205 of
6 the act of July 31, 1968 (P.L.769, No.240), referred to as the
7 Commonwealth Documents Law, or the act of June 25, 1982
8 (P.L.633, No.181), known as the Regulatory Review Act. The
9 temporary regulations promulgated by the board shall be
10 effective for a period of not more than three years from the
11 effective date of this act or upon the promulgation and
12 publication of permanent regulations by the board as generally
13 provided by law, if sooner than three years. The authority of
14 the board to use temporary regulations shall expire two years
15 from the effective date of this act.
16 Section 310. Diversity goals and requirements of board.
17 (a) Intent.--It is the intent of the General Assembly that
18 the board promote and ensure diversity in all aspects of the
19 table game activities authorized under this act. The board shall
20 work to enhance the representation of diverse groups:
21 (1) in the work of the board;
22 (2) in the ownership, participation and operation of
23 licensed table game entities and licensed table game
24 facilities in this Commonwealth;
25 (3) through the ownership, participation and operation
26 of business enterprises associated with or utilized by
27 licensed table game entities and licensed table game
28 facilities; and
29 (4) through the provision of goods, property and
30 services utilized by licensed table game entities under this
20070H2121B2339 - 45 -
1 act.
2 (b) Investigations.--The board is authorized to investigate
3 and conduct an annual audit of each licensed table game entity
4 to ascertain whether effective and meaningful action has been
5 taken or will be taken to enhance the representation of diverse
6 groups:
7 (1) In the ownership, participation and operation of
8 qualified licensed facilities in this Commonwealth.
9 (2) Through the ownership and operation of business
10 enterprises associated with or utilized by table game
11 licensees.
12 (3) Through the provision of goods, property and
13 services utilized by table game licensees and licensed table
14 game facilities.
15 (4) Through employment opportunities with qualified
16 licensed entities and licensed table game facilities.
17 (c) Employment opportunities.--The board shall work to
18 promote and ensure that it and applicants for a table game
19 license and table game licensees afford equal employment
20 opportunity to all prospective employees and to all actual
21 employees to be employed by the board, applicant, licensees and
22 by contractors, subcontractors, assignees, lessees, agents,
23 vendors and suppliers of applicants and licensees. Each
24 application for a table game license shall include a written
25 guaranty that all contracts and subcontracts entered by the
26 applicant contain appropriate provisions by which contractors
27 and subcontractors or their assignees agree to afford equal
28 employment opportunity to all prospective employees and to all
29 actual employees to be employed by the contractor or
30 subcontractor in accordance with a plan approved by the board.
20070H2121B2339 - 46 -
1 (d) Board required to report.--No later than one year after
2 the commencement of authorized table games at licensed table
3 game facilities, the board shall include in its first due annual
4 report after that date and each annual report thereafter
5 submitted in accordance with section 305(a), the activities
6 undertaken by licensed table game entities and facilities to
7 promote diversity and accord equal employment opportunity in
8 accordance with subsection (c). The report shall include a
9 concise summary of the information reported to the board
10 pursuant to section 305(a)(4).
11 Section 311. Application appeals.
12 The Supreme Court of the Commonwealth of Pennsylvania shall
13 be vested with exclusive appellate jurisdiction to consider
14 appeals of any final order, determination or decision of the
15 board involving the approval, issuance, denial, conditioning or
16 renewal of all licensed entity applications. Notwithstanding the
17 provisions of 2 Pa.C.S. Ch. 7 Subch. A (relating to judicial
18 review of Commonwealth agency action) and 42 Pa.C.S. § 763
19 (relating to direct appeals from government agencies), the
20 Supreme Court shall affirm all final orders, determinations or
21 decisions of the board involving the approval, issuance, denial,
22 conditioning or renewal of all licensed table game entity
23 applications unless it shall find that the board committed an
24 error of law or that the order, determination or decision of the
25 board was arbitrary and there was a capricious disregard of the
26 evidence.
27 Section 312. Issuance of license, permit or registration.
28 (a) Issuance.--In addition to any other criteria provided
29 under this act, any applicant for a table game license or for a
30 table game supplier, manufacturer, service industry or key
20070H2121B2339 - 47 -
1 employee license or any applicant for a license, permit or
2 registration or other person that the board approves as
3 qualified to receive a license, permit or registration under
4 this act shall be issued a license, permit or registration upon
5 the payment of any fee required and upon the fulfillment of any
6 conditions required by the board or provided for in this act.
7 Nothing contained in this act is intended or shall be construed
8 to create an entitlement to a license, permit or registration by
9 any person. A license, permit or registration issued under this
10 act is a revocable privilege granted by the Commonwealth and is
11 not a property right. The board shall in its sole discretion
12 issue, renew, condition or deny a table game license based upon
13 the requirements of this act and whether the issuance of a
14 license will enhance tourism, economic development or job
15 creation, is in the best interests of this Commonwealth and
16 advances the purposes of this act.
17 (b) Eligibility.--A license, permit or registration shall
18 not be granted or renewed unless the board finds that the
19 applicant satisfies all of the following criteria:
20 (1) The applicant has developed and implemented a
21 diversity plan to ensure that all persons are accorded
22 equality of opportunity in employment and contracting by the
23 applicant, its contractors, subcontractors, assignees,
24 lessees, agents, vendors and suppliers pursuant to 4 Pa.C.S.
25 § 1325(b)(1) (relating to license or permit issuance).
26 (2) The applicant in all other respects is found
27 suitable consistent with the laws of this Commonwealth and is
28 otherwise qualified to be issued a license, permit or
29 registration.
30 (c) Additional requirements.--In addition to the eligibility
20070H2121B2339 - 48 -
1 requirements otherwise provided in this act, the board may also
2 take into account the following factors when considering an
3 application for a table game license:
4 (1) The location and quality of the proposed table game
5 facility, including, but not limited to, road and transit
6 access, parking and centrality to market service area.
7 (2) The potential for new job creation and economic
8 development that will result from granting a table game
9 license to an applicant.
10 (3) The applicant's good faith plan to recruit, train
11 and upgrade diversity in all employment classifications in
12 the table game facility.
13 (4) The applicant's good faith plan for enhancing the
14 representation of diverse groups in the operation of its
15 table game facility through the ownership and operation of
16 business enterprises associated with or utilized by its table
17 game facility or through the provision of goods or services
18 utilized by its table game facility and through the
19 participation in the ownership of the applicant.
20 (5) The applicant's good faith effort to ensure that all
21 persons are accorded equality of opportunity in employment
22 and contracting by it and any contractors, subcontractors,
23 assignees, lessees, agents, vendors and suppliers it may
24 employ directly or indirectly.
25 (6) The history and success of the applicant in
26 developing tourism facilities ancillary to gaming development
27 if applicable to the applicant.
28 (7) The degree to which the applicant presents a plan
29 for the project which will likely lead to the creation of
30 quality, living-wage jobs and full-time permanent jobs for
20070H2121B2339 - 49 -
1 residents of this Commonwealth generally and for residents of
2 the host political subdivision particularly.
3 (8) The record of the applicant and its developer in
4 meeting commitments to local agencies, community-based
5 organizations and employees in other locations.
6 (9) The degree to which potential adverse effects which
7 might result from the project, including costs of meeting the
8 increased demand for public health care, child care, public
9 transportation, affordable housing and social services
10 including compulsive and problem gambling programs, will be
11 mitigated by the applicant or licensee.
12 (10) The record of the applicant and its developer
13 regarding compliance with:
14 (i) Federal, State and local discrimination, wage
15 and hour, disability and occupational and environmental
16 health and safety laws.
17 (ii) State and local labor relations and employment
18 laws.
19 (11) The applicant's record in dealing with its
20 employees and their representatives at other locations.
21 CHAPTER 4
22 FEES, FINES AND PENALTIES
23 Section 401. Authority of board; imposition and collection of
24 fees, fines and penalties.
25 (a) Authority to levy and collect.--
26 (1) The board shall levy and collect fees from
27 applicants for a license, permit or registration under this
28 act to assist in funding the operations of the board. The
29 fees collected by the board shall be deposited in the State
30 Gaming Fund established under 4 Pa.C.S. § 1403 (relating to
20070H2121B2339 - 50 -
1 establishment of State Gaming Fund and net slot machine
2 revenue distribution). The board shall assess and collect
3 fees as follows:
4 (i) A person approved by the board for a supplier
5 license shall pay a license fee of $25,000 upon the
6 issuance of the supplier license and a renewal fee of
7 $10,000 for the annual renewal of a supplier license, if
8 the board approves the renewal.
9 (ii) A person approved by the board for a
10 manufacturer license shall pay a license fee of $50,000
11 upon the issuance of the manufacturer license and a
12 renewal fee of $25,000 for the annual renewal of the
13 manufacturer license, if the board approves the renewal.
14 (iii) Each application for a supplier license or
15 manufacturer license shall be accompanied by a
16 nonrefundable application fee of $2,500. The application
17 fee shall be used to cover the reasonable and necessary
18 costs and expenses incurred by the board in any
19 background investigation or proceeding concerning the
20 applicant. The applicant shall reimburse the board for
21 any additional costs which may be incurred as a result of
22 the investigation or proceeding. The board shall refund
23 to the applicant any money which is not expended in
24 connection with the conduct of the background
25 investigation.
26 (iv) A person approved by the board for a table game
27 service industry license shall pay a license fee of
28 $25,000 upon the issuance of the license and a renewal
29 fee of $10,000 for the annual renewal of a service
30 industry license if the board approves the renewal. Each
20070H2121B2339 - 51 -
1 application for a service industry license shall be
2 accompanied by a nonrefundable application fee of $2,500.
3 The application fee shall be used to cover the reasonable
4 and necessary costs and expenses incurred by the board in
5 any background investigation or proceeding concerning the
6 applicant for license. The applicant shall reimburse the
7 board of any additional costs that may be incurred as a
8 result of the investigation or proceeding. The board
9 shall refund to the applicant any money that is not
10 expended in the conduct of the background investigation.
11 (2) The board shall provide for the assessment and
12 collection of fines and penalties for violations of this act
13 or regulations promulgated under this act. Fines and
14 penalties collected by the board shall be credited for
15 deposit to the General Fund. The board by regulation may from
16 time to time increase any fee, charge, cost or administrative
17 penalty provided in this act by a reasonable amount, except
18 that no fee, charge, cost or administrative penalty shall be
19 increased until three years subsequent to the effective date
20 of this act.
21 (3) Notwithstanding any provision of this section to the
22 contrary, the board by regulation may establish additional
23 fees for the investigation and consideration of applications
24 for the issuance and renewal of licenses, permits and
25 registrations under this act. The fees shall be payable by
26 the applicant, licensee, permittee or registrant.
27 (4) The board by regulation may establish fees to recoup
28 the costs of services, equipment or other expenses that are
29 rendered, utilized or incurred by the bureau, the
30 Pennsylvania State Police or the board, including any unusual
20070H2121B2339 - 52 -
1 or out-of-pocket expenses directly related to the operation
2 of authorized table games or in response to requests arising
3 under this act that are unrelated to investigation or
4 consideration of the issuance or renewal of a license, permit
5 or registration.
6 (b) Additional assessment.--
7 (1) In addition to the fees required under subsection
8 (a), there is hereby imposed an annual assessment that shall
9 be paid by each holder of a manufacturer license, supplier
10 license and service industry license as provided for in this
11 subsection.
12 (2) Each licensed manufacturer, licensed supplier and
13 licensed service industry that engages in commerce with a
14 licensed table game entity in this Commonwealth shall pay an
15 annual assessment of $50,000.
16 (3) The annual assessment required under this subsection
17 shall be paid to the department on or before the date each
18 licensed manufacturer, licensed supplier or licensed service
19 industry begins to engage in commerce with a licensed table
20 game entity in this Commonwealth and annually on that date,
21 thereafter.
22 (4) The department shall cause the annual assessment to
23 be deposited in the fund established under 4 Pa.C.S. § 1509
24 (relating to compulsive and problem gambling program). The
25 moneys deposited in the fund shall be used solely for the
26 purposes enumerated in 4 Pa.C.S. § 1509 and Chapter 28
27 (relating to compulsive gambling assistance) and shall not be
28 used for any other purpose.
29 Section 402. Table game license fee.
30 (a) Establishment of fee.--Notwithstanding the licensing fee
20070H2121B2339 - 53 -
1 imposed upon applicants for a slot machine license pursuant to 4
2 Pa.C.S. §§ 1209 (relating to slot machine license fee) and 1305
3 (relating to Category 3 slot machine license), and subject to
4 the requirements of this act, at the time a table game license
5 is issued by the board, a table game license fee in the amount
6 of $10,000,000 shall be remitted to the board by each holder of
7 a Category 1, Category 2 and Category 3 slot machine license
8 that applies for and is approved for a table game license under
9 this act. The license fees set forth in this section shall be
10 remitted upon the issuance of a table game license by the board.
11 (b) Renewal fee and term of license.--A table game license,
12 upon payment of the license fee established in subsection (a),
13 shall be issued for a term of one year, unless suspended or
14 revoked by the board. The term for a renewed license shall be
15 one year for each of the first two renewal periods succeeding
16 the initial issuance of the license. Thereafter, the board may
17 by regulation establish a longer renewal period. Each
18 application to renew a table game license shall be accompanied
19 by an annual license renewal fee of $500,000, except that, if
20 the board establishes a longer renewal period, the amount of the
21 license renewal fee shall be computed in a manner to reflect the
22 longer renewal period.
23 Section 403. Deposit of fees.
24 The total amount of all license, permit and registration fees
25 and any other fees established, imposed and collected by the
26 board pursuant to this chapter shall be deposited in the State
27 Gaming Fund. The fees authorized and collected in accordance
28 with this chapter and so deposited shall be annually
29 appropriated to the board by the General Assembly to administer
30 this act.
20070H2121B2339 - 54 -
1 Section 404. Ability to pay license fee.
2 Each applicant for a table game license shall, at the time of
3 application, post a bond in the amount of $10,000,000 to
4 demonstrate the financial ability of the applicant to pay the
5 license fee as established in section 402 if issued a table game
6 license by the board. The bond may be furnished in negotiable
7 securities, by a surety bond guaranteed by a satisfactory
8 guarantor or by an irrevocable letter of credit issued by a
9 banking institution or other lending institution acceptable to
10 the board.
11 Section 405. Fee on authorized table games.
12 (a) Annual fee.--In addition to any other fee imposed under
13 this act, there is also hereby imposed an annual license fee of
14 $500 upon every authorized table game maintained for use or in
15 use in any licensed table game facility in this Commonwealth.
16 (b) Date of imposition.--The fee imposed under this section
17 shall be imposed as of the first day of July of each year with
18 regard to all table games maintained for use or in use on that
19 date, and on a pro rata basis thereafter during the year with
20 regard to all table games conducted and maintained for use or
21 placed in use after July 1.
22 (c) Deposit.--Notwithstanding any other provision to the
23 contrary, the fee required under this section shall be paid by
24 each table game licensee to the department for deposit into the
25 compulsive and problem gambling treatment fund established under
26 4 Pa.C.S § 1509 (relating to compulsive and problem gambling
27 program) and shall be used for the purposes enumerated in 4
28 Pa.C.S. § 1509 and Chapter 28 (relating to compulsive gambling
29 assistance).
30 CHAPTER 5
20070H2121B2339 - 55 -
1 AUTHORIZED LICENSES
2 Section 501. Table game licensing requirements.
3 (a) General eligibility.--A person who has been approved for
4 and issued a license as a licensed gaming entity under 4 Pa.C.S.
5 Pt. II (relating to gaming) shall be eligible to apply for a
6 table game license in accordance with this act, except that
7 nothing contained in this act shall be construed to create an
8 entitlement to a table game license by the licensed gaming
9 entity or person. The board shall, in its sole discretion,
10 issue, renew, condition or deny a table game license based upon
11 the requirements of this act and whether the issuance of a table
12 game license will enhance tourism, including international
13 tourism; promote economic development and job creation; is in
14 the best interest of the Commonwealth; will advance the
15 Commonwealth's regional competitive advantage; and will advance
16 the purposes of this act. It shall be the affirmative
17 responsibility of each licensed gaming entity to establish by
18 clear and convincing evidence all qualifications for a table
19 game license, and the qualifications of each person who is
20 required to be qualified under this act as well as the
21 qualifications of the licensed facility in which the table games
22 are to be located and operated.
23 (b) Responsibility of persons seeking qualification.--Each
24 licensed gaming entity or any other person who must be qualified
25 for licensure pursuant to this act shall provide all information
26 required under this act and satisfy all requests for information
27 pertaining to qualification in the form and manner and at the
28 time specified by the board. Applicants for a table game license
29 and table game licensees shall waive liability as to the
30 Commonwealth of Pennsylvania and its instrumentalities and
20070H2121B2339 - 56 -
1 agents for any damages that may result from any disclosure or
2 publication in any manner, other than a willfully unlawful
3 disclosure or publication of any material or information
4 acquired during inquiries, investigations or hearings. The
5 following shall apply to licensed gaming entities and other
6 persons seeking qualification for a table game license:
7 (1) Applicants for a table game license, table game
8 licensees, intermediary companies, and holding companies
9 shall consent to inspections, searches, seizures and the
10 supplying of handwriting exemplars as authorized by this act
11 and regulations promulgated under this act.
12 (2) Applicants for a table game license, table game
13 licensees and any other person required to be qualified under
14 this act shall have the continuing duty to provide any
15 assistance or information required by the board, the bureau,
16 the Pennsylvania State Police or the Attorney General, and to
17 cooperate in any inquiry or investigation conducted by the
18 board, bureau, Pennsylvania State Police or the Attorney
19 General and any inquiry, investigation or hearing conducted
20 by the board. If upon issuance of a formal request to answer
21 or produce information, evidence or testimony, any applicant,
22 licensee or any other person required to be qualified under
23 this act refuses to comply, the application, license or
24 qualification of the person may be denied or revoked by the
25 board.
26 (3) No applicant for a table game license or a table
27 game licensee shall give or provide, offer to give or
28 provide, directly or indirectly, any compensation or reward
29 or any percentage or share of the money or property played or
30 received through table game operations, except as authorized
20070H2121B2339 - 57 -
1 by this act, in consideration for obtaining any license,
2 authorization, permission or privilege to participate in any
3 way in table game operations.
4 (4) Each applicant for a table game license, licensed
5 gaming entity or person required to be qualified under this
6 act shall be photographed and fingerprinted for
7 identification and investigation purposes in accordance with
8 procedures established by the board pursuant to this act. The
9 board may by regulation waive the requirements of this
10 paragraph for any person or individual who has satisfied
11 these requirements as a condition for licensure and who has
12 been issued a license under 4 Pa.C.S. Pt. II within six
13 months subsequent to submitting an application for a license
14 under 4 Pa.C.S. Pt. II. The regulations promulgated by the
15 board pursuant to this paragraph shall set forth the
16 conditions or criteria under which photographing and
17 fingerprinting may be waived for an applicant or person who
18 holds a valid license under 4 Pa.C.S. Pt. II.
19 (5) Licensed gaming entities and other persons required
20 to be qualified under this act, and persons employed by a
21 table game service industry licensed under this act, shall
22 inform the board or bureau of any action that they believe or
23 reasonably suspect would constitute a violation of this act.
24 No person who so informs the board or the bureau shall be
25 discriminated against by an applicant for a table game
26 license or a table game licensee because of the furnishing of
27 the information.
28 Section 502. Statement of compliance.
29 (a) Issuance.--The board may, in its discretion, issue a
30 statement of compliance to a licensed gaming entity or an
20070H2121B2339 - 58 -
1 applicant for a table game license or for qualification status
2 under this act at any time the board is satisfied that the
3 licensed gaming entity or applicant has established by clear and
4 convincing evidence that one or more particular eligibility
5 criteria have been satisfied. A request for the issuance of a
6 statement of compliance under this subsection shall be initiated
7 by the licensed gaming entity or applicant filing a petition
8 with the board. Before the board initiates an investigation of
9 the licensed gaming entity or applicant, the board may require
10 the licensed gaming entity or applicant to establish, to the
11 satisfaction of the board, that the entity or applicant actually
12 intends, if found qualified, to engage in the business or
13 activity that would require the issuance of the table game
14 license or the determination of qualification status under this
15 act.
16 (b) Petition seeking alternative issuance.--Any person who
17 is required to be qualified under this act in order to hold
18 securities of a licensed table game entity or any holding or
19 intermediary company of a licensed table game entity may, prior
20 to acquisition of the securities, request the issuance of a
21 statement of compliance by the board that the person is
22 qualified to hold the securities. Any request for the issuance
23 of a statement of compliance pursuant to this subsection shall
24 be initiated by the person filing a petition with the board in
25 which the person shall be required to establish that there is a
26 reasonable likelihood that, if qualified, the person will obtain
27 and hold the securities of the licensed table game entity or any
28 holding or intermediary company of the licensed table game
29 entity to the extent to require the qualification of the person
30 under this act. If the board finds that this reasonable
20070H2121B2339 - 59 -
1 likelihood exists, and if the board is satisfied, after
2 investigation, that the qualifications of the person have been
3 established by clear and convincing evidence, the board may, in
4 its discretion, issue a statement of compliance that the person
5 is qualified to hold the securities. Any person who requests a
6 statement of compliance pursuant to this subsection shall be
7 subject to section 501. The person shall pay for the costs of
8 all investigations and proceedings in relation to the request
9 unless the person provides to the board a written agreement
10 specifying the licensed table game entity will pay the costs.
11 (c) Requirements for corporation.--A statement of compliance
12 shall not be issued indicating that an applicant, which is a
13 corporation or other form of business organization, has
14 established by clear and convincing evidence its good character,
15 honesty and integrity unless the chief executive officer, chief
16 operating officer and chief financial officer or the functional
17 equivalent of each, each director, each person who directly or
18 indirectly holds any beneficial interest or ownership interest
19 in the applicant, to the extent that the person would be
20 required to qualify under 4 Pa.C.S. § 1311 (relating to slot
21 machine license application business entity requirements), if
22 the applicant were a holding company or intermediary company of
23 a licensed gaming entity and any other person that the board may
24 consider appropriate for approval or qualification, would, but
25 for residency, individually be qualified for approval as a key
26 employee pursuant to the applicable provisions of this act.
27 (d) Contents of statement of compliance.--A statement of
28 compliance issued under this act shall specify:
29 (1) The particular eligibility criteria satisfied by the
30 applicant or person.
20070H2121B2339 - 60 -
1 (2) The date as of which satisfaction was determined by
2 the board.
3 (3) The continuing obligation of the applicant or person
4 to file any information required by the board as part of any
5 application for a table game license or qualification status
6 under this act, including information related to the
7 eligibility criteria for which the statement of compliance
8 was issued.
9 (4) The obligation of the applicant or person to
10 reestablish its satisfaction of the eligibility criteria
11 should there be a change in any material fact or circumstance
12 that is relevant to the eligibility criteria for which the
13 statement of compliance was issued.
14 (e) Withdrawal by board.--A statement of compliance issued
15 pursuant to this section may be withdrawn by the board if:
16 (1) The applicant or person otherwise fails to satisfy
17 the eligibility criteria for licensure or qualifications.
18 (2) The applicant or person fails to comply with any
19 condition imposed by the board.
20 (3) The board finds cause to revoke the statement of
21 compliance for any other reason.
22 (f) Duration.--Notwithstanding any other provision of this
23 section, unless otherwise extended by the board upon application
24 by the recipient and for good cause shown, any statement of
25 compliance issued by the board in accordance with this section
26 shall expire 48 months after the date of issuance, unless the
27 recipient receives a commitment from the board for the
28 reservation of a table game license, in which case the statement
29 of compliance shall expire on the same day as the commitment.
30 Section 503. Table game license applicant eligibility.
20070H2121B2339 - 61 -
1 (a) Requirement to operate.--No licensed gaming entity shall
2 operate table games unless all necessary licenses, certificates
3 and approvals authorizing the operation of authorized table
4 games have been approved and issued by the board in accordance
5 with this act.
6 (b) Eligibility.--Only the following persons shall be
7 eligible to apply for a table game license, and each of the
8 following persons shall be required to hold a slot machine
9 license prior to the operation of authorized table games in the
10 licensed table game facility with respect to which the table
11 game license has been applied for:
12 (1) A person who has been approved for a Category 1 slot
13 machine license pursuant to 4 Pa.C.S. §§ 1302 (relating to
14 Category 1 slot machine license) and 1303 (relating to
15 additional Category 1 slot machine requirements), or a person
16 who has been issued a slot machine license pursuant to 4
17 Pa.C.S. § 1325 (relating to license or permit issuance).
18 (2) A person who has been approved for a Category 2 slot
19 machine license pursuant to 4 Pa.C.S. § 1304 (relating to
20 Category 2 slot machine license), or who has been issued a
21 slot machine license pursuant to 4 Pa.C.S. § 1325.
22 (3) A person who has been approved for a Category 3 slot
23 machine license pursuant to 4 Pa.C.S. § 1305 (relating to
24 Category 3 slot machine license), or who has been issued a
25 slot machine license pursuant to 4 Pa.C.S. § 1325. The board
26 shall promulgate regulations prescribing the number, kind and
27 manner in which authorized table games may be conducted in a
28 Class 3 licensed facility or any establishment of a Class 3
29 licensed facility.
30 (4) Any person qualified in accordance with the
20070H2121B2339 - 62 -
1 requirements of this act who has a written agreement with a
2 licensed gaming entity or with an applicant for or holder of
3 a slot machine license for the complete management of a
4 proposed or existing table game facility.
5 (5) Any other person who has control over either a
6 licensed facility or the land thereunder or the operation of
7 a licensed facility in accordance with the requirements of
8 this act.
9 Section 504. Requirements to manage.
10 Prior to the operation of a table game facility in this
11 Commonwealth, any agreement to lease an approved table game
12 facility or the land thereunder and any agreement for the
13 management of a table game facility shall be in writing and
14 filed with the board. No agreement shall be effective unless
15 expressly approved by the board. The board may require that any
16 agreement include within its terms provisions reasonably
17 necessary to best accomplish the policies of this act.
18 Notwithstanding any other provisions of law or regulation to the
19 contrary and consistent with the policies of this act:
20 (1) The board may determine that any person who does not
21 have the ability to exercise any significant control over
22 either the licensed table game facility or the operation of
23 table games within such table game facility shall not be
24 eligible to hold or be required to hold a table game license.
25 (2) The board may determine that any owner, lessor or
26 lessee of a licensed table game facility or the land
27 thereunder who does not own or lease the entire licensed
28 facility shall not be eligible to hold or required to hold a
29 table game license.
30 (3) The board may require that any person or persons
20070H2121B2339 - 63 -
1 eligible to apply for a table game license organize into such
2 form or forms of business association as the board shall deem
3 necessary or desirable in the circumstances to carry out the
4 policies of this act.
5 (4) The board may issue separate table game licenses to
6 any person eligible to apply for a table game license.
7 (5) As to agreements to lease a licensed table game
8 facility or the land thereunder, unless it expressly and by
9 formal vote for good cause determines otherwise, the board
10 shall require that each party to the agreement hold either a
11 table game license or table game service industry license and
12 that the agreement be for a durational term exceeding 30
13 years, concerns 100% of the entire licensed table game
14 facility or of the land upon which same is located, and
15 include within its terms a buy-out provision conferring upon
16 the licensee-lessee that controls the operation of the
17 approved licensed table game facility the absolute right to
18 purchase for an expressly set forth fixed sum the entire
19 interest of the lessor or any person associated with the
20 lessor in the licensed table game facility or the land
21 thereunder in the event that the lessor or person associated
22 with the lessor is found by the board to be unsuitable to be
23 associated with the licensed table game facility.
24 (6) The board shall not permit an agreement for the
25 leasing of a licensed table game facility or the land
26 thereunder to provide for the payment of an interest,
27 percentage or share of money wagered at the table game
28 facility or derived from table game operations or of the
29 revenues or profit of the licensed table game facility,
30 unless:
20070H2121B2339 - 64 -
1 (i) The party receiving payment of the interest,
2 percentage or share is a party to the approved lease
3 agreement.
4 (ii) Each party to the lease agreement holds either
5 a table game license or table game service industry
6 license.
7 (iii) The agreement is for a durational term
8 exceeding 30 years, concerns a significant portion of the
9 entire licensed table game facility or of the land upon
10 which the same is located and includes within its terms a
11 buy-out provision conforming to the requirements of
12 paragraph (5).
13 (7) As to agreements for the management of a table game
14 facility, the board shall require that:
15 (i) Each party to an agreement hold a table game
16 license.
17 (ii) The party to an agreement who is to manage the
18 table game operations own at least 10% of all outstanding
19 equity securities of the table game license or of the
20 eligible applicant for a table game license, if the
21 licensee or applicant is a corporation and the ownership
22 of an equivalent interest in the table game licensee or
23 in the eligible applicant for a table game license, if
24 the applicant is not a corporation.
25 (iii) The agreement be for the complete management
26 of all table game space in the facility, provide for the
27 sole and unrestricted power to direct the table game
28 operations of the facility that is the subject of the
29 agreement, and be for a durational term that assures
30 reasonable continuity, stability and independence in the
20070H2121B2339 - 65 -
1 management of the table game operations.
2 (8) The board may permit an agreement for the management
3 of a licensed table game facility to provide for the payment
4 to the managing party of an interest, percentage or share of
5 money gambled at all authorized table games or derived from
6 table game activity or of revenues or profits of table game
7 operations.
8 (9) Notwithstanding any provision of this act to the
9 contrary, the board may permit an agreement between a
10 licensed gaming entity and a licensed table game service
11 industry for the operation of multifacility progressive slot
12 machine systems to provide for the payment to the licensed
13 table game service industry of an interest, percentage or
14 share of the money derived from the licensed gaming entity's
15 share of proceeds from the operation of multifacility
16 progressive slot machine systems.
17 (10) As to agreements to lease a licensed table game
18 facility or the land thereunder, agreements to jointly own a
19 table game facility or the land thereunder and agreements for
20 the management of table game operations, the board shall
21 require that each party to the agreement, except for banking
22 or other chartered or licensed lending institutions or any
23 subsidiary thereof, or any chartered or licensed life
24 insurance company or property and casualty insurance company,
25 or the Commonwealth or any agency or instrumentality of the
26 Commonwealth or any political subdivision thereof, shall be
27 jointly and severally liable for all acts, omissions and
28 violations of this act by any party to the agreement
29 regardless of actual knowledge of the act, omission or
30 violation and notwithstanding any provision of the agreement
20070H2121B2339 - 66 -
1 to the contrary. Nothing in this paragraph shall require a
2 licensed gaming entity to be jointly and severally liable for
3 any acts, omissions or violations of this act committed by a
4 table game service industry.
5 Section 505. Eligibility of corporations.
6 (a) Eligibility.--No corporation shall be eligible to apply
7 for a table game license unless:
8 (1) The corporation is incorporated in this
9 Commonwealth, although the corporation may be a wholly or
10 partially owned subsidiary of a corporation that is organized
11 pursuant to the laws of another state or territory of the
12 United States or of a foreign country.
13 (2) The corporation maintains an office in the table
14 game facility licensed or to be licensed under this act.
15 (3) The corporation complies with all the requirements
16 of the laws and regulations of this Commonwealth generally
17 pertaining to corporations.
18 (4) The corporation maintains a ledger in the principal
19 office of the corporation in this Commonwealth, which shall
20 at all times reflect the current ownership of every class of
21 security issued by the corporation and shall be available for
22 inspection by the board or the bureau and authorized agents
23 of the board or the bureau at all reasonable times without
24 notice.
25 (5) The corporation maintains all operating accounts
26 required by the board in a bank in this Commonwealth, except
27 that a table game licensee may establish deposit-only
28 accounts in any jurisdiction in order to secure payment of
29 any check described in section 1602.
30 (6) The corporation includes among the purposes stated
20070H2121B2339 - 67 -
1 in its certificate of incorporation the conduct of table
2 games or gaming and provides that the certificate of
3 incorporation include all provisions required by this act.
4 (7) The corporation, if it is not a publicly traded
5 corporation, files with the board the adopted corporate
6 charter provisions that may be necessary to establish the
7 right of prior approval by the board with regard to transfers
8 of securities, shares and other interests in the applicant
9 corporation and, if the corporation is a publicly traded
10 corporation, ensures in its corporate charter that any
11 securities of the corporation are held subject to the
12 condition that if a holder of securities is found to be
13 disqualified by the board pursuant to this act, the
14 disqualified holder shall dispose of the holder's interest in
15 the corporation. Notwithstanding any other provision of law
16 or regulation to the contrary, nothing in this paragraph
17 shall be deemed to require that any security of the
18 corporation bear any legend to this effect.
19 (8) The corporation, if not a publicly traded
20 corporation, establishes to the satisfaction of the board
21 that appropriate charter provisions create the absolute right
22 of the nonpublicly traded corporations and companies to
23 repurchase at the market price or the purchase price,
24 whichever is the lesser, any security, share or other
25 interest in the corporation in the event that the board
26 disapproves a transfer in accordance with this act.
27 (9) Any publicly traded holding, intermediary or
28 subsidiary company of the corporation, whether the
29 corporation is publicly traded or not, contains in its
30 corporate charter the same provisions required under
20070H2121B2339 - 68 -
1 paragraph (7) for a publicly traded corporation to be
2 eligible to apply for a table game license under this act.
3 (10) Any nonpublicly traded holding, intermediary or
4 subsidiary company of the corporation, whether the
5 corporation is publicly traded or not, establishes to the
6 satisfaction of the board that its charter provisions are the
7 same as those required under paragraphs (7) and (8) for
8 nonpublicly traded corporations to be eligible to apply for a
9 table game license under this act.
10 (b) Earlier approval.--Notwithstanding subsection (a), any
11 corporation that had bylaw provisions approved by the board
12 prior to the effective date of this act shall have one year from
13 the effective date of this act to adopt appropriate charter
14 provisions that conform to the requirements of this section.
15 Section 506. Restrictions on licensure.
16 (a) General rule.--In addition to considering all other
17 requirements under this act in deciding whether to approve
18 direct or indirect ownership or control of a table game license,
19 the board shall consider the impact of any economic
20 concentration of that ownership or control. No direct or
21 indirect ownership or control shall be approved, and no table
22 game license shall be issued or transferred to or held by any
23 person or entity if the board determines the approval, issuance,
24 transfer or holding will result in undue economic concentration
25 in the direct or indirect ownership or control of table game
26 operations in this Commonwealth. The board shall by regulation
27 develop criteria for determining whether the issuance, transfer
28 or holding, directly or indirectly, of a table game license
29 would result in undue economic concentration.
30 (b) Construction.--For the purpose of this subsection, a
20070H2121B2339 - 69 -
1 person shall be considered the holder of a table game license if
2 a table game license is issued to the person or if a table game
3 license is being held by any holding, intermediary or subsidiary
4 company of the person or by any officer, director, key employee
5 or principal employee of the person or of any holding,
6 intermediary or subsidiary company of the person.
7 (c) Definition.--As used in this section, "undue economic
8 concentration" means that a person or entity would have such
9 actual or potential domination of table game operations in this
10 Commonwealth as to:
11 (1) substantially impede or suppress competition among
12 holders of table game licenses;
13 (2) adversely impact the economic stability of the
14 gaming industry in this Commonwealth; or
15 (3) negatively impact the policy purposes of this act,
16 including tourism, economic development, benefits to host
17 municipalities and State and local revenues.
18 CHAPTER 6
19 TABLE GAME LICENSE APPLICATION
20 Section 601. Application for table game license.
21 (a) Submission of application.--An application for a license
22 to operate table games at a licensed facility shall be submitted
23 to the board in the form and manner and at the time the board
24 requires. A nonrefundable application fee of $2,500 as
25 established by regulation of the board shall accompany the
26 application. In addition to the requirements of this act, an
27 application for a table game license shall be subject to the
28 requirements of 4 Pa.C.S § 1308 (relating to applications for
29 license or permit). If the applicant is a corporation,
30 foundation, organization, business trust, estate, limited
20070H2121B2339 - 70 -
1 liability company, trust, partnership, limited partnership,
2 association or any other form of business entity, the board
3 shall determine the persons whose qualifications are necessary
4 as a precondition to the licensing of the applicant.
5 (b) Application requirements.--In addition to any other
6 requirements under this act, an applicant for a table game
7 license shall produce information, documentation and assurances
8 concerning suitability for a table game license under this act.
9 Each applicant shall be subject to the provisions of 4 Pa.C.S.
10 Pt. II (relating to gaming), which generally relate to
11 licensure, including:
12 (1) Section 1309 (relating to slot machine license
13 application).
14 (2) Section 1310 (relating to slot machine license
15 application character requirements).
16 (3) Section 1311 (relating to slot machine license
17 application business entity requirements).
18 (4) Section 1312 (relating to divestiture of
19 disqualifying applicant).
20 (5) Section 1313(a), (b), (d) and (e) (relating to slot
21 machine license application financial fitness requirements).
22 (6) Section 1325 (relating to license or permit
23 issuance).
24 (7) Section 1326 (relating to license renewals).
25 (c) Exception.--The board may waive the requirements of
26 subsection (b) for any applicant or licensed gaming entity that
27 has been approved for and has been issued a slot machine license
28 within six months subsequent to the submission of an application
29 for a table game license, and who, as a result of the approval
30 and issuance, has provided information, documentation and
20070H2121B2339 - 71 -
1 assurances as part of the application for a slot machine
2 license, provided there has been no material change in the
3 submissions.
4 (d) Additional requirements for corporate applicant.--
5 (1) In addition to the other information required to be
6 provided under this act, an applicant who is a corporation
7 seeking a table game license shall provide the following
8 information:
9 (i) (A) The organization, financial structure and
10 nature of all businesses operated by the corporation.
11 (B) The names and personal employment and
12 criminal histories of all officers, directors and
13 other principal employees of the corporation.
14 (C) The names of all holding, intermediary and
15 subsidiary companies of the corporation.
16 (D) The organization, financial structure and
17 nature of all businesses operated by its holding,
18 intermediary and subsidiary companies as the board
19 may require, including names and personal employment
20 and criminal histories of the officers, directors and
21 other principal employees of the corporation and
22 companies as the board may require.
23 (ii) The rights and privileges acquired by the
24 holders of different classes of authorized securities of
25 the corporation and companies as the board may require,
26 including the names, addresses and amounts held by all
27 holders of the securities of the corporation.
28 (iii) The terms upon which securities have been or
29 are to be offered.
30 (iv) The terms and conditions of all outstanding
20070H2121B2339 - 72 -
1 loans, mortgages, trust deeds, pledges or any other
2 indebtedness or security device utilized by the
3 corporation.
4 (v) The extent of equity security holding in the
5 corporation of all officers, directors and underwriters
6 and their remuneration in the form of salary, wages, fees
7 or otherwise.
8 (vi) The names of persons, other than directors and
9 officers, who occupy positions specified by the board or
10 whose compensation exceeds an amount determined by the
11 board and the amount of their compensation.
12 (vii) A description of all bonus and profit sharing
13 arrangements.
14 (viii) Copies of all management and service
15 contracts or agreements.
16 (ix) A listing of stock options existing or to be
17 created.
18 (2) If a corporation or other form of business
19 organization applying for a table game license is, or if a
20 corporation or other form of business organization holding a
21 table game license is to become a subsidiary, each holding
22 company and each intermediary company with respect thereto,
23 as a condition of the subsidiary acquiring or retaining the
24 table game license, as the case may be, shall:
25 (i) Qualify to do business in this Commonwealth if
26 the subsidiary company is not registered as a business
27 entity in this Commonwealth.
28 (ii) If the applicant is a corporation, register
29 with the board and furnish the board with all the
30 information required of a corporate licensee pursuant to
20070H2121B2339 - 73 -
1 paragraph (1)(i), (ii) and (iii) and any other
2 information the board may require.
3 (iii) If the applicant is not a corporation,
4 register with the board and furnish the board with any
5 information the board may require.
6 (3) No corporation shall be eligible to hold a table
7 game license unless each officer, director, person who
8 directly or indirectly holds any beneficial interest or
9 ownership of the securities issued by the corporation, person
10 who in the opinion of the board has the ability to control
11 the corporation or elect a majority of the board of directors
12 of the corporation, other than banking or other licensed
13 lending institution that makes a loan or holds a mortgage or
14 other lien acquired in the ordinary course of business,
15 principal employee and any lender, underwriter, agent,
16 employee of the corporation or other person whom the board
17 may consider appropriate for approval or qualification would,
18 but for residence, individually be qualified for approval as
19 a table game key employee under this act.
20 (4) No corporation or other form of business
21 organization that is a subsidiary shall be eligible to
22 receive or hold a table game license unless each holding and
23 intermediary company of the corporation shall:
24 (i) If an applicant is a corporation, comply with
25 the provisions of paragraph (3) as if the holding or
26 intermediary company were itself applying for a license.
27 The board may waive compliance with paragraph (3) on the
28 part of a holding company as to any officer, director,
29 lender, underwriter, agent or employee of the holding
30 company or person directly or indirectly holding a
20070H2121B2339 - 74 -
1 beneficial interest or ownership of the securities of the
2 corporation, if the board is satisfied that the officer,
3 director, lender, underwriter, agent or employee is not
4 significantly involved in the activities of the corporate
5 licensee, and in the case of security holders, does not
6 have the ability to control the holding company or elect
7 one or more directors of the holding company.
8 (ii) If an applicant is not a corporation, comply
9 with paragraph (5) as if the company were itself applying
10 for a license. The board may waive compliance with the
11 provisions of paragraph (5) on the part of a noncorporate
12 business organization that is a holding company as to any
13 person who directly or indirectly holds any beneficial
14 interest or ownership in the company, if the board is
15 satisfied that the person does not have the ability to
16 control the company.
17 (5) Any noncorporate applicant for a table game license
18 shall provide the information required in paragraph (1) in
19 the form and manner that the board requires. A noncorporate
20 applicant is not eligible to hold a table game license unless
21 each person who directly or indirectly holds a controlling or
22 beneficial interest or ownership interest in the applicant,
23 or who in the opinion of the board has the ability to control
24 the applicant, or who the board may consider appropriate for
25 approval or qualification, would, but for residence,
26 individually be qualified for approval as a table game key
27 employee under this act.
28 (6) Notwithstanding paragraphs (3) and (4), and in the
29 absence of a prima facie showing by the board that there is
30 any cause to believe that an institutional investor may be
20070H2121B2339 - 75 -
1 found unqualified, the following shall apply:
2 (i) An institutional investor holding either under
3 10% of the equity securities of a licensee's holding or
4 intermediary companies or debt securities of a licensee's
5 holding or intermediary companies or another subsidiary
6 company of a licensee's holding or intermediary companies
7 that is related in any way to the financing of the table
8 game licensee, where the securities represent a
9 percentage of the outstanding debt of the company not
10 exceeding 20% or a percentage of any issue of the
11 outstanding debt of the company not exceeding 50%, shall
12 be granted a waiver of qualification if the securities
13 are those of a publicly traded corporation and its
14 holdings of the securities were purchased for investment
15 purposes only and upon request by the board, it files
16 with the board a certified statement to the effect that
17 it has no intention of influencing or affecting the
18 affairs of the issuer, the table game licensee or its
19 holding or intermediary companies. An institutional
20 investor shall be permitted to vote on matters put to the
21 vote of the outstanding security holders.
22 (ii) The board may grant a waiver of qualification
23 to an institutional investor holding a higher percentage
24 of the securities upon a showing of good cause and if the
25 conditions specified in subparagraph (i) are met. Any
26 institutional investor granted a waiver under this
27 paragraph that subsequently determines to influence or
28 affect the affairs of the issuer, table game licensee or
29 its holding or intermediary companies shall provide not
30 less than 30 days' notice of that intent to the board and
20070H2121B2339 - 76 -
1 shall file with the board an application for
2 qualification under this act before taking any action
3 that may influence or affect the affairs of the issuer,
4 table game licensee or its holding or intermediary
5 companies. The institutional investor shall be permitted
6 to vote on matters put to the vote of the outstanding
7 security holders.
8 (iii) If an institutional investor changes its
9 investment intent, or if the board finds reasonable cause
10 to believe that the institutional investor may be found
11 unqualified, no action other than divestiture shall be
12 taken by the investor with respect to its security
13 holdings until there has been compliance with Chapter 12,
14 including the execution of a trust agreement.
15 (iv) The table game licensee and its relevant
16 holding, intermediary or subsidiary company shall
17 immediately notify the board of any information about, or
18 actions of, an institutional investor holding its equity
19 or debt securities if the information or action could
20 impact the eligibility of the institutional investor for
21 a waiver pursuant to this paragraph.
22 (7) If at any time the board finds that an institutional
23 investor holding any security of a holding or intermediary
24 company of a table game licensee, or, where relevant, of
25 another subsidiary company of a holding or intermediary
26 company of a table game licensee that is related in any way
27 to the financing of the table game licensee, fails to comply
28 with the requirements of paragraph (6), or if at any time the
29 board finds that, by reason of the extent or nature of its
30 holdings, an institutional investor is in a position to
20070H2121B2339 - 77 -
1 exercise such a substantial impact upon the controlling
2 interests of a table game licensee that qualification of the
3 institutional investor is necessary to protect the public
4 interest, the board may, in accordance with the provisions of
5 paragraphs (1), (2), (3), (4) and (5) or sections 2102 and
6 2103, take any necessary action to protect the public
7 interest, including requiring the institutional investor to
8 be qualified under this act.
9 Section 602. Disqualification for licensure.
10 (a) Disqualification criteria.--The board shall deny a table
11 game license to any applicant or licensed gaming entity who is
12 disqualified based on any of the following criteria:
13 (1) Failure of the licensed gaming entity to maintain a
14 slot machine license.
15 (2) Failure of the applicant or licensed gaming entity
16 to prove by clear and convincing evidence that the applicant
17 is qualified for a table game license in accordance with this
18 act.
19 (3) Failure of the applicant or licensed gaming entity
20 to provide information, documentation and assurances required
21 by this act or requested by the board, or failure of the
22 applicant to reveal any fact material to qualification, or
23 the supplying of information that is untrue or misleading as
24 to a material fact pertaining to the qualification criteria.
25 (4) Contumacious defiance by the applicant or licensed
26 gaming entity or any person who is required to be qualified
27 under this act of any legislative investigatory body or other
28 official investigatory body of this Commonwealth or any state
29 or of the United States or other jurisdiction when that body
30 is engaged in the investigation of crimes relating to
20070H2121B2339 - 78 -
1 gambling, official corruption or organized crime activity.
2 (b) Automatic disqualification.--No applicant for a license,
3 permit or registration under this act, including any director,
4 owner, principal employee or table game key employee, that has
5 been convicted in any jurisdiction of a felony or gambling
6 offense within the past 15 years shall be issued a license,
7 permit or registration under this act or be found qualified to
8 serve in a position with or associated with any table game
9 licensee, permittee or registrant. In addition, the board shall
10 deny a table game license to any applicant or person who is
11 automatically disqualified based on the following:
12 (1) An attempt to commit or a conviction of the
13 applicant, or by any person required to be qualified under
14 this act as a condition for the issuance of a table game
15 license, for one or more of the following offenses under 18
16 Pa.C.S (relating to crimes and offenses):
17 (i) Section 911 (relating to corrupt organizations).
18 (ii) Chapter 25 (relating to criminal homicide).
19 (iii) Section 2701 (relating to simple assault).
20 (iv) Chapter 29 (relating to kidnapping).
21 (v) Chapter 31 (relating to sexual offenses).
22 (vi) Chapter 33 (relating to arson, criminal
23 mischief and other property destruction).
24 (vii) Chapter 35 (relating to burglary and other
25 criminal intrusion) when the offense is graded a felony.
26 (viii) Chapter 37 (relating to robbery).
27 (ix) Chapter 39 (relating to theft and related
28 offenses).
29 (x) Section 4108 (relating to commercial bribery and
30 breach of duty to act disinterestedly).
20070H2121B2339 - 79 -
1 (xi) Section 4101 (relating to forgery).
2 (xii) Section 4109 (relating to rigging publicly
3 exhibited contest).
4 (xiii) Section 4114 (relating to securing execution
5 of documents by deception).
6 (xiv) Section 4117 (relating to insurance fraud).
7 (xv) Chapter 47 (relating to bribery and corrupt
8 influence).
9 (xvi) Chapter 49 (relating to falsification and
10 intimidation).
11 (xvii) Section 5111 (relating to dealing in proceeds
12 of unlawful activities.
13 (xviii) Section 5512 (relating to lotteries, etc.).
14 (xix) Section 5513 (relating to gambling devices,
15 gambling, etc.).
16 (xx) Section 5514 (relating to pool selling and
17 bookmaking).
18 (xxi) Chapter 59 (relating to public indecency).
19 (2) An offense designated as a felony under the act of
20 April 14, 1972 (P.L.233, No.64), known as The Controlled
21 Substance, Drug, Device and Cosmetic Act.
22 (3) An attempt to commit or a conviction for an offense
23 in another state or jurisdiction or a Federal offense, that
24 is similar in nature to the offenses enumerated in paragraphs
25 (1) and (2).
26 (4) An attempt to commit or a conviction for any other
27 offense under Federal or State law or laws of other states or
28 jurisdictions that indicates that licensure of the applicant
29 for a table game license or other person required to be
30 qualified under this act would be inimical to the policy and
20070H2121B2339 - 80 -
1 purpose of this act and to table game operations in this
2 Commonwealth. The automatic disqualification requirement of
3 this paragraph, at the discretion of the board, shall not
4 apply with regard to any conviction that did not occur within
5 the 15-year period immediately preceding application for
6 licensure and that the applicant demonstrates by clear and
7 convincing evidence does not justify automatic
8 disqualification pursuant to this subsection and any
9 conviction that has been the subject of judicial order of
10 expungement or sealing.
11 (5) Current prosecution or pending charges in any
12 jurisdiction of the applicant or of any person who is
13 required to be qualified under this act as a condition for a
14 table game license for any of the offenses enumerated in
15 paragraph (1)(i). At the request of the applicant or person
16 charged, the board shall defer decision upon the application
17 during the pendency of the charge.
18 (6) The pursuit of the applicant or any person who is
19 required to be qualified under this act as a condition of a
20 table game license of economic gain in an occupational manner
21 or context that is in violation of the criminal laws of this
22 Commonwealth, if the pursuit creates a reasonable belief that
23 the participation of the person in table game operations
24 would be inimical to the policies of this act or to legalized
25 gambling in this Commonwealth. For the purposes of this
26 paragraph, "occupational manner or context" shall mean the
27 systematic planning, administration, management or execution
28 of any activity for financial gain.
29 (7) The identification of the applicant or any person
30 who is required to be qualified under this act as a condition
20070H2121B2339 - 81 -
1 for a table game license as a career offender or a member of
2 a career offender cartel or an associate of a career offender
3 or career offender cartel in a manner that creates a
4 reasonable belief that the association is of a nature as to
5 be inimical to the policy of this act and to table game
6 operations in this Commonwealth. For the purpose of this
7 paragraph, "career offender" means a person whose behavior is
8 pursued in an occupational manner or context for the purpose
9 of economic gain, utilizing methods that are deemed criminal
10 violations of the laws of this Commonwealth or of the Federal
11 Government, another state or jurisdiction. A "career offender
12 cartel" means any group of persons who operate together as
13 career offenders.
14 (8) The commission by the applicant or any person who is
15 required to be qualified under this act as a condition of a
16 table game license of any act or acts which would constitute
17 an offense under paragraph (1)(i), even if the conduct has
18 not been or may not be prosecuted under the criminal laws of
19 this Commonwealth or any other jurisdiction or has been
20 prosecuted under the criminal laws of this Commonwealth or
21 any other jurisdiction and the prosecution has been
22 terminated in a manner other than with a conviction.
23 Section 603. Order approving or denying table game license and
24 investigation.
25 (a) Investigation of applicants for table game license.--
26 Notwithstanding any other provision of law to the contrary, the
27 following shall apply to the investigation of applicants for a
28 table game license or qualification under this act:
29 (1) Upon the filing of an application for a table game
30 license and supplemental information as the board may
20070H2121B2339 - 82 -
1 require, the board shall direct the bureau or Pennsylvania
2 State Police to conduct an investigation into the
3 qualification of the applicant. The board may conduct a
4 hearing concerning the qualification of the applicant in
5 accordance with the requirements of this act and regulations
6 of the board.
7 (2) After the investigation and hearing, if a hearing is
8 conducted, the board may either deny the application or
9 approve the issuance of a table game license to an applicant
10 whom it determines to be qualified to hold the license.
11 (3) When an application is denied, the board shall
12 prepare and file an order indicating that the application was
13 denied and the general reasons for the denial, and if
14 requested by the applicant, the board shall further prepare
15 and file a statement of the reasons for the denial, including
16 specific findings of facts.
17 (4) After an application is submitted to the board,
18 final action of the board shall be taken within 90 days after
19 completion of all hearings and investigations and the receipt
20 of all information required by the board. All investigations,
21 hearings and other work of the board related to the review of
22 an application for a table game license shall be performed in
23 no more than 60 days of the receipt of the application,
24 unless the 60-day period is extended by the board due to
25 extenuating circumstances or other factors that are not due
26 to a neglect or failure of the applicant.
27 (b) Issuance of license.--If satisfied that an applicant is
28 eligible and qualified to receive a table game license, and upon
29 tender of all license and application fees required by this act
30 and by regulations of the board, and any bonds that the board
20070H2121B2339 - 83 -
1 may require for the faithful performance of all requirements
2 imposed by law or regulation, the board shall issue a license
3 for an initial term of one year.
4 (c) Power of board to reopen.--The board may reopen an
5 application for a table game license or a licensing hearing at
6 any time upon its motion or upon a request of the bureau or upon
7 petition of the Pennsylvania State Police, Office of Attorney
8 General or other law enforcement agency.
9 Section 604. Renewal of table game license.
10 (a) Authority to renew.--Subject to the power of the board
11 to deny, revoke or suspend a table game license, any table game
12 license in force shall be renewed by the board for the next
13 succeeding license period upon proper application for renewal by
14 the table game licensee and approval of the application by the
15 board. Applications to renew a table game license shall be
16 accompanied by a license renewal fee of $500,000 and any other
17 fees required by regulation of the board. The application for
18 renewal of a table game license shall be filed with the board no
19 later than 90 days prior to the expiration date of the current
20 license.
21 (b) Term of renewed license.--The license period for a
22 renewed table game license shall be one year for each of the
23 first two renewal periods succeeding the initial issuance of the
24 license. Thereafter, the board by regulation may establish a
25 longer renewal period, which shall not exceed four years, and
26 commensurate renewal fees for the issuance of a license for the
27 longer renewal period.
28 (c) Issuance.--Upon the approval of an application to renew
29 a table game license, the board shall issue an appropriate
30 renewal certificate or validating device or sticker, which shall
20070H2121B2339 - 84 -
1 be attached to the original table game license. The renewal
2 certificate or validating device or sticker shall be designed to
3 indicate that the table game license has been renewed and the
4 period covering the renewal. No renewal certificate or
5 validating device or sticker shall be issued until the board
6 receives the table game license renewal fee.
7 Section 605. Bond.
8 Prior to the issuance of a table game license, the applicant
9 approved for the table game license shall post a bond in an
10 amount of not less than $1,000,000 made payable to the
11 Commonwealth of Pennsylvania. The bond shall be used to
12 guarantee that the table game licensee faithfully makes the
13 payments, maintains the books and records, makes the reports,
14 and conducts its table game operations in conformance with the
15 requirements of this act and the rules and regulations
16 promulgated by the board pursuant to this act. The bond may be
17 applied by the board to the payment of any unpaid liability of
18 the table game licensee under this act. The bond shall not be
19 cancelled by a surety on less than 30 days' notice in writing to
20 the board. If a bond is cancelled and the table game licensee
21 fails to file a new bond with the board in the required amount
22 on or before the effective date of the cancellation, the
23 licensee's table game license shall be revoked or suspended by
24 the board. The total and aggregate liability of the surety on
25 the bond is limited to the amount specified in the bond. The
26 bond may be furnished in cash or negotiable securities, by a
27 surety bond guaranteed by a satisfactory guarantor, or by an
28 irrevocable letter of credit issued by a banking institution of
29 this Commonwealth or another jurisdiction acceptable to the
30 board. If furnished in cash or negotiable securities, the
20070H2121B2339 - 85 -
1 principal shall be placed without restriction at the disposal of
2 the board, but any income shall inure to the benefit of the
3 table game licensee. In no case shall the bond that may be
4 required under this subsection exceed $1,000,000.
5 Section 606. Confidentiality of information.
6 (a) Confidentiality of information.--All information
7 received by the board in the application process from any
8 applicant for a license, permit or registration under this act,
9 including the report of an applicant's background investigation,
10 regardless of source, shall be considered confidential and shall
11 not be disclosed, in whole or in part, except that the
12 information may be released upon the lawful order of a court of
13 competent jurisdiction, or with the approval of the Attorney
14 General, to an authorized law enforcement agency. Confidential
15 information may be released, in whole or in part, to the public
16 to the extent that the release is requested by the applicant and
17 does not otherwise contain confidential information about
18 another person. The board may not require any applicant to waive
19 confidentiality provided in this section as a condition for the
20 approval and issuance of a table game license or any other
21 action of the board. Any person who violates the provisions of
22 this section shall be administratively disciplined by discharge,
23 suspension or other formal disciplinary action, as the board may
24 deem appropriate.
25 (b) Notice.--Notice of the contents of any information,
26 except to an authorized law enforcement agency pursuant to this
27 section, shall be given to any applicant or licensee in a manner
28 prescribed by regulation adopted and promulgated by the board.
29 (c) Information held by department.--Files, records and
30 other information in the possession of the department pertaining
20070H2121B2339 - 86 -
1 to licensees shall be made available upon request or otherwise
2 to the board, as may be necessary to effectuate the
3 administration of this act.
4 CHAPTER 7
5 TABLE GAME KEY EMPLOYEE LICENSE
6 Section 701. Licensure of table game key employees.
7 (a) Licensure required.--No person may be employed by a
8 table game licensee as a key employee unless the person is the
9 holder of a current and valid table game key employee license
10 issued by the board in accordance with this chapter.
11 (b) Application requirements.--Each applicant for a table
12 game key employee license shall, prior to the approval of a key
13 employee license, produce information, documentation and
14 assurances concerning the following qualification criteria:
15 (1) Each applicant for a table game key employee license
16 shall produce the information, documentation and assurances
17 required to establish by clear and convincing evidence the
18 integrity, responsibility and financial stability, if
19 applicable, of the person applying for licensure as a key
20 employee, including, but not limited to, bank references,
21 business and personal income and disbursements schedules, tax
22 returns, other reports filed with governmental agencies as
23 required by the board and business and personal accounting
24 and check records and ledgers. In addition, each applicant
25 shall in writing authorize the examination of all bank
26 accounts and records as may be deemed necessary by the board.
27 (2) Each applicant for a table game key employee license
28 shall:
29 (i) Produce the information, documentation and
30 assurances required to establish by clear and convincing
20070H2121B2339 - 87 -
1 evidence the applicant's good character, honesty and
2 integrity. The information shall include, but is not
3 limited to, data pertaining to family, habits, character,
4 reputation, criminal and arrest record, business
5 activities, financial affairs and business, professional
6 and personal associates, covering at least the ten-year
7 period immediately preceding the filing of the
8 application for licensure under this act.
9 (ii) Inform the board of any civil judgments
10 obtained against the applicant pertaining to antitrust or
11 security regulation laws of the Federal Government, of
12 this Commonwealth or of any other state or jurisdiction,
13 foreign or domestic.
14 (iii) Upon request of the board or bureau, produce
15 letters of reference from law enforcement agencies having
16 jurisdiction in the applicant's place of residence and
17 principal place of business, if applicable. The letters
18 of reference shall indicate that the relevant law
19 enforcement agencies do not have any pertinent
20 information concerning the applicant, or if a law
21 enforcement agency does have information pertaining to
22 the applicant, the letter of reference shall specify the
23 nature of the information.
24 (iv) If the applicant has been associated with
25 gaming or casino operations in any capacity, position or
26 employment in a jurisdiction which permits that activity,
27 the applicant, upon request of the board or bureau, shall
28 produce a letter or letters of reference from the gaming
29 or casino enforcement or control agency of the other
30 jurisdiction. The letter or letters of reference shall
20070H2121B2339 - 88 -
1 specify the experience of the agency with the applicant,
2 if any, and the applicant's associates and participation
3 in the gaming or casino operations of that jurisdiction,
4 if any. If no letter or letters of reference are received
5 from the appropriate gaming or casino enforcement or
6 control agency within 30 days of the applicant's request,
7 the applicant may submit a statement under oath that the
8 applicant is or was during the period that the activities
9 were conducted, in good standing with the gaming or
10 casino enforcement or control agency of the jurisdiction,
11 provided that the applicant was or is in good standing
12 with the gaming and casino enforcement or control agency
13 in the other jurisdiction.
14 (v) Be a resident of this Commonwealth prior to the
15 issuance of a key employee license. However, upon
16 petition by the holder of a table game license, the board
17 may waive this residency requirement for any applicant
18 whose particular position will require employment outside
19 this Commonwealth.
20 (vi) Be subject to all the criminal history record
21 background investigation and fingerprint requirements of
22 4 Pa.C.S. Pt. II (relating to gaming).
23 (c) Waiver.--The board may, on a case-by-case basis, by
24 regulation, waive the requirements of subsection (b) for any
25 person who has been approved for and who holds a slot machine
26 key employee license under 4 Pa.C.S. Pt. II, which license was
27 issued by the board within a 24-month period immediately
28 preceding the date of application for a table game key employee
29 license, unless there have been material changes that
30 necessitate, at the discretion of the board, that the
20070H2121B2339 - 89 -
1 requirements of subsection (b) not be waived.
2 Section 702. Denial of license.
3 The board shall deny a key employee license to any applicant
4 who is disqualified based on the criteria set forth in section
5 602.
6 Section 703. Petition for temporary license.
7 Upon petition by a holder of a table game license, the board
8 may issue a temporary table game key employee license to an
9 applicant, provided that:
10 (1) The applicant for the key employee license has filed
11 a complete application with the board.
12 (2) The bureau certifies to the board that the completed
13 key employee license application has been in the possession
14 of the bureau for at least 15 days.
15 (3) The petition for a temporary key employee license
16 certifies, and the board finds, that:
17 (i) An existing key employee position of the table
18 game licensee making the petition is vacant or will
19 become vacant within 60 days of the date of the petition.
20 (ii) The issuance of a temporary key employee
21 license is necessary to fill the vacancy on an emergency
22 basis to continue the efficient operation of the table
23 game facility.
24 (iii) The circumstances supporting the petition for
25 a temporary key employee license are extraordinary and
26 not designed to circumvent the normal key employee
27 licensing procedures under this act.
28 CHAPTER 8
29 TABLE GAME EMPLOYEE OCCUPATION PERMIT
30 Section 801. Occupation permit required.
20070H2121B2339 - 90 -
1 Any person who desires employment as a table game employee in
2 a licensed table game facility shall submit an application to
3 the board for an occupation permit as a table game employee. No
4 person may commence employment as a table game employee unless
5 the person is the holder of a current and valid occupation
6 permit issued by the board in accordance with the requirements
7 of this act.
8 Section 802. Requirements for permit.
9 (a) General rule.--An applicant for a table game employee
10 occupation permit shall produce the information, documentation
11 and assurances that the board may require. The application for a
12 table game employee occupation permit shall include, in addition
13 to any other information the board by regulation may require,
14 the following:
15 (1) The name and home address of the applicant.
16 (2) The employment history of the applicant.
17 (3) The criminal history record of the applicant, as
18 well as the applicant's consent for the Pennsylvania State
19 Police to conduct a background investigation. The applicant
20 shall bear the cost of the background investigation,
21 including all costs for administering and processing the
22 background investigation.
23 (4) A photograph of the applicant taken no more than
24 three months preceding the date of the application for the
25 permit.
26 (5) A handwriting exemplar of the applicant.
27 (6) The details of any casino or gaming license, permit
28 or registration granted or denied the applicant in any other
29 jurisdiction, and consent for the board to obtain copies of
30 applications submitted or licenses, permits or registrations
20070H2121B2339 - 91 -
1 issued in such other jurisdictions.
2 (b) Board action.--Subsequent to the issuance of a table
3 game employee occupation permit, the board may revoke, suspend,
4 limit, condition or otherwise restrict the permit upon a finding
5 that the permittee is disqualified pursuant to the criteria set
6 forth in section 602.
7 Section 803. Residency.
8 The board may require by regulation that all applicants for a
9 table game employee occupation permit be residents of this
10 Commonwealth for a period not to exceed six months immediately
11 preceding the issuance of the occupation permit, although
12 application may be made prior to the expiration of the required
13 period of residency. The board shall by resolution waive the
14 required residency period for an applicant upon a showing that
15 the residency period would cause undue hardship upon the table
16 game licensee that intends to employ the applicant or upon a
17 showing of other good cause.
18 Section 804. Convictions not basis for denial of permit.
19 (a) Considerations.--Notwithstanding section 602 or any
20 other provision of law or regulation to the contrary, no
21 applicant for a table game employee occupation permit shall be
22 denied a permit based on a conviction of any offense enumerated
23 in this act as disqualification criteria or the commission of
24 any act or acts that would constitute any offense under section
25 602(b) if the applicant has affirmatively demonstrated
26 rehabilitation. In determining whether the applicant has
27 affirmatively demonstrated rehabilitation, the board shall
28 consider the following:
29 (1) The conviction would create a reasonable belief that
30 the nature of the offense would be inimical to the policy
20070H2121B2339 - 92 -
1 purposes of this act and to table game operations and the
2 gaming industry in this Commonwealth.
3 (2) Issuance of the permit would or would not be in the
4 public interest.
5 (3) The applicant has affirmatively demonstrated
6 rehabilitation. In determining whether the applicant has
7 affirmatively demonstrated rehabilitation, the board shall
8 consider all of the following:
9 (i) The nature and duties of the position applied
10 for.
11 (ii) The nature and seriousness of the offense or
12 conduct, including whether the crime, offense or
13 conviction is enumerated in section 602(b).
14 (iii) The circumstances under which the offense or
15 conduct occurred.
16 (iv) The date of commission of the offense or
17 conduct, provided, however, that no applicant for a table
18 game employee occupation permit under this act who has
19 been convicted in any jurisdiction, foreign or domestic,
20 of a felony or gambling offense within the past 15 years
21 shall be issued a table game employee occupation permit
22 under this act or be determined qualified to serve as a
23 table game employee with any table game licensee.
24 (v) The age of the applicant at the time the offense
25 or conduct was committed.
26 (vi) Whether the offense or conduct was an isolated
27 or repeat incident.
28 (vii) Any social conditions that may have
29 contributed to the offense or conduct.
30 (viii) Any evidence of rehabilitation, including
20070H2121B2339 - 93 -
1 good conduct in prison or in the community, counseling or
2 psychiatric treatment received, acquisition of additional
3 academic or vocational schooling, successful
4 participation in correctional work-release programs or
5 the recommendation of persons who have or have had the
6 applicant under supervision, including Federal, State or
7 local probation or parole officers.
8 (b) List of crimes and offenses.--The board shall establish
9 a list of crimes, offenses and convictions that would result in
10 the automatic disqualification of an applicant for a table game
11 occupation permit under this section. In developing the list,
12 the board shall consider and determine all of the following:
13 (1) Whether the crime or offense is or is not a crime or
14 offense enumerated in section 602(b). The crimes and offenses
15 enumerated in section 602(b) shall be incorporated in the
16 list established by the board under this subsection.
17 (2) Whether the crime or offense committed is directly
18 or indirectly related to employment positions of the table
19 game industry.
20 (3) Whether the crime or offense has a direct or
21 indirect relationship to table game operations.
22 (4) Whether the conviction or disposition would be
23 inimical to the policies and purposes of this act, to table
24 game operations and the gaming industry in this Commonwealth.
25 (c) Responsibility of Pennsylvania State Police.--Whenever
26 feasible, the Pennsylvania State Police shall promptly notify
27 the board and the bureau in the event that a current or
28 prospective table game employee, who was the subject of a
29 criminal history record background investigation under this act,
30 is arrested for a crime or offense in this Commonwealth or
20070H2121B2339 - 94 -
1 another jurisdiction after the date of the initial background
2 investigation. The board shall promulgate regulations to govern
3 the notification requirements under this subsection and under
4 section 904(d). The Pennsylvania State Police shall collaborate
5 with the bureau and local law enforcement to carry out the
6 requirements of this subsection and section 904(d).
7 CHAPTER 9
8 TABLE GAME SERVICE EMPLOYEES
9 Section 901. Table game service employees registration
10 required.
11 No person may commence employment as a table game service
12 employee unless the person has registered with the board in
13 accordance with this chapter. Registration as a table game
14 service employee may only be granted by petition of the holder
15 of a table game license in accordance with section 905.
16 Section 902. Application requirements.
17 An applicant for a table game service employee registration
18 shall produce information, documentation and assurances as the
19 board shall require. In addition to any other information,
20 documentation or assurances the board may require, an applicant
21 for table game service employee registration shall be subject to
22 the table game employee occupation permit requirements under
23 section 802.
24 Section 903. Residency.
25 The board may by regulation require that all applicants for
26 table game service employee registration be residents of this
27 Commonwealth for a period not to exceed three months immediately
28 preceding the issuance of the registration, although application
29 may be made prior to the expiration of the required period of
30 residency. The board may by resolution waive the required
20070H2121B2339 - 95 -
1 residency period for an applicant upon a showing that the
2 residency period would cause undue hardship upon the table game
3 licensee that intends to employ the applicant or upon a showing
4 of other good cause.
5 Section 904. Convictions not basis for revocation of
6 registration.
7 (a) Considerations.--Notwithstanding the provisions of
8 section 602 or any other provision of law or regulation to the
9 contrary, no table game service employee registration shall be
10 revoked based on a conviction of an offense in any jurisdiction
11 as disqualification criteria or the commission of any act or
12 acts that would constitute any offense under section 602(b) if
13 the registrant has affirmatively demonstrated rehabilitation. In
14 determining whether the applicant has affirmatively demonstrated
15 rehabilitation, the board shall consider the following:
16 (1) The conviction would create a reasonable belief that
17 the nature of the offense would be inimical to the policy
18 purposes of this act and to table game operations and the
19 gaming industry in this Commonwealth.
20 (2) The applicant for registration has affirmatively
21 demonstrated rehabilitation. In determining whether the
22 applicant has affirmatively demonstrated rehabilitation, the
23 board shall consider all of the following:
24 (i) The nature and duties of the position applied
25 for.
26 (ii) The nature and seriousness of the crime,
27 offense or conviction, including whether the crime,
28 offense or conviction is enumerated in section 602(b).
29 (iii) The circumstances under which the offense or
30 conduct occurred.
20070H2121B2339 - 96 -
1 (iv) The date of the crime, offense or conviction,
2 provided, however, that no applicant for table game
3 service employee registration under this act who has been
4 convicted in any jurisdiction, foreign or domestic, of a
5 felony or gambling offense within the past 15 years shall
6 be issued a table game service employee registration
7 under this act or be determined qualified to serve in a
8 position as a table game service employee with any table
9 game licensee or table game service industry.
10 (v) The age of the applicant at the time the crime,
11 offense or conduct was committed.
12 (vi) Whether the crime, offense or conduct was an
13 isolated or repeat incident.
14 (vii) Any social conditions that may have
15 contributed to the crime, offense or conduct.
16 (viii) Any evidence of rehabilitation, including
17 good conduct in prison or in the community, counseling or
18 psychiatric treatment received, acquisition of additional
19 academic or vocational schooling or training, successful
20 participation in correctional work-release programs or
21 the recommendation of persons who have or have had the
22 applicant under supervision, including Federal, State or
23 local probation or parole officers.
24 (b) Waiver.--The board may waive any disqualification
25 criterion of a table game service employee consistent with the
26 policy purposes of this act and upon a finding that the interest
27 of justice and the public interest so require.
28 (c) List of crimes, offenses and convictions.--The board
29 shall establish a list of crimes, offenses and convictions that
30 would result in the automatic disqualification of an applicant
20070H2121B2339 - 97 -
1 for registration under this chapter. In developing the list, the
2 board shall consider and determine all of the following:
3 (1) Whether the crime, offense or conviction is a crime
4 or offense or conviction enumerated in section 602(b).
5 (2) Whether the crime or offense committed is directly
6 or indirectly related to employment positions of the table
7 game industry.
8 (3) Whether the crime or offense has a direct or
9 indirect relationship to table game operation.
10 (4) If the crime or offense has no direct or indirect
11 relationship, whether the conviction or disposition would be
12 inimical to the policies and purposes of this act and to
13 table game operations and the gaming industry in this
14 Commonwealth.
15 (d) Duties of Pennsylvania State Police.--The Pennsylvania
16 State Police shall promptly notify the board and the bureau in
17 the event that a current or prospective registrant, who was the
18 subject of a criminal history record background investigation
19 pursuant to this act, is arrested for a crime or offense in this
20 Commonwealth or any other jurisdiction after the date of the
21 initial background investigation.
22 Section 905. Petition for registration.
23 Upon petition by the holder of a table game license, table
24 game service employee registration may be granted to each
25 applicant for registration named in the petition if the petition
26 certifies that each applicant for registration that is named in
27 the petition has filed with the board and the board has received
28 a completed application for table game service employee
29 registration.
30 Section 906. Registration fee.
20070H2121B2339 - 98 -
1 An application for registration as a table game service
2 employee shall not be deemed complete unless it is accompanied
3 by the registration fee which shall not exceed $250 as
4 established by regulation of the board.
5 CHAPTER 10
6 TABLE GAME SERVICE INDUSTRY
7 Section 1001. Licensure of table game service industry.
8 All table game service industries offering goods and services
9 that directly relate to the conduct or operation of table games,
10 including, but not limited to, schools teaching, among other
11 things, table game playing or dealing techniques, and security
12 services, shall be licensed in accordance with this act prior to
13 conducting any business with a table game licensee and employees
14 or agents or a table game licensee and, in the case of a school,
15 prior to the enrollment of any students or offering of any
16 courses to the public whether for compensation or not. However,
17 upon a showing of good cause by an applicant for a table game
18 license or table game licensee for each business transaction,
19 the board may permit an applicant for a table game service
20 industry license to conduct or engage in business with the table
21 game licensee prior to issuing a license to an applicant for a
22 table game service industry license. The board by resolution
23 shall set forth any table game service industries that, in
24 addition to the industries set forth in this chapter, it may
25 require to be licensed under this act.
26 Section 1002. Qualifications of table game service industry.
27 Each table game service industry, as well as its owners,
28 managerial, supervisory and principal employees, if the
29 principal employees have responsibility for furnishing services
30 to a table game licensee, shall qualify under the standards,
20070H2121B2339 - 99 -
1 except residency, established by the board for issuance of a
2 table game key employee license under section 701. Each person
3 associated with a table game service industry, as determined by
4 the board, shall be licensed in accordance with the requirements
5 of Chapter 7 and regulations of the board prior to the
6 commencement or continuation of any business with a table game
7 licensee or employees or agents of a table game licensee.
8 Section 1003. Table game service industries.
9 (a) General rule.--The table game service industry, whether
10 or not directly related to table game operations, shall include,
11 in addition to any other entity determined by the board to be a
12 table game service industry under this act, the following:
13 (1) Junket enterprises.
14 (2) Suppliers of alcoholic beverages if the suppliers
15 are other than the Pennsylvania Liquor Control Board.
16 (3) Suppliers of food and nonalcoholic beverages.
17 (4) Garbage handlers.
18 (5) Vending machine providers.
19 (6) Linen suppliers.
20 (7) Maintenance companies.
21 (8) Shopkeepers located within a licensed facility.
22 (9) Bus or limousine services.
23 (10) Construction companies.
24 (11) Gaming schools contracting with applicants for a
25 table game license or table game licensees or their employees
26 or agents.
27 (b) Exemption.--The board may exempt any person or field of
28 commerce from the licensing requirements of this chapter, if the
29 person or field of commerce demonstrates the following:
30 (1) That it is regulated by an agency of the
20070H2121B2339 - 100 -
1 Commonwealth.
2 (2) That it will provide goods or services in
3 unsubstantial or insignificant amounts or quantities.
4 (3) That the goods and services provided in accordance
5 with paragraph (2) will be provided for a limited period of
6 time not exceeding 30 days.
7 (4) That licensing is not deemed necessary in order to
8 protect the public interest or to accomplish the policies of
9 this act.
10 Section 1004. Restrictions on exempted persons.
11 Upon granting an exemption to a table game service industry
12 pursuant to section 1003(b) or at any time after the exemption
13 is granted, the board may limit or place restrictions upon the
14 exempted table game service industry, as the board may deem
15 necessary and in the public interest. The board may require the
16 exempted person to cooperate with the board and the bureau, and
17 upon request, to provide information in the same manner as
18 required of table game service industries licensed pursuant to
19 this chapter. No exemption shall be granted unless the table
20 game service industry demonstrates that it complies with or will
21 comply with the applicable requirements of section 312(b)(1).
22 Section 1005. Disqualification.
23 The board may refuse to issue or deny an application for a
24 table game service industry license to any person who is
25 disqualified pursuant to the criteria set forth in section 602.
26 Section 1006. Proof of business license and taxes.
27 No table game service industry license shall be issued to any
28 person unless the person provides proof of valid business
29 registration with the Department of State and proof from the
30 Department of Revenue, the Internal Revenue Service and local
20070H2121B2339 - 101 -
1 taxing authorities that the person has no delinquent Federal,
2 State or local tax obligations.
3 Section 1007. Subcontractor requirements.
4 A table game service industry licensed under this act shall
5 require proof, from any subcontractor to a table game service
6 industry contract with an applicant for a table game license or
7 a table game licensee, of valid business registration with the
8 Department of State. Verification information shall be forwarded
9 by the table game service industry to the Department of State.
10 No subcontractor to a table game service industry contract with
11 a table game applicant or table game licensee shall be entered
12 into by any table game service industry or contractor unless the
13 subcontractor first provides proof of valid business
14 registration in this Commonwealth.
15 CHAPTER 11
16 APPROVAL OR DENIAL OF LICENSE, PERMIT
17 OR REGISTRATION
18 Section 1101. Investigation.
19 Upon the filing of an application for any license, permit or
20 registration or any other qualification or approval required
21 under this act, other than an application for a table game
22 license, and after submission of all supplemental information as
23 the board may require, the board shall direct the bureau or the
24 Pennsylvania State Police to conduct investigations into the
25 qualifications of the applicant for the license, permit or
26 registration. The board shall conduct hearings concerning the
27 qualifications of the applicant, in accordance with its
28 regulations, guidelines or policies, as may be necessary to
29 determine qualifications for the license, permit or registration
30 applied for.
20070H2121B2339 - 102 -
1 Section 1102. Issuance or denial of license, permit or
2 registration.
3 After investigation and hearing, if applicable, for the
4 approval of an application for a license, permit or registration
5 under this act, the board may either deny the application or
6 issue the license, permit or registration to the applicant whom
7 it determines to be qualified to hold the license, permit or
8 registration.
9 Section 1103. Authority to deny application.
10 The board shall have the authority to deny or refuse to
11 approve and issue any application for a license, permit or
12 registration submitted to it in accordance with this act. When
13 an application for a license, permit or registration is denied
14 or refused, the board shall prepare and file an order denying or
15 refusing to approve and issue the application for the license,
16 permit or registration with the reasons for the denial or
17 refusal set forth in the order. If requested by the applicant,
18 the board shall prepare and file a statement of the reasons for
19 the denial or refusal, including specific findings of fact.
20 Section 1104. Issuance and renewal of license, permit or
21 registration.
22 (a) Issuance and renewal.--A license, permit or registration
23 may be issued and renewed as follows:
24 (1) Each table game employee occupation permit issued in
25 accordance with this act shall be issued for an initial term
26 of three years, upon the payment of the initial permit fee.
27 The permit, upon the payment of a renewal fee, may be renewed
28 at the discretion of the board for subsequent terms of four
29 years each. The board shall establish by regulation the
30 amount, form, manner and time for payment of subsequent
20070H2121B2339 - 103 -
1 permit renewal fees.
2 (2) Each table game key employee license and table game
3 service industry license required pursuant to the applicable
4 provisions of this act shall be issued upon the payment of
5 the license fee for an initial term of two years. A table
6 game key employee license or service industry license may,
7 upon the payment of a renewal fee established by regulation
8 of the board, be renewed at the discretion of the board for
9 subsequent terms of four years each. The board shall
10 establish by regulation the form, manner and time for payment
11 of subsequent license renewal fees under this paragraph.
12 (3) Each table game service employee registration, upon
13 issuance and payment of the registration fee established by
14 regulation of the board, shall remain in effect unless
15 suspended or revoked by the board.
16 (b) Authority to condition or restrict.--Upon approval of an
17 application for a license, permit or registration, the board may
18 limit or place restrictions upon the licensee, permittee or
19 registrant as it deems necessary and in the public interest.
20 (c) Rehearing.--Notwithstanding any other provision of this
21 section, the board may reconsider the issuance of any license,
22 permit or registration issued by it under this act at any time
23 upon the request of the bureau, the Pennsylvania State Police,
24 the Office of Attorney General or any other law enforcement
25 agency.
26 (d) Fees.--The board by regulation shall establish
27 nonrefundable fees for applications for a license, permit or
28 registration under this act. Except as provided in this act, the
29 board, through regulation, shall develop any forms, procedures
30 and any fees it may deem necessary for the annual renewal of any
20070H2121B2339 - 104 -
1 license, permit or registration renewed in accordance with the
2 requirements of this act.
3 Section 1105. Time for renewal; extension.
4 Any license, other than a table game license, and any permit
5 may be renewed upon proper application for renewal and the
6 payment of fees in accordance with regulations of the board, but
7 in no event later than the date of expiration of the current
8 license or permit. Notwithstanding section 1104(a), in order to
9 facilitate the efficient operation of the board, the board shall
10 have the authority upon the payment of any renewal fee the board
11 may by regulation require, to extend the period of any license,
12 other than a table game license, but in no event shall the
13 expiration date be extended for more than two years.
14 CHAPTER 12
15 TRANSFERS
16 Section 1201. Transfer of property or security.
17 (a) Property.--Notwithstanding any other provision of law or
18 regulation and except as provided in subsection (b), whenever
19 any person contracts to transfer any property relating to an
20 existing table game operation, including security holding in a
21 table game licensee or holding or intermediary company, under
22 circumstances that require that the transferee obtain licensure
23 or qualification in accordance with this act, the contract shall
24 not specify a closing or settlement date that is earlier than
25 121 days after the submission of a completed application for a
26 table game license or qualification to the board. The
27 application shall include a fully executed and approved trust
28 agreement executed in accordance with the requirements of this
29 chapter. Any contract provisions that specify an earlier closing
30 or settlement date shall be void for all purposes. Subsequent to
20070H2121B2339 - 105 -
1 the earlier of the report of the board on interim authorization
2 or 90 days after the timely submission of the completed
3 application, but no later than the closing or settlement date,
4 the board shall hold a hearing and render a decision on the
5 interim authorization of the applicant. If the board grants
6 interim authorization, subject to the provisions of this
7 chapter, the closing or settlement may occur without
8 interruption of table game operations. If the board denies
9 interim authorization, there shall be no closing or settlement
10 until the board makes a determination on the qualification of
11 the applicant, and if the board denies qualification, the
12 contract shall be terminated for all purposes without liability
13 on the part of the transferor.
14 (b) Security holders.--Notwithstanding any other provision
15 of law or regulation, whenever any person, as a result of a
16 transfer of publicly traded securities of a table game licensee
17 or a holding or intermediary company or a financing entity of a
18 table game licensee, is required to qualify for licensure under
19 this act, the person shall:
20 (1) Within 30 days after the board determines that
21 qualification is required or declines to waive qualification
22 or within any additional time as the board may for good cause
23 allow, file a completed application for a table game license
24 or qualification with the board. The application shall
25 include a fully executed and approved trust agreement in
26 accordance with section 1203.
27 (2) As an alternative, within 120 days after the board
28 determines that qualification is required or a waiver of
29 qualification is denied, the person shall divest the
30 securities as the board may require in order to remove the
20070H2121B2339 - 106 -
1 need for qualification.
2 (3) If the person divests the securities, notice of the
3 decision to divest shall be filed with the board within 30
4 days after the board determines that qualification is
5 required or that a waiver of qualification is denied. No
6 extension of the time for filing a completed application for
7 a table game license shall be granted unless the person
8 submits a written acknowledgment of the jurisdiction of the
9 board and the obligations imposed under this act.
10 (c) Timeliness.--If a person required to file an application
11 for a table game license under this section fails to do so in a
12 timely manner, the failure shall constitute a per se
13 disqualification to continue to act as a security holder, and
14 the board shall take appropriate action under this act. If a
15 person files an application in a timely manner, then, subsequent
16 to the earlier report of the board on interim authorization or
17 90 days after submission of the completed application for a
18 table game license, but no later than 120 days after the
19 submission, the board shall hold a hearing and render a decision
20 on the interim authorization of the person. The pendency of
21 proceeding under this section shall not prevent the renewal of a
22 table game license under this act as long as the person required
23 by this section to file an application has complied with the
24 requirements of this section and the provisions of this act.
25 Section 1202. Request for interim authorization.
26 (a) Granting interim authorization.--The board may grant
27 interim authorization upon findings by clear and convincing
28 evidence of the following:
29 (1) That statements of compliance have been issued by
30 the board in accordance with this act.
20070H2121B2339 - 107 -
1 (2) That the table game facility is a licensed table
2 game facility in accordance with the requirements of this
3 act.
4 (3) That the trustee or trustees have satisfied the
5 qualification criteria applicable to a table game key
6 employee, except for residency.
7 (4) That interim operation will best serve the public
8 interest and purposes of this act.
9 (b) Determination.--The board's consideration of a request
10 for interim authorization shall include, but not be limited to,
11 consideration of relevant information that may be presented to
12 the board by the bureau as the board directs. In responding to a
13 request for interim authorization and in determining whether to
14 grant the request, the board and the bureau shall not be
15 required to disclose any information if disclosure, in the
16 judgment of the board, would prejudice or otherwise compromise
17 any continuing investigation.
18 Section 1203. Trust agreements.
19 (a) General rule.--The following shall apply to trust
20 agreements:
21 (1) Where the applicant is not required to obtain a
22 table game license, the trust agreement filed pursuant to
23 this section shall transfer and convey all of the applicant's
24 present and future right, title and interest in the property
25 subject to the trust agreement, including all voting rights
26 in securities, to the trustee.
27 (2) If the applicant is required to obtain a table game
28 license, the trust agreement shall transfer and convey to the
29 trustee, if the applicant is a corporation, all outstanding
30 equity securities of the corporation, and if the applicant is
20070H2121B2339 - 108 -
1 other than a corporation, all outstanding interest in the
2 applicant.
3 (3) The compensation for the service, costs and expenses
4 of the trustee or trustees shall be stated in the trust
5 agreement and shall be approved by the board.
6 (4) The trust agreement shall, in all instances, contain
7 any provision the board may deem necessary and desirable.
8 (b) Trust agreement operative; timing.--With respect to an
9 applicant described in section 1201(b), if the board denies
10 interim authorization, it shall order that the trust agreement
11 become operative, or take such other action as may be
12 appropriate in accordance with section 1201. With respect to all
13 applicants under section 1201, if the board grants interim
14 authorization, it shall thereafter order that the trust
15 agreement become operative at any time it finds reasonable cause
16 to believe that the applicant or any person required to be
17 qualified in connection with the application may be found
18 unqualified.
19 (c) Rights and powers of trustee.--While the trust agreement
20 remains operative, the trustee shall exercise all rights
21 incident to the ownership of the property subject to the trust.
22 The trustee shall be vested with all powers, authority and
23 duties necessary to the unencumbered exercise of those rights,
24 except that the applicant shall have no right to participate in
25 the earnings of the licensed table game facility or receive any
26 return on its investment or debt security holdings during the
27 time the trust is operative.
28 (d) Duration of trust agreement.--The trust agreement, once
29 operative, shall remain operative until the board finds the
30 applicant qualified, or the board finds the applicant
20070H2121B2339 - 109 -
1 unqualified and the property subject to the trust is disposed of
2 in accordance with subsection (e), except that the applicant may
3 request the board to direct the trustee to dispose of the
4 property subject to the trust in accordance with subsection (e)
5 prior to a finding that the applicant is disqualified.
6 (e) Disposition of property subject to trust.--If the board
7 denies qualification to a person subject to the provisions of
8 this chapter, the trustee shall endeavor and be authorized to
9 sell, assign, convey or otherwise dispose of all property
10 subject to the trust to a person who is appropriately licensed
11 or qualified or has obtained interim authorization in accordance
12 with section 1202. The disposition of trust property by the
13 trustee shall be completed within 120 days of the denial of
14 qualification, or within any additional time the board for good
15 cause may allow. The proceeds from the disposition of trust
16 property shall be distributed to the unqualified applicant only
17 in an amount not to exceed the lower of the actual cost of the
18 assets to the unqualified applicant or the value of the assets
19 calculated as if the investment had been made on the date the
20 trust becomes operative. Any proceeds remaining from the
21 disposition of trust property in accordance with this subsection
22 shall be remitted to the State Treasury for deposit in the fund
23 established under 4 Pa.C.S. § 1403 (relating to establishment of
24 State Gaming Fund and net slot machine revenue distribution).
25 Section 1204. Obligations and responsibilities.
26 During the period of interim authorization, the board and the
27 bureau shall continue the procedures that are provided in this
28 act and the regulations promulgated under this act that are
29 necessary for a determination of the qualification of the person
30 granted interim authorization. The obligation and
20070H2121B2339 - 110 -
1 responsibilities of an applicant for a table game license or a
2 table game licensee or person required to be qualified are in no
3 way relieved by the granting of interim authorization.
4 Section 1205. Time for determining qualification.
5 Within nine months after a grant or denial of interim
6 authorization, the board shall hold a hearing and render a
7 decision on the qualification of an applicant for a table game
8 license under this act. The board may extend the period for
9 determining qualification by one three-month period.
10 CHAPTER 13
11 CONDITIONS OF OPERATION
12 Section 1301. Operation certificate.
13 (a) Operation certificate required.--Notwithstanding the
14 approval and issuance of a license to operate table games, no
15 licensed table game facility may be open or remain open to the
16 public, and no table game activity or operations, except for
17 test purposes, may be conducted at the licensed table game
18 facility until a valid operation certificate has been issued to
19 the applicant or licensee by the board. The board shall issue
20 the operation certificate upon a finding that:
21 (1) The licensed gaming entity complies in all respects
22 with the requirements of this act and will comply with
23 regulations promulgated by the board under this act.
24 (2) The licensed gaming entity has implemented necessary
25 internal and management controls and security precautions for
26 the efficient operation and play of table games.
27 (3) All employees, where applicable, are licensed,
28 permitted or registered by the board for the performance of
29 their respective duties.
30 (4) The licensed gaming entity is prepared in all
20070H2121B2339 - 111 -
1 respects to receive and entertain the public at the licensed
2 table game facility.
3 (b) Authorized table games.--The operation certificate shall
4 include an itemized list by category and number of the
5 authorized table games permitted in the particular licensed
6 table game facility. The licensed gaming entity shall file, in
7 accordance with regulations promulgated by the board, any
8 changes in the number of table games authorized for play in its
9 licensed table game facility, and any changes in the
10 configuration of the licensed table game facility with the
11 board. The board shall review the changes in configuration for
12 compliance with this act and 4 Pa.C.S. Pt. II (relating to
13 gaming). No changes in the number of table games authorized for
14 play by the board or in the configuration of the table game
15 facility shall be made without the approval of the board.
16 (c) Duration of certification.--An operation certificate
17 shall remain in force and effect unless altered in accordance
18 with subsection (b), or revoked, suspended, limited or otherwise
19 altered by the board in accordance with this act or regulations
20 promulgated by the board.
21 Section 1302. Condition of continued operation.
22 It shall be an expressed condition of continued operation
23 under this act that a licensed gaming entity operating a table
24 game facility maintain all books, records and documents
25 pertaining to the licensee's table game operation in a manner
26 and location within this Commonwealth as approved by the board.
27 All books, records and documents related to table game
28 operations shall be maintained separate and apart from all
29 books, records and documents of the licensed gaming entity's
30 slot machine operations, including all books and records
20070H2121B2339 - 112 -
1 pertaining to the provision of credit to table game patrons and
2 the cashing of checks of table game patrons in accordance with
3 Chapter 16. All books, records and documents related to table
4 game operations, including records relating to credit, shall be
5 immediately available for inspection by the board, the bureau,
6 the Pennsylvania State Police or agents of the Attorney General
7 during all hours of operation in accordance with regulations
8 promulgated by the board and shall be maintained for a period as
9 the board by regulation may require.
10 Section 1303. Hours of operation.
11 Each licensed table game facility shall be permitted to
12 operate 24 hours a day. Each licensed gaming entity shall file
13 with the board a schedule of operating hours prior to the
14 issuance of an operation certificate. If the table game licensee
15 proposes any change or modification in scheduled operating
16 hours, the change or modification shall not be effected until
17 the table game licensee files a notice of the new operating
18 hours with the board. The filing shall be made 30 days prior to
19 the effective date of the proposed change or modification in
20 hours of operation. This section shall not be construed to limit
21 a table game licensee in opening its table game facility later
22 than, or closing its facility earlier than, the times stated in
23 its schedule of operating hours. Any change or modification in
24 hours of operation shall comply with the requirements of this
25 section and with any regulations promulgated by the board
26 pertaining to modification of hours of operation.
27 CHAPTER 14
28 GAME AND FACILITY REQUIREMENTS
29 Section 1401. Authorized table games.
30 Nothing in this act shall be construed to permit the
20070H2121B2339 - 113 -
1 operation of any table games except the operation and conduct of
2 authorized table games in table game areas of a licensed table
3 game facility as approved by the board in accordance with this
4 act and regulations promulgated by the board pursuant to this
5 act.
6 Section 1402. Wagers and payoffs.
7 All authorized table games shall be conducted and all wagers
8 and payoffs of winning wagers shall be made in accordance with
9 regulations promulgated by the board. The regulations
10 promulgated by the board shall establish the limitations as may
11 be necessary to assure the vitality of table game operations and
12 fair odds to patrons. Notwithstanding any provision of this act
13 or regulation of the board, a table game licensee shall set
14 minimum and maximum wagers on authorized table games that may be
15 adjusted from time to time by the licensee in the normal course
16 of table game operations, except that changes in minimum wagers
17 at any given table shall not apply to persons already engaged in
18 wagering at that table when the minimum wager is changed.
19 Section 1403. Information to patrons and players.
20 Each table game licensee shall make available in printed form
21 to any patron or player, upon request, the complete text of the
22 rules of the board regarding authorized table games and the
23 conduct of table games, payoffs of winning wagers, an
24 approximation of the odds of winning for each wager, and other
25 advice to the patron or player as the board may require. Each
26 table game licensee shall prominently post within the table game
27 area of the licensed table game facility information about table
28 game rules, payoffs of winning wagers, the odds of winning for
29 each wager, and other advice to the player as the board by
30 regulation may require.
20070H2121B2339 - 114 -
1 Section 1404. Acceptance of tips.
2 A dealer may accept tips or gratuities from a patron at the
3 table game at which the dealer is conducting play, subject to
4 the provisions of this section. All tips or gratuities shall be
5 deposited immediately in a lockbox reserved for that purpose,
6 accounted for and placed in a pool for distribution pro rata
7 among the dealers. The distribution shall be based upon the
8 number of hours each dealer worked during the time period when
9 the tips or gratuities were collected and deposited. The board
10 may permit the establishment of a separate pool for dealers in
11 the game of poker or may permit tips or gratuities to be
12 retained by individual dealers in the game of poker.
13 Section 1405. Table game facility requirements.
14 (a) Facility.--Each table game licensee shall arrange its
15 table game facility in a manner as to promote optimum security
16 of the facility and shall comply in all respects with
17 regulations of the board. Each table game facility shall
18 include:
19 (1) A closed-circuit television system according to
20 specifications approved by the board, with access in the
21 licensed table game facility to the system or its signal
22 provided to the board, the bureau and agents of the board and
23 bureau, in accordance with regulations promulgated by the
24 board.
25 (2) One or more rooms or locations within or about the
26 licensed facility approved by the board as table game space.
27 (3) Design specifications that ensure that visibility in
28 a licensed table game facility is not obstructed in any way
29 that could interfere with the ability of the licensee, the
30 board or its agents or the bureau or its agents to oversee
20070H2121B2339 - 115 -
1 facility operations.
2 (b) Count rooms.--Each licensed facility or licensed table
3 game facility shall contain a count room or other secure space
4 that may be required by the board for the counting and storage
5 of cash, coins, tokens and checks received in the conduct of
6 authorized table games and for the inspection, counting and
7 storage of dice, cards, tiles, dominoes and chips and other
8 representatives of value used in the conduct and operation of
9 authorized table games.
10 (c) Gaming tables.--Each gaming table shall be equipped with
11 a sign indicating the permissible minimum and maximum wagers of
12 the table. It shall be unlawful for a licensee to require any
13 wager to be greater than the State minimum or less than the
14 State maximum. However, any wager actually made by a patron and
15 not rejected by a licensee prior to the commencement of play
16 shall be treated as a valid wager.
17 Section 1406. Table game devices, apparatus, equipment and
18 supplies.
19 (a) Limit on location and possession on premises.--Except as
20 set forth in subsection (b), the following shall apply to table
21 game devices, apparatuses, equipment and supplies:
22 (1) No table game devices, apparatuses, equipment or
23 supplies shall be possessed, maintained or exhibited by any
24 person on the premises of a licensed facility except in the
25 licensed facility's table game area or in a restricted area
26 used for the inspection, service, repair or storage of the
27 devices, apparatuses, equipment or supplies and specifically
28 approved and designated for that purpose by the table game
29 licensee with the approval of the board.
30 (2) Table game devices, apparatuses, equipment or
20070H2121B2339 - 116 -
1 supplies, which support the conduct of table game operations
2 in a licensed facility but do not permit or require patron
3 access, such as computers and other such telecommunications
4 equipment, may be possessed and maintained by the table game
5 licensee in restricted areas specifically approved and
6 designated for that purpose by the board.
7 (3) No table game devices, apparatuses, equipment or
8 supplies shall be possessed, maintained, exhibited, brought
9 into or removed from a table game area by any person unless
10 the devices, apparatuses, equipment or supplies:
11 (i) Are necessary to the conduct of an authorized
12 table game.
13 (ii) Have permanently affixed, imprinted, impressed
14 or engraved thereon an identification number or symbol
15 authorized by the board.
16 (iii) Are under the exclusive control of the table
17 game licensee or employees or agents of the licensee.
18 (iv) Are brought into or removed from the table game
19 area following 24-hour prior notice given to an
20 authorized agent of the board.
21 (b) Exception.--Notwithstanding subsection (a), a person
22 may, with the prior approval of the board and under terms and
23 conditions as may be required by the board, possess, maintain or
24 exhibit a table game device, apparatus, equipment or supplies in
25 any other area of the licensed facility if the equipment is used
26 only for nongaming or exhibition purposes.
27 (c) Drop boxes.--All drop boxes and other implements in
28 which cash, coins or tokens are deposited at the gaming tables,
29 and all areas where drop boxes and other like implements are
30 kept while in use, shall be equipped with two locking devices or
20070H2121B2339 - 117 -
1 keys. One drop box locking device or key shall be under the
2 exclusive control of the board or an agent of the board, and the
3 second drop box locking device or key shall be under the
4 exclusive control of the table game licensee. The drop boxes and
5 other like implements shall not be brought into or removed from
6 a table game area or locked or unlocked, except at times, in
7 places and according to procedures that the board by regulation
8 shall require.
9 (d) Chips.--All chips used in the play of authorized table
10 games shall be of the size and uniform color by denomination as
11 the board shall require by regulation.
12 Section 1407. Restrictions and prohibitions.
13 It shall be unlawful for:
14 (1) Any person to exchange or redeem chips for anything
15 whatsoever, except for currency, negotiable personal checks,
16 negotiable counter checks, other chips, coupons or
17 complimentary vouchers distributed by the table game
18 licensee. A table game licensee, upon the request of any
19 person, shall redeem that licensee's gaming chips surrendered
20 by a person in any amount over $300 with a check drawn upon
21 the table game licensee's account at any banking institution
22 in this Commonwealth or other jurisdiction as approved by the
23 board and made payable to that person.
24 (2) Any table game licensee or an agent or employee of a
25 table game licensee to employ, contract with or use any shill
26 or barker to induce or entice, or attempt to induce or
27 entice, any person to enter a licensed table game facility or
28 play any table game or for any purpose whatsoever.
29 (3) A dealer in any authorized table game in which cards
30 are dealt, to deal cards by hand or any manner other than
20070H2121B2339 - 118 -
1 from a device specifically designed for that purpose, unless
2 otherwise permitted under special circumstances as shall be
3 defined by regulation of the board.
4 (4) Any table game key employee or any person who is
5 required to hold a key employee license as a condition of
6 employment or qualification to wager in any licensed facility
7 in this Commonwealth.
8 (5) Any employee, other than an employee who in judgment
9 of the board is not directly involved with the conduct of
10 table game operations, to wager in a licensed table game
11 facility in which the employee is employed or in any other
12 licensed facility in this Commonwealth that is owned or
13 operated by the licensed gaming entity that employs the
14 employee. Any employee other than an employee who, in the
15 judgment of the board, is not directly involved with the
16 conduct of table game operations, shall wait at least 30 days
17 following the date on which the employee either leaves
18 employment with or is terminated from employment with a table
19 game licensee before the employee may gamble in a licensed
20 table game facility in which such employee was formerly
21 employed or in any other licensed facility in this
22 Commonwealth that is owned or operated by the licensed gaming
23 entity that employed the employee.
24 (6) Any key employee or boxman, floorman, or any other
25 employee who serves in a supervisory position to solicit or
26 accept, and for any other employee to solicit, any tip or
27 gratuity from any player or patron at the licensed table game
28 facility where the employee is employed.
29 Section 1408. Density requirement.
30 The board shall, by regulation, determine the permissible
20070H2121B2339 - 119 -
1 number and density of table games in a licensed table game
2 facility. An applicant for or a person issued a license to
3 operate table games under this act shall limit the density of
4 the table game facility to no more than 30% of the total gaming
5 floor space in the licensed facility. It is the intent of the
6 General Assembly that 70% of the gaming floor space be dedicated
7 to slot machine gaming and 30% of the gaming floor space be
8 dedicated to the operation of authorized table games. The
9 regulations promulgated by the board that determines the
10 permissible number and density of authorized table games in a
11 licensed table game facility shall provide that all floor space
12 in the licensed facility, except for floor space in an approved
13 hotel, shall be included in any calculation of the permissible
14 number and density of authorized table games in a licensed
15 facility.
16 Section 1409. Approved hotels.
17 (a) Authority to determine suitability and approve.--Nothing
18 in this act shall be construed to limit the authority of the
19 board to determine the suitability of and to approve a hotel for
20 the conduct and operation of authorized table games if the hotel
21 is designed architecturally to be physically connected to the
22 licensed facility and meets the requirements of this section.
23 The board shall determine the suitability of a hotel for the
24 conduct and operation of authorized table games and the areas of
25 the hotel in which table games shall be conducted and operated
26 on a case-by-case basis in accordance with the requirements of
27 this section.
28 (b) Requirements for approval.--The following criteria shall
29 be used by the board to determine suitability and approve a
30 hotel for the conduct and operation of authorized table games:
20070H2121B2339 - 120 -
1 (1) The approved hotel shall be a single building or two
2 or more buildings that are physically connected in a manner
3 deemed appropriate and approved by the board.
4 (2) The approved hotel shall consist of at least 350
5 qualifying sleeping units or a lesser number as established
6 by the board, except that any lesser number shall not be
7 lower than 300 sleeping units.
8 (3) The approved hotel shall consist of meeting rooms,
9 banquet rooms, restaurants, exhibition space, shops and
10 parking areas.
11 (4) The total square footage of the approved hotel shall
12 not be lower than the minimum square footage established by
13 regulations of the board.
14 (5) Architectural designs and specifications for the
15 construction of the approved hotel are included in the
16 application for a table game license.
17 (c) Certification after approval.--After a hotel is
18 initially approved, the board shall thereafter rely on the
19 certification of the table game licensee with regard to the
20 number of qualifying sleeping units and shall permit
21 replacement, rehabilitation, renovation and alteration of any
22 part of the approved hotel even if the replacement,
23 rehabilitation, renovation or alteration will result temporarily
24 in a lower number of qualifying sleeping units, provided that
25 the table game licensee certifies that the replacement,
26 rehabilitation, renovation or alteration shall be completed
27 within one year or other reasonable period of time as approved
28 by the board.
29 (d) No additional requirements authorized.--The board shall
30 not impose any criteria or requirements regarding the contents
20070H2121B2339 - 121 -
1 of an approved hotel in addition to the criteria and
2 requirements expressly specified in this section. However, the
3 board shall be authorized to require each table game licensee to
4 establish and maintain an approved hotel which is in all
5 respects a superior, first-class hotel facility of exceptional
6 quality which will promote the host municipality as a tourist or
7 convention destination.
8 (e) Exceptions.--The provisions of this section shall not
9 apply to a licensed table game entity that holds a Category 3
10 slot machine license. An applicant for a table game licensee or
11 a licensed table game entity who has applied for or who holds a
12 Category 3 slot machine license shall not be eligible to operate
13 authorized table games in an approved hotel.
14 (f) Prohibition on slot machine operations.--Nothing in this
15 section shall be construed to authorize the placement of slot
16 machines or the conduct of slot machine operations in an
17 approved hotel.
18 CHAPTER 15
19 INTERNAL CONTROLS
20 Section 1501. Internal controls.
21 (a) Submission to board.--Each applicant for a table game
22 license or table game licensee shall submit to the board a
23 description of its initial system of internal, administrative
24 and accounting controls for table game operations. The initial
25 system of internal, administrative and accounting controls
26 submitted to the board shall be accompanied by:
27 (1) A certification by the applicant's or table game
28 licensee's chief legal officer or equivalent that the
29 submitted controls conform to the requirements of this act
30 and the regulations promulgated by the board pursuant to this
20070H2121B2339 - 122 -
1 act.
2 (2) A certification by the applicant's or table game
3 licensee's chief financial officer or equivalent that the
4 submitted controls provide adequate and effective accounting
5 controls, establish a consistent overall system of internal
6 procedures and administrative and accounting controls and
7 conform to generally accepted accounting principles.
8 Each applicant for a table game license or table game licensee
9 shall make the initial submission required under this subsection
10 at least 30 days before table game operations are to commence
11 unless otherwise directed by the board.
12 (b) Implementation of modified internal control
13 procedures.--Except as otherwise provided in this section, a
14 licensed table game entity, upon submission to the board of a
15 narrative description of a change in its system of internal,
16 administrative or accounting controls and the two certifications
17 required under subsection (a), may, following the 15th day after
18 the submission, implement the proposed change or modification in
19 the internal, administrative or accounting controls. Each
20 initial submission shall contain a narrative description of the
21 internal, administrative or accounting control system to be
22 utilized by the licensed table game entity, including, but not
23 limited to:
24 (1) Accounting controls, including the standardization
25 of forms and definition of terms to be utilized in the table
26 game operations.
27 (2) Procedures, forms, and where appropriate, formulas
28 covering the calculation of:
29 (i) Hold percentages.
30 (ii) Revenue drops.
20070H2121B2339 - 123 -
1 (iii) Expense and overhead schedules.
2 (iv) Complimentary services, except as provided in
3 Chapter 18.
4 (v) Junkets.
5 (vi) Cash equivalent transactions.
6 (3) Job descriptions and the system of personnel and
7 chain-of-command, establishing a diversity of responsibility
8 among employees engaged in table game operations and
9 identifying primary and secondary managerial and supervisory
10 positions for all areas of responsibility. The areas of
11 responsibility shall not be so extensive as to be impractical
12 for an individual to monitor salary structure and personnel
13 practices. The personnel practices shall include an
14 identification and description of any prerequisite, condition
15 or requirement, other than or in addition to experience,
16 employment history, education, skill or any other requirement
17 generally used to determine qualification for a particular
18 job or job classification, which could be used or will be
19 used as a factor or factors to determine eligibility,
20 employability or continued employment.
21 (4) Procedures within the cashier's cage for:
22 (i) Receipt, storage and disbursal of chips, cash
23 and other cash equivalents used in the conduct of
24 authorized table games.
25 (ii) Cashing of checks.
26 (iii) Redemption of chips and other cash equivalents
27 used in the conduct of authorized table games.
28 (iv) Payoff of jackpots.
29 (v) Recording of transactions pertaining to table
30 game operations.
20070H2121B2339 - 124 -
1 (5) Procedures for the collection and security of money
2 at the gaming tables.
3 (6) Procedures for the transfer and recordation of chips
4 between the gaming tables and the cashier's cage.
5 (7) Procedures for the transfer of moneys from the
6 gaming tables to the counting process.
7 (8) Procedures and security for the counting and
8 recording of revenue.
9 (9) Procedures for the security, storage and recordation
10 of cash, chips and other cash equivalents utilized in table
11 game operations.
12 (10) Procedures for the cashing and recording of checks
13 exchanged by the licensed table game entity.
14 (11) Procedures governing the utilization of a private
15 security force within the licensed table game facility, as
16 approved by the board.
17 (12) Procedures and security standards for the handling
18 and storage of gaming apparatus, including cards, dice,
19 wheels and all other table game equipment, apparatus, devices
20 and supplies used in the conduct of authorized table games.
21 (13) Procedures and rules governing the conduct of
22 particular table games and the responsibility of the table
23 game employees in respect to same.
24 (14) Procedures for separately recording all
25 transactions pursuant to Chapter 16 involving any public
26 official, any executive level State employee or any public
27 official of a county or municipality in which table games are
28 authorized at a licensed facility or any table game employee
29 or key employee, and for the quarterly filing with the board
30 of a list reporting all such transactions.
20070H2121B2339 - 125 -
1 (c) Board review of submissions.--The board shall review
2 internal, administrative and accounting controls submissions
3 made pursuant to subsection (a) to determine whether the
4 submission conforms to the requirements of this act and
5 regulations promulgated by the board pursuant to this act, and
6 to ascertain whether the submission provides adequate and
7 effective controls for the operations of the particular licensed
8 table game facility submitting it. If the board preliminarily
9 determines during its review that a procedure in the submission
10 contains a substantial and material insufficiency likely to have
11 a direct and materially adverse impact on the integrity of table
12 game operations or the control of gross table game revenue, the
13 board, by written notice to the licensed table game entity,
14 shall:
15 (1) Specify the precise nature of the insufficiency and,
16 when possible, recommend an acceptable alternative procedure.
17 (2) Schedule a hearing before the full board no later
18 than 15 days after the date of written notice to plenarily
19 and finally determine whether the procedure in question
20 contains the described insufficiency.
21 (3) Direct that the internal, administrative or
22 accounting control at issue and not yet implemented not be
23 implemented by the table game licensee until revised and
24 approved by the board. Upon receipt of the notice, the table
25 game licensee shall proceed to the scheduled hearing before
26 the full board and may submit a revised procedure addressing
27 the board's concerns as specified in the notice.
28 Section 1502. Modification of internal controls.
29 Notwithstanding the requirements of section 1501, the board
30 shall by regulation permit changes in a table game licensee's
20070H2121B2339 - 126 -
1 system of internal, administrative and accounting controls
2 required by section 1501 that do not have a material impact upon
3 the integrity of table game operations or the control and
4 reporting of gross table game revenue from the operation of
5 table games, including those described in section 1501(b)(3) to
6 be implemented by a licensed table game entity immediately upon
7 the preparation and initial filing of the internal controls.
8 Section 1503. Additional submissions to board.
9 Each table game licensee and applicant for a table game
10 license shall submit a narrative description of its system of
11 internal controls and administrative and accounting controls for
12 the recording and reporting of all business transactions and
13 agreements governing table game service industries, leases and
14 contracts no later than five days after those operations
15 commence or no later than five days after any change in the
16 controls becomes effective.
17 CHAPTER 16
18 CREDIT
19 Section 1601. Restriction on provision of credit.
20 Except as otherwise provided in this chapter, no table game
21 licensee or any other person licensed under this act, and no
22 person acting on behalf of or under any arrangement with a table
23 game licensee or other person licensed under this act shall:
24 (1) Cash any check, make any loan or otherwise provide
25 or give to any person any credit or advance of anything of
26 value or a representation of value to enable any person to
27 play an authorized table game.
28 (2) Release or discharge any debt, in whole or in part,
29 or make any loan that represents any losses incurred by any
30 player, without maintaining a written record of the debt in
20070H2121B2339 - 127 -
1 accordance with regulations of the board.
2 Section 1602. Acceptance of checks.
3 (a) Restrictions.--No table game licensee or any person
4 licensed or qualified under this act, and no person acting on
5 behalf of or under any arrangement with a licensee or other
6 person licensed or qualified under this act, may accept a check,
7 other than a recognized traveler's check or other cash
8 equivalent from any person to enable a person to take part in
9 table game activity as a player, or may give cash or cash
10 equivalents in exchange for the check unless:
11 (1) The check is made payable to the table game
12 licensee.
13 (2) The check is dated, but not postdated.
14 (3) The check is presented to the cashier or the
15 cashier's representative at a location in the licensed table
16 game facility approved by the board and is exchanged for cash
17 that totals an amount equal to the amount for which the check
18 is drawn or the check is presented to the cashier's
19 representative at a gaming table in exchange for chips that
20 total an amount equal to the amount for which the check is
21 drawn.
22 (4) The regulations concerning check-cashing procedures
23 are observed by the table game licensee and its employees and
24 agents.
25 (b) Accounts.--Nothing in this chapter shall be deemed to
26 preclude the establishment of an account by any person with a
27 table game licensee by a deposit of cash or recognized
28 traveler's check or other cash equivalent or a check that meets
29 the requirements of this section or to preclude the withdrawal,
30 either in whole or in part, of any amount contained in such
20070H2121B2339 - 128 -
1 account.
2 (c) Requirement for cashing checks.--When a table game
3 licensee or other person licensed or qualified under this act,
4 or any person acting on behalf of or under any arrangement with
5 a table game licensee or other person licensed or qualified
6 under this act, cashes a check in conformity with the
7 requirements of subsection (a), the table game licensee shall
8 deposit or provide for the deposit of the check in a bank for
9 collection or payment or shall require an attorney or key
10 employee with no incompatible functions to present the check to
11 the drawer's bank for payment, within any of the following:
12 (1) Seven calendar days of the date of the transaction
13 for a check in an amount of $1,000 or less.
14 (2) Fourteen calendar days of the date of the
15 transaction for a check in an amount greater than $1,000 but
16 less than or equal to $5,000.
17 (3) Forty-five calendar days of the date of the
18 transaction for a check in an amount greater than $5,000.
19 (d) Check redemption.--
20 (1) Notwithstanding any other provision of this section,
21 the drawer of the check may redeem the check by exchanging
22 cash, cash equivalents, chips or a check that meets the
23 requirements of subsection (i) in an amount equal to the
24 amount for which the check is drawn, the drawer may redeem
25 the check in part by exchanging cash, cash equivalents, chips
26 or a check that meets the requirements of subsection (i) and
27 another check that meets the requirements of subsection (a)
28 for the difference between the original check and the cash,
29 cash equivalents, chips or check tendered or the drawer may
30 issue one check that meets the requirements of subsection (a)
20070H2121B2339 - 129 -
1 in an amount sufficient to redeem two or more checks drawn to
2 the order of the licensee.
3 (2) If there has been a partial redemption or a
4 consolidation in conformity with the provisions of this
5 subsection, the newly issued check shall be delivered to a
6 bank for collection or payment or presented to the drawer's
7 bank for payment by an attorney or key employee of the
8 licensee with no incompatible functions within the period
9 specified.
10 (3) No table game licensee or any person licensed or
11 qualified under this act shall accept any check or series of
12 checks in redemption or consolidation of another check or
13 checks for the purpose of avoiding or delaying the deposit of
14 a check in a bank for collection or payment or the
15 presentment of the check to the drawer's bank within the time
16 period prescribed by this subsection.
17 (4) In computing a time period prescribed under this
18 subsection, the last day of the period shall be included
19 unless it is a Saturday, Sunday, or a Federal or State
20 holiday, in which event the time period shall extend to the
21 next subsequent business day.
22 (e) Transfer of check and limitation.--No table game
23 licensee or any other person licensed or qualified under this
24 act, or any other person acting on behalf of or under any
25 arrangement with a table game licensee or other person licensed
26 or qualified under this act, shall transfer, convey or give,
27 with or without consideration, a check cashed in conformity with
28 the requirements of this section to any person other than:
29 (1) The drawer of the check upon redemption or
30 consolidation in accordance with subsection (d).
20070H2121B2339 - 130 -
1 (2) A bank for collection or payment of the check.
2 (3) A purchaser of the table game license as approved by
3 the board.
4 (4) An attorney or key employee of the licensee with no
5 incompatible functions for presentment to the drawer's bank.
6 (f) Applicability of limitation.--The limitation on
7 transferability of checks shall apply to checks returned by any
8 bank or other financial institution to the table game licensee
9 without full and final payment.
10 (g) Collection of unpaid checks.--No person other than a
11 person licensed as a key employee or as a table game employee in
12 accordance with this act may engage in activities to collect
13 payment of checks that have been returned by banks or other
14 financial institutions without full and final payment, although
15 an attorney representing the table game licensee may bring
16 action for the collection of an unpaid check.
17 (h) Validity of checks.--Notwithstanding the provisions of
18 any law or regulation to the contrary, checks cashed in
19 conformity with the requirements of this act shall be valid
20 instruments, enforceable at law in the courts of this
21 Commonwealth. Any check cashed, transferred, conveyed or given
22 in violation of this act shall be invalid and unenforceable for
23 the purposes of collection but shall be included in the
24 calculation of gross table game revenue.
25 (i) Additional requirements for acceptance of check.--
26 Notwithstanding the provisions of subsection (a) to the
27 contrary, a table game licensee may accept a check from a person
28 to enable the person to play table games as a player, may give
29 cash or cash equivalents in exchange for the check or may accept
30 a check in redemption or partial redemption of a check issued in
20070H2121B2339 - 131 -
1 accordance with subsection (a), provided that:
2 (1) (i) The check is drawn by a table game licensee
3 pursuant to the relevant provisions of this act or upon
4 the withdrawal of funds from an account established in
5 accordance with subsection (b) or is drawn by a table
6 game licensee as payment for winnings from an authorized
7 table game.
8 (ii) The check is issued by a banking institution
9 that is chartered in a country other than the United
10 States on its account at a federally chartered or state-
11 chartered bank in the United States and is made payable
12 to "cash," "bearer," a table game licensee or the person
13 presenting the check.
14 (iii) The check is issued by a bank or other
15 financial institution that is chartered in the United
16 States on its account at another federally chartered or
17 state-chartered bank and is made payable to "cash,"
18 "bearer," a table game license, or the person presenting
19 the check.
20 (iv) The check is issued by an affiliate of a table
21 game licensee that holds a casino or gaming license in
22 any jurisdiction.
23 (2) The check is identifiable in a manner approved by
24 the board as a check issued for a purpose listed in paragraph
25 (1).
26 (3) The check is dated, but not postdated.
27 (4) The check is presented to the cashier or the
28 cashier's representative by the original payee and its
29 validity is verified by the drawer in the case of a check
30 drawn pursuant to paragraph (1)(i), or the check is verified
20070H2121B2339 - 132 -
1 in accordance with regulations promulgated by the board in
2 the case of a check issued pursuant to paragraph (1)(ii),
3 (iii) and (iv).
4 (5) The regulations concerning check-cashing procedures
5 are observed by the table game licensee and its employees and
6 agents.
7 (j) Check for loan or advance.--No table game licensee shall
8 issue a check for the purpose of making a loan or otherwise
9 providing or allowing any advance or credit to a person to
10 enable the person to take part in table game activity as a
11 player.
12 (k) Acceptance of check outside facility.--Notwithstanding
13 the provisions of subsections (a), (b), (c) and (d) to the
14 contrary, a table game licensee may, at a location outside the
15 licensed facility, accept a personal check or checks from a
16 person for up to $5,000 in exchange for cash or cash
17 equivalents, and may, at locations within the licensed table
18 game facility as permitted by the board, accept a personal check
19 or checks for up to $5,000 in exchange for cash, cash
20 equivalents, tokens, chips or plaques to enable the person to
21 take part in table game activity as a player, provided that:
22 (1) The check is drawn on the patron's bank or brokerage
23 cash management account.
24 (2) The check is for a specific amount.
25 (3) The check is made payable to the table game
26 licensee.
27 (4) The check is dated, but not postdated.
28 (5) The patron's identity is established by examination
29 of a valid credit card, driver's license, passport or other
30 form of identification, which contains, at a minimum, the
20070H2121B2339 - 133 -
1 patron's signature and photograph.
2 (6) The check is restrictively endorsed "FOR DEPOSIT
3 ONLY" to the table game licensee's bank account and deposited
4 on the next banking day following the date of the
5 transaction.
6 (7) The total amount of personal checks presented by the
7 patron and accepted by any one table game licensee pursuant
8 to this subsection that are outstanding at any time,
9 including the current check being submitted, does not exceed
10 $5,000.
11 (8) The table game licensee has a board-approved system
12 of internal controls in place that will enable it to
13 determine the amount of outstanding personal checks received
14 from any patron pursuant to this subsection at any given
15 point in time.
16 (9) The table game licensee maintains a record of each
17 transaction in accordance with regulations promulgated by the
18 board.
19 Section 1603. Prohibition on provision of credit.
20 Upon written request to the board, a person may request that
21 the board place that person's name on a list of persons whom the
22 extension of credit by a table game licensee as provided in this
23 chapter would be prohibited. A person desiring to have the
24 person's name placed on the list shall submit the person's name,
25 address and date of birth to the board. The person does not need
26 to provide a reason for the request. It shall be the duty of the
27 board to provide the "no credit list" authorized under this
28 section to the credit department of each table game licensee.
29 The board, the table game licensee and the credit department of
30 a table game licensee may not divulge the names on the "no
20070H2121B2339 - 134 -
1 credit list" to any person or entity other than those provided
2 for in this section. If a person wishes to have the person's
3 name removed from the "no credit list," the person shall submit
4 a written request for removal to the board. The board shall
5 inform the credit departments of each table game licensee no
6 later than seven business days after board receipt of a request
7 to remove a name from the "no credit list." Each credit
8 department of a table game licensee shall cause such person's
9 name to be removed from its "no credit list" within three
10 business days of receipt of the request for removal from the
11 board.
12 Section 1604. Accounts, deposits and transactions.
13 The following shall govern accounts established by patrons of
14 table games:
15 (1) No table game licensee or any person licensed or
16 qualified under this act and no person acting on behalf of or
17 under any arrangement with a table game licensee or other
18 person licensed or qualified under this act shall, in a
19 single transaction during a gaming day, accept cash from a
20 person offered for the purposes of establishing an account,
21 when the amount offered totals $10,000 or more, unless the
22 person presents proof of his identity or passport
23 identification number, if the person is not a United States
24 citizen.
25 (2) Multiple currency transactions shall be treated as a
26 single transaction if the table game licensee or other person
27 licensed or qualified under this act or a person acting on
28 behalf of or under any arrangement with a table game licensee
29 or other person licensed or qualified under this act has
30 knowledge that the transactions are by or on behalf of one
20070H2121B2339 - 135 -
1 person and result in either cash in or cash out totaling more
2 than $10,000 during a gaming day.
3 Section 1605. Limitation on amount redeemed.
4 (a) Permissible transaction.--No table game licensee or any
5 person licensed or qualified under this act, and no person
6 acting on behalf of or under any arrangement with a table game
7 licensee or other person licensed or qualified under this act
8 shall, in a single transaction during a gaming day, redeem for
9 cash or credit any chips or markers in an amount of $10,000 or
10 more or exchange chips for cash in an amount of $10,000 or more,
11 from any person, unless the person seeking to redeem the chips
12 or markers presents proof of identity or passport identification
13 number if the person seeking redemption is not a United States
14 citizen.
15 (b) Multiple transactions.--Multiple currency transactions
16 shall be treated as a single transaction if the table game
17 licensee or any person licensed or qualified under this act or a
18 person acting on behalf of or under any arrangement with a table
19 game licensee or other person licensed or qualified under this
20 act has knowledge that the transactions are by or on behalf of
21 one person and result in either cash in or cash out totaling
22 more than $10,000 during a gaming day.
23 (c) Reports of transactions.--Each table game licensee or
24 persons acting on behalf of or under any arrangement with a
25 table game licensee or other persons licensed under this act who
26 accept cash or redeem chips or markers totaling $10,000 or more
27 in a gaming day for which identification is required pursuant to
28 this section shall, at least once every 30 days, report the
29 identities and passport numbers, if applicable, of the persons
30 offering the cash, chips or markers to the bureau.
20070H2121B2339 - 136 -
1 CHAPTER 17
2 SUPPLIER AND MANUFACTURER LICENSES
3 Section 1701. Supplier and manufacturer licenses.
4 (a) Authority of board to license.--The board may issue a
5 supplier license to a person seeking to provide table game
6 equipment, devices, apparatuses or supplies to a table game
7 licensee within this Commonwealth and a manufacturer license to
8 a person who is a manufacturer of table game equipment,
9 apparatuses, devices or supplies for use in this Commonwealth. A
10 person desiring to serve as either a supplier or manufacturer
11 shall submit an application for a supplier or manufacturer
12 license to the board with a nonrefundable application fee not to
13 exceed $2,500.
14 (b) Eligibility and qualification for licensure.--The board
15 shall use the licensure procedures, conditions and any other
16 requirements established for persons applying for or holding a
17 supplier or manufacturer license under 4 Pa.C.S. Pt. II
18 (relating to gaming), when considering applications for a
19 supplier or manufacturer license under this act. In addition to
20 any criteria established by regulation for suppliers and
21 manufacturers of table game equipment, devices, apparatuses and
22 supplies under this act, the provisions of 4 Pa.C.S. §§ 1317
23 (relating to supplier licenses), 1317.1 (relating to
24 manufacturer licenses), 1319 (relating to alternative
25 manufacturer licensing standards) and 1325 (relating to license
26 or permit issuance) or any regulations promulgated pursuant to
27 the provisions of 4 Pa.C.S. Pt. II shall apply to any applicant
28 for or holder of a table game supplier or table game
29 manufacturer license under this act.
30 (c) Responsibility of applicant.--It shall be the burden of
20070H2121B2339 - 137 -
1 an applicant for a table game supplier license or for a table
2 game manufacturer license, as the case may be, to establish by
3 clear and convincing evidence the applicant's suitability as to
4 integrity, moral character and reputation, personal and business
5 probity, financial ability and experience, responsibility and
6 other criteria considered appropriate by the board. Applicants
7 for a supplier or manufacturer license and supplier or
8 manufacturer licensees shall be under a continuing duty to
9 provide information requested by the board and to cooperate in
10 any investigation, inquiry or hearing conducted by the board.
11 Section 1702. Additional eligibility requirements.
12 In addition to any criteria the board may use to disqualify a
13 person seeking a supplier or manufacturer license under this
14 section, a person shall not qualify for licensure as a supplier
15 or manufacturer if any of the following circumstances exist:
16 (1) The applicant has been convicted of a felony under
17 the laws of this Commonwealth, any other state, the United
18 States or under the laws of any foreign jurisdiction within
19 the preceding 15 years.
20 (2) The applicant has been convicted of a misdemeanor
21 involving gambling, theft, fraud or dishonesty in this
22 Commonwealth, or in any other state in the United States or
23 under the laws of a foreign jurisdiction, that substantially
24 corresponds to a misdemeanor in that state.
25 (3) The applicant has submitted an application for a
26 license under this act that contains false or misleading
27 information.
28 (4) The applicant is a member of the board.
29 (5) The applicant holds an elective office of a
30 political subdivision of this Commonwealth, another state,
20070H2121B2339 - 138 -
1 the Federal Government or is a member of or employed by a
2 gaming regulatory body of a political subdivision in this
3 Commonwealth, another state, the Federal Government or is
4 employed by a political subdivision of this Commonwealth.
5 (6) The applicant has an ownership interest in another
6 entity holding a table game license issued under this act or
7 a slot machine license issued under 4 Pa.C.S. Pt. II
8 (relating to gaming).
9 (7) The board determines that the applicant lacks the
10 requisite suitability as to integrity, moral character and
11 reputation, personal and business probity, financial ability
12 and experience and responsibility.
13 (8) The applicant fails to meet any other criteria
14 considered appropriate by the board. The criteria considered
15 appropriate by the board shall not be arbitrary, capricious
16 or contradictory to the expressed provisions of this act.
17 Section 1703. Issuance of license.
18 In determining whether to issue a supplier license or
19 manufacturer license to an applicant, the board shall consider
20 all of the following:
21 (1) The applicant's past and present compliance with
22 casino gaming licensing requirements of any other
23 jurisdiction, foreign or domestic, that pertain to casino
24 gaming and related activities.
25 (2) The integrity, moral character and reputation,
26 personal and business probity, financial ability and
27 experience and responsibility of the applicant or an
28 affiliate of the applicant.
29 (3) Whether the applicant has been indicted, charged,
30 arrested, convicted, pleaded guilty or nolo contendere,
20070H2121B2339 - 139 -
1 forfeited bail concerning or had expunged any criminal
2 offense enumerated in section 602(b) under the laws of this
3 Commonwealth or of any other jurisdiction foreign or
4 domestic, either felony or misdemeanor, not including traffic
5 violations, regardless of whether the offense has been
6 expunged, pardoned or reversed on appeal or otherwise.
7 (4) Whether the applicant has filed, or had filed
8 against it, a proceeding for bankruptcy or has ever been
9 involved in any formal process to adjust, defer, suspend or
10 otherwise work out the payment of any debt within ten
11 calendar years before the effective date of this section.
12 (5) Whether the applicant has been served with a
13 complaint or other notice filed with any public body
14 regarding a payment of any tax required under Federal, State
15 or local law that has been delinquent for one or more years.
16 (6) Whether the applicant has a history of noncompliance
17 with the casino licensing requirements of any jurisdiction,
18 foreign or domestic.
19 (7) Whether the applicant has a history of noncompliance
20 with any regulatory requirements in this Commonwealth or any
21 other jurisdiction, foreign or domestic.
22 (8) Whether at the time of application the applicant is
23 a defendant in litigation involving its business practices or
24 business interest.
25 (9) Whether issuing a supplier license or manufacturer
26 license to an applicant would undermine the public's
27 confidence in this Commonwealth's gaming industry.
28 (10) Whether the applicant meets other standards for the
29 issuance of a supplier license or manufacturer license that
30 the board may promulgate by regulation. The regulations
20070H2121B2339 - 140 -
1 promulgated under this section shall not be arbitrary,
2 capricious or contradictory to the expressed provisions of
3 this act.
4 (11) Whether the applicant applied for or holds a
5 supplier license or manufacturer license issued by the board
6 under 4 Pa.C.S. Pt. II (relating to gaming).
7 (12) Whether the applicant for a supplier license or
8 manufacturer license has paid the license fee authorized to
9 be collected by the board under this act.
10 Section 1704. Additional supplier license requirements.
11 Any person that supplies equipment, apparatuses, devices,
12 supplies or services to a table game licensee shall first obtain
13 a supplier's license. A supplier shall provide the board with a
14 list of all equipment, devices, apparatuses, services and
15 supplies offered for sale or lease to each table game licensee
16 licensed under this act.
17 Section 1705. Records.
18 Notwithstanding any other provision of law to the contrary,
19 each person licensed as a licensed supplier or licensed
20 manufacturer under this act shall keep books and records of
21 their business activities with a table game licensee, including
22 the furnishing of equipment, apparatuses, devices, supplies and
23 services to table game licensees separate and distinct from any
24 other business, including slot machine operations, that the
25 licensed supplier or licensed manufacturer, as the case may be,
26 might operate. A licensed supplier or licensed manufacturer
27 shall file a quarterly report with the board listing all sales,
28 leases and services entered into, made or provided in this
29 Commonwealth to a table game licensee. A licensed supplier or
30 licensed manufacturer shall permanently affix, when feasible,
20070H2121B2339 - 141 -
1 its name to all its equipment, apparatuses, devices and supplies
2 for table game operations. Any supplier's or manufacturer's
3 equipment, apparatuses, devices or supplies that are used by any
4 person in an unauthorized gambling operation shall be forfeited
5 to the Commonwealth.
6 Section 1706. Inspections.
7 All applicants for a supplier or manufacturer license and
8 such licensees shall consent to inspection, searches and
9 seizures in accordance with this act and to the disclosure to
10 the board and its agents of confidential records, including tax
11 records, held by any Federal, State or local agency, credit
12 bureau or financial institution and to provide handwriting
13 exemplars, photographs, fingerprints and information as may be
14 authorized in this act and any regulations promulgated pursuant
15 to this act. Failure to provide information requested by the
16 board to assist in any investigation, inquiry or hearing of the
17 board or the bureau or failure to comply with any provision of
18 this act or regulations promulgated by the board under this act
19 may result in denial, suspension or, upon reasonable notice,
20 revocation of a table game license.
21 CHAPTER 18
22 JUNKETS AND COMPLIMENTARY SERVICES
23 Section 1801. Junkets.
24 (a) Prohibition.--No person shall act as a junket
25 representative or junket enterprise and no junket shall be
26 organized or permitted to operate in this Commonwealth except in
27 accordance with this chapter.
28 (b) Junket representative qualification.--A junket
29 representative employed by a table game licensee, an applicant
30 for a table game license or an affiliate of a table game
20070H2121B2339 - 142 -
1 licensee shall obtain a table game employee occupation permit in
2 accordance with the requirements of this act, except that the
3 junket representative need not be a resident of this
4 Commonwealth. Any person who holds a current and valid table
5 game employee occupation permit may act as a junket
6 representative while employed by a table game licensee or an
7 affiliate of a table game licensee. Junket representatives that
8 are not employed by a table game licensee or an applicant for a
9 table game license or by a junket enterprise shall be subject to
10 the requirements of section 1002 and Chapter 20, unless
11 otherwise directed by the board. No table game licensee or
12 applicant for a table game license may employ or otherwise
13 engage a junket representative who is not licensed as a junket
14 representative in accordance with the requirements of this
15 chapter.
16 (c) Junket enterprise qualification.--Junket enterprises
17 that are engaged in activities governed by this section shall be
18 subject to the provisions section 1002 and Chapter 20, with
19 regard to those activities, unless otherwise directed by the
20 board. The owners, management and supervisory employees and
21 other principal employees of a junket enterprise as the board
22 may require shall qualify under the standards, except for
23 residency, established for the qualification and licensure of
24 table game key employees under Chapter 7.
25 (d) Service of process.--Prior to the issuance of a table
26 game occupation permit for a person to serve as a junket
27 representative, a table game key employee license to a person
28 associated with a junket enterprise or a table game service
29 industry license to engage in the business of a junket
30 enterprise, the applicant for the permit or license shall submit
20070H2121B2339 - 143 -
1 to the jurisdiction of the Commonwealth of Pennsylvania and
2 shall demonstrate to the satisfaction of the board that the
3 applicant is amenable to service of process within this
4 Commonwealth. Failure to establish or maintain compliance with
5 the requirements of this subsection shall constitute sufficient
6 cause for denial, suspension or revocation of the person's table
7 game employee occupation permit, the person's key employee
8 license or the person's table game service industry license.
9 Section 1802. Temporary occupation permit.
10 (a) Petition by table game licensee.--Upon petition by the
11 holder of a table game license, a junket representative applying
12 for a table game employee occupation permit may be issued a
13 temporary occupation permit upon a finding by the board of all
14 of the following:
15 (1) The applicant for the occupation permit as a junket
16 representative is employed by the table game licensee.
17 (2) The applicant for the occupation permit has filed a
18 completed application, including a nonrefundable application
19 fee and any other fee as required by regulation of the board,
20 with the board.
21 (3) The bureau certifies to the board that the completed
22 application for the occupation permit as a junket
23 representative has been in the possession of the bureau for
24 at least 30 days. The board, at its discretion, may consider
25 an application that has been in the possession of the bureau
26 for less than 30 days.
27 (b) Authority to suspend, limit or condition temporary
28 occupation permit.--In addition to any other authority granted
29 to the board under this act, the board shall have the authority,
30 upon notification from the bureau or the Pennsylvania State
20070H2121B2339 - 144 -
1 Police that either is in possession of information that raises
2 reasonable possibility that a junket representative does not
3 qualify for an occupation permit, to immediately suspend, limit
4 or condition any temporary occupation permit, pending a hearing
5 on the qualifications of the junket representative in accordance
6 with the provisions of this act and regulations of the board.
7 (c) Duration of temporary permit.--Unless otherwise
8 terminated by the board, a temporary table game employee
9 occupation permit issued pursuant to this section shall expire
10 12 months from the date of issuance, and shall be renewable by
11 the board, in the absence of an objection by the bureau or the
12 Pennsylvania State Police, for one additional six-month period.
13 Section 1803. Agreements.
14 Any agreement entered into between a table game licensee and
15 a junket representative or between a table game licensee and a
16 junket enterprise shall include a provision for the termination
17 of the agreement without liability on the part of the table game
18 licensee, if the board orders the termination upon the
19 suspension, limitation, conditioning, denial or revocation of
20 the occupation permit of the junket representative or the
21 license of the junket enterprise. Failure to expressly include
22 this condition in the agreement shall not constitute a defense
23 in any action brought to terminate the agreement.
24 Section 1804. Responsibility of licensee for conduct of junket.
25 A table game licensee shall be responsible for the conduct of
26 any junket representative or junket enterprise associated with
27 it and for the terms and conditions of any junket engaged in on
28 its premises, regardless of the fact that the junket may involve
29 persons not employed by the licensee.
30 Section 1805. Violation of terms of junket.
20070H2121B2339 - 145 -
1 A table game licensee shall be responsible for any violation
2 or deviation from the terms of a junket. Notwithstanding any
3 other provision of this act, the board may, after hearing, order
4 restitution to junket participants, assess penalties for
5 violations or deviations from the terms of the junket, prohibit
6 future junkets by a table game licensee, junket enterprises or
7 junket representatives and order further relief as it may deem
8 appropriate.
9 Section 1806. Records of junkets.
10 The board by regulation shall prescribe methods, procedures
11 and forms for the delivery and retention of information
12 concerning the conduct of junkets by table game licensees. Each
13 table game licensee, in accordance with regulations of the
14 board, shall:
15 (1) Maintain on file a report describing the operation
16 of any junket engaged in or on its premises.
17 (2) Submit to the board and the bureau a list of all of
18 its employees who act as junket representatives, whether on a
19 full-time, part-time, temporary or permanent basis.
20 (3) Maintain records of all agreements entered into with
21 a junket enterprise or junket representative for no less than
22 five years.
23 Section 1807. Report of junket participants.
24 Each table game licensee, junket representative or junket
25 enterprise, in accordance with the regulations of the board,
26 shall file a report with the bureau with respect to each list of
27 junket patrons or potential junket patrons purchased directly or
28 indirectly by the table game licensee, junket representative or
29 junket enterprise. The report shall include, but not be limited
30 to, information on the source of the list and zip codes of
20070H2121B2339 - 146 -
1 patrons or potential patrons named on any list purchased
2 directly or indirectly by the table game licensee, junket
3 representative or junket enterprise. Nothing in this section
4 shall be construed to require the listing of any personal
5 identifying information for patrons of any junket.
6 Section 1808. Junket arrangements; exemption determination.
7 The board shall have the authority to determine, either by
8 regulation or upon petition by the holder of the table game
9 license, whether an arrangement otherwise included in the
10 definition of "junket" under section 103 shall be required to
11 comply with any or all of the requirements of this chapter. The
12 board shall seek the opinion of the bureau prior to granting any
13 exemption under this chapter. In granting an exemption, the
14 board shall consider the nature, volume and significance of the
15 particular type of arrangement, whether the exemption would be
16 consistent with the policies and purposes of this act and any
17 other factor it may deem necessary. The board may condition,
18 limit or restrict any exemption as the board may deem
19 appropriate.
20 Section 1809. Prohibitions relating to junkets.
21 No junket enterprise or junket representative or person
22 acting as a junket representative shall:
23 (1) Engage in efforts to collect upon checks that have
24 been returned by banks or other financial institutions
25 without full and final payment.
26 (2) Exercise approval authority with regard to the
27 authorization or issuance of credit pursuant to Chapter 16.
28 (3) Act on behalf of or under any arrangement with a
29 table game licensee or patron with regard to the redemption,
30 consolidation or substitution of the patron's check awaiting
20070H2121B2339 - 147 -
1 deposit pursuant to Chapter 16.
2 (4) Individually receive or retain any fee from a table
3 game patron for the privilege of participating in a junket.
4 (5) Pay for any services, including transportation, or
5 other items or things of value provided to, or for the
6 benefit of, any patron participating in a junket except as
7 provided in this act.
8 Section 1810. Complimentary services.
9 (a) Restrictions on complimentary services.--No table game
10 licensee shall offer or provide any complimentary services,
11 gifts, cash or other things or items of value to any person
12 unless:
13 (1) The complimentary service consists of room, food,
14 beverage or entertainment expenses provided directly to the
15 patron and the patron's guests by the table game licensee or
16 indirectly to the patron and the patron's guests on behalf of
17 a table game licensee by a third party.
18 (2) The complimentary service consists of documented
19 transportation expenses provided directly to the patron and
20 the patron's guests by the table game licensee or indirectly
21 to the patron and the patron's guests on behalf of a licensee
22 by a third party as long as the table game licensee complies
23 with regulations promulgated by the board to ensure that
24 documented transportation expenses of a patron and the
25 patron's guests are paid for or reimbursed only once.
26 (3) The complimentary service consists of coins, tokens,
27 cash or other complimentary items or services provided
28 through a bus coupon or other complimentary distribution
29 programs that, notwithstanding the requirements of Chapter
30 15, shall be filed with the board upon the implementation of
20070H2121B2339 - 148 -
1 the program or maintained pursuant to board regulation.
2 (b) Allowable complimentary service.--Notwithstanding
3 subsection (a), a table game licensee may offer and provide
4 complimentary cash or noncash gifts that are not otherwise
5 included under subsection (a) to any person, provided that
6 complimentary cash or noncash gifts in excess of $2,000 per trip
7 or a greater amount are supported by documentation setting forth
8 the reason the gift was given to the patron or the patron's
9 guests, including, where applicable, a patron's player rating.
10 The documentation supporting complimentary cash or noncash gifts
11 of $2,000 or more per trip shall be maintained by the table game
12 licensee. For the purpose of this subsection, all gifts
13 presented to a patron and the patron's guests directly by a
14 table game licensee or indirectly on behalf of a table game
15 licensee by a third party within any five-day period shall be
16 considered to have been made during a single trip.
17 (c) Complimentary service account required.--Each table game
18 licensee shall maintain a regulated complimentary service
19 account for complimentary services allowed under this section.
20 The table game licensee shall submit a quarterly report of
21 account activities and all complimentary services offered or
22 engaged in by the table game licensee during the immediately
23 preceding quarter. The report shall:
24 (1) Identify the regulated complimentary services.
25 (2) Provide the costs of the complimentary services.
26 (3) Indicate the number of persons by category of
27 service who received the complimentary services.
28 (4) Provide any other information the board may require.
29 Section 1811. Prohibition on provision of complimentary
30 services.
20070H2121B2339 - 149 -
1 (a) General rule.--No applicant for a table game license or
2 a table game licensee shall provide, directly or indirectly, a
3 complimentary service or discount to any person, that is other
4 than the complimentary service or discount provided or offered
5 to members of the general public in like circumstances.
6 (b) Definition.--As used in subsection (a), the term
7 "person" means any executive-level public employee or public
8 official as those terms are defined in section 2701.
9 CHAPTER 19
10 PROFESSIONAL SERVICES
11 Section 1901. Definitions.
12 The following words and phrases when used in this chapter
13 shall have the meanings given to them in this section unless the
14 context clearly indicates otherwise:
15 "Professional services." Those services rendered to a table
16 game licensee in this Commonwealth, including, but not limited
17 to:
18 (1) Legal services.
19 (2) Advertising or public relations services.
20 (3) Engineering services.
21 (4) Architectural, landscaping or surveying services.
22 (5) Accounting, auditing or actuarial services.
23 (6) Security consultant services.
24 (7) Computer and information technology services, except
25 telephone service.
26 Section 1902. Reporting of professional services.
27 (a) Quarterly reports required.--Each holder of a table game
28 license under this act shall submit a quarterly report to the
29 board that names each individual, corporation, firm,
30 partnership, association or other person or entity that
20070H2121B2339 - 150 -
1 furnishes professional services to the licensee. The report
2 shall be a public record governed by the act of June 21, 1957
3 (P.L.390, No. 212), referred to as the Right-to-Know Law, and
4 shall be forwarded to the board on a quarterly basis by
5 certified mail or electronic mail no later than 20 days after
6 the end of each quarter, except that legal services shall be
7 reported in accordance with any rules established for the
8 reporting of legal services that have been established, or that
9 may be established, by the Supreme Court of Pennsylvania.
10 (b) Content of report.--The report shall contain the name,
11 address and any other information the board, through regulation,
12 may require of each individual, person, corporation, firm,
13 partnership, association or other entity that furnishes
14 professional services to the table game licensee during the
15 reporting quarter. The table game licensee shall not be required
16 to report the amount of compensation paid to an individual,
17 person or entity in exchange for furnishing professional
18 services to the table game licensee.
19 (c) Sanctions.--The board may impose sanctions as provided
20 in this act on any table game licensee who fails to submit the
21 professional services report to the board in accordance with
22 this chapter.
23 CHAPTER 20
24 AGREEMENTS, LEASES AND CONTRACTS
25 Section 2001. Payments under agreement, lease or contract.
26 (a) Requirement.--Unless otherwise provided in this section,
27 no agreement shall be lawful that provides for the payment,
28 however defined, of any direct or indirect interest, percentage
29 or share of any money or property wagered at a licensed table
30 game facility, any money or property derived from table game
20070H2121B2339 - 151 -
1 operations or any revenues, profits or earnings of a licensed
2 table game facility, the following shall apply:
3 (1) Agreements that provide only for the payment of a
4 fixed sum that is in no way affected by the amount of any of
5 such money, property, revenues, profits or earnings of a
6 licensed table game facility shall not be subject to the
7 provisions of this section, and receipts, rentals or charges
8 for real property, personal property or services shall not
9 lose their character as payments of a fixed sum because of
10 contract, lease or license provisions for adjustments in
11 charges, rentals or fees on account of changes in taxes or
12 assessments, cost-of-living index escalations, expansions or
13 improvement of facilities or changes in services supplied.
14 (2) Agreements between a table game licensee and a
15 junket enterprise or junket representative licensed,
16 permitted or qualified in accordance with the applicable
17 provisions of this act that provide for the compensation of
18 the junket enterprise or junket representative by the table
19 game licensee based upon the actual table game activities of
20 a patron procured or referred by the junket enterprise or
21 junket representative shall be lawful if filed with the board
22 prior to the conduct of any junket that is governed by the
23 agreement.
24 (3) Agreements between a table game licensee and its
25 employees that provide for table game employee and table game
26 key employee profit sharing shall be lawful if the agreement
27 is in writing and filed with the board prior to the effective
28 date of the agreement. The agreement may be reviewed by the
29 board under relevant provisions of this act.
30 (4) Agreements to lease a licensed table game facility
20070H2121B2339 - 152 -
1 or the land thereunder and agreements for the complete
2 management of table game operations in a licensed table game
3 facility shall not be subject to the provisions of this
4 section but shall be subject to the applicable provisions of
5 Chapter 5.
6 (5) Agreements that provide for percentage charges
7 between a table game licensee and a holding company or
8 intermediary company of the table game licensee shall be in
9 writing and filed with the board but shall not be subject to
10 the provisions of this section.
11 Section 2002. Maintenance of records.
12 Each applicant for a table game license or table game
13 licensee shall maintain, in accordance with regulations of the
14 board, a record of each written or unwritten agreement regarding
15 the realty, construction, maintenance or business of a proposed
16 or existing table game facility. The requirement to maintain
17 these records shall apply regardless of whether the applicant
18 for a table game license or the table game licensee is a party
19 to the agreement. The agreement may be reviewed by the board on
20 the basis of reasonableness of its terms, including the terms of
21 compensation, and of the qualifications of the owners, officers,
22 employees and directors of any enterprise involved in the
23 agreement; qualifications shall be reviewed according to the
24 standards enumerated in Chapter 6. If the board disapproves the
25 agreement or the owners, officers, employees or directors of any
26 enterprises involved in the agreement, the board may terminate
27 the agreement.
28 Section 2003. Termination of agreement by board.
29 Every agreement required to be maintained and every related
30 agreement, the performance of which is dependent upon the
20070H2121B2339 - 153 -
1 performance of an agreement, shall be deemed to include a
2 provision stipulating that if the board determines that the
3 agreement should be terminated pursuant to this section, the
4 termination shall occur without liability on the part of an
5 applicant for a table game license or a table game licensee or
6 any qualified party to the agreement or any related agreement.
7 Failure expressly to include the provision in the agreement
8 shall not constitute a defense in any action brought to
9 terminate the agreement or any related agreement. If the
10 agreement is not maintained or presented to the board in
11 accordance with the requirements of this section or in
12 accordance with regulations promulgated by the board or the
13 disapproved agreement is not terminated, the board may pursue
14 any remedy or combination of remedies provided under this act.
15 Section 2004. Transfer of license.
16 Nothing in this act shall be construed to permit the transfer
17 of any table game license issued by the board in accordance with
18 this act, any interest in any table game license or any
19 certification of compliance or any commitment or reservation.
20 CHAPTER 21
21 CORPORATE LICENSEES
22 Section 2101. Disposition of securities.
23 (a) Disposition conditional.--The sale, assignment,
24 transfer, pledge or other disposition of any security issued by
25 a corporation that holds a table game license issued under this
26 act is conditional and shall be ineffective if disapproved by
27 the board.
28 (b) Requirement for certificate evidencing security.--Every
29 security issued by a corporation that holds a table game license
30 shall bear, on both sides of the certificate evidencing the
20070H2121B2339 - 154 -
1 security, a statement of the restrictions imposed by this
2 chapter, except that in the case of a publicly traded
3 corporation incorporated prior to the effective date of this
4 act, a statement of restriction shall be necessary only insofar
5 as certificates are issued by the corporation after the
6 effective date of this act.
7 (c) Secretary of State.--The Secretary of State shall not
8 accept for filing any articles of incorporation of any
9 corporation that includes as a stated purpose the conduct of
10 table games, or any amendment that adds the conduct of table
11 games to articles of incorporation previously filed, unless the
12 articles or amendments have been approved by the board and a
13 copy of the document evidencing board approval accompanies the
14 articles or amendments upon presentation for filing with the
15 Secretary of State.
16 Section 2102. Action upon finding of disqualification.
17 (a) General rule.--If at any time the board finds that an
18 individual owner or holder of any security of a corporate table
19 game licensee or of a holding or intermediary company of the
20 corporate licensee is not qualified under this act and, as a
21 result, the corporate table game licensee is no longer qualified
22 to continue as a table game licensee in this Commonwealth, the
23 board shall, pursuant to the provisions of this act, take any
24 necessary action to protect the public interest, including the
25 suspension or revocation of the table game license of the
26 corporation. If the holding or intermediary company is a
27 publicly traded corporation and the board finds disqualified any
28 holder of any security of that corporation who is required to be
29 qualified under this act, the board shall not take any action
30 against the table game licensee or the holding or intermediary
20070H2121B2339 - 155 -
1 company with respect to the continued ownership of the security
2 interest by the disqualified holder if the board finds that:
3 (1) The holding or intermediary company has complied
4 with the applicable provisions of this act.
5 (2) The holding or intermediary company has made a good
6 faith effort, including the pursuit of all legal remedies, to
7 comply with any order of the board requiring the divestiture
8 of the security interest held by the disqualified holder.
9 (3) The disqualified holder does not have the ability to
10 control the corporate table game licensee or any holding or
11 intermediary company of the corporate table game licensee or
12 to elect one or more members of the board of directors of the
13 corporation or company that is the holder of a table game
14 license, the board shall not take any action against such
15 table game licensee or the holding or intermediary company
16 with respect to the continued ownership of the security
17 interest by the disqualified holder.
18 (b) Presumption.--For the purpose of this act, a security
19 holder shall be presumed to have the ability to control a
20 publicly traded corporation, or to elect one or more members of
21 its board of directors, if such holder owns or beneficially
22 holds 5% or more of the equity securities of such corporation,
23 unless the presumption of control or ability to elect is
24 rebutted by clear and convincing evidence.
25 Section 2103. Prohibition upon disqualification.
26 Commencing on the date the board serves notice upon a
27 corporation that holds a table game license of the determination
28 of disqualification under section 2102, it shall be unlawful for
29 the named individual:
30 (1) To receive any dividends or interest from any
20070H2121B2339 - 156 -
1 security.
2 (2) To exercise, directly or indirectly through any
3 trustee or nominee, any right conferred by the securities.
4 (3) To receive any remuneration in any form from the
5 corporate table game licensee for services rendered or
6 otherwise provided to the corporate table game licensee.
7 Section 2104. Reports by public and nonpublicly traded
8 corporations.
9 After a nonpublicly traded corporation is issued a table game
10 license under this act, but prior to the issuance or transfer of
11 any security to any person required to be but not yet issued a
12 license or qualified in accordance with this act, the
13 corporation shall file a report of its proposed action with the
14 board, and shall request the approval of the board for the
15 transaction. If the board denies the request, the corporation
16 shall not issue or transfer the security. After a publicly
17 traded corporation has been issued a table game license, the
18 corporation shall file a report quarterly with the board that
19 lists all owners and holders of any security issued by the
20 corporate table game licensee.
21 Section 2105. Report of changes in corporation.
22 Each corporation that is issued a table game license under
23 this act shall file a report of any change of its corporate
24 officers or members of its board of directors with the board. No
25 officer or director shall be entitled to exercise any powers of
26 the office to which he was so elected or appointed until
27 qualified by the board in accordance with this act.
28 CHAPTER 22
29 EMPLOYMENT
30 Section 2201. Table game facility employment.
20070H2121B2339 - 157 -
1 (a) Licensure or registration required.--A table game
2 licensee shall not appoint or employ any person in a position
3 that requires a table game key employee license, table game
4 employee occupation permit or table game service employee
5 registration unless the person possesses such current and valid
6 license, permit or registration authorizing the appointment or
7 employment.
8 (b) Action upon revocation.--It shall be the duty of each
9 table game licensee, within 24 hours of receipt of written or
10 electronically transferred notice of the revocation or
11 expiration of an employee license, permit or registration, to
12 terminate the appointment or employment or registration of any
13 person whose license, permit or registration has expired or been
14 revoked by the board. A table game licensee shall comply in all
15 respects with any order of the board imposing limitations or
16 restrictions upon the terms of employment, appointment or
17 registration in the course of any investigation or hearing.
18 (c) Restriction on reemployment.--An applicant for or a
19 holder of a table game key employee license, a table game
20 employee occupation permit or a table game service registration
21 whose application is denied or whose license, permit or
22 registration is revoked, as the case may be, shall not, in
23 addition to any restrictions imposed by regulations of the board
24 on a reapplication for a license, permit or registration, be
25 employed by or provide service to a table game licensee in a
26 position that does not require a license or permit until five
27 years have elapsed from the date of the denial or revocation.
28 The board may authorize reemployment of a revoked employee
29 license or permit upon good cause shown.
30 CHAPTER 23
20070H2121B2339 - 158 -
1 TABLE GAME REVENUE
2 Section 2301. Accounts and deposits.
3 (a) Deposits into account.--Each person that is issued a
4 license to operate a table game facility in this Commonwealth in
5 accordance with this act shall, not later than two business days
6 prior to the commencement of table game operations, deposit and
7 maintain a sum of $2,000,000 in the special account established
8 for each slot machine licensee pursuant to 4 Pa.C.S. § 1401(a)
9 (relating to slot machine licensee deposits). The State
10 Treasurer shall ensure that the deposits required to be made by
11 each table game licensee and made pursuant to this subsection
12 are segregated and separate from deposits made by a slot machine
13 licensee pursuant to 4 Pa.C.S. § 1401(a). The moneys deposited
14 in the special account shall guarantee the payment of funds to
15 the Commonwealth that are payable pursuant to the provisions of
16 this act.
17 (b) Weekly deposits.--Each table game licensee shall deposit
18 funds into the special account established within the State
19 Treasury in accordance with subsection (a) on a weekly basis
20 equal to the amounts deducted by the department under section
21 2302. The department shall notify each table game licensee of
22 the amounts deducted. If at any time the amount held in the
23 account attributable to a table game licensee is not sufficient
24 to make the payments required under section 2302, the department
25 shall notify the table game licensee and the licensee,
26 immediately upon receipt of the notification, shall deposit
27 necessary funds into the account as directed by the department.
28 (c) Return of moneys in account.--The moneys deposited into
29 the special account shall not be returned to a table game
30 licensee unless the table game licensee ceases to conduct table
20070H2121B2339 - 159 -
1 games operations in this Commonwealth and relinquishes all
2 future rights to operate table games at the licensed table game
3 facility in this Commonwealth. If all rights are relinquished,
4 the balance of the money in the special account attributable to
5 the table game licensee's operation of table games, minus any
6 unpaid amounts that may be due and payable to the Commonwealth
7 under this act, shall be returned to the table game licensee.
8 Section 2302. Gross table game revenue deductions.
9 After determining the appropriate assessments for each table
10 game licensee, the department shall determine costs, expenses or
11 payments from each account established under section 2301. The
12 following costs and expenses shall be transferred to the
13 appropriate agency upon appropriation by the General Assembly:
14 (1) Administrative costs and expenses and any other
15 costs incurred by the department for performing its duties
16 under this act as based upon a budget submitted by the
17 department to, and approved, by the board.
18 (2) The costs and expenses incurred by the board in
19 carrying out its responsibilities under this act based upon a
20 budget approved by resolution of the board.
21 (3) The sums necessary to repay any loan made from the
22 General Fund to the board in connection with the performance
23 of its duties and responsibilities under this act.
24 (4) Any costs and expenses to be incurred by the
25 Pennsylvania State Police and the Office of Attorney General
26 not otherwise reimbursed under this act in carrying out their
27 respective responsibilities under this act as based upon a
28 budget submitted by each agency to, and approved, by the
29 board.
30 Section 2303. Table game tax.
20070H2121B2339 - 160 -
1 (a) Imposition of tax.--A tax to be known as the table game
2 tax is hereby imposed on each licensed table game entity. The
3 department shall determine and each licensed table game entity
4 shall pay a daily tax of 26% and a local share assessment of 2%
5 of its daily gross table game revenue from table game operations
6 at each licensed table game facility.
7 (b) Collection and transfer of tax.--The department shall
8 collect the tax and local share assessment imposed under
9 subsection (a) and shall transfer the State tax to the special
10 fund established under 4 Pa.C.S § 1409 (relating to Property Tax
11 Relief Fund) for the use and purposes of that fund. The local
12 share assessment shall be deposited in the State Gaming Fund
13 established under 4 Pa.C.S. § 1403 (relating to establishment of
14 State Gaming Fund and net slot machine revenue distribution).
15 (c) Use of State tax and local share assessments.--The State
16 tax imposed under subsection (a) and transferred to the Property
17 Tax Relief Fund in accordance with subsection (b) shall only be
18 used for the purpose of property tax and wage tax reduction as
19 generally expressed by the General Assembly in the act of July
20 5, 2004 (P.L.654, No.72), known as the Homeowner Tax Relief Act,
21 or by any regulations that may be adopted and promulgated
22 pursuant to that act or by any amendment to or revision of that
23 act that may be made by the General Assembly subsequent to the
24 effective date of this act or by any other law of the General
25 Assembly subsequently enacted that specifically relates to the
26 delivery of property tax and wage tax relief to residents of
27 this Commonwealth and that is enacted by the General Assembly
28 for the sole purpose of reducing property tax and wage tax. The
29 local share assessment shall be distributed in accordance with
30 subsection (d).
20070H2121B2339 - 161 -
1 (d) Transfers and distributions.--The department shall:
2 (1) Transfer the tax and local share assessment imposed
3 under subsection (a) in accordance with subsection (b).
4 (2) From the local share assessment established in
5 subsection (a), make quarterly distributions among the
6 counties hosting a table game facility in accordance with the
7 following schedule:
8 (i) If the licensed table game facility is also a
9 Category 1 licensed facility pursuant to 4 Pa.C.S. § 1302
10 (relating to Category 1 slot machine license) that is
11 located at a harness racetrack and the county, including
12 a home rule county, in which the licensed facility is
13 located, is:
14 (A) A county of the first class: 2% of the
15 gross table game revenue to the county hosting the
16 licensed table game facility from each facility.
17 Notwithstanding any other provision to the contrary,
18 funds from licensed gaming entities located within a
19 county of the first class shall not be distributed
20 outside of a county of the first class.
21 (B) A county of the second class: 2% of the
22 gross table game revenue to the county hosting the
23 licensed table game facility from each facility.
24 (C) A county of the second class A: 1% of the
25 gross table game revenue to the county hosting the
26 licensed table game facility from each facility. An
27 additional 1% of the gross table game revenue to the
28 county hosting the licensed table game facility from
29 each facility for the purpose of municipal grants
30 within the county in which the licensee is located.
20070H2121B2339 - 162 -
1 (D) (I) A county of the third class: Except as
2 provided in subparagraph (ii), 2% of the gross
3 table game revenue from each licensed table game
4 facility shall be deposited into a restricted
5 account established in the Department of
6 Community and Economic Development to be used
7 exclusively for grants for health, safety and
8 economic development projects to municipalities
9 within the county where the table game facility
10 is located. Municipalities that are contiguous to
11 the municipality hosting the licensed table game
12 facility shall be given priority by the
13 Department of Community and Economic Development
14 in the award of grants.
15 (II) If a licensed table game facility is
16 located in one of two counties of the third class
17 where a city of the third class is located in
18 both counties of the third class, the county in
19 which the licensed table game facility is located
20 shall receive 1.2% of the gross table game
21 revenue to be distributed as follows: 20% to the
22 host city, 30% to the host county and 50% to the
23 host county for the purpose of making municipal
24 grants within the county, with priority given to
25 municipalities contiguous to the host city. The
26 county of the third class, which includes a city
27 of the third class that is located in two
28 counties of the third class and is not the host
29 county for the licensed facility, shall receive
30 .8% of the gross table game revenue to be
20070H2121B2339 - 163 -
1 distributed as follows: 60% to a nonhost city of
2 the third class located solely in the nonhost
3 county in which the host city of the third class
4 is also located or 60% to the nonhost city of the
5 third class located both in the host and nonhost
6 counties of the third class, 35% to the nonhost
7 county and 5% to the nonhost county for the
8 purpose of making municipal grants within the
9 county.
10 (E) A county of the fourth class: 2% of the
11 gross table game revenue from each licensed table
12 game facility shall be deposited into a restricted
13 account established in the Department of Community
14 and Economic Development to be used exclusively for
15 grants to the county, to economic development
16 authorities or organizations within the county or
17 redevelopment authorities within the county for
18 grants for economic development projects, job
19 training, community improvement projects, other
20 projects in the public interest and reasonable
21 administrative costs. Notwithstanding the provisions
22 of the act of February 9, 1999 (P.L.1, No.1), known
23 as the Capital Facilities Debt Enabling Act, grants
24 made under this clause may be utilized as local
25 matching funds for other grants or loans from the
26 Commonwealth.
27 (F) Counties of the fifth through eighth
28 classes: 2% of the gross table game revenue from
29 each licensed table game facility shall be deposited
30 into a restricted account established in the
20070H2121B2339 - 164 -
1 Department of Community and Economic Development to
2 be used exclusively for grants to the county.
3 (G) Any county not specifically enumerated in
4 clauses (A) through (F), 2% of the gross table game
5 revenue to the county hosting the licensed table game
6 facility from each facility.
7 (ii) If the licensed table game facility is also a
8 Category 1 licensed facility pursuant to 4 Pa.C.S. § 1302
9 and is located at a thoroughbred racetrack and the county
10 in which the licensed facility is located is:
11 (A) A county of the first class: 2% of the
12 gross table game revenue to the county hosting the
13 licensed table game facility from each facility.
14 Notwithstanding any other provision to the contrary,
15 funds from licensed gaming entities located within
16 the county of the first class shall not be
17 distributed outside of a county of the first class.
18 (B) A county of the second class: 2% of the
19 gross table game revenue to the county hosting the
20 licensed table game facility from each licensed
21 facility.
22 (C) A county of the second class A: 1% of the
23 gross table game revenue to the county hosting the
24 licensed table game facility from each facility and
25 an additional 1% of the gross table game revenue to
26 the county hosting the licensed table game facility
27 from each facility for the purpose of municipal
28 grants within the county in which the licensee is
29 located.
30 (D) A county of the third class: 1% of the
20070H2121B2339 - 165 -
1 gross table game revenue to the county hosting the
2 licensed table game facility from each licensed
3 facility and an additional 1% of the gross table game
4 revenue to the county hosting the licensed table game
5 facility from each licensed table game facility for
6 the purpose of municipal grants within the county in
7 which the licensee is located.
8 (E) A county of the fourth class: 2% of the
9 gross table game revenue from each licensed table
10 game facility shall be deposited into a restricted
11 account established by the Department of Community
12 and Economic Development to be used exclusively for
13 grants to the county, to economic development
14 authorities or organizations within the county or
15 redevelopment authorities within the county for
16 grants for economic development projects, community
17 improvement projects, job training, other projects in
18 the public interest and reasonable administrative
19 costs. Notwithstanding the Capital Facilities Debt
20 Enabling Act, grants made under this clause may be
21 utilized as local matching funds for other grants or
22 loans from the Commonwealth.
23 (F) Counties of the fifth through eighth
24 classes: 2% of the gross table game revenue from
25 each licensed table game facility shall be deposited
26 into a restricted account established in the
27 Department of Community and Economic Development to
28 be used exclusively for grants to the county.
29 (G) Any county not specifically enumerated in
30 clauses (A) through (F): 2% of the gross table game
20070H2121B2339 - 166 -
1 revenue to the county hosting the licensed table game
2 facility from each licensed table game facility.
3 (iii) If the table game facility is also a Category
4 2 licensed facility pursuant to 4 Pa.C.S. § 1304
5 (relating to Category 2 slot machine license) and if the
6 county in which the facility is located is:
7 (A) A county of the first class: 2% of the
8 gross table game revenue to the county hosting the
9 licensed table game facility from each facility.
10 Notwithstanding any other provision to the contrary,
11 funds from licensed table game entities located
12 within the county of the first class shall not be
13 distributed outside of a county of the first class.
14 (B) A county of the second class: 2% of the
15 gross table game revenue to the county hosting the
16 licensed table game facility from each facility.
17 (C) A county of the second class A: 1% of the
18 gross table game revenue to the county hosting the
19 licensed table game facility from each facility. An
20 additional 1% of the gross table game revenue to the
21 county hosting the licensed table game facility from
22 each facility for the purpose of municipal grants
23 within the county in which the licensee is located.
24 (D) A county of the third class: 1% of the
25 gross table game revenue to the county hosting the
26 licensed table game facility from each licensed
27 facility. An additional 1% of the gross table game
28 revenue to the county hosting the licensed table game
29 facility from each facility for the purpose of
30 municipal grants within the county in which the
20070H2121B2339 - 167 -
1 licensee is located.
2 (D.1) If a licensed facility is located in one
3 of two counties of the third class where a city of
4 the third class is located in both counties of the
5 third class, the county in which the licensed
6 facility is located shall receive 1.2% of the gross
7 table game revenue to be distributed as follows: 20%
8 to the host city, 30% to the host county and 50% to
9 the host county for the purpose of making municipal
10 grants within the county, with priority given to
11 municipalities contiguous to the host city. The
12 county of the third class, which includes a city of
13 the third class that is located in two counties of
14 the third class and is not the host county for the
15 licensed table game facility, shall receive .8% of
16 the gross table game revenue to be distributed as
17 follows: 60% to a nonhost city of the third class
18 located solely in the nonhost county in which the
19 host city of the third class is also located or 60%
20 to the nonhost city of the third class located both
21 in the host and nonhost counties of the third class;
22 35% to the nonhost county and 5% to the nonhost
23 county for the purpose of making municipal grants
24 within the county.
25 (E) A county of the fourth class: 2% of the
26 gross table game revenue from each licensed table
27 game facility shall be deposited into a restricted
28 account established in the Department of Community
29 and Economic Development to be used exclusively for
30 grants to the county, to economic development
20070H2121B2339 - 168 -
1 authorities or organizations within the county or
2 redevelopment authorities within the county for
3 grants for economic development projects, community
4 improvement projects, job training, other projects in
5 the public interest and reasonable administrative
6 costs. Notwithstanding the Capital Facilities Debt
7 Enabling Act, grants made under this clause may be
8 utilized as local matching funds for other grants or
9 loans from the Commonwealth.
10 (F) Counties of the fifth class: 2% of the
11 gross table game revenue from each licensed table
12 game facility shall be deposited and distributed as
13 follows:
14 (I) One percent shall be deposited into a
15 restricted receipts account in the Department of
16 Community and Economic Development to be used
17 exclusively for grants within the county for
18 economic development projects, community
19 improvement projects and other projects in the
20 public interest within the county. The amount
21 distributed under this subclause shall include
22 reasonable administrative costs.
23 (II) One percent shall be deposited into a
24 restricted receipts account in the Department of
25 Community and Economic Development to be used
26 exclusively for grants within contiguous counties
27 for economic development projects, community
28 improvement projects and other projects in the
29 public interest within contiguous counties. The
30 amount distributed under this subclause shall
20070H2121B2339 - 169 -
1 include reasonable administrative costs.
2 (G) Any county not specifically enumerated in
3 clauses (A) through (F): 1% of the gross table game
4 revenue to the county hosting the licensed table game
5 facility from each licensed table game facility.
6 (iv) If the licensed table game facility is also a
7 Category 3 licensed facility pursuant to 4 Pa.C.S. § 1305
8 (relating to Category 3 slot machine license), 1% of the
9 gross table game revenue from each facility shall be
10 deposited into a restricted account established in the
11 Department of Community and Economic Development to be
12 used exclusively for grants to the county, to economic
13 development authorities or redevelopment authorities
14 within the county for grants for economic development
15 projects and community improvement projects.
16 (v) Unless otherwise specified, for the purposes of
17 this paragraph, money designated for municipal grants
18 within a county, other than a county of the first class
19 in which a licensed table game facility is located shall
20 be used to fund grants to the municipality in which the
21 licensed table game facility is located, to the county in
22 which the licensed table game facility is located and to
23 the municipalities that are contiguous to the
24 municipality in which the facility is located and that
25 are located within the county in which the licensed table
26 game facility is located. Grants shall be administered by
27 the county through its economic development or
28 redevelopment authority in which the licensed table game
29 facility is located. Grants shall be used to fund the
30 costs of human services, infrastructure improvements,
20070H2121B2339 - 170 -
1 facilities, emergency services, health and public safety
2 expenses. If at the end of a fiscal year uncommitted
3 funds exist, the county shall pay such uncommitted funds
4 to the economic development or redevelopment authority of
5 the county in which the licensed table game facility is
6 located.
7 (vi) If the licensed table game facility is located
8 in more than one county, the amount available shall be
9 distributed on a ratio basis determined by the ratio of
10 acreage located in each county to the total acreage of
11 all counties occupied by the licensed facility.
12 (vii) The distributions provided in this paragraph
13 shall be based upon county classifications in effect on
14 the effective date of this section. Any reclassification
15 of counties as a result of a Federal decennial census or
16 of a State statute shall not apply to this subparagraph.
17 (viii) If any provision of this paragraph is found
18 to be unenforceable for any reason, the distribution
19 provided for in the unenforceable provision shall be made
20 to the county in which the licensed table game facility
21 is located for the purposes of grants to municipalities
22 in that county, including municipal grants as specified
23 in subparagraph (v).
24 (ix) Nothing in this paragraph shall prevent any of
25 the counties which directly receive a distribution under
26 this section from entering into intergovernmental
27 cooperative agreements with other jurisdictions for the
28 sharing of gross table game revenue.
29 (3) From the local share assessment established in
30 subsection (b), make quarterly distributions among the
20070H2121B2339 - 171 -
1 municipalities, including home rule municipalities, hosting a
2 licensed table game facility in accordance with the following
3 schedule:
4 (i) To a city of the second class hosting a licensed
5 table game facility or facilities that are not operated
6 in a Category 3 licensed facility, 1% of the gross table
7 game revenue or $5,000,000 annually, whichever is
8 greater, shall be paid by each licensed table game entity
9 operating a licensed table game facility in that city. In
10 the event the revenues generated by the 1% do not meet
11 the $5,000,000 minimum specified in this subparagraph,
12 the department shall collect the remainder of the minimum
13 amount of $5,000,000 from each licensed table game entity
14 operating a licensed table game facility or facilities in
15 the city and deposit that amount in the city treasury.
16 (ii) To a city of the second class A hosting a
17 licensed table game facility or facilities that are not
18 operated in a Category 3 licensed facility, 1% of the
19 gross table game revenue or $5,000,000 annually,
20 whichever is greater, shall be paid by each licensed
21 table game entity operating a licensed table game
22 facility located in that city, subject, however, to the
23 budgetary limitation in this subparagraph. The amount
24 allocated to the designated municipalities shall not
25 exceed 50% of their total budget for fiscal year 2007-
26 2008, adjusted for inflation in subsequent years by an
27 amount not to exceed an annual cost-of-living adjustment
28 calculated by applying the percentage change in the
29 Consumer Price Index, immediately prior to the date the
30 adjustment is due to take effect. Any remaining moneys
20070H2121B2339 - 172 -
1 shall be collected by the department from each licensed
2 table game entity and distributed in accordance with
3 paragraph (2) based upon the classification of the county
4 where the licensed table game facility or facilities are
5 located. In the event that the revenues generated by the
6 1% do not meet the $5,000,000 minimum specified in this
7 subparagraph, the department shall collect the remainder
8 of the minimum amount of $5,000,000 from each licensed
9 table game entity operating a licensed table game
10 facility in the city, pay any balance due to the city and
11 transfer any remaining balance in accordance with
12 paragraph (2).
13 (iii) To a city of the third class hosting a
14 licensed table game facility or facilities that are not a
15 Category 3 licensed facility, 1% of the gross table game
16 revenue or $5,000,000 annually, whichever is greater,
17 shall be paid by each licensed table game entity
18 operating a licensed table game facility located in that
19 city, subject, however, to the budgetary limitation in
20 this subparagraph. In the event that the city has
21 executed a written agreement with the licensed table game
22 entity prior to the effective date of this act, the
23 amount paid pursuant to the written agreement to the city
24 shall be applied and credited to the difference between
25 1% of gross table game revenue and the $5,000,000 owed
26 under this subparagraph, if the 1% of the gross table
27 game is less than $5,000,000. If 1% of the gross table
28 game revenue is greater than the $5,000,000 required to
29 be paid under this subparagraph, the credit shall not
30 apply. The amount of gross table game revenue required to
20070H2121B2339 - 173 -
1 be paid pursuant to the agreement shall be deemed to be
2 gross terminal revenue for the purposes of this
3 subparagraph. The amount allocated to the designated
4 municipalities shall not exceed 50% of their total budget
5 for fiscal year 2007-2008, adjusted for inflation in
6 subsequent years by an amount not to exceed an annual
7 cost-of-living adjustment calculated by applying the
8 percentage change in the Consumer Price Index,
9 immediately prior to the date the adjustment is due to
10 take effect. Any remaining moneys shall be collected by
11 the department from each licensed table game entity and
12 distributed in accordance with paragraph (2) based upon
13 the classification of the county where the licensed table
14 game facility is located. In the event that the revenues
15 generated by the 1% do not meet the $5,000,000 minimum
16 specified in this subparagraph, the department shall
17 collect the remainder of the minimum amount of $5,000,000
18 from each licensed table game entity operating a licensed
19 table game facility or facilities in the city, pay any
20 balance due to the city of the third class and transfer
21 any remainder in accordance with paragraph (2).
22 (iii.1) If a licensed table game facility is located
23 in a city of the third class and the city is located in
24 more than one county of the third class, 1% of the gross
25 table game revenue or $5,000,000 annually, whichever is
26 greater, shall be distributed as follows: 80% to the
27 host city and 20% to the city of the third class located
28 solely in the nonhost county in which the host city of
29 the third class is also located. If a licensed table game
30 facility is located in a city of the third class and that
20070H2121B2339 - 174 -
1 city is located solely in a host county of the third
2 class in which a nonhost city of the third class is also
3 located, 1% of gross table game revenues or $5,000,000
4 annually, whichever is greater, shall be distributed as
5 follows: 80% to the host city and 20% to a city of the
6 third class located both in a nonhost county of the third
7 class and in a host county of the third class and in a
8 host county of the third class in which the host city of
9 the third class is located.
10 (iv) To a township of the first class hosting a
11 licensed table game facility or facilities that are not
12 operated in a Category 3 licensed facility, 1% of the
13 gross table game revenue or $5,000,000 annually,
14 whichever is greater, shall be paid by each licensed
15 table game entity operating a licensed table game
16 facility or facilities located in the township, subject,
17 however, to the budgetary limitation in this
18 subparagraph. The amount allocated to the designated
19 municipalities shall not exceed 50% of their total budget
20 for fiscal year 2007-2008, adjusted for inflation in
21 subsequent years by an amount not to exceed an annual
22 cost-of-living adjustment calculated by applying the
23 percentage change in the Consumer Price Index immediately
24 prior to the date the adjustment is due to take effect.
25 Any remaining money shall be collected by the department
26 from each licensed table game entity and distributed in
27 accordance with paragraph (2) based upon the
28 classification of the county where the licensed table
29 game facility or facilities are located. In the event
30 that the revenues generated by the 1% do not meet the
20070H2121B2339 - 175 -
1 $5,000,000 minimum specified in this subparagraph, the
2 department shall collect the remainder of the minimum
3 amount of $5,000,000 from each licensed table game entity
4 operating a licensed table game facility in the township,
5 pay any balance due to the township and transfer any
6 remainder in accordance with paragraph (2).
7 (v) To a township of the second class hosting a
8 licensed table game facility or facilities that are not
9 operated in a Category 3 licensed facility, 1% of the
10 gross table game revenue or $5,000,000 annually,
11 whichever is greater, shall be paid by each licensed
12 table game entity operating a licensed table game
13 facility or facilities in the township, subject, however,
14 to the budgetary limitation in this subparagraph. The
15 amount allocated to the designated municipalities shall
16 not exceed 50% of their total budget for fiscal year
17 2007-2008, adjusted for inflation in subsequent years by
18 an amount not to exceed an annual cost-of-living
19 adjustment calculated by applying the percentage change
20 in the Consumer Price Index immediately prior to the date
21 the adjustment is due to take effect. Any remaining money
22 shall be collected by the department from each licensed
23 table game entity and distributed in accordance with
24 paragraph (2) based upon the classification of the county
25 where the licensed table game facility or facilities are
26 located. Where the licensed table game facility is other
27 than a Category 3 facility and is located in more than
28 one second class township, the county commissioners of
29 the county of the third class in which the table game
30 facility or facilities are located shall appoint an
20070H2121B2339 - 176 -
1 advisory committee for the purpose of advising the county
2 as to the need for municipal grants for health, safety,
3 transportation and other projects in the public interest
4 to be comprised of two individuals from the host
5 municipality, two from contiguous municipalities within
6 the county of the third class and one from the host
7 county. A county other than a county of the third class
8 in which the licensed table game facility or facilities
9 are located shall not be required to appoint an advisory
10 committee and may use gross table game revenue received
11 under this subparagraph for purposes other than municipal
12 grants. In the event that the revenues generated by the
13 1% do not meet the $5,000,000 minimum specified in this
14 subparagraph, the department shall collect the remainder
15 of the minimum amount of $5,000,000 from each licensed
16 table game entity operating a licensed table game
17 facility or facilities in the township, pay any balance
18 due to the township and transfer any remainder in
19 accordance with paragraph (2).
20 (vi) To a borough hosting a licensed table game
21 facility or facilities that are not operated in a
22 Category 3 licensed facility, 1% of the gross table game
23 revenue or $5,000,000 annually, whichever is greater,
24 shall be paid by each licensed table game entity
25 operating a licensed facility or facilities in that
26 borough, subject, however, to the budgetary limitation in
27 this subparagraph. The amount allocated to the designated
28 municipalities shall not exceed 50% of their total budget
29 for fiscal year 2007-2008, adjusted for inflation in
30 subsequent years by an amount not to exceed an annual
20070H2121B2339 - 177 -
1 cost-of-living adjustment calculated by applying the
2 percentage change in the Consumer Price Index immediately
3 prior to the date the adjustment is due to take effect.
4 Any remaining money shall be collected by the department
5 from each licensed table game entity and distributed in
6 accordance with paragraph (2) based upon the
7 classification of the county where the licensed table
8 game facility or facilities are located. In the event
9 that the revenues generated by the 1% do not meet the
10 $5,000,000 minimum specified in this subparagraph, the
11 department shall collect the remainder of the minimum
12 amount of $5,000,000 from each licensed table game entity
13 operating the licensed table game facility or facilities
14 in the borough, pay any balance due to the borough and
15 transfer any remainder in accordance with paragraph (2).
16 (vii) To an incorporated town hosting a licensed
17 table game facility or facilities that are not operated
18 in a Category 3 licensed facility, 1% of the gross table
19 game revenue or $5,000,000 annually, whichever is
20 greater, shall be paid by each licensed table game entity
21 operating a licensed table game facility located in the
22 town, subject, however, to the budgetary limitation in
23 this subparagraph. The amount allocated to the designated
24 municipalities shall not exceed 50% of their total budget
25 for fiscal year 2007-2008, adjusted for inflation in
26 subsequent years by an amount not to exceed an annual
27 cost-of-living adjustment calculated by applying the
28 percentage change in the Consumer Price Index immediately
29 prior to the date the adjustment is due to take effect.
30 Any remaining money shall be collected by the department
20070H2121B2339 - 178 -
1 from each licensed table game entity and distributed in
2 accordance with paragraph (2) based upon the
3 classification of the county where the licensed table
4 game facility or facilities are located. In the event
5 that the revenues generated by the 1% do not meet the
6 $5,000,000 minimum specified in this subparagraph, the
7 department shall collect the remainder of the minimum
8 amount of $5,000,000 from each licensed table gaming
9 entity operating a licensed table game facility or
10 facilities in the incorporated town, pay any balance due
11 to the town and transfer any remainder in accordance with
12 paragraph (2).
13 (viii) To a municipality of any class hosting a
14 Category 3 facility, 1% of the gross table game revenue
15 from the Category 3 licensed table game facility located
16 in the municipality, subject, however, to the budgetary
17 limitation in this subparagraph. The amount allocated to
18 the designated municipalities shall not exceed 50% of
19 their total budget for fiscal year 2007-2008, adjusted
20 for inflation in subsequent years by an amount not to
21 exceed an annual cost-of-living adjustment calculated by
22 applying the percentage change in the Consumer Price
23 Index immediately prior to the date the adjustment is due
24 to take effect. Any remaining money shall be collected by
25 the department from each Category 3 licensed table game
26 entity and distributed in accordance with paragraph (2)
27 based upon classification of the county where the
28 licensed Category 3 table game facility or facilities are
29 located.
30 (ix) Any municipality not specifically enumerated in
20070H2121B2339 - 179 -
1 subparagraphs (i) through (viii), 1% of the gross table
2 game revenue to the municipality hosting the licensed
3 table game facility from each such licensed facility.
4 (x) If the licensed table game facility is located
5 in more than one municipality, the amount available shall
6 be distributed on a pro rata basis determined by the
7 ratio of acreage located in each municipality to the
8 total acreage of all municipalities occupied by the
9 licensed table game facility.
10 (xi) If the licensed table game facility is located
11 at a resort that is also an incorporated municipality,
12 the municipality shall not be eligible to receive any
13 distribution under this paragraph. The distribution it
14 would have otherwise been entitled to under this
15 paragraph shall instead be distributed in accordance with
16 paragraph (2) based upon the county where the licensed
17 table game facility is located.
18 (xii) The distributions provided in this paragraph
19 shall be based upon municipal classifications in effect
20 on the effective date of this section. For the purposes
21 of this paragraph, any reclassification of municipalities
22 as a result of a Federal decennial census or of a State
23 statute shall not apply to this paragraph.
24 (xiii) If any provision of this paragraph is found
25 to be unenforceable for any reason, the distribution
26 provided for in the unenforceable provision shall be made
27 to the municipality in which the licensed table game
28 facility is located.
29 (xiv) Nothing in this paragraph shall prevent any of
30 the above municipalities from entering into
20070H2121B2339 - 180 -
1 intergovernmental cooperative agreements with other
2 jurisdictions for sharing of local share from gross table
3 game revenue.
4 (xv) Notwithstanding any other law, agreement or
5 provision of this act to the contrary, all table game
6 revenue provided, directed or earmarked under this
7 section to or for the benefit of a city of the second
8 class in which an intergovernmental cooperation authority
9 has been established and is in existence pursuant to the
10 act of February 12, 2004 (P.L.73, No.11), known as the
11 Intergovernmental Cooperation Authority Act for Cities of
12 the Second Class, shall be directed to and under the
13 exclusive control of such intergovernmental cooperation
14 authority to be used:
15 (A) To reduce the debt of the second class city.
16 (B) To increase the level of funding of the
17 municipal pension funds of the second class city.
18 (C) For any other purposes as determined to be
19 in the best interest of the city of the second class
20 by the intergovernmental cooperation authority. Gross
21 table game revenues shall not be directed to or under
22 the control of such city of the second class or any
23 coordinator appointed pursuant to the act of July 10,
24 1987 (P.L.246, No.47), known as the Municipalities
25 Financial Recovery Act, for a city of the second
26 class.
27 (e) Consumer Price Index.--For purposes of subsection (d),
28 any reference to the Consumer Price Index shall mean the
29 Consumer Price Index for the Pennsylvania, New Jersey, Delaware
30 and Maryland area for the most recent 12-month period for which
20070H2121B2339 - 181 -
1 figures have been officially reported by the United States
2 Department of Labor, Bureau of Labor Statistics.
3 Section 2304. Distribution to Pennsylvania Race Horse
4 Development Fund.
5 (a) Distributions.--Each licensed table game entity shall
6 pay a daily assessment of 6% of its daily gross table game
7 revenue to the Pennsylvania Race Horse Development Fund
8 established under 4 Pa.C.S. § 1405 (relating to Pennsylvania
9 Racehorse Development Fund). The daily assessment required to be
10 paid under this section shall be allocated as follows:
11 (1) Eighty percent of the daily assessment shall be
12 deposited weekly in the interest-bearing purse account
13 established under 4 Pa.C.S. § 1406(a)(1)(i) (relating to
14 distributions from Pennsylvania Race Horse Development Fund).
15 (2) Twenty percent of the daily assessment shall be
16 allocated to the horsemen's organization for programs for the
17 benefit of horsemen of this Commonwealth as provided under 4
18 Pa.C.S. § 1406(a)(1)(iii).
19 (b) Use of funds.--Funds deposited in the Pennsylvania Race
20 Horse Development Fund under subsection (a) shall be distributed
21 and used in accordance with the requirements of 4 Pa.C.S. §§
22 1405 and 1406. In no case shall the funds distributed pursuant
23 to this subsection be used for any purpose other than the
24 purposes provided under 4 Pa.C.S. § 1406(a)(1)(i) and (iii) and
25 recipients of such funds shall be subject to the same
26 guidelines, eligibility requirements, audits, contract
27 requirements and penalties provided in 4 Pa.C.S. § 1406.
28 CHAPTER 24
29 ADMINISTRATION AND ENFORCEMENT
30 Section 2401. Authority and responsibility of department.
20070H2121B2339 - 182 -
1 (a) General duties.--The department shall have the authority
2 to collect the taxes and the local share assessment imposed
3 under this act and interest imposed pursuant to section 806 of
4 the act of April 7, 1929 (P.L.343, No.176), known as the Fiscal
5 Code. The department shall have the authority to prescribe the
6 forms and the systems of accounting and recordkeeping that shall
7 be deployed and, through its representatives, shall at all times
8 have power of access to and examination and audit of any and all
9 records relating to the table game tax and local share
10 assessment imposed and collected under section 2303.
11 (b) Inspections.--The department shall have the authority,
12 without notice, to inspect, examine, audit and impound all
13 books, records, ledgers and documents pertaining to the
14 financial affairs of a table game licensee's table game
15 activities.
16 (c) Regulations.--In collaboration with the board, the
17 department may promulgate regulations to carry out its duties
18 under this section.
19 Section 2402. Powers and duties of bureau.
20 The bureau shall have the following powers and duties:
21 (1) Investigate all applications for a license, permit
22 or registration under this act promptly and in reasonable
23 order as directed by the board.
24 (2) Provide the board with all information necessary for
25 all action related to an application for a license, permit or
26 registration under this act and for all proceedings involving
27 administrative enforcement of this act.
28 (3) Investigate the qualifications of each applicant
29 before any license, permit or registration is issued under
30 this act.
20070H2121B2339 - 183 -
1 (4) Investigate the circumstances surrounding any act or
2 transaction for which board approval or qualification is
3 required.
4 (5) Investigate administrative violations of this act
5 and regulations promulgated under this act.
6 (6) Initiate administrative proceedings before the board
7 for violations of any provisions of this act or regulations
8 promulgated pursuant to this act as the board may request.
9 (7) Conduct continuing review of table game operations
10 through on-site visits and other reasonable means to ensure
11 compliance with this act and regulations of the board.
12 (8) Receive and take appropriate action on any referral
13 from the board relating to any evidence of a violation of
14 this act or regulations promulgated by the board.
15 (9) Conduct audits of table game operations at a time,
16 under such circumstances, and to the extent the bureau
17 determines, including audit reviews of accounting,
18 administrative and financial records and management control
19 systems, procedures and records utilized by a licensee.
20 (10) Conduct administrative inspections of the premises
21 of a licensed table game facility to ensure compliance with
22 this act and the regulations of the board and, in the course
23 of such inspections, review and make copies of all documents
24 and records that may be required through on-site observation
25 and other reasonable means to ensure continual compliance
26 with this act and regulations promulgated under this act.
27 (11) Refer all suspected criminal violations to the
28 Pennsylvania State Police for investigation or the Office of
29 Attorney General and cooperate fully in the investigation and
30 prosecution of any criminal violation that may arise under
20070H2121B2339 - 184 -
1 this act.
2 (12) Request and receive information, materials and any
3 other data for any licensee, permittee or registrant, or
4 applicant for a license, permit or registration under this
5 act.
6 (13) Inspect and examine all premises in which table
7 games are conducted or table game devices, apparatuses,
8 supplies or equipment is manufactured, sold, distributed,
9 repaired or serviced, or in which any records of these
10 activities are prepared or maintained.
11 (14) Report to the board recommendations that promote
12 more efficient operations of the bureau.
13 Section 2403. Duties of Pennsylvania State Police.
14 It shall be the duty of the Pennsylvania State Police to:
15 (1) Promptly investigate all applicants, licensees,
16 permittees or registrants as may be directed by the board.
17 The Pennsylvania State Police may contract with other law
18 enforcement annuitants to assist in the conduct of
19 investigations under this paragraph.
20 (2) Initiate proceedings for any criminal violations of
21 this act or regulations promulgated under this act.
22 (3) Provide the board with all the information necessary
23 for any action under this act for all proceedings involving
24 criminal enforcement of this act or regulations promulgated
25 under this act.
26 (4) When warranted for a suspected violation of this
27 act, inspect all equipment, apparatuses, devices and supplies
28 in, about, upon or around the premises where table games are
29 conducted.
30 (5) When warranted for a suspected violation of this
20070H2121B2339 - 185 -
1 act, seize summarily and remove any equipment, apparatuses,
2 devices or supplies from the premises where table games are
3 conducted and impound the same for the purposes of
4 examination and inspection.
5 (6) When warranted for a suspected violation of this
6 act, inspect, examine and audit all books, records and
7 documents pertaining to a table game licensee's operation.
8 (7) When warranted for a suspected violation of this
9 act, seize, impound or assume physical control of any book,
10 record, ledger, game, device, apparatus, equipment, cash box
11 or drop box and its contents, counting room equipment or any
12 other device used in the conduct of table games.
13 (8) When warranted for a suspected violation of this
14 act, inspect the person and personal effects present in a
15 table game facility of any holder of a license, permit or
16 registration issued under this act while that person is
17 present in the licensed facility.
18 (9) Enforce any criminal violations of this act.
19 (10) Fingerprint applicants for licenses, permits and
20 registrations under this act.
21 (11) Exchange fingerprint data with and receive national
22 criminal history record information from the Federal Bureau
23 of Investigation or from a similar law enforcement agency of
24 any foreign jurisdiction for use in the investigation of
25 applicants for any license, permit or registration under this
26 act. Nothing in this act shall be construed to prohibit the
27 Pennsylvania State Police from entering into reciprocal
28 agreements with other gaming jurisdictions, foreign or
29 domestic, for the receipt and exchange of fingerprint data.
30 (12) Receive and take appropriate action on any referral
20070H2121B2339 - 186 -
1 or request from the board relating to criminal conduct or a
2 suspected violation of this act.
3 (13) Require the production of any information, material
4 or other data from any applicant, licensee, permittee or
5 registrant.
6 Section 2404. Inspections.
7 (a) Authority to inspect.--The bureau and the Pennsylvania
8 State Police and employees and agents of the bureau and
9 Pennsylvania State Police shall have the authority, without
10 notice and without warrant, to:
11 (1) Inspect and examine all premises where table games
12 are conducted or where table game equipment, apparatuses,
13 devices and supplies are manufactured, sold, distributed,
14 serviced or repaired or where any records of these activities
15 are prepared or maintained.
16 (2) Inspect all table game equipment, apparatuses,
17 devices and supplies in, about or around such premises
18 referenced in paragraph (1).
19 (3) Seize and remove from such premises referenced in
20 paragraph (1), any table game equipment, apparatuses, devices
21 and supplies for the purpose of examination and inspection.
22 (4) Inspect, examine and audit all books, records and
23 documents pertaining to a table game licensee's table game
24 operations and activities.
25 (5) Seize, impound or assume physical control of any
26 book, record, ledger, game device, cash box and its contents,
27 counting room or its equipment or lockbox and its contents.
28 (6) Make administrative inspections when appropriate to
29 check for compliance by any applicant for a license,
30 licensee, permittee, registrant, intermediary company,
20070H2121B2339 - 187 -
1 subsidiary or holding company with this act and regulations
2 promulgated pursuant to this act and to investigate
3 violations thereof.
4 (b) Warrantless searches.--Nothing in this chapter shall be
5 construed to prohibit or limit warrantless inspections by the
6 Pennsylvania State Police except in accordance with
7 constitutional requirements or to prevent entries and
8 administrative inspections, including seizure of property,
9 without a warrant as follows:
10 (1) With the consent of the licensee, operator or agent
11 in charge of the premises.
12 (2) In situations presenting imminent danger to public
13 health or safety.
14 (3) In situations involving inspection of conveyances
15 where there is reasonable cause to believe that the mobility
16 of the conveyance makes it impractical to obtain a warrant or
17 in any other exceptional or emergency circumstance where time
18 or opportunity to apply for a warrant is lacking.
19 (4) In accordance with this act or regulations
20 promulgated pursuant to this act.
21 (5) In any other situations where a warrant is not
22 constitutionally required.
23 (c) Administrative warrants.--To effectuate the purposes of
24 this act, the bureau and the Pennsylvania State Police may
25 obtain administrative warrants for the inspection and seizure of
26 property possessed, controlled, bailed or otherwise held by an
27 applicant for a table game licensee, a licensee, permittee,
28 registrant or an intermediary, subsidiary, affiliate or holding
29 company.
30 (d) Information sharing.--With respect to the
20070H2121B2339 - 188 -
1 administration, supervision and enforcement of this act, the
2 bureau, the Pennsylvania State police or the Office of Attorney
3 General may obtain or provide pertinent information regarding
4 applicants for a table game license, permit or registration from
5 or to law enforcement agencies or casino or gaming authorities
6 of the Commonwealth and other domestic and foreign
7 jurisdictions, including the Federal Bureau of Investigation or
8 similarly situated law enforcement agencies of foreign
9 jurisdictions, and may transmit the information to these
10 agencies electronically.
11 CHAPTER 25
12 PROHIBITIONS
13 Section 2501. Prohibitions.
14 (a) Prohibitions.--It shall be unlawful:
15 (1) To willfully fail to report, pay or truthfully
16 account for and pay any fee or tax imposed under this act or
17 willfully attempt in any manner to evade or defeat payment of
18 any fee or tax imposed under this act.
19 (2) To permit table games to be conducted, operated,
20 dealt or carried on in a licensed table game facility by a
21 person other than a person licensed pursuant to this act.
22 (3) To carry on or expose for play any authorized table
23 game after a license has expired and prior to the actual
24 renewal of an expired license.
25 (4) To knowingly conduct, carry on, operate, deal or
26 allow for the conducting, carrying on, operating or dealing
27 of any cheating game, device or apparatus.
28 (5) To knowingly deal, conduct, carry on, operate or
29 expose for play any game or games played with cards, dice or
30 any device or apparatus, or any combination of games, devices
20070H2121B2339 - 189 -
1 or apparatuses that have in any manner been marked or
2 tampered with or placed in a condition or operated in a
3 manner the result of which tends to deceive the public or
4 tends to alter the normal random selection of characteristics
5 or the normal chance of the game that could determine or
6 alter the result of the game.
7 (6) To knowingly use or possess any marked cards, loaded
8 dice or plug or to tamper with any table game equipment,
9 apparatus or device.
10 (7) To work in or be employed by a licensed table game
11 facility without obtaining the required license, permit or
12 registration.
13 (8) For a table game licensee to employ or continue to
14 employ an individual not duly licensed, permitted or
15 registered in accordance with this act.
16 (9) For an applicant or person or other entity licensed
17 or permitted by or registered with the board to employ or
18 offer to employ any person who is prohibited from accepting
19 employment from a table game licensee or applicant for a
20 table game license or a table game service industry licensee
21 or applicant for a table game service industry license or any
22 holding or intermediary company of the table game licensee or
23 applicant for a table game license or of a table game service
24 industry or applicant for a table game service industry
25 license.
26 (10) To notify a person involved in a suspicious
27 transaction that the suspicious transaction has been reported
28 to the board or the bureau.
29 Section 2502. Reports of suspicious transactions.
30 (a) Reports required.--
20070H2121B2339 - 190 -
1 (1) The holder of any table game license, permit or
2 registration under this act or any person acting on behalf of
3 the holder of a table game license, permit or registration
4 shall file a report of any suspicious transaction with the
5 bureau.
6 (2) For the purpose of this subsection, the term
7 "suspicious transaction" shall mean the acceptance of cash or
8 the redeeming of chips or markers, if the licensee, permittee
9 or registrant or person knows or suspects that the amount of
10 the transaction:
11 (i) Involves funds derived from illegal activities
12 or is intended or conducted in order to conceal or
13 disguise funds or assets derived from legal activities.
14 (ii) Is part of a plan to violate or evade any law
15 or regulation or to avoid any transaction reporting
16 requirement under the law or regulations of this
17 Commonwealth or the United States, including a plan to
18 structure a series of transactions to avoid any
19 transaction reporting requirement under the laws or
20 regulations of the Commonwealth or the United States.
21 (iii) Has no business or other apparent lawful
22 purpose or is not the sort of transaction in which a
23 person normally would be expected to engage and the
24 licensee or person knows of no reasonable explanation for
25 the transaction after examining the available facts,
26 including the background and possible purpose of the
27 transaction.
28 (b) Failure to report suspicious transactions.--A table game
29 licensee, permittee or registrant or person acting on behalf of
30 a licensee or a permittee or registrant under this act who
20070H2121B2339 - 191 -
1 knowingly fails to file a report of a suspicious transaction or
2 who knowingly causes any other person having the responsibility
3 to report a suspicious transaction to fail to file a report
4 shall be subject to the sanctions set forth under this act.
5 (c) Records of suspicious transaction.--The bureau shall
6 maintain a record of all reports of suspicious transactions for
7 a period of five years. The bureau shall make the reports
8 available to any Federal or State law enforcement agency upon
9 written request and without the necessity of subpoena. The board
10 shall promulgate regulations to effectuate the implementation of
11 the reporting requirements of this subsection. The board may
12 determine that compliance with applicable Federal reporting
13 requirements, as may be adopted, revised or amended from time to
14 time, satisfies the reporting requirements of this subsection.
15 (d) Immunity from civil liability.--Any person required to
16 file a report of a suspicious transaction pursuant to subsection
17 (a) who in good faith files the report shall not be liable in
18 any civil action brought by any person for making the report,
19 regardless of whether the transaction is later determined to be
20 suspicious.
21 Section 2503. Specific offenses relating to table games and
22 penalties.
23 (a) Swindling and cheating.--
24 (1) A person commits the offense of swindling and
25 cheating if the person purposely or knowingly by any trick or
26 sleight of hand performance or by fraud or fraudulent scheme,
27 cards, dice or device, for himself or for another, wins or
28 attempts to win money or property or a representative of
29 either or reduces a losing wager or attempts to reduce a
30 losing wager in connection with a table game.
20070H2121B2339 - 192 -
1 (2) Swindling and cheating as described in subsection
2 (a)(1) constitutes a single offense; however, each episode,
3 occurrence or transaction may be the subject of a separate
4 prosecution and conviction. A charge of swindling and
5 cheating may be supported by evidence that it was committed
6 in a manner that would constitute swindling and cheating
7 under this subsection, notwithstanding the specification of a
8 different manner in the indictment or accusation, subject
9 only to the power of the court to ensure a fair trial by
10 granting a bill or particulars, discovery, continuance or
11 other appropriate relief when the conduct of the defense
12 would be prejudiced by a lack of fair notice or by surprise.
13 (3) Swindling and cheating constitutes a felony of the
14 third degree regardless of the amount involved.
15 (b) Use of certain devices prohibited.--
16 (1) A person commits a misdemeanor of the third degree
17 if, in playing an authorized table game, the person uses, or
18 assists another in the use of a computerized, electronic,
19 electrical or mechanical device that is designed, constructed
20 or programmed specifically for use in obtaining an advantage
21 at playing any authorized table game in a table game facility
22 in this Commonwealth, unless the advantage obtained can be
23 assessed as providing a monetary value or loss of $50,000 or
24 greater, in which case the offense shall be a misdemeanor of
25 the first degree.
26 (2) Any computerized, electronic, electrical or
27 mechanical device used in violation of paragraph (1) shall be
28 considered prima facie contraband and shall be subject to
29 forfeiture.
30 (c) Publication of notice.--Each table game licensee shall
20070H2121B2339 - 193 -
1 conspicuously post, in the licensed table game facility, notices
2 of the prohibition against swindling and cheating and the
3 penalty set forth in this section. The notice shall be posted in
4 a form and manner determined by the board.
5 (d) Unlawful use of bogus chips or gaming billets, marked
6 cards, loaded dice or cheating devices.--
7 (1) It shall be unlawful for any person playing any
8 authorized table game to:
9 (i) Knowingly use bogus or counterfeit chips or
10 gaming billets, or knowingly substitute and use any cards
11 or dice that have been marked, loaded or tampered with.
12 (ii) Knowingly use or possess any cheating device
13 with the intent to cheat or defraud.
14 (iii) Knowingly possess or use while on the premises
15 of any table game facility any key or device designed for
16 the purpose of or suitable for opening or entering any
17 drop box, except that an authorized employee or agent of
18 a table game licensee or of the board may possess and use
19 a key or device in the furtherance of the employee's or
20 agent's employment.
21 (2) A person who violates this subsection commits a
22 misdemeanor of the third degree.
23 (e) Aiding and abetting.--Any person who aids, abets,
24 counsels, commands, induces, procures or causes another person
25 to violate a provision of this act shall be punishable as a
26 principal and subject to all sanctions and penalties, both civil
27 and criminal, provided in this act.
28 (f) Possession by employees.--An authorized employee or
29 agent of a table game licensee or an employee or agent of the
30 board or bureau may possess and use a cheating or thieving
20070H2121B2339 - 194 -
1 device, counterfeit or altered chip, loaded dice, marked cards
2 or other such implements, objects or devices only in performance
3 of the duties of employment.
4 (g) Definition.--As used in this section, the term "cheating
5 or thieving device" includes, but is not limited to, a device to
6 facilitate the winning of any table game, including, but not
7 limited to, any computerized, electronic, electrical, mechanical
8 or magnetic device or implement.
9 Section 2504. Underage gambling and prohibition.
10 (a) Prohibition.--
11 (1) No individual under 21 years of age shall enter or
12 wager in a table game facility except that an individual
13 under 21 years of age may enter a table game facility by way
14 of passage to another room and an individual 18 years of age
15 or older who is licensed, permitted or registered under this
16 act or 4 Pa.C.S. Pt. II (relating to gaming) may enter a
17 table game facility in the regular course of the individual's
18 licensed, permitted or registered employment activities. Any
19 individual under 21 years of age who violates this subsection
20 commits a summary offense and may, upon conviction:
21 (i) Be fined no less than $500 nor more than $1,000.
22 In addition, the court shall suspend or postpone the
23 issuance of the individual's license to operate a motor
24 vehicle or learner's permit for six months.
25 (ii) If the individual at the time of imposition of
26 a sentence pursuant to this subsection is less than 18
27 years of age and does not hold a driver's license or
28 junior driver's license, the individual shall not be
29 eligible to apply for a driver's license or learner's
30 permit for a period of six months from the day the
20070H2121B2339 - 195 -
1 sentence is imposed or for a period of six months after
2 the individual reaches 18 years of age.
3 (iii) Upon the conviction of any individual under
4 this section, the court shall forward a report to the
5 Department of Transportation stating that the individual
6 has been convicted of violating this section and
7 indicating the first and last day of driver's license
8 suspension, denial or postponement period imposed by the
9 court pursuant to this subsection.
10 (iv) If an individual at the time of imposition of a
11 sentence pursuant to this section has a valid driver's
12 license or junior driver's license issued by this
13 Commonwealth, the court shall immediately collect the
14 driver's license or junior driver's license and forward
15 it to the Department of Transportation with the report
16 required under subparagraph (iii). If the driver's
17 license or junior driver's license cannot be collected at
18 the time the sentence is imposed, the court shall include
19 in the report the complete name, address, date of birth,
20 eye color and gender of the individual as well as the
21 first and last day of the license suspension or
22 postponement period imposed by the court.
23 (v) The court shall inform the individual orally and
24 in writing that if the individual is convicted of
25 operating a motor vehicle during the period of the
26 driver's license or junior driver's license suspension or
27 postponement under this section, the individual shall be
28 subject to the penalties set forth in 75 Pa.C.S. § 1532
29 (relating to suspension of operating privilege).
30 (b) Actions of licensee.--Any licensee or employee of a
20070H2121B2339 - 196 -
1 table game facility who allows an individual under 21 years of
2 age to remain or wager in a table game facility commits a
3 misdemeanor of the third degree. The following facts, if
4 established by the licensee or employee of the licensee, may
5 constitute a defense to a prosecution under this section:
6 (1) The underage individual falsely represented in
7 writing that the individual was 21 or over 21 years of age.
8 (2) The appearance of the underage individual was such
9 that an ordinary prudent person would believe the individual
10 to be 21 or over 21 years of age.
11 (3) The admission was made in good faith, relying upon
12 the written representation and appearance of the underage
13 individual, and in the reasonable belief that the underage
14 individual was actually at or over 21 years of age.
15 (c) Permitting underage wagering; penalty.--A person who
16 knowingly allows or permits an individual who is under that
17 person's lawful care, custody or control and who is under 21
18 years of age to wager or attempt to wager in a licensed table
19 game facility in violation of this subsection commits a
20 misdemeanor of the third degree and, upon conviction, may be
21 subject to the payment of a fine not exceeding $2,500 or to a
22 term of imprisonment, or both.
23 Section 2505. Authority to detain.
24 (a) Authority to detain.--A table game licensee or the
25 officers, employees or agents of a table game licensee may:
26 (1) Question any individual in the table game facility
27 reasonably suspected of violating any provision of this act
28 or any other activity declared unlawful pursuant to this act.
29 No licensee or its officers, employees or agents shall be
30 criminally or civilly liable by reason of any questioning or
20070H2121B2339 - 197 -
1 detention authorized under this section.
2 (2) Refuse to allow a person to continue to play table
3 games or take the person into custody and detain the person
4 in a reasonable manner for a reasonable period of time to
5 notify law enforcement if the licensee or its officers,
6 employees or agents have probable cause to believe that a
7 person has violated section 2504. The licensee may notify the
8 board of any detention. The refusal to permit a person to
9 play table games or the taking into custody and detention
10 shall not render the licensee or its officers, employees or
11 agents criminally or civilly liable for false arrest, false
12 imprisonment, slander or unlawful detention, unless the
13 refusal or taking into custody or detention is unreasonable
14 under all of the circumstances.
15 (b) Limitation on immunity.--No table game licensee or any
16 officers, employees or agents of a table game licensee shall be
17 entitled to immunity from civil or criminal liability provided
18 under this section unless there is conspicuously displayed in
19 the gaming area or areas of a table game facility a notice in
20 bold face type similar to the following:
21 WARNING: ANY TABLE GAME LICENSEE OR OFFICER, EMPLOYEE OR
22 AGENT OF A TABLE GAME LICENSEE WHO HAS PROBABLE CAUSE TO
23 BELIEVE THAT A PERSON IS VIOLATING ANY OF THE PROVISIONS
24 OF THE TABLE GAME AUTHORIZATION AND CONTROL ACT MAY
25 DETAIN THE PERSON IN THE ESTABLISHMENT FOR A REASONABLE
26 PERIOD OF TIME FOR THE PURPOSE OF NOTIFYING APPROPRIATE
27 LAW ENFORCEMENT AGENCIES.
28 Section 2506. Additional prohibitions and penalties.
29 (a) Criminal offenses.--
30 (1) The provisions of 18 Pa.C.S. § 4902 (relating to
20070H2121B2339 - 198 -
1 perjury), 4903 (relating to false swearing) or 4904 (relating
2 to unsworn falsification to authorities) shall apply to any
3 person providing information or making any statement, whether
4 written or oral, to the board, the bureau, the department,
5 the Pennsylvania State Police or the Office of Attorney
6 General, as required by this act.
7 (2) It shall be unlawful for any licensed table game
8 entity or any employee or key employee of such licensee or
9 any other person to permit table games to be operated,
10 transported, repaired or opened on the premises of a licensed
11 table game facility by a person other than a person licensed,
12 permitted or registered by the board pursuant to this act.
13 (3) It shall be unlawful for any licensed table game
14 entity or other person to manufacture, supply or place table
15 games into play or display table games on the premises of a
16 licensed facility without the authority of the board.
17 (4) Except as provided for in this act, it shall be
18 unlawful for a licensed table game entity or other person to
19 manufacture, supply, operate, carry on or expose for play any
20 table game after the person's table game license has expired
21 and prior to the actual renewal of the license.
22 (5) It shall be unlawful for an individual on the
23 premises of a licensed table game facility to knowingly use
24 currency other than lawful coin or legal tender of the United
25 States to play any authorized table game.
26 (6) It shall be unlawful for a table game licensee or an
27 agent or employee of a table game licensee to possess any
28 device, apparatus, equipment or supplies that the licensee,
29 agent or employee knows has been manufactured, distributed,
30 sold, leased, tampered with, repaired or serviced in
20070H2121B2339 - 199 -
1 violation of this act.
2 (7) It shall be unlawful for an individual to work or be
3 employed in a position the duties of which would require
4 licensing, permitting or registering under this act without
5 first obtaining the requisite license, permit or registration
6 as provided for in this act.
7 (8) It shall be unlawful for a licensed table gaming
8 entity that is a licensed racing entity and that has had its
9 racing license revoked or suspended by either the State Horse
10 Racing Commission or the State Harness Racing Commission
11 under the act of December 17, 1981 (P.L.435, No.135), known
12 as the Race Horse Industry Reform Act, to continue to operate
13 table games at the racetrack for which its racing license was
14 issued unless the racing license is or will be subsequently
15 reissued or reinstated within 60 days after its revocation or
16 suspension or without approval of the board.
17 (9) It shall be unlawful for a table game licensee to
18 employ or continue to employ in a position the duties of
19 which require a license, permit or registration under this
20 act:
21 (i) An individual not licensed, permitted or
22 registered under this act.
23 (ii) An individual who is prohibited from accepting
24 employment from a table game licensee.
25 (10) It shall be unlawful for any person under 18 years
26 of age to be in any area where table games are operated.
27 (b) Criminal penalties and fines.--
28 (1) (i) A person that violates subsection (a)(1)
29 commits an offense to be graded in accordance with 18
30 Pa.C.S. § 4902, 4903 or 4904, as applicable, for a first
20070H2121B2339 - 200 -
1 conviction. A person that is convicted of a second or
2 subsequent violation of subsection (a)(1) commits a
3 felony of the second degree.
4 (ii) A person that violates subsection (a)(2)
5 through (10) commits a misdemeanor of the first degree. A
6 person that is convicted of a second or subsequent
7 violation of subsection (a)(2) through (10) commits a
8 felony of the second degree.
9 (2) (i) For a first violation of subsection (a)(1)
10 through (10), a person shall be sentenced to pay a fine
11 of:
12 (A) No less than $75,000 nor more than $150,000
13 if the person is an individual.
14 (B) No less than $300,000 nor more than $600,000
15 if the person is a licensed table game entity.
16 (C) No less than $150,000 nor more than $300,000
17 if the person is a licensed manufacturer, licensed
18 supplier or licensed table game service industry.
19 (ii) For a second or subsequent violation of
20 subsection (a)(1) through (10), a person shall be
21 sentenced to pay a fine of:
22 (A) No less than $150,000 nor more than $300,000
23 if the person is an individual.
24 (B) No less than $600,000 nor more than
25 $1,200,000 if the person is a licensed table game
26 entity.
27 (C) No less than $300,000 nor more than $600,000
28 if the person is a licensed manufacturer, licensed
29 supplier or licensed table game service industry.
30 Section 2507. Sanctions.
20070H2121B2339 - 201 -
1 (a) Imposition of sanctions.--In addition to any penalty,
2 fine or term of imprisonment authorized under law or under this
3 act, the board shall, after hearing, have the authority to
4 impose the following sanctions upon any person licensed,
5 permitted or registered under this act:
6 (1) Revoke the license, permit or registration of any
7 person for the conviction of any criminal offense or for
8 committing any other offense or violation of this act which
9 would disqualify the person from holding the license, permit
10 or registration.
11 (2) Refuse to issue or revoke the license, permit or
12 registration of any person for willfully and knowingly
13 violating an order of the board, bureau, Pennsylvania State
14 Police or the Attorney General.
15 (3) Suspend the license, permit or registration of any
16 person pending hearing and determination in any case in which
17 license, permit or registration revocation is authorized.
18 (4) Refuse to issue or suspend the operation certificate
19 of any table game licensee for a violation of this act or
20 regulations promulgated under this act relating to the
21 operation of the licensed table game facility including table
22 games operations, slot machine operations, internal controls
23 and security.
24 (5) Assess any civil penalty as may be necessary to
25 punish misconduct and to deter future violations. The civil
26 penalty may not exceed $10,000 in the case of any individual
27 licensee, permittee or registrant. In the case of a table
28 game licensee, manufacturer licensee, supplier licensee,
29 service industry licensee or any applicant for any such
30 license, the civil penalty may not exceed $100,000.
20070H2121B2339 - 202 -
1 (6) Order restitution of any moneys or property
2 unlawfully obtained or retained by an applicant, licensee,
3 permittee or registrant or any person acting on the behalf of
4 any licensee, permittee or registrant.
5 (7) Enter a cease and desist order that specifies the
6 conduct that is to be discontinued, altered or implemented by
7 the table game applicant, licensee, permittee or registrant.
8 (8) Issue letters of reprimand or censure. The letters
9 shall be made a permanent part of the file of each applicant,
10 licensee, permittee or registrant so sanctioned.
11 (9) Impose any or all of the foregoing sanctions in
12 combination with each other.
13 (b) Considerations for imposition of sanctions.--In
14 considering appropriate sanctions in a particular case, the
15 board shall consider:
16 (1) The risk to the public and to the integrity of table
17 game operations and the gaming industry created by the
18 conduct of the applicant, licensee, permittee or registrant.
19 (2) The nature and seriousness of the conduct of the
20 table game licensee, permittee or registrant, and whether the
21 conduct was purposeful or negligent and with knowledge that
22 it was in contravention of the provisions of this act or the
23 regulations promulgated under this act.
24 (3) Any justification or excuse for the conduct by the
25 applicant, licensee, permittee or registrant.
26 (4) The prior history of the particular licensee,
27 permittee or registrant involved with respect to table game
28 activity.
29 (5) The corrective action taken by the applicant,
30 licensee, permittee or registrant to prevent future
20070H2121B2339 - 203 -
1 misconduct of a like nature from occurring.
2 (6) In the case of a monetary penalty, the amount of the
3 penalty in relation to the severity of the misconduct and the
4 financial means of the applicant, licensee, permittee or
5 registrant. The board may impose any schedule or terms of
6 payment of such penalty as it may deem appropriate.
7 (c) Certain defense not allowed.--It shall be no defense to
8 disciplinary action before the board that an applicant for a
9 table game license or a licensee, permittee, registrant or any
10 intermediary company or holding company of such applicant,
11 licensee, permittee or registrant inadvertently, unintentionally
12 or unknowingly violated a provision of this act. Such factors
13 shall only go to the degree of the penalty to be imposed by the
14 board and not to a finding of a violation itself.
15 (d) Notification of decision and hearing.--The board shall
16 provide the applicant, licensee, permittee or registrant with
17 written notification of its decision, including a statement of
18 the reasons for its decision by certified mail within five
19 business days of the decision, if the board:
20 (1) Refuses to issue or renew a license, permit or
21 registration.
22 (2) Suspends or revokes a license, permit or
23 registration.
24 (3) Assesses civil penalties.
25 (4) Orders restitution.
26 (5) Enters a cease and desist order.
27 (6) Issues a letter of reprimand or censure.
28 (e) Hearing.--Any applicant or licensee, permittee or
29 registrant who has received notice of a refusal, suspension or
30 revocation of a license, permit or registration, the assessment
20070H2121B2339 - 204 -
1 of civil penalties, an order of restitution, the entrance of a
2 cease and desist order or the issuance of a letter of reprimand
3 or censure from the board shall have the right to an
4 administrative hearing before the board in accordance with 2
5 Pa.C.S. Ch. 5 Subch. A (relating to practice and procedure of
6 Commonwealth agencies) and Ch. 7 Subch. A (relating to judicial
7 review of Commonwealth agency action).
8 (f) Authority to increase penalty for certain acts.--In
9 addition to any other fines or penalties that the board may
10 impose under this act or regulations of the board, if a person
11 violates section 2501(a)(1) (relating to prohibitions), the
12 board shall impose an administrative penalty of three times the
13 amount of the license fee, tax or other assessment evaded and
14 not paid, collected or paid over. This subsection is subject to
15 2 Pa.C.S. Ch. 5 Subch. A and Ch. 7 Subch. A.
16 Section 2508. Continuing offenses.
17 Any violation of this act that is determined to be an offense
18 of a continuing nature shall be deemed to be a separate offense
19 on each day during which the violation occurs. Nothing in this
20 section shall be construed to preclude the commission of
21 multiple violations of the provisions of this act in any one day
22 that establish offenses consisting of separate and distinct acts
23 or violations of the provisions of this act or regulations
24 promulgated under this act.
25 Section 2509. Property subject to seizure, confiscation,
26 destruction or forfeiture.
27 Any equipment, device or apparatus, money, material of
28 gaming, proceeds or substituted proceeds or real or personal
29 property used, obtained or received or any attempt to use,
30 obtain or receive such device, apparatus, money, material,
20070H2121B2339 - 205 -
1 proceeds or real or personal property in violation of this act
2 shall be subject to seizure, confiscation, destruction or
3 forfeiture.
4 CHAPTER 26
5 RACKETEERING AND CORRUPT ORGANIZATIONS
6 Section 2601. Racketeering and corrupt organizations.
7 (a) Applicability.--Any person or individual subject to the
8 provisions of this act shall be subject to 18 Pa.C.S. § 911
9 (relating to corrupt organizations). The prohibited activities
10 set forth in 18 Pa.C.S. § 911(b) shall apply to any individual
11 or person, organization or entity subject to the requirements of
12 this act and to any enterprise that is engaged in activities
13 that affect table game operations or ancillary industries that
14 do business with any table game licensee, permittee, registrant
15 or any other person subject to qualification or approval under
16 the provisions of this act.
17 (b) Authority of the Attorney General.--The Attorney General
18 is hereby authorized and empowered to investigate and institute
19 criminal proceedings for violation of any provision of this act
20 upon the request of the board, the bureau, the Pennsylvania
21 State Police or upon its own motion. The Attorney General may
22 establish a division within the Office of Attorney General to
23 investigate violations of provisions of this act and any
24 regulations promulgated pursuant to this act.
25 Section 2602. Racketeering activity.
26 In addition to the meaning given to it under 18 Pa.C.S. §
27 911(h) (relating to corrupt organizations) and for the purposes
28 of this act, the term "racketeering activity" shall be further
29 defined to include any of the following:
30 (1) Any act that is indictable under any of the
20070H2121B2339 - 206 -
1 following provisions of 18 U.S.C. (relating to Crimes and
2 Criminal Procedure) or under any subsequent amendments or
3 revisions to 18 U.S.C. that may be enacted after the
4 effective date of this act:
5 (i) Section 201 (relating to bribery of public
6 officials and witnesses).
7 (ii) Section 224 (relating to bribery in sporting
8 contests).
9 (iii) Sections 471 (relating to obligations or
10 securities of United States) through 509 (relating to
11 possessing and making plates or stones for Government
12 transportation requests).
13 (iv) Section 659 (relating to interstate or foreign
14 shipments by carrier; State prosecutions), if the act
15 indictable under section 659 is felonious.
16 (v) Section 664 (relating to theft or embezzlement
17 from employee benefit plan).
18 (vi) Sections 891 (relating to definitions and rules
19 of construction) through 894 (relating to collection of
20 extensions of credit by extortionate means).
21 (vii) Section 1084 (relating to transmission of
22 wagering information; penalties).
23 (viii) Section 1341 (relating to frauds and
24 swindles).
25 (ix) Section 1343 (relating to fraud by wire, radio,
26 or television).
27 (x) Section 1503 (relating to influencing or
28 injuring officer or juror generally).
29 (xi) Section 1510 (relating to obstruction of
30 criminal investigations).
20070H2121B2339 - 207 -
1 (xii) Section 1511 (relating to obstruction of State
2 or local law enforcement).
3 (xiii) Section 1951 (relating to interference with
4 commerce by threats or violence).
5 (xiv) Section 1952 (relating to interstate and
6 foreign travel or transportation in aid of racketeering
7 enterprises).
8 (xv) Section 1953 (relating to interstate
9 transportation of wagering paraphernalia).
10 (xvi) Section 1954 (relating to offer, acceptance,
11 or solicitation to influence operations of employee
12 benefit plan).
13 (xvii) Section 1955 (relating to prohibition of
14 illegal gambling businesses).
15 (xviii) Sections 2314 (relating to transportation of
16 stolen goods, securities, moneys, fraudulent State tax
17 stamps, or articles used in counterfeiting) and 2315
18 (relating to sale or receipt of stolen goods, securities,
19 moneys, or fraudulent State tax stamps).
20 (xix) Sections 2421 (relating to transportation
21 generally) through 2424 (relating to filing factual
22 statement about alien individual).
23 (2) Any act that is indictable under the following
24 provisions:
25 (i) Section 302 of the Labor Management Relations
26 Act, 1947 (61 Stat. 136, 29 U.S.C. § 186).
27 (ii) Section 501(c) of the Labor Management
28 Reporting and Disclosure Act of 1959 (Public Law 86-257,
29 29 U.S.C. § 401 et seq.).
30 (3) Any offense involving bankruptcy fraud, fraud in the
20070H2121B2339 - 208 -
1 sale of securities, or the felonious manufacture,
2 importation, receiving, concealment, buying, selling or
3 otherwise dealing in narcotic or other dangerous drugs,
4 punishable under any law of the United States. The Attorney
5 General shall report any suspected racketeering activity
6 under this section to the United States Department of
7 Justice.
8 (c) Definition.--Notwithstanding any other provision of law
9 to the contrary and for the purposes of this act, the definition
10 of "enterprise" under 18 Pa.C.S. § 911(h) (relating to corrupt
11 organizations) shall include any enterprise that is engaged in,
12 or conduct activities that affect table game operations or
13 ancillary industries that do business with any table game
14 licensee, permittee or registrant or other licensee or person
15 required to be qualified under this act.
16 CHAPTER 27
17 PUBLIC OFFICIALS
18 Section 2701. Financial interest and prohibitions.
19 (a) General rule.--Except as may be provided for the
20 judiciary by rule or order of the Pennsylvania Supreme Court, an
21 executive-level public employee, public official or party
22 officer, or an immediate family member thereof, shall not
23 intentionally or knowingly hold a financial interest in an
24 applicant or a table game licensee or a table game manufacturer
25 licensee, supplier licensee, service industry licensee or
26 licensed racing entity, or in a holding company, affiliate,
27 intermediary or subsidiary thereof, while the individual is an
28 executive-level public employee, public official or party
29 officer and for one year following termination of the
30 individual's status as an executive-level public employee,
20070H2121B2339 - 209 -
1 public official or party officer.
2 (b) Employment.--Except as may be provided by rule or order
3 of the Pennsylvania Supreme Court, no executive-level public
4 employee, public official or party officer, or an immediate
5 family member thereof, shall be employed by an applicant or a
6 table game licensee or a table game manufacturer licensee,
7 supplier licensee, service industry licensee or licensed racing
8 entity, or by any holding company, affiliate, intermediary or
9 subsidiary thereof, while the individual is an executive-level
10 public employee, public official or party officer and for one
11 year following termination of the individual's status as an
12 executive-level public employee, public official or party
13 officer.
14 (c) Grading.--An individual who violates this section
15 commits a misdemeanor of the third degree and shall, upon
16 conviction, be sentenced to pay a fine of not more than $1,000
17 or to a term of imprisonment of not more than one year, or both.
18 (d) Divestiture.--An executive-level public employee, public
19 official or party officer, or an immediate family member
20 thereof, who holds a financial interest prohibited by this
21 section shall divest the financial interest within three months
22 of the effective date of the restrictions set forth in
23 subsection (a), as applicable. Thereafter, any executive-level
24 public employee, public official, party officer or immediate
25 family member shall have 30 days from the date the individual
26 knew or had reason to know or should have known of the violation
27 or 30 days from the publication in the Pennsylvania Bulletin of
28 a complete list of all persons or entities who have applied for
29 or who hold a table game license or table game manufacturer,
30 supplier or service industry license and all intermediaries,
20070H2121B2339 - 210 -
1 affiliates, subsidiaries and holding companies thereof. Such
2 publication shall conform with the requirements of 4 Pa.C.S. §
3 1202(b)(27) (relating to general and specific powers). The
4 Ethics Commission may, for good cause, extend the time period
5 under this subsection.
6 (e) Ethics Commission.--The Ethics Commission shall publish
7 a list of all State, county, municipal and other government
8 positions that meet the definitions of "public official" or
9 "executive-level public employee" under subsection (f). The
10 Office of Administration shall assist the Ethics Commission in
11 the development of the list, which shall be published in the
12 Pennsylvania Bulletin biennially and on the board's Internet
13 website. Upon request, each public official shall have a duty to
14 provide the Ethics Commission with adequate information to
15 accurately develop and maintain the list. The Ethics Commission
16 may impose a civil penalty under 65 Pa.C.S. § 1109(f) (relating
17 to penalties) upon any public official or executive-level public
18 employee who fails to cooperate with the Ethics Commission under
19 this subsection.
20 (f) Definitions.--As used in this section, the following
21 words and phrases shall have the meanings given to them in this
22 subsection:
23 "Executive-level public employee." The term shall include
24 the following:
25 (1) Deputy secretaries of the Commonwealth and the
26 Governor's Office executive staff.
27 (2) An employee of the Executive Branch with
28 discretionary power that may affect or influence the outcome
29 of a State agency's action or decision and who is involved in
30 the development of regulations or policies relating to a
20070H2121B2339 - 211 -
1 licensed table game entity or who is involved in other
2 matters under this chapter. The term shall include an
3 employee with law enforcement authority.
4 (3) An employee of a county or municipality with
5 discretionary powers that may affect or influence the outcome
6 of the county's or municipality's action or decision and who
7 is involved in the development of law, regulation or policy
8 relating to a licensed table game entity or who is involved
9 in other matters under this chapter. The term shall include
10 an employee with law enforcement authority.
11 (4) An employee of a department, agency, board,
12 commission, authority or other governmental body not included
13 in paragraph (1), (2) or (3) with discretionary power that
14 may affect or influence the outcome of the governmental
15 body's action or decision and who is involved in the
16 development of regulation or policy relating to a licensed
17 table game entity or who is involved in other matters under
18 this chapter. The term shall include an employee with law
19 enforcement authority.
20 "Financial interest." Owning or holding, or being deemed to
21 hold, debt or equity securities or other ownership interest or
22 profits interest. A financial interest shall not include any
23 debt or equity security, or other ownership interest or profits
24 interest, that is held or deemed to be held in any of the
25 following:
26 (1) A blind trust over which the executive-level public
27 employee, public official, party officer or immediate family
28 member thereof may not exercise any managerial control or
29 receive income during the tenure of office and the period
30 under subsection (a). The provisions of this paragraph shall
20070H2121B2339 - 212 -
1 apply only to blind trusts established prior to the effective
2 date of this paragraph.
3 (2) Securities that are held in a pension plan, profit-
4 sharing plan, individual retirement account, tax-sheltered
5 annuity, a plan established pursuant to section 457 of the
6 Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §
7 1 et seq.) or any successor provision deferred compensation
8 plan whether qualified or not qualified under the Internal
9 Revenue Code of 1986 or any successor provision or other
10 retirement plan that:
11 (i) is not self-directed by the individual; and
12 (ii) is advised by an independent investment adviser
13 who has sole authority to make investment decisions with
14 respect to contributions made by the individual to these
15 plans.
16 (3) A tuition account plan organized and operated
17 pursuant to section 529 of the Internal Revenue Code of 1986
18 that is not self-directed by the individual.
19 (4) A mutual fund where the interest owned by the mutual
20 fund in a licensed table game entity does not constitute a
21 controlling interest as defined in this act.
22 "Immediate family." A spouse, minor child or unemancipated
23 child.
24 "Law enforcement authority." The power to conduct
25 investigations of or to make arrests for criminal offenses.
26 "Party officer." A member of a national committee; a
27 chairman, vice chairman, secretary, treasurer or counsel of a
28 State committee or member of the executive committee of a State
29 committee; a county chairman, vice chairman, counsel, secretary
30 or treasurer of a county committee in which a licensed table
20070H2121B2339 - 213 -
1 game facility is located; or a city chairman, vice chairman,
2 counsel, secretary or treasurer of a city committee of a city in
3 which a licensed table game facility is located.
4 "Public official." The term shall include the following:
5 (1) The Governor, Lieutenant Governor, a member of the
6 Governor's cabinet, State Treasurer, Auditor General and
7 Attorney General of the Commonwealth.
8 (2) A member of the Senate or House of Representatives
9 of the Commonwealth.
10 (3) An individual elected or appointed to any office of
11 a county or municipality that directly receives a
12 distribution of revenue under this act.
13 (4) An individual elected or appointed to a department,
14 agency, board, commission, authority or other governmental
15 body not included in paragraph (1), (2) or (3) that directly
16 receives a distribution of revenue under this act.
17 (5) An individual elected or appointed to a department,
18 agency, board, commission, authority, county, municipality or
19 other governmental body not included in paragraph (1), (2) or
20 (3) with discretionary power that may influence or affect the
21 outcome of an action or decision and who is involved in the
22 development of regulation or policy relating to a licensed
23 table game entity or who is involved in other matters under
24 this act. The term does not include a member of a school
25 board or an individual who held an uncompensated office with
26 a governmental body prior to January 1, 2007, and who no
27 longer holds the office as of January 1, 2007. The term
28 includes a member of an advisory board or commission that
29 makes recommendations relating to a licensed table game
30 facility.
20070H2121B2339 - 214 -
1 § 2702. Political influence.
2 (a) Contribution restriction.--The following persons shall
3 be prohibited from contributing monetarily or in-kind to a
4 candidate for nomination or election to any public office in
5 this Commonwealth, or to any political party committee or other
6 political committee in this Commonwealth or to any group,
7 committee or association organized in support of a candidate,
8 political party committee or other political committee in this
9 Commonwealth:
10 (1) An applicant for a table game license; table game
11 manufacturer license, supplier license or service industry
12 license; principal employee license, key employee license or
13 horse or harness racing license.
14 (2) A table game licensee, manufacturer licensee,
15 supplier licensee, service industry licensee or licensed
16 racing entity.
17 (3) A licensed principal employee or licensed key
18 employee of a table game licensee, licensed manufacturer,
19 licensed supplier, licensed service industry or licensed
20 racing entity.
21 (4) An affiliate, intermediary, subsidiary or holding
22 company of a table game licensee, licensed manufacturer,
23 licensed supplier, licensed service industry or licensed
24 racing entity.
25 (5) A licensed principal employee or licensed key
26 employee of an affiliate, intermediary, subsidiary or holding
27 company of a table game licensee, licensed manufacturer,
28 licensed supplier, licensed service industry or licensed
29 racing entity.
30 (6) A person who holds a similar gaming license in any
20070H2121B2339 - 215 -
1 jurisdiction, foreign or domestic, and the affiliates,
2 intermediaries, subsidiaries, holding companies, principal
3 employees or key employees thereof.
4 (b) Contributions to certain associates and organizations
5 barred.--The persons prohibited from making political
6 contributions under subsection (a) shall not make a political
7 contribution, monetarily or in-kind, to any association or
8 organization, including a nonprofit organization, that has been
9 solicited by an elected official, executive-level public
10 employee or candidate for nomination or election to a public
11 office in this Commonwealth, if the person knows that the
12 contribution or any portion thereof will be contributed to the
13 official, employee or candidate for nomination or election to
14 public office in this Commonwealth.
15 (c) Internet website.--
16 (1) The board shall establish an Internet website that
17 includes a list of all applicants for and holders of a table
18 game license, table game manufacturer license, table game
19 supplier license, table game service industry license or
20 racing entity license, and the affiliates, intermediaries,
21 subsidiaries, holding companies, principals and key employees
22 thereof, all persons holding a similar gaming license in
23 another jurisdiction, foreign and domestic, and the
24 affiliates, intermediaries, subsidiaries, holding companies,
25 principals and key employees thereof, and any other entity in
26 which the applicant or licensee has any debt or equity
27 security or other ownership or profits interest. An applicant
28 or licensee shall notify the board within seven days of the
29 discovery of any change in or addition to the information.
30 The list shall be published semiannually in the Pennsylvania
20070H2121B2339 - 216 -
1 Bulletin.
2 (2) A person who acts in good faith and in reliance on
3 the information on the Internet website shall not be subject
4 to any penalties or liabilities imposed for a violation of
5 this section.
6 (3) The board shall request the information required
7 under paragraph (1) from persons licensed in another
8 jurisdiction who do not hold a license in this Commonwealth
9 and from regulatory agencies in the other jurisdiction. If a
10 licensee in another jurisdiction refuses to provide the
11 information required under paragraph (1), the person and its
12 officers, directors or persons with a controlling interest
13 shall be ineligible to receive any license under this act.
14 (d) Annual certification.--The chief executive officer, or
15 other appropriate individual, of each applicant for a table game
16 license, table game manufacturer license, table game supplier
17 license, table game service industry license or table game
18 licensee, licensed table game supplier, licensed table game
19 manufacturer, licensed table games service industry or licensed
20 racing entity shall annually certify under oath to the board and
21 the Department of State that such applicant or table game
22 licensee, licensed supplier, licensed manufacturer, licensed
23 service industry or licensed racing entity has developed and
24 implemented internal safeguards and policies intended to prevent
25 a violation of this section and that such applicant, licensee or
26 licensed racing entity has conducted a good faith investigation
27 that has not revealed any violation of this section during the
28 preceding year.
29 (e) Penalties.--The first violation of this section by a
30 licensed table game entity or any person that holds a
20070H2121B2339 - 217 -
1 controlling interest in such table game entity, or a subsidiary
2 company thereof, and any officer, director or management-level
3 principal or key employee of such table game licensee shall be
4 punishable by a fine of not less than an average single day's
5 gross table game revenue of the licensed table game entity
6 derived from the operation of table games in this Commonwealth;
7 a second violation of this section, within five years of the
8 first violation, shall be punishable by at least a one-day
9 suspension of the table game license held by the licensed table
10 game entity and a fine of no less than an average two days'
11 gross table game revenue of the licensed table game entity; a
12 third violation of this section within five years of the second
13 violation shall be punishable by the immediate revocation of the
14 table game license held by the licensed table game entity. The
15 first violation of this section by a table game manufacturer,
16 table game supplier or table game service industry licensed
17 pursuant to this act or by any person that holds a controlling
18 interest in such licensed manufacturer, supplier or service
19 industry or any affiliate, intermediary, subsidiary or holding
20 company thereof, and any officer, director or management-level
21 employee of such a licensee or any affiliate, intermediary,
22 subsidiary or holding company thereof, shall be punishable by a
23 fine of not less than one day's average of the gross profit from
24 sales made by the manufacturer, supplier or service industry in
25 this Commonwealth during the preceding 12-month period or
26 portion thereof in the event the manufacturer, supplier or
27 service industry has not operated in this Commonwealth for 12
28 months; a second violation of this section within five years of
29 the first violation shall be punishable by a one-month
30 suspension of the table game license held by the manufacturer,
20070H2121B2339 - 218 -
1 supplier or service industry and a fine of not less than two
2 times one day's average of the gross profit from sales made by
3 the manufacturer, supplier or service industry in this
4 Commonwealth during the preceding 12-month period or portion
5 thereof in the event the manufacturer, supplier or service
6 industry has not operated in this Commonwealth for 12 months. In
7 no event shall the fine imposed under this section be in an
8 amount less than $50,000 for each violation. In addition to any
9 fine or sanction that may be imposed by the board, any person
10 who makes a contribution in violation of this section commits a
11 misdemeanor of the third degree.
12 (f) Definitions.--As used in this section, the following
13 words and phrases shall have the meanings given to them in this
14 subsection:
15 "Contribution." Any payment, gift, subscription, assessment,
16 contract, payment for services, dues, loan, forbearance, advance
17 or deposit of money or any valuable thing made to a candidate or
18 political committee for the purpose of influencing any election
19 in this Commonwealth or for paying debts incurred by or for a
20 candidate or committee before or after any election. The term
21 shall include the purchase of tickets for events including
22 dinners, luncheons, rallies and other fundraising events; the
23 granting of discounts or rebates not available to the general
24 public; or the granting of discounts or rebates by television
25 and radio stations and newspapers not extended on an equal basis
26 to all candidates for the same office; and any payments provided
27 for the benefit of any candidate, including payments for the
28 services of a person serving as an agent of a candidate or
29 committee by a person other than the candidate or committee must
30 report. The term also includes any receipt or use of anything of
20070H2121B2339 - 219 -
1 value received by a political committee from another political
2 committee and also includes any return on investments by a
3 political committee.
4 "Political committee." Any committee, club, association or
5 other group of persons that receive contributions or make
6 expenditures.
7 CHAPTER 28
8 COMPULSIVE GAMBLING ASSISTANCE
9 Section 2801. Establishment of program; duties of licensee.
10 (a) General rule.--Each applicant for a table game license
11 shall submit a compulsive gambling assistance plan to the board
12 for approval, modification or disapproval. The plan shall
13 provide standards, methods, procedures and practices for
14 assisting in the prevention, education and treatment of
15 compulsive and problem gambling. The compulsive gambling
16 assistance plan shall be submitted with a person's application
17 for a table game license. The development of the plan by an
18 applicant and the approval of the plan by the board, in
19 collaboration with the Department of Health, shall be a
20 condition for the approval and issuance of a table game license
21 under this act. The preservation and maintenance of the approved
22 plan shall be a condition for the renewal of a table game
23 license.
24 (b) Criteria for plan development.--Each compulsive gambling
25 assistance plan shall include all of the following:
26 (1) A mission statement that identifies the goals of the
27 table game licensee administering the plan.
28 (2) The identification of a plan manager or other person
29 responsible for ensuring that the plan, as approved by the
30 board, is implemented, monitored and maintained in accordance
20070H2121B2339 - 220 -
1 with the requirements of this act.
2 (3) An identification of the job classifications of each
3 table game employee who, because of a particular job or
4 employment function at the licensed table game facility, will
5 be required to obtain compulsive and problem gambling
6 training in accordance with the requirements of this chapter.
7 (4) Policies concerning the handling of compulsive
8 gambling problems, including, but not limited to:
9 (i) Commitment to training.
10 (ii) Commitment to intervention.
11 (iii) Role and duties of a licensee's employees,
12 including management employees.
13 (iv) Responsibility of patrons.
14 (5) Specific, detailed procedures for:
15 (i) Identifying compulsive gaming behavior or
16 potential behavior in patrons and employees.
17 (ii) Determining appropriate intervention techniques
18 in a given circumstance.
19 (iii) Carrying out the intervention techniques.
20 (6) Printed literature to educate patrons about
21 compulsive gambling and inform them of local, Statewide or
22 national resources available to compulsive gamblers and their
23 families. The materials may include signs and posters
24 conspicuously displayed in gaming areas and brochures on
25 compulsive gambling issues and sources of treatment and
26 information. The plan shall specify the source of the printed
27 literature and proposed method of dissemination to patrons
28 and employees.
29 (7) Policy and procedures to prohibit facilitating,
30 participating in or allowing the issuance of any loans or
20070H2121B2339 - 221 -
1 extension of credit, except as provided in this act, to a
2 patron for gaming purposes.
3 (8) A comprehensive employee training plan, including
4 training manuals and other materials and literature necessary
5 to educate employees about compulsive gambling issues.
6 (9) A form for certifying, to the board's satisfaction,
7 that each employee required to obtain compulsive gambling
8 training has completed the training within the time period
9 specified by the board. The certification program shall be
10 approved by the Department of Health.
11 (10) Details of a follow-up compulsive gambling training
12 program to periodically reinforce employee training.
13 (11) A timetable and procedures for implementing the
14 compulsive gambling assistance plan.
15 (12) Any other policies and procedures designed to
16 encourage responsible gaming, including methods for
17 preventing gaming by minors and problem gamblers.
18 (c) Establishment of training program.--Each applicant for a
19 table game license and each licensee shall include an employee
20 training program in its compulsive gambling plan. The employee
21 training program shall include:
22 (1) Characteristics and symptoms of compulsive behavior,
23 including compulsive and problem gambling.
24 (2) Prevalence of compulsive and problem gambling.
25 (3) Relationship of compulsive gambling and other
26 addictions.
27 (4) Social and economic consequences of compulsive and
28 problem gambling, such as indebtedness, costs of treatment,
29 suicide prevention and suicide, criminal behavior,
30 unemployment and counseling for family.
20070H2121B2339 - 222 -
1 (5) Identification of vulnerable demographic, including
2 women, low-income individuals, senior citizens, the
3 underemployed or unemployed and individuals who abuse drugs
4 and/or alcohol or who display other characteristics of
5 compulsive behavior.
6 (6) Intervention techniques to be employed where a
7 compulsive or problem gambling problem is identified or
8 suspected.
9 (7) Assistance and referral programs, including specific
10 resources and training on how to approach and discuss
11 compulsive or problem gambling with a patron and give advice
12 and assistance relative to accessing available community,
13 public and private professional behavior health services.
14 (8) Procedures designed to prevent the serving of
15 alcohol to visibly intoxicated patrons, including procedures
16 to prevent visibly intoxicated patrons from participating in
17 all gaming activity.
18 (9) Procedures for removing self-excluded persons from a
19 licensed facility, including, if necessary and appropriate,
20 procedures that include obtaining assistance from law
21 enforcement personnel.
22 (10) Procedures for the immediate removal of persons
23 identified on the self-exclusion list from all rewards,
24 promotional programs or other such programs or activities.
25 (11) Procedures to prevent any person identified on the
26 self-exclusion list from receiving any advertisement,
27 promotion or other targeted mailers after 30 days of
28 receiving notice from the board that the person has been
29 placed on the self-exclusion list.
30 (12) Procedures for the dissemination of written
20070H2121B2339 - 223 -
1 compulsive and problem gambling literature to patrons that
2 explains the self-exclusion program.
3 (13) Procedures to prevent any person identified on the
4 self-exclusion list from having access to or from receiving
5 complimentary services or other like benefits of any kind or
6 value.
7 (d) Conduct of and time-period for training.--Compulsive
8 gambling training shall be conducted by professionals in
9 behavioral health or addiction within 60 days of the start date
10 of each new employee of the licensee that is required to receive
11 training pursuant to the requirements of this chapter.
12 (e) Employee responsibility.--Each table game employee
13 shall, as a condition of employment with a licensee, be required
14 to identify patrons who the employee knows or suspects are
15 compulsive or problem gamblers and inform an immediate
16 supervisor or other managerial-level employee of the licensee of
17 that knowledge or suspicion.
18 CHAPTER 29
19 MISCELLANEOUS PROVISIONS
20 Section 2901. Electronic funds transfer terminal; automatic
21 teller machines.
22 (a) Restriction on placement.--A person who holds a table
23 game license shall not install, own or operate or allow another
24 person to install, own or operate an electronic funds transfer
25 terminal on the premises of a licensed table game facility that
26 is less than 100 feet away from any table game in the facility.
27 (b) Prohibition on transfer of funds.--A person who holds a
28 table game license shall not install, own or operate or allow
29 another person to install, own or operate on the premises of the
30 table game facility a game that is played with a device that
20070H2121B2339 - 224 -
1 allows a player to operate the game by transferring funds
2 electronically from a credit or debit card.
3 (c) Definition.--As used in this section "electronic funds
4 transfer terminal" means an information-processing device or an
5 automatic teller machine used for executing deposit account
6 transactions between financial institutions and their account
7 holders by either the direct transmission of electronic impulses
8 or the recording of electronic impulses for delayed processing.
9 The fact that a device is used for other purposes does not
10 prevent it from being an electronic funds transfer terminal
11 pursuant to this definition.
12 Section 2902. Liquor license.
13 Notwithstanding any other provision of law to the contrary,
14 an applicant for or a holder of a table game license issued
15 under the provisions of this act who is licensed to sell liquor
16 or malt or brewed beverages pursuant to the act of December 12,
17 1951 (P.L.90, No.21), known as the Liquor Code, and who is
18 authorized to sell, furnish or give away such beverages in a
19 licensed slot machine facility pursuant to 4 Pa.C.S. Pt. II
20 (relating to gaming) shall be permitted to sell, furnish or give
21 liquor or malt or brewed beverages on premises of the licensed
22 table game facility so long as the liquor or malt or brewed
23 beverage remains in and is consumed in the licensed facility.
24 The provisions of 4 Pa.C.S. § 1521(c) (relating to liquor
25 licenses at licensed facilities) shall apply to any applicant
26 for or holder of a table game license under this act who is not
27 a holder of a license pursuant to the Liquor Code and who is not
28 a holder of a slot machine license of the time of licensure as a
29 table game facility under this act.
30 Section 2903. Exclusive jurisdiction of Pennsylvania Supreme
20070H2121B2339 - 225 -
1 Court.
2 The Pennsylvania Supreme Court shall have exclusive
3 jurisdiction to hear any challenge to or to render a declaratory
4 judgment concerning the constitutionality of this act. The
5 Supreme Court is authorized to take such action as it deems
6 appropriate, consistent with the Supreme Court retaining
7 jurisdiction over the matter, to find facts or to expedite a
8 final judgment in connection with any challenge or request for
9 declaratory relief.
10 Section 2904. Appropriations.
11 (a) Appropriation to board.--The sum of $3,500,000 is hereby
12 appropriated to the Pennsylvania Gaming Control Board for the
13 fiscal year July 1, 2007, to June 30, 2008, to implement and
14 administer the provisions of this act. The money appropriated
15 pursuant to this subsection shall be considered a loan from the
16 General Fund and shall be repaid to the General Fund quarterly
17 commencing with the date table game licensees commence operation
18 of table games in accordance with this act. This appropriation
19 shall be a continuing appropriation and shall not lapse until
20 June 30, 2010.
21 (b) Appropriation to Pennsylvania State Police.--The sum of
22 $3,500,000 is hereby appropriated from the General Fund to the
23 Pennsylvania State Police for the fiscal year July 1, 2007, to
24 June 30, 2008, to carry out the powers, duties and
25 responsibilities conferred upon it under the applicable
26 provisions of this act. The money appropriated under this
27 subsection shall be considered a loan from the General Fund and
28 shall be repaid by the board to the General Fund quarterly
29 commencing when all table game licensees begin operation of
30 table games in accordance with this act. This appropriation
20070H2121B2339 - 226 -
1 shall be a continuing appropriation and shall not lapse until
2 June 30, 2010.
3 (c) Appropriation to department.--The sum of $2,000,000 is
4 hereby appropriated from the General Fund to the Department of
5 Revenue for the fiscal year July 1, 2007, to June 30, 2008, to
6 carry out the powers, duties and responsibilities conferred upon
7 it under the applicable provisions of this act. The money
8 appropriated under this subsection shall be considered a loan
9 from the General Fund and shall be repaid to the General Fund by
10 the board quarterly commencing with the date table game
11 licensees begin operation of authorized table games in
12 accordance with this act. This appropriation shall be a
13 continuing appropriation and shall not lapse until June 30,
14 2010.
15 (d) Appropriation to the Office of Attorney General.--The
16 sum of $2,000,000 is hereby appropriated from the General Fund
17 to the Office of Attorney General for the fiscal year July 1,
18 2007, to June 30, 2008, to carry out the powers and duties
19 conferred upon it under the applicable provisions of this act.
20 The money appropriated under this subsection shall be considered
21 a loan from the General Fund and shall be repaid to the General
22 Fund by the board quarterly commencing with the date table game
23 licensees begin operation of authorized table games in
24 accordance with this act. This appropriation shall be a
25 continuing appropriation and shall not lapse until June 20,
26 2010.
27 Section 2905. Severability.
28 The provisions of this act are severable. If any provision of
29 this act or its application to any person or circumstance is
30 held invalid, the invalidity shall not affect other provisions
20070H2121B2339 - 227 -
1 or applications of this act that can be given effect without the
2 invalid provision or application.
3 Section 2906. Repeals.
4 (a) Specific.--Repeals are as follows:
5 (1) The General Assembly declares that the repeals under
6 paragraphs (2) and (3) are necessary to effectuate the
7 provisions of this act.
8 (2) Section 493(2) of the act of April 12, 1951 (P.L.90,
9 No.21), known as the Liquor Code, is repealed absolutely.
10 (3) The provisions of 18 Pa.C.S. § 5513(a) are repealed
11 insofar as they are inconsistent with this act.
12 (b) General.--All other acts or parts of acts are repealed
13 insofar as they are inconsistent with this act.
14 Section 2907. Effective date.
15 This act shall take effect in 60 days.
F27L04BIL/20070H2121B2339 - 228 -