THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY DeWEESE, FABRIZIO, SOLOBAY, SANTONI, BELFANTI, BRENNAN, CALTAGIRONE, EACHUS, FRANKEL, GERGELY, HARHAI, KORTZ, KULA, MAHONEY, PALLONE, PASHINSKI, K. SMITH, STABACK, WHITE AND GERBER, JUNE 17, 2009

REFERRED TO COMMITTEE ON GAMING OVERSIGHT, JUNE 17, 2009  

AN ACT

Relating to amusement; authorizing table games; imposing powers

and duties on the Pennsylvania Gaming Control Board;

providing for eligibility to conduct authorized table games,

for licensure of table game facilities, for conduct of

authorized table games, for statement of compliance, for

certificate of operation, for table game employees, for key

employees, for service industry employees and for licensure

of table game service industries; imposing powers and

conferring duties on the Bureau of Investigation and

Enforcement, the Pennsylvania State Police and the Attorney

General; providing for distribution of gross table game

revenue, for property tax relief, for corrupt organizations,

for prohibitions, for inspections, for enforcement and for

compulsive and problem gambling assistance; providing

penalties; making appropriations; and making related repeals.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

TABLE OF CONTENTS

Chapter 1.  Preliminary Provisions

Section 101.  Short title.

Section 102.  Legislative finding and declaration.

Section 103.  Definitions.

Chapter 2.  Table Games Authorized

Section 201.  Authorization to conduct table games.

Section 202.  Authorized locations for operation.

Section 203.  Commencement of table game operations.

Section 204.  Applicability.

Chapter 3.  Duties of Board

Section 301.  General powers.

Section 302.  Powers and duties of board.

Section 303.  Regulatory powers.

Section 304.  Denials and sanctions.

Section 305.  Annual report, study and recommendations.

Section 306.  Application hearing process.

Section 307.  Board minutes and records.

Section 308.  Maintenance of information.

Section 309.  Temporary regulations.

Section 310.  Diversity goals and requirements of board.

Section 311.  Application appeals.

Section 312.  Issuance of license, permit or registration.

Chapter 4.  Fees, Fines and Penalties

Section 401.  Authority of board; imposition and collection of

fees, fines and penalties.

Section 402.  Table game license fee.

Section 403.  Deposit of fees.

Section 404.  Ability to pay license fee.

Section 405.  Fee on authorized table games.

Chapter 5.  Authorized Licenses

Section 501.  Table game licensing requirements.

Section 502.  Statement of compliance.

Section 503.  Table game license applicant eligibility.

Section 504.  Requirements to manage.

Section 505.  Eligibility of corporations.

Section 506.  Restrictions on licensure.

Chapter 6.  Table Game License Application

Section 601.  Application for table game license.

Section 602.  Disqualification for licensure.

Section 603.  Order approving or denying table game license and

investigation.

Section 604.  Renewal of table game license.

Section 605.  Bond.

Section 606.  Confidentiality of information.

Chapter 7.  Table Game Key Employee License

Section 701.  Licensure of table game key employees.

Section 702.  Denial of license.

Section 703.  Petition for temporary license.

Chapter 8.  Table Game Employee Occupation Permit

Section 801.  Occupation permit required.

Section 802.  Requirements for permit.

Section 803.  Residency.

Section 804.  Convictions not basis for denial of permit.

Chapter 9.  Table Game Service Employees

Section 901.  Table game service employees registration

required.

Section 902.  Application requirements.

Section 903.  Residency.

Section 904.  Convictions not basis for revocation of

registration.

Section 905.  Petition for registration.

Section 906.  Registration fee.

Chapter 10.  Table Game Service Industry

Section 1001.  Licensure of table game service industry.

Section 1002.  Qualifications of table game service industry.

Section 1003.  Table game service industries.

Section 1004.  Restrictions on exempted persons.

Section 1005.  Disqualification.

Section 1006.  Proof of business license and taxes.

Section 1007.  Subcontractor requirements.

Chapter 11.  Approval or Denial of License, Permit or

Registration

Section 1101.  Investigation.

Section 1102.  Issuance or denial of license, permit or

registration.

Section 1103.  Authority to deny application.

Section 1104.  Issuance and renewal of license, permit or

registration.

Section 1105.  Time for renewal; extension.

Chapter 12.  Transfers

Section 1201.  Transfer of property or security.

Section 1202.  Request for interim authorization.

Section 1203.  Trust agreements.

Section 1204.  Obligations and responsibilities.

Section 1205.  Time for determining qualification.

Chapter 13.  Conditions of Operation

Section 1301.  Operation certificate.

Section 1302.  Condition of continued operation.

Section 1303.  Hours of operation.

Chapter 14.  Game and Facility Requirements

Section 1401.  Authorized table games.

Section 1402.  Wagers and payoffs.

Section 1403.  Information to patrons and players.

Section 1404.  Acceptance of tips.

Section 1405.  Table game facility requirements.

Section 1406.  Table game devices, apparatuses, equipment and

supplies.

Section 1407.  Restrictions and prohibitions.

Section 1408.  Density requirement.

Section 1409.  Approved hotels.

Chapter 15.  Internal Controls

Section 1501.  Internal controls.

Section 1502.  Modification of internal controls.

Section 1503.  Additional submissions to board.

Chapter 16.  Credit

Section 1601.  Restriction on provision of credit.

Section 1602.  Acceptance of checks.

Section 1603.  Prohibition on provision of credit.

Section 1604.  Accounts, deposits and transactions.

Section 1605.  Limitation on amount redeemed.

Chapter 17.  Supplier and Manufacturer Licenses

Section 1701.  Supplier and manufacturer licenses.

Section 1702.  Additional eligibility requirements.

Section 1703.  Issuance of license.

Section 1704.  Additional supplier license requirements.

Section 1705.  Records.

Section 1706.  Inspections.

Chapter 18.  Junkets and Complimentary Services

Section 1801.  Junkets.

Section 1802.  Temporary occupation permit.

Section 1803.  Agreements.

Section 1804.  Responsibility of licensee for conduct of junket.

Section 1805.  Violation of terms of junket.

Section 1806.  Records of junkets.

Section 1807.  Report of junket participants.

Section 1808.  Junket arrangements; exemption determination.

Section 1809.  Prohibitions relating to junkets.

Section 1810.  Complimentary services.

Section 1811.  Prohibition on provision of complimentary

services.

Chapter 19.  Professional Services

Section 1901.  Definitions.

Section 1902.  Reporting of professional services.

Chapter 20.  Agreements, Leases and Contracts

Section 2001.  Payments under agreement, lease or contract.

Section 2002.  Maintenance of records.

Section 2003.  Termination of agreement by board.

Section 2004.  Transfer of license.

Chapter 21.  Corporate Licensees

Section 2101.  Disposition of securities.

Section 2102.  Action upon finding of disqualification.

Section 2103.  Prohibition upon disqualification.

Section 2104.  Reports by public and nonpublicly traded

corporations.

Section 2105.  Report of changes in corporation.

Chapter 22.  Employment

Section 2201.  Table game facility employment.

Section 2202.  Requirements for principal employees.

Chapter 23.  Table Game Revenue

Section 2301.  Accounts and deposits.

Section 2302.  Gross table game revenue deductions.

Section 2303.  Table game tax.

Section 2304.  Distribution to agricultural programs.

Section 2305.  Consumer Price Index.

Chapter 24.  Administration and Enforcement

Section 2401.  Authority and responsibility of department.

Section 2402.  Powers and duties of bureau.

Section 2403.  Duties of Pennsylvania State Police.

Section 2404.  Inspections.

Chapter 25.  Prohibitions

Section 2501.  Prohibitions.

Section 2502.  Reports of suspicious transactions.

Section 2503.  Specific offenses relating to table games and

penalties.

Section 2504.  Underage gambling and prohibition.

Section 2505.  Authority to detain.

Section 2506.  Additional prohibitions and penalties.

Section 2507.  Sanctions.

Section 2508.  Continuing offenses.

Section 2509.  Property subject to seizure, confiscation,

destruction or forfeiture.

Chapter 26.  Racketeering and Corrupt Organizations

Section 2601.  Racketeering and corrupt organizations.

Section 2602.  Racketeering activity.

Chapter 27.  Public Officials

Section 2701.  Financial interest and prohibitions.

Section 2702.  Political influence.

Chapter 28.  Compulsive Gambling Assistance

Section 2801.  Establishment of program; duties of licensee.

Chapter 29.  Miscellaneous Provisions

Section 2901.  Electronic funds transfer terminal; automatic

teller machines.

Section 2902.  Liquor license.

Section 2903.  Exclusive jurisdiction of Pennsylvania Supreme

Court.

Section 2904.  Appropriations.

Section 2905.  Severability.

Section 2906.  Repeals.

Section 2907.  Effective date.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

CHAPTER 1

PRELIMINARY PROVISIONS

Section 101.  Short title.

This act shall be known and may be cited as the Table Game

Authorization and Control Act.

Section 102.  Legislative finding and declaration.

The General Assembly finds and hereby declares that this act

is intended to benefit the people of the Commonwealth of

Pennsylvania by providing additional revenue for the support of

property and wage tax relief. The General Assembly further finds

that authorization for the expansion of a controlled gaming

industry requires careful exercise of legislative power to

protect the general health, welfare and safety of the people of

this Commonwealth. Therefore, the General Assembly further finds

and declares that:

(1)  It is the public policy of this Commonwealth that

the authorization to conduct and operate table games at

licensed slot machine facilities to generate revenue for

property and wage tax relief and promote investment, economic

development and tourism, including international tourism,

requires the enactment of comprehensive measures to ensure

that table games are free from criminal and corruptive

elements and conducted honestly and competitively at licensed

slot machine facilities.

(2)  The policy purposes of this act will not be achieved

unless public confidence and trust in the credibility and

integrity of table game operations and their regulatory

process is maintained. Accordingly, the provisions of this

act are crafted to strictly regulate table game facilities

and persons, locations, associations, activities and

practices related to the conduct and operation of authorized

table games.

(3)  Public trust and confidence in table game operations

can only be maintained by strict and comprehensive regulation

of all persons, locations, associations, activities and

practices related to the conduct and operation of authorized

table games; the manufacture and distribution of table game

equipment, apparatuses, devices and supplies; and the

provision of goods, services and property used in the conduct

and operation of authorized table games at licensed table

game facilities.

(4)  All table game operations, all individuals and

persons who have or will have a significant involvement in

table game operations, all licensed slot machine facilities

where table games will be conducted, all manufacturers,

suppliers and other approved persons that provide table game

equipment, apparatuses, devices and supplies and all

providers of goods, services and property used in the conduct

and operation of authorized table games and table game

facilities shall be approved, licensed or regulated to

protect the public health, safety and general welfare of the

residents of this Commonwealth as an exercise of the police

power of this Commonwealth.

(5)  In order to effectuate the policy purposes of this

act, it is necessary and essential:

(i)  that table game facilities, activities and all

equipment, devices, apparatuses and supplies used in the

conduct of authorized table games and persons

participating in those activities be licensed, permitted

or registered or otherwise approved or qualified by the

Pennsylvania Gaming Control Board in accordance with the

provisions of this act;

(ii)  that certain transactions, events and processes

involving licensed table game facilities and table game

licensees be subject to prior approval;

(iii)  that unsuitable persons not be permitted to

associate with table game licensees and other persons

involved in the conduct and operation of authorized table

games at licensed table game facilities; and

(iv)  that table game activities take place only in

licensed slot machine facilities.

(6)  To ensure that table game operations are conducted

honestly, competitively and free of criminal and corruptive

elements, any license, permit or registration or any other

approval issued or granted pursuant to this act is deemed a

revocable privilege and is not a property right.

Section 103.  Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Account" or "player's account."  A financial record

established by a licensed table game facility for an individual

patron to which the facility may credit winnings and other

amounts due to the patron and from which the patron may withdraw

moneys due to the patron for purchase of tokens, chips or other

things or representatives of value.

"Affiliate."  A person that directly or indirectly, through

one or more intermediaries, controls, or is controlled by, or is

under common control with a specified person.

"Applicant."  A person who, on his own behalf or on the

behalf of another, has applied to the Pennsylvania Gaming

Control Board for approval to engage in any act or activity

authorized or regulated under the provisions of this act.

"Application."  A written request for permission to engage in

any act or activity which is authorized or regulated under the

provisions of this act.

"Approve," "approved" or "approval."  In the case of an

application submitted to the Pennsylvania Gaming Control Board

for qualification for a table game license and the authority to

conduct table games, the terms, regardless of usage, refer to

the date that the Pennsylvania Gaming Control Board grants the

table game license, regardless of the pendency of any

administrative or judicial appeal or other legal action

challenging the decision of the Pennsylvania Gaming Control

Board.

"Authorized game," "authorized table game" or "game."  Any

banking, nonbanking or percentage game played with cards, dice,

tiles, dominoes or any mechanical, electronic, computerized or

electrical device used to play a table game for money, property,

checks, credit or any representation of value, including,

without limiting the generality of the foregoing, roulette,

baccarat, blackjack, craps, big six wheel, mini-baccarat, red

dog, pai gow, poker, twenty-one, acey-ducey, chuck-a-luck, fan-

tail, panguingui, chemin de fer, sic bo, and any variations or

composites of such games, provided that the variations or

composites are found by the Pennsylvania Gaming Control Board to

be suitable for use after an appropriate test or experimental

period under terms and conditions as the Pennsylvania Gaming

Control Board may determine appropriate; and any other game,

including multiplayer electronic table games, which is

determined by the Pennsylvania Gaming Control Board to be

compatible with the public interest and suitable for use in a

licensed table game facility after the appropriate test or

experimental period as the Pennsylvania Gaming Control Board

deems appropriate. The terms include table game contests or

tournaments in which players compete against one another in one

or more of the table games authorized under this act or by the

Pennsylvania Gaming Control Board or approved variations or

composites of those games, provided the Pennsylvania Gaming

Control Board authorizes the contests or tournaments. The term

shall not include:

(1)  Lottery games of the Pennsylvania State Lottery as

authorized under the act of August 26, 1971 (P.L.351, No.91),

known as the State Lottery Law.

(2)  Bingo as authorized under the act of July 10, 1981

(P.L.214, No.67), known as the Bingo Law.

(3)  Pari-mutuel betting on the outcome of thoroughbred

or harness horse racing as authorized under the act of

December 17, 1981 (P.L.435, No.135), known as the Race Horse

Industry Reform Act.

(4)  Small games of chance as authorized under the act of

December 19, 1988 (P.L.1262, No.156), known as the Local

Option Small Games of Chance Act.

(5)  Slot machine gaming and progressive slot machine

gaming as authorized under 4 Pa.C.S. Pt. II (relating to

gaming).

"Background investigation."  A security, criminal, financial,

credit and/or suitability investigation of a person who has

applied for the issuance or renewal of a license, permit or

registration under this act, or of a licensee who holds a

current license approved and issued by the Pennsylvania Gaming

Control Board. The background investigation shall include the

status of any taxes owed to the United States, the Commonwealth

or political subdivisions of the Commonwealth or any other

jurisdiction.

"Board."  The Pennsylvania Gaming Control Board.

"Bureau."  The Bureau of Investigation and Enforcement of the

Pennsylvania Gaming Control Board established under 4 Pa.C.S.

Pt. II (relating to gaming).

"Cash."  United States currency and coin or foreign currency

and coin that have been exchanged for its equivalent in United

States currency or coin.

"Cash equivalent."  An asset that is readily convertible to

cash, including, but not limited to, any of the following:

(1)  Travelers checks.

(2)  Certified checks, cashier's checks and money orders.

(3)  Personal checks or drafts.

(4)  Credit extended by the table game licensee, a

recognized credit card company or banking institution.

(5)  Any other instrument that the Pennsylvania Gaming

Control Board deems a cash equivalent. Other than recognized

credit cards or credit extended by the table game licensee,

all instruments that constitute a cash equivalent shall be

made payable to the table game licensee, bearer or to cash.

An instrument made payable to a third party shall not be

considered a cash equivalent under this definition.

"Cash equivalent value."  The monetary value that a table

game licensee shall assign to a jackpot or payout that consists

of merchandise or any thing of value other than cash, tokens,

chips or plaques. The Pennsylvania Gaming Control Board shall

promulgate rules defining "cash equivalent value" in order to

assure fairness, uniformity and comparability of valuation of

jackpots and payoffs that include merchandise or anything of

value.

"Chairman."  The chairperson of the Pennsylvania Gaming

Control Board.

"Chip."  A representation of value redeemable for cash only

at the issuing table game facility and issued by the table game

licensee for use in playing an authorized table game.

"Complimentary service or item."  Any lodging, service or

item provided to an individual at no cost or at a reduced price,

which is not generally available to the public under similar

circumstances. The furnishing of a complimentary service or item

by a table game licensee shall constitute the indirect payment

for the service or item by the table game licensee, and shall be

valued in an amount based upon the retail price normally charged

by the table game licensee for the service or item. The value of

a complimentary service or item not normally offered for sale by

a table game licensee or provided by a third party on behalf of

a table game licensee shall be the cost to the table game

licensee of providing the service or item, as determined in

accordance with the rules of the Pennsylvania Gaming Control

Board.

"Control" or "controlling interest."  For a publicly traded

domestic or foreign corporation, a controlling interest is an

interest in a legal entity, applicant or licensee if a person's

sole voting rights under State law or corporate articles or

bylaws entitle the person to elect or appoint one or more of the

members of the board of directors or other governing board or

the ownership or beneficial holding of 5% or more of the

securities of the publicly traded corporation, partnership,

limited liability company or other form of publicly traded legal

entity, unless this presumption of control or ability to elect

is rebutted by clear and convincing evidence. For a privately

held domestic or foreign corporation, partnership, limited

liability company or other form of privately held legal entity,

a controlling interest is the holding of any securities in the

legal entity, unless this presumption of control is rebutted by

clear and convincing evidence.

"Conviction."  A finding of guilt or a plea of guilty or nolo

contendere, whether or not a judgment of sentence has been

imposed as determined by the law of the jurisdiction in which

the prosecution was entered. The term shall not include a

conviction that has been expunged, overturned or for which an

individual has been pardoned or where an order of accelerated

rehabilitative disposition has been completed.

"Counterfeit chips or tokens."  Chip-like or token-like

objects that have not been approved by the Pennsylvania Gaming

Control Board for use in authorized table games, including

objects commonly referred to as "slugs," but not including legal

coins of the United States or any foreign country or

jurisdiction.

"Count room."  The room or rooms designated for counting,

wrapping and recording of a table game licensee's authorized

table game receipts.

"Creditor."  The holder of any claim, of whatever character,

against a person, whether secured or unsecured, matured or

unmatured, liquidated or unliquidated, absolute, fixed or

contingent.

"Debt."  Any legal liability, whether matured or unmatured,

liquidated or unliquidated, absolute, fixed or contingent.

"Department."  The Department of Revenue of the Commonwealth.

"Encumbrance."  A mortgage, security interest, lien or charge

of any nature in or upon property.

"Equity security."  Any voting stock of a corporation or

similar security; any security convertible, with or without

consideration, into a security; the carrying of any warrant or

right to subscribe to or purchase a security or any such warrant

or right; or any security having direct or indirect

participation in the profits of the issuer.

"Establishment."  A single building or two or more buildings,

including an approved hotel, that are physically connected in a

manner deemed appropriate by the Pennsylvania Gaming Control

Board, containing a table game facility, a slot machine facility

or any other facility, as approved by the Pennsylvania Gaming

Control Board.

"Gaming activity."  The dealing, operating, carrying on,

conducting, maintaining or exposing for play any authorized

table game.

"Gross table game revenue."

(1)  The total of wagers received in the playing of an

authorized table game minus the total of:

(i)  Cash or cash equivalents paid out to patrons as

a result of playing an authorized table game.

(ii)  Cash paid to purchase annuities to fund prizes

payable to patrons over a period of time as a result of

playing an authorized table game.

(iii)  Any personal property distributed to a patron

as the result of playing an authorized table game. This

does not include travel expenses, food, refreshments,

lodging or any other complimentary services or items.

(2)  The term does not include counterfeit money or

tokens, coins or currency of other countries which are

received in the playing of an authorized table game, except

to the extent that they are readily convertible to United

States currency; cash taken in fraudulent acts perpetrated

against a table game licensee for which the table game

licensee is not reimbursed; or cash received as entry fees

for contests or tournaments in which the patrons compete for

prizes.

"Holding company."  Any corporation, association, firm,

partnership, trust or other form of business organization other

than a natural person that, directly or indirectly, owns, has

the power or right to control, or has the power to vote any

significant part of the outstanding voting securities of a

corporation or other form of business organization which holds

or applies for a table game license. For the purpose of this

definition, in addition to any other reasonable meaning of the

words used, a holding company indirectly has, holds or owns

power, right or security if it does so through any interest in a

subsidiary or successive subsidiaries, however many subsidiaries

may intervene between the holding company and the table game

licensee or an applicant for a table game license.

"Institutional investor."  Any of the following:

(1)  Any retirement fund administered by a public agency

for the exclusive benefit of Federal, State or local public

employees.

(2)  Any investment company registered under the

Investment Company Act of 1940 (54 Stat. 789, 15 U.S.C. §

80a-1 et seq.).

(3)  Any collective investment trust organized by banks

under Part Nine of the Rules of the Comptroller of the

Currency.

(4)  Any closed-end investment trust, chartered or

licensed life insurance company or property and casualty

insurance company, banking and other chartered or licensed

lending institution or investment advisor registered under

the Investment Advisers Act of 1940 (54 Stat. 847, 15 U.S.C.

§ 80b-1 et seq.).

(5)  Other persons that the Pennsylvania Gaming Control

Board may determine consistent with this act.

"Intermediary company."  Any corporation, association, firm,

partnership, trust or any other form of business organization

other than a natural person which:

(1)  Is a holding company with respect to a corporation

or other form of business organization which holds or applies

for a table game license.

(2)  Is a subsidiary with respect to any holding company.

"Issue," "issued" or "issuance."  In the case of an

application submitted to the Pennsylvania Gaming Control Board

for qualification and authorization to conduct authorized table

games in accordance with this act, the terms refer to the date

on which the Pennsylvania Gaming Control Board approves the

application and on which the application becomes final, binding

and nonappealable and is not subject to a pending legal

challenge.

"Junket."  An arrangement for which an individual is selected

or approved for participation on the basis of the individual's

ability to satisfy a financial qualification or the individual's

likelihood to participate in gaming, to come to a licensed table

game facility for the purpose of gaming and pursuant to which,

and as consideration for which, any or all of the cost of

transportation, food, lodging and entertainment for the

individual is directly or indirectly paid by a table game

licensee or employee or agent thereof.

"Junket enterprise."  Any person, other than the holder of or

an applicant for a table game license, who employs or otherwise

engages the services of a junket representative in connection

with a junket to a table game facility, regardless of whether or

not those activities occur within this Commonwealth.

"Junket representative."  Any natural person who negotiates

the terms of or engages in the referral, procurement or

selection of persons who may participate in any junket to a

licensed table game facility, regardless of whether or not those

activities occur within this Commonwealth.

"License."  Any license issued in accordance with or required

under this act.

"License or registration fee."  Any moneys required under

this act or by law or regulation to be paid for the issuance or

renewal of a table game license, a supplier license, a

manufacturer license, service industry license or any other

license or registration issued under this act.

"Licensed entity."  A table game licensee, manufacturer

licensee, supplier licensee, service industry licensee or any

other person licensed by the Pennsylvania Gaming Board under

this act.

"Licensed facility."  The physical land-based location at

which a licensed gaming entity is authorized to place and

operate slot machines pursuant to and in accordance with 4

Pa.C.S. Pt. II (relating to gaming) and to conduct and operate

authorized table games under this act.

"Licensed gaming entity" or "slot machine licensee."  A

person that holds a slot machine license pursuant to 4 Pa.C.S.

Pt. II (relating to gaming).

"Licensed table game entity."  A licensed gaming entity that

has been approved for and that holds a table game license under

this act.

"Licensed table game facility."  The physical location,

including areas in an approved hotel, of a licensed facility

where authorized table games are conducted by a licensed table

game entity.

"Licensee."  A person who has been approved for and who holds

a table game license or any other license issued under this act.

"Manufacturer."  A person who manufactures, builds, rebuilds,

fabricates, assembles, produces, programs, designs or otherwise

makes modification to table game equipment, apparatuses, devices

and supplies for use in or play of authorized table games in

this Commonwealth.

"Manufacturer license."  A license issued by the Pennsylvania

Gaming Control Board in accordance with this act that authorizes

a manufacturer to conduct or engage in business with a licensed

table game entity in this Commonwealth.

"Manufacturer licensee."  A person who has been approved for

and who holds a manufacturer license.

"Municipality."  A county, city, borough, incorporated town

or township.

"Occupation permit."  A permit authorizing an individual to

be employed or work as a table game employee at a licensed table

game facility.

"Operation."  The conduct of authorized table games as

authorized under this act.

"Operation certificate."  A certificate issued by the

Pennsylvania Gaming Control Board that certifies that the

operation of a licensed table game facility conforms to the

requirements of this act and regulations promulgated pursuant to

this act.

"Party."  The Pennsylvania Gaming Control Board, the Bureau

of Investigation and Enforcement or any licensee, permittee,

registrant, applicant or any person appearing of record for any

licensee, permittee, registrant or applicant in any proceeding

before the Pennsylvania Gaming Control Board or in any

proceeding for judicial review of any action, decision or order

of the Pennsylvania Gaming Control Board.

"Patron."  A person who plays an authorized table game at a

licensed table game facility in accordance with this act.

"Permittee."  An individual who holds an occupation permit

issued in accordance with this act.

"Person."  Any natural person, corporation, foundation,

organization, business trust, estate, limited liability company,

licensed corporation, trust, partnership, limited liability

partnership, association or any other form of legal business

entity.

"Principal employee."  Any person who is an officer or

director or who, by reason of remuneration or of a decision-

making position or other criteria as may be established by the

Pennsylvania Gaming Control Board by regulation, holds or

exercises authority that, in the judgment of the Pennsylvania

Gaming Control Board, is sufficiently related to the operation

of a licensed table game facility so as to require

qualification.

"Property."  Real property, tangible and intangible personal

property and rights, claims and franchises of every nature.

"Publicly traded company."  Any corporation or other legal

entity, except a natural person, to which any of the following

apply:

(1)  Has one or more classes of security registered

pursuant to section 12 of the Securities Exchange Act of 1934

(48 Stat. 881, 15 U.S.C. § 78a et seq.).

(2)  Is an issuer subject to section 15(d) of the

Securities Exchange Act of 1934 (48 Stat. 881, 15 U.S.C. §

78a et seq.).

(3)  Has one or more classes of securities traded in any

open market in any foreign jurisdiction or regulated pursuant

to a statute of any foreign jurisdiction that the

Pennsylvania Gaming Control Board determines to be

substantially similar to either or both of the aforementioned

statutes.

"Qualification" or "qualified."  A determination or finding

by the Pennsylvania Gaming Control Board that a person, other

than a person specifically required to obtain a license, permit

or registration under this act, meets the eligibility

requirements for a license under this act and the nature of the

person's employment or association with or ownership interest in

an applicant or table game licensee will require the person to

qualify for a license under this act.

"Qualified licensed facility."  A licensed facility under 4

Pa.C.S. Pt. II (relating to gaming) that is approved by the

Pennsylvania Gaming Control Board to operate authorized table

games under this act.

"Registrant."  A person who is registered with the

Pennsylvania Gaming Control Board pursuant to this act.

"Registration."  Any requirement, other than one that

requires a license or permit, that requires a person to qualify

and register as a prerequisite to the conduct of a particular

business or activity specified in this act.

"Regulated complimentary service account."  An account

maintained by a table game licensee on a regular basis that

itemizes complimentary services and includes, without

limitation, a listing of the cost of junket activities and any

other service provided by a table game licensee at no cost or at

a reduced price.

"Resident."  Any individual domiciled and living within this

Commonwealth having a present intent to remain within this

Commonwealth for a period of time and manifesting the

genuineness of that intent by establishing an ongoing physical

presence within this Commonwealth, together which indicate that

the individual's presence within this Commonwealth is not merely

transitory in nature.

"Restricted table game area" or "restricted area."  The

cashier's cage, the soft count room, the hard count room, the

interior of table game pits, the surveillance room and catwalk

areas, and any other area specifically designated by the

Pennsylvania Gaming Control Board as a restricted area in a

table game licensee's operation certificate.

"Security."  Any instrument evidencing a direct or indirect

beneficial ownership or creditor interest in a corporation or

other form of business organization, including, but not limited

to, common or preferred stock, bonds, mortgages, debentures,

security agreements, notes, warrants, options and rights.

"Slot machine license."  A license issued to an applicant to

place and operate slot machines in a licensed facility pursuant

to 4 Pa.C.S. Pt. II (relating to gaming).

"Statement of compliance."  A statement by the Pennsylvania

Gaming Control Board that may be issued to an applicant for a

license under this act that indicates satisfactory completion of

a particular stage or stages of the application or license

consideration process, and that states that unless there is a

change of any material circumstance pertaining to the particular

stage or stages of license consideration involved in the

statement, the applicant has complied with the requirements of

this act for licensure and is therefore approved for license

qualification to the stage or stages for which the statement has

been issued.

"Subsidiary."  Any corporation, any significant part of whose

outstanding equity securities are owned, subject to a power or

right of control, or held with power to vote, by a holding

company or an intermediary company or a significant interest in

a firm, association, partnership, trust or other form of

business organization, not a natural person, that is owned,

subject to a power or right of control, or held with power to

vote, by a holding company or an intermediary company.

"Supplier."  A person who sells, leases, offers for sale or

otherwise provides, distributes table game devices, equipment,

apparatuses or supplies or who repairs or services any table

game devices, equipment, apparatus or supplies for use or play

of authorized table games in this Commonwealth.

"Supplier license."  A license issued by the Pennsylvania

Gaming Control Board authorizing a supplier to provide products

or services related to table games to a table game licensee.

"Supplier licensee."  A person who has been approved for and

issued a supplier license.

"Table game device," "equipment," "apparatus" or "supplies."

Any cards, dice, chips, shufflers, tiles, dominoes, wheel, drop

boxes or any electronic, electrical, mechanical or computerized

contrivance or device, mechanism, machine, equipment or related

supplies used or consumed in operation or connection with

authorized table games at a licensed table game facility.

"Table game employee."  Any natural person employed in the

operation of a licensed table game facility, including, but not

limited to, boxmen, dealers or croupiers, floormen, device or

equipment technicians, security employees, count room personnel,

cage personnel, collection personnel, surveillance personnel and

data processing personnel, or any other natural person whose

employment duties predominantly involve the maintenance or

operation of table games or table game devices, equipment or

apparatuses and assets associated therewith or who, in the

judgment of the Pennsylvania Gaming Control Board, is so

regularly required to work in a restricted table game area that

issuance of an occupation permit as a table game employee is

appropriate.

"Table game key employee."  Any natural person employed in

the operation of a licensed table game facility in a supervisory

capacity or empowered to make discretionary decisions that

govern table game facility operations, including, but not

limited to, pit bosses, shift bosses, credit supervisors,

cashier supervisors, table game facility managers and assistant

managers or supervisors of security employees, or any other

natural person empowered to make discretionary decisions,

including entertainment directors, and food and beverage

directors or any other employee designated by the Pennsylvania

Gaming Control Board for reasons consistent with the policies of

this act.

"Table game operations" or "table game activities." The

exposing for play of one or more authorized table games that are

dealt, operated, carried on, conducted or maintained for

commercial gain in a licensed table game facility.

"Table game service employee." A natural person employed to

perform services or duties in a licensed table game facility or

restricted area of the licensed facility but who is not included

within the definition of "table game employee," "table game key

employee" or "security employee" as those terms are defined in

this section.

"Table game service industry." Any form of enterprise which

provides applicants or table games licensees with goods or

services regarding the realty, construction, maintenance, or

business of a proposed or existing licensed table game facility

on a regular or continuing basis, including, without limitation,

junket enterprises, security businesses, gaming schools, garbage

haulers, maintenance companies, food purveyors, and construction

companies, or any other such enterprise which purchases goods or

services from or which does any other business with licensed

table game facilities on a regular or continuing basis.

"Table game service industry license." A license issued by

the Pennsylvania Gaming Control Board in accordance with the

requirements of this act that authorizes a table game service

industry to conduct or engage in business with a licensed table

game entity.

"Table game service industry license licensee."  A person who

has been approved for and issued a table game service industry

license under this act.

"Transfer."  The sale and every other method, direct or

indirect, of disposing of or parting with property or with an

interest in property, or with the possession of property, or of

fixing a lien upon property or upon an interest in property,

absolutely or conditionally, voluntarily or involuntarily, by or

without judicial proceedings, as a conveyance, sale, payment,

pledge, mortgage, lien, encumbrance, gift, security or

otherwise. The reduction of a security interest in property

delivered to a corporation shall be deemed a transfer suffered

by the corporation.

"Wager."  A sum of money, thing or representative of value

risked on an uncertain outcome of the play of an authorized

table game.

CHAPTER 2

TABLE GAMES AUTHORIZED

Section 201.  Authorization to conduct table games.

Notwithstanding any other provision of law to the contrary,

the operation of table games and the system of wagering

associated with table games are hereby authorized to the extent

that table games are conducted in accordance with this act and

guidelines, policy statements, rules or regulations adopted and

promulgated by the board pursuant to this act.

Section 202.  Authorized locations for operation.

Table games authorized pursuant to this act shall only be

operated by a licensed gaming entity that holds a license to

conduct slot machine gaming at a licensed facility pursuant to 4

Pa.C.S. Pt. II (relating to gaming).

Section 203.  Commencement of table game operations.

Notwithstanding any provision of this act to the contrary, a

license to operate authorized table games issued under this act

shall not be construed to permit the operation of authorized

table games until one year subsequent to the operation of slot

machines by a licensed gaming entity at a licensed facility.

Section 204.  Applicability.

This act and any guidelines, rules or regulations promulgated

pursuant to this act shall apply to all persons licensed,

permitted or registered by the board to conduct authorized table

games or to otherwise participate in table game operations

authorized under this act.

CHAPTER 3

DUTIES OF BOARD

Section 301.  General powers.

In addition to general jurisdiction over all gaming and

related activities conferred upon the board under 4 Pa.C.S. Pt.

II (relating to gaming), the board shall be responsible for

ensuring integrity in the conduct, establishment and operation

of authorized table games and shall have overall jurisdiction

over every aspect of the authorization, conduct, establishment

and operation of table games in this Commonwealth.

Section 302.  Powers and duties of board.

The board shall implement the provisions of this act and

shall adopt any guidelines or policy statements and promulgate

any regulations necessary to carry out the provisions of this

act. The board shall have the duty, without limitation, to:

(1)  Hear and decide in reasonable order all applications

for a table game license, manufacturer license, supplier

license, table game service industry license, and any other

license, registration or permit authorized under this act.

(2)  At its discretion issue, approve, renew, revoke,

suspend, condition or deny issuance or renewal of any

license, permit or registration or any other qualification

authorized under this act. The board may deny, revoke,

condition, suspend or refuse to renew a license, permit or

registration if it finds that an applicant or a licensee or

an officer, employee or agent of an applicant or licensee has

furnished false or misleading information to the board or

failed to comply with this act or any guidelines, policy

statements, rules or regulations of the board adopted and

promulgated pursuant to this act or under 4 Pa.C.S. (relating

to gaming) and that it would be in the public interest to

deny, deny the renewal, revoke, condition or suspend the

license, permit or registration.

(3)  Require background investigations on prospective or

existing table game licensees, manufacturer licensees,

supplier licensees, service industry licensees, permittees,

registrants or other persons holding a controlling interest

in any prospective or existing licensee, permittee or

registrant or other person required to be qualified for

licensure, permitting, registration or qualification under

this act.

(4)  Receive information from the bureau, the

Pennsylvania State Police and other law enforcement agencies

regarding investigations of applications for a license,

permit, registration or qualification under this act.

(5)  Require each applicant for a table game license to

provide information on whether the applicant has been

indicted, charged, arrested, convicted, pleaded guilty or

nolo contendere, forfeited bail concerning or had expunged

any misdemeanor or felony criminal offense under the laws of

any jurisdiction, foreign or domestic, not including traffic

violations, regardless of whether the offense has been

expunged, pardoned or reversed on appeal or otherwise,

including the date, the name and location of the court,

arresting and prosecuting agency, the case caption, the

docket number, the offense, the disposition and the location

and length of incarceration.

(6)  Restrict access to confidential information in the

possession of the board or the bureau which has been obtained

under this act and assure that the confidentiality of

information received is maintained and protected. Records

shall be retained by the board for seven years.

(7)  At its discretion, to suspend, revoke, condition or

deny the issuance or renewal of any license, permit or

registration.

(8)  Require each applicant for a license, permit,

registration or qualification to submit to fingerprinting by

the Pennsylvania State Police. The Pennsylvania State Police

shall submit fingerprint images to the Federal Bureau of

Investigation to verify the identity of the applicant and

obtain criminal history record information.

(9)  Determine the suitability of table game service

industries, including junket enterprises, junket

representatives or any other person who furnishes or seeks to

furnish to an authorized table game licensee, directly or

indirectly, any goods, service or property related to the

conduct, play and operation of table games and related

activities or through any arrangement under which a junket

enterprise, junket representative or any like person receives

payment based, directly or indirectly, on earnings, profits

or receipts from the conduct, play or operation of table

games. The board may require that a junket enterprise, junket

representative or like person comply with the requirements of

this act and the regulations of the board and may prohibit

the person from furnishing the goods, service or property.

(10)  Conduct all hearings pertaining to administrative

violations of this act and regulations promulgated under this

act.

(11)  Collect all application, license, permit and

registration fees and any other fees established by

regulation of the board.

(12)  Levy fines, impose sanctions and collect penalties

for the violation of this act and the regulations promulgated

under this act.

(13)  Establish times as are necessary for agents of the

board to be present at a licensed table game facility for the

purpose of certifying the revenue, receiving complaints from

the public relating to the conduct of authorized table games,

examining records of revenues and procedures, and conducting

periodic reviews of table game and facility operations for

the purpose of evaluating current performance and compliance

with the requirements of this act and regulations promulgated

pursuant to this act.

(14)  Refer to the Pennsylvania State Police or the

Attorney General for investigation and prosecution of any

evidence of a suspected or alleged violation of this act or

the regulations promulgated under this act.

(15)  Review and rule upon any complaint by a table game

licensee regarding any investigative procedure of the bureau

or the Pennsylvania State Police, that is unnecessarily

disruptive of table game facility operations. The need to

inspect and investigate shall be presumed at all times. The

disruption of a table game licensee's operations shall be

proved by clear and convincing evidence, such evidence shall

establish the following:

(i)  The procedures had no reasonable law enforcement

purpose.

(ii)  The procedures were so disruptive as to

unreasonably inhibit table game facility operations. The

board may seek advice from the Attorney General when

reviewing any investigative procedures or practices of

the Pennsylvania State Police.

(16)  Prescribe procedures for and require periodic

financial reporting and internal controls for all table game

facilities.

(17)  Require each table game licensee to transmit to the

board quarterly audit reports and an annual audit report of

the financial condition of the table game licensee's total

operation. The quarterly audit reports shall be transmitted

to the board for each of the first three fiscal quarters of

the licensee's fiscal year and within 30 days of the end of

each fiscal quarter. The annual report shall be transmitted

to the board within 30 days following the deadline prescribed

by the Securities and Exchange Commission for the filing of

the annual audit report by the Securities and Exchange

Commission.

(18)  Establish and enforce prescribed hours of operation

of authorized table games, notwithstanding that authorized

table games may be operated on any day of the year in order

to meet the needs of patrons and to promote competition.

(19)  Require that each licensed table game entity

prohibit individuals under 21 years of age from playing or

participating in the play of authorized table games.

(20)  Require each applicant for a table game license to

provide detailed site plans of its proposed table game

facility, which the board shall review and approve to

determine the adequacy of the proposed internal and external

security and surveillance measures proposed for the facility.

Applicants shall cooperate with the board in making any

board-recommended modifications to the site plans and will

assure that the site plans, as modified and approved by the

board, are implemented.

(21)  Require table game licensees to provide onsite

facilities for use by the board and the bureau and other

appropriate persons to facilitate their ability to perform

their respective responsibilities under this act.

(22)  Consult with members of the Pennsylvania State

Police, the Office of Attorney General and other persons it

deems necessary for advice regarding various aspects of the

powers and duties imposed on the board under this act and its

jurisdiction over the operation of authorized table games at

licensed facilities.

(23)  Adopt regulations for the conduct of all authorized

table games proposed to be operated by a table game licensee.

(24)  Investigate applicants for a license, permit or

registration, and other persons to determine qualification

and eligibility for licensure, permitting and registration.

(25)  Require applicants for the issuance or renewal of a

table game license, manufacturer license, supplier license or

service industry license to provide the board with a

statement listing the names and titles of all public

officials who, directly or indirectly, own any financial or

beneficial interest in, are the creditors of or hold any debt

instrument issued by, or hold or have any interest in any

contractual or service relationship with the applicant or

table game licensee, manufacturer licensee, supplier licensee

or service industry licensee. The list shall be updated

annually.

(26)  Not issue or renew a license, permit or

registration unless it is satisfied that the applicant or

licensee is a person of good character, honesty and integrity

and is a person whose prior activities, criminal record, if

any, reputation, habits and associates do not pose a threat

to the public interest or the effective regulation and

control of table game operations in this Commonwealth or

create or enhance the danger of unsuitable, unfair or illegal

practices, methods and activities in the conduct of table

game operations or the carrying on of the business and

financial arrangements incidental to table game operations.

(27)  Submit an annual report of its licensing and

regulatory activities to the General Assembly by January 31

of each year that conforms with the requirements of section

305(a).

(28)  Not issue a table game license to a licensed gaming

entity that is also a holder of a Category 1 slot machine

license if it determines that the licensed gaming entity is

not in full compliance with any of the following:

(i)  The provisions of its application for a slot

machine license as approved by the board.

(ii)  The provisions of its application for a

thoroughbred or harness horse racing license as approved

by either the State Horse Racing Commission or State

Harness Racing Commission, as the case may be.

(iii)  The requirements of 4 Pa.C.S. § 1302 (relating

to Category 1 slot machine license) and section 1303

(relating to additional Category 1 slot machine license

requirements).

(29)  Not issue a table game license to a licensed gaming

entity if it determines that the licensed gaming entity is

not in full compliance with the requirements of 4 Pa.C.S. §

1325(b) (relating to license or permit issuance). 

Section 303.  Regulatory powers.

The board shall adopt and promulgate regulations to carry out

the provisions of this act. The regulations shall include

specific provisions that:

(1)  Prescribe the methods and forms of application that

an applicant shall follow and complete prior to consideration

of an application for a license, permit or registration.

(2)  Prescribe the methods, procedures and forms for

delivery of information that may be required by the board

under this act.

(3)  Define and limit the areas of operation, the rules

of authorized games, odds and the method of operation of

authorized games.

(4)  Prescribe the grounds and procedures for the denial,

revocation, suspension of or refusal to renew licenses,

permits, registrations or qualifications authorized under

this act.

(5)  Establish the minimum level of insurance to be

maintained with respect to a licensed table gaming facility.

(6)  Prescribe standards to govern the conduct of all

authorized table games.

(7)  Establish standards for table game devices,

equipment, apparatuses and supplies, including electronic or

computerized table game devices.

(8)  Establish standards to govern the operation of

licensed table game facilities, including the maintenance of

financial books, records and audits.

(9)  Designate appropriate classifications of personnel

to be employed in the operation of table games at a licensed

table game facility and establish appropriate licensing,

registration and permitting standards within each

classification.

(10)  Regulate the practices and procedures for

negotiable instrument transactions involving patrons of table

games, including limitations on the circumstances and amounts

of the transactions, including credit transactions, and the

establishment of forms and procedures for negotiable

instrument transactions, redemptions and consolidations.

(11)  Prescribe for authorized table game operations

procedures, forms and methods of management controls,

including employee and supervisory charts or organizational

structure, alarm and other electrical or visual security

measures. The board shall grant an applicant a table game

license discretion concerning the organization and

responsibilities of management personnel who are not directly

involved in the operation or supervision of authorized table

games.

(12)  Provide for uniform standards of accountancy

methods, procedures and forms, a uniform code of accounts and

accounting classifications and other standard operating

procedures as may be necessary to ensure consistency,

comparability and effective disclosure of all financial

information, including calculations of percentages of profit

by authorized table games, tables, apparatuses and devices.

(13)  Prescribe the time frame for and the form and

manner in which the quarterly and annual audit reports shall

be filed with the board in accordance with section 302(17).

(14)  Prescribe the qualifications of and the conditions

pursuant to which engineers, accountants, architects or any

agents or representatives of such persons and others shall be

permitted to practice before the board or to submit materials

on behalf of any applicant or licensee, permittee, registrant

or other person required to be qualified under this act. No

member of the General Assembly, nor any firm with which a

member of the General Assembly is associated, shall be

permitted to appear or practice in any capacity whatsoever

before the board regarding any matter whatsoever, nor shall

any immediate family member of an executive level State

employee or of a member of the General Assembly be permitted

to so practice or appear in any capacity whatsoever before

the board regarding any matter whatsoever.

(15)  Provide minimum procedures for the exercise of

effective control over the internal fiscal affairs of a table

game licensee, including provisions for the safeguarding of

assets and revenues, the recording of cash and evidence of

indebtedness, and the maintenance of reliable records,

accounts, and reports of transactions, operations and events,

including reports to the board.

(16)  Govern advertising by and the advertisement of

authorized table games by table game licensees, their

employees and agents, with the view toward ensuring that

advertisements are in no way deceptive, misleading or

designed in a manner to unduly induce, entice or otherwise

cause a person to play an authorized table game.

(17)  Prescribe the standards and procedures for

quarterly reporting of professional services information.

Each holder of a table game license or person acting on

behalf of a table game licensee shall submit an annual report

to the board of each entity that furnishes professional

services to the table game license holder.

(18)  Provide for the establishment of a list of persons

that a table game licensee may exclude or eject from a

licensed table game facility, and the establishment of a list

of persons who may self-exclude themselves from a licensed

table game facility. The lists authorized in this paragraph

shall conform with the standards, criteria and requirements

of 4 Pa.C.S. §§ 1514 (relating to regulation requiring

exclusion of certain persons), 1515 (relating to repeat

offenders excludable from licensed gaming facility) and 1516

(relating to list of persons self excluded from gaming

activities).

(19)  Establish any other procedure, standard, condition

or requirement the board deems necessary to ensure the

integrity of table game operations and which effectuate the

provisions of this act.

Section 304.  Denials and sanctions.

(a)  General rule.--The board shall ensure, to the extent

required by this act, that licenses, permits or registrations

shall not be issued to nor held by, nor shall there be any

material involvement, directly or indirectly, with the licensed

table game operation or the ownership of the licensed table game

operation by unqualified or disqualified persons whose

operations are conducted in a manner that is inconsistent with

or do not conform with the requirements of this act or

regulations promulgated pursuant to this act.

(b)  Enforcement.--In implementing and enforcing this act,

the board shall have the power and authority to:

(1)  Deny any application for a license, permit,

registration or qualification.

(2)  Limit, condition or restrict any license, permit,

registration or approval.

(3)  Suspend or revoke any license, permit, registration

or approval.

(4)  Impose a penalty on any person licensed, permitted,

registered or previously qualified for any cause deemed

reasonable by the board pursuant to regulations promulgated

by the board.

(c)  Definitions.--As used in this section, the following

words and phrases shall have the meanings given to them in this

subsection:

"Disqualified person."  Any person found by the board to be

disqualified pursuant to the criteria set forth in section

602(b).

"Unqualified person."  Any person who is found by the board

to be unqualified pursuant to section 602(a).

Section 305.  Annual report, study and recommendations.

(a)  Annual report required.--Twelve months after the

commencement of table game operations at licensed table game

facilities and on January 31 of every calendar year thereafter,

the board shall make an annual report to the Governor and the

General Assembly. The report shall be filed with the Governor

and submitted to the Chief Clerk of the Senate and the Chief

Clerk of the House of Representatives and to the chairmen of the

legislative committees that have oversight of gambling-related

issues on or before January 31 of the year following the year

that the report covers. The report shall include an account of