THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY TOMLINSON, MELLOW, COSTA, FONTANA, LEACH, BOSCOLA, MUSTO, STOUT, TARTAGLIONE, KITCHEN AND HUGHES, JULY 17, 2009

SENATOR EARLL, COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT, RE-REPORTED AS AMENDED, OCTOBER 8, 2009   

AN ACT

Amending Title 4 (Amusements) of the Pennsylvania Consolidated

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Statutes, further providing for legislative intent, for

definitions, for Pennsylvania Gaming Control Board

established, for general and specific powers of the

Pennsylvania Gaming Control Board, for licensed gaming entity

application appeals from board, for regulatory authority of

board, for collection of fees and fines, for reports of

board, for authorized slot machine licenses, for additional

Category 1 slot machine license requirements, for

applications for license or permit, for supplier licenses,

for manufacturer licenses, for occupation permit

applications, for alternative manufacturer licensing

standards and for additional licenses and permits and

approval of agreement; providing for table games; and further

providing for slot machine licensee deposits, for transfers

from State Gaming Fund, for responsibility and authority of

Department of Revenue, for wagering on credit, for no eminent

domain authority, for compulsive and problem gambling

program, for political influence, for investigations and

enforcement, for prohibited acts and penalties and for

interception of oral communications.

Amending Title 4 (Amusements) of the Pennsylvania Consolidated

<--

Statutes, further providing for legislative intent, for

definitions, for Pennsylvania Gaming Control Board

established, for general and specific powers, for licensed

gaming entity application appeals from board, for regulatory

authority of board, for collection of fees and fines,

forfeiture, for number of slot machines, for reports of

board, for diversity goals of board; providing for specific

authority to suspend slot machine license; further providing

for Category 3 slot machine license, for manufacturer

licenses; providing for alternative supplier licensing

standards and for gaming service provider; further providing

for occupation permit application, for alternative

manufacturer licensing standards, for additional licenses and

permits and approval of agreements; providing for table

games; further providing for slot machine licensee deposits,

for establishment of State Gaming Fund and net slot machine

revenue distribution, for distributions from Pennsylvania

Race Horse Development Fund, for transfers from State Gaming

Fund, for responsibility and authority of department, for

wagering on credit, for eminent domain authority, for

compulsive and problem gambling program, for labor hiring

preferences, for declaration of exemption from Federal laws

prohibiting slot machines, for political influence, for

regulation requiring exclusion of certain persons, for

investigations and enforcement, for prohibited acts and

penalties; providing for report of suspicious transactions;

further providing for liquor licenses at licensed facilities,

for interception of oral communications; providing for

electronic funds transfer terminals, for junkets, for gaming

schools, for first class city casino community improvement

district; and making a transfer.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 1102(11) of Title 4 of the Pennsylvania

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Consolidated Statutes is amended and the section is amended by

adding paragraphs to read:

§ 1102.  Legislative intent.

The General Assembly recognizes the following public policy

purposes and declares that the following objectives of the

Commonwealth are to be served by this part:

* * *

(2.1)  The legalization of the operation of table games

as authorized in this part is intended to supplement slot

machine gaming by increasing revenues to the Commonwealth and

providing new employment opportunities by creating a demand

for individuals to fill skilled positions related to the

operation of table games at licensed facilities in this

Commonwealth.

* * *

(11)  It is necessary to maintain the integrity of the

regulatory control and legislative oversight over the

operation of slot machines and the conduct of table games in

this Commonwealth; to prevent the actual or appearance of

corruption that may result from [large] campaign

contributions; ensure the bipartisan administration of this

part; and avoid actions that may erode public confidence in

the system of representative government.

(12)  It is the intent of the General Assembly to

authorize the operation of slot machines and table games

under a single slot machine license issued to a slot machine

licensee under this part. Nothing in this part shall be

construed:

(i)  To create a separate license governing the

operation of table games.

(ii)  To permit the continuation of the conduct of

slot machine gaming if a slot machine license is

suspended or revoked based on a violation of this part

arising out of a slot machine licensee's table game

operation.

(iii)  To permit the continuation of the conduct of

table gaming if a slot machine license is suspended or

revoked based on a violation of this part arising out of

a slot machine licensee's slot machine operation.

Section 2.  The definitions of "associated equipment,"

"cheat," "conduct of gaming," "gaming employee," "key employee,"

"licensed facility," "manufacturer," "manufacturer license,"

"slot machine license," "supplier" and "supplier license" in

section 1103 of Title 4 are amended and the section is amended

by adding definitions to read:

§ 1103.  Definitions.

The following words and phrases when used in this part shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

* * *

"Associated equipment."  Any equipment or mechanical,

electromechanical or electronic contrivance, component or

machine used in connection with slot machine or table gaming,

including linking devices which connect to progressive slot

machines or slot machines, replacement parts, equipment which

affects the proper reporting of gross revenue, computerized

systems for controlling and monitoring slot machines or table

games, including, but not limited to, the central control

computer for linking slot machines and devices for weighing or

counting money.

* * *

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

and coin that have been exchanged for its equivalent in United

States currency and 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 slot machine 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 certificate

holder, all instruments that constitute a cash equivalent

shall be made payable to the table game certificate holder,

to the bearer or to cash. An instrument made payable to a

third party shall not be considered a cash equivalent and

shall be prohibited.

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

game certificate holder shall assign to a jackpot or payout that

consists of merchandise or anything 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.

* * *

"Cheat."  To alter without authorization the elements of

chance, method of selection or criteria which determine:

(1)  The result of a slot machine game or table game.

(2)  The amount or frequency of payment in a slot machine

game or table game.

(3)  The value of a wagering instrument.

(4)  The value of a wagering credit.

The term does not include altering for required maintenance and

repair of a slot machine or table game.

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

issued by a slot machine licensee for use in playing a table

game at the licensed facility. All types of chips shall be

approved by the board prior to being used for play at a table

game at the licensed facility.

* * *

"Conduct of gaming."  The licensed placement and operation of

games of skill or chance under this part, as authorized and

approved by the Pennsylvania Gaming Control Board at a licensed

facility.

* * *

"Count room."  The room designated for counting, wrapping and

recording of a slot machine licensee's slot machine and table

game receipts.

* * *

"Gaming employee."  Any employee of a slot machine licensee,

including, but not limited to:

(1)  Cashiers.

(2)  Change personnel.

(3)  [Counting] Count room personnel.

(4)  Slot attendants.

(5)  Hosts or other persons authorized to extend

complimentary services.

(6)  Machine mechanics [or], computer machine technicians

or table game device technicians.

(7)  Security personnel.

(8)  Surveillance personnel.

(9)  Supervisors and managers.

(10)  Boxmen.

(11)  Dealers or croupiers.

(12)  Floormen.

The term includes employees of a person holding a supplier's

license whose duties are directly involved with the repair or

distribution of slot machines, table game devices and associated

equipment sold or provided to the licensed facility within this

Commonwealth as determined by the Pennsylvania Gaming Control

Board. The term does not include bartenders, cocktail servers or

other persons engaged solely in preparing or serving food or

beverages, clerical or secretarial personnel, parking

attendants, janitorial, stage, sound and light technicians and

other nongaming personnel as determined by the board.

"Gaming school."  Any educational institution approved by the

the Department of Education as a regionally accredited college

or university, community college, Pennsylvania private licensed

school or its equivalent, approved by the Pennsylvania Gaming

Control Board in consultation with the Department of Education,

to offer a curriculum designed to provide education and training

related to employment opportunities associated with slot

machines or table games, including slot machine or table gaming

maintenance and repair.

"Gross poker revenue."  The total amount of the rake

collected by a slot machine licensee each day.

"Gross table game revenue."  The total of:

(1)  Cash or cash equivalent wagers received in the

playing of a table game minus the total of:

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

a result of playing a table game.

(ii)  Cash paid to purchase annuities to fund prizes

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

playing a table game.

(iii)  Any personal property distributed to a patron

as a result of playing a table game. This does not

include travel expenses, food, refreshments, lodging or

other complimentary services.

(2)  Gross poker revenue.

The term does not include counterfeit money, plaques or chips;

coins or currency of other countries received in the playing of

a table game, except to the extent that they are readily

convertible to United States currency; cash taken in a

fraudulent act perpetrated against a slot machine licensee for

which the licensee is not reimbursed; or cash received as entry

fees for contests or tournaments in which patrons compete for

prizes, where no profit is made by the licensee.

* * *

"Key employee."  Any individual who is employed in a director

or department head capacity and who is empowered to make

discretionary decisions that regulate slot machine or table game

operations, including the general manager and assistant manager

of the licensed facility, director of slot operations, director

of table games, pit bosses, shift bosses, credit supervisors,

cashier supervisors, table game managers and assistant managers, 

director of cage and/or credit operations, director of

surveillance, director of marketing, director of management

information systems, director of security, comptroller and any

employee who supervises the operations of these departments or

to whom these department directors or department heads report

and such other positions which the Pennsylvania Gaming Control

Board shall determine based on detailed analyses of job

descriptions as provided in the internal controls of the

licensee as approved by the Pennsylvania Gaming Control Board.

All other gaming employees unless otherwise designated by the

Pennsylvania Gaming Control Board shall be classified as non-key

employees.

* * *

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

which a licensed gaming entity is authorized to place and

operate slot machines and, if authorized by the Pennsylvania

Gaming Control Board for purposes of conducting table games

under Chapter 13A (relating to table games), table games. The

term includes any area of a licensed racetrack previously

authorized pursuant to section 1207(17) (relating to regulatory

authority of board) to operate slot machines and any area of a

hotel which the Pennsylvania Gaming Control Board determines is

suitable for the conduct and operation of authorized table

games.

* * *

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

fabricates, assembles, produces, programs, designs or otherwise

makes modifications to any slot machine, table game or

associated equipment for use or play of slot machines or table

game devices in this Commonwealth for gaming purposes.

"Manufacturer license."  A license issued by the Pennsylvania

Gaming Control Board authorizing a manufacturer to manufacture

or produce slot machines, table game devices or associated

equipment for use in this Commonwealth for gaming purposes.

* * *

"Rake."  The total amount of gaming chips, gaming plaques or

coins collected by a dealer as poker revenue.

* * *

"Slot machine license."  A license issued by the Pennsylvania

Gaming Control Board authorizing a person to place and operate

slot machines and, if the licensee holds a table game operation

certificate, table games, pursuant to this part and the rules

and regulations under this part.

* * *

"Supplier."  A person that sells, leases, offers or otherwise

provides, distributes or services any slot machine, table game

devices or associated equipment for use or play of slot machines

or 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 slot machines, table games devices or

associated equipment to slot machine licensees.

* * *

"Table game."  Any banking, nonbanking or percentage game

played with cards, dice, tiles or any mechanical, electronic,

computerized or electric device used to play a table game for

money, checks, credit or any representation of value. The term

includes roulette, baccarat, blackjack, poker, craps, big six

wheel, mini-baccarat, red dog, pai gow, casino war, asia poker,

Boston 5 stud poker, Caribbean stud poker, Colorado hold 'em

poker, double attack blackjack, double cross poker, double down

stud poker, fast action hold 'em, flop poker, four card poker,

let it ride poker, mini-craps, mini-dice, pai gow poker,

pokette, Spanish 21, Texas hold 'em bonus poker, three card

poker, two card joker poker, ultimate Texas hold 'em, winner's

pot poker and sic bo and any other games approved by the

Pennsylvania Gaming Control Board. The term includes any new

games and variations or composites of approved games, provided

that the Pennsylvania Gaming Control Board determines that the

new game, or any variations or composites or other approved

games are suitable for use after an appropriate test or

experimental period under such terms and conditions as the

Pennsylvania Gaming Control Board may deem appropriate, and any

other game which the Pennsylvania Gaming Control Board 

determines to be suitable for use in a licensed facility after

an appropriate test or experimental period as the Pennsylvania

Gaming Control Board may deem appropriate. The term shall also

include any table game authorized for use in a licensed facility

that is used for gaming contests or tournaments in which players

compete against one another. 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 defined and authorized under this part.

"Table game device."  Includes tables, cards, dice, chips,

shufflers, tiles, dominoes, wheel, drop boxes or any mechanical

or electrical contrivance, terminal, machine or other device

approved by the Pennsylvania Gaming Control Board and used in

operation of or connection with a table game.

"Table game operation certificate."  A certificate issued by

the Pennsylvania Gaming Control Board that certifies that the

table gaming operation of a licensed facility conforms to the

requirements of this part and that authorizes a slot machine

licensee to conduct table gaming in accordance with this part.

* * *

Section 3.  Section 1201(h)(11) of Title 4 is amended to

read:

§ 1201.  Pennsylvania Gaming Control Board established.

* * *

(h)  Qualifications and restrictions.--

* * *

(11)  No member, employee or independent contractor of

the board shall accept a complimentary service, wager or be

paid any prize from any wager at any licensed facility within

this Commonwealth or at any other facility outside this

Commonwealth which is owned or operated by a licensed gaming

entity or any of its affiliates, intermediaries, subsidiaries

or holding companies thereof for the duration of their term

of office, employment or contract with the board and for a

period of one year from the termination of term of office,

employment or contract with the board. The provisions of this

paragraph shall not apply [to] when the employees [who] 

utilize slot machines, table games or table game devices for

testing purposes or to verify the performance of a machine or

table game as part of an enforcement investigation.

* * *

Section 4.  Section 1202(a)(1) and (b)(20), (23) and (27) of

Title 4 are amended and subsection (b) is amended by adding

paragraphs to read:

§ 1202.  General and specific powers.

(a)  General powers.--

(1)  The board shall have general and sole regulatory

authority over the conduct of gaming or related activities as

described in this part. The board shall ensure the integrity

of the acquisition and operation of slot machines, table game

devices and associated equipment and shall have sole

regulatory authority over every aspect of the authorization

and operation of slot machines and table games.

* * *

(b)  Specific powers.--The board shall have the specific

power and duty:

* * *

(12.1)  To issue, approve, renew, revoke, suspend,

condition or deny issuance or renewal of a table game

operation certificate to a slot machine licensee in

accordance with Chapter 13A (relating to table games).

* * *

(20)  In addition to the power of the board regarding

license and permit applicants, to determine at its discretion

the suitability of any person who furnishes or seeks to

furnish to a slot machine licensee directly or indirectly any

services or property related to slot machines, table games or

associated equipment or through any arrangements under which

that person receives payment based directly or indirectly on

earnings, profits or receipts from the slot machines, table

games and associated equipment. The board may require any

such person to comply with the requirements of this part and

the regulations of the board and may prohibit the person from

furnishing the services or property.

* * *

(23)  The board shall not issue or renew a license or

permit unless it is satisfied that the applicant is a person

of good character, honesty and integrity and is a person

whose prior activities, criminal record, if any, reputation,

habits and associations do not pose a threat to the public

interest or the effective regulation and control of slot

machine or table game operations or create or enhance the

danger of unsuitable, unfair or illegal practices, methods

and activities in the conduct of slot machine or table game 

operations or the carrying on of the business and financial

arrangements incidental thereto.

* * *

(27)  To publish each January in the Pennsylvania

Bulletin and on the board's Internet website a complete list

of all persons or entities who applied for or held a slot

machine license, table game operation certificate, 

manufacturer license, supplier license or racetrack license

at any time during the preceding calendar year and all

affiliates, intermediaries, subsidiaries and holding

companies thereof and the status of the application or

license.

(27.1)  To publish each January in the Pennsylvania

Bulletin and on the Pennsylvania Gaming Control Board's

Internet website a complete list of all slot machine

licensees who filed a petition seeking authorization to

conduct a table game operation or who held a table game

operation certificate at any time during the preceding

calendar year and the status of the petition or certificate

of operation.

* * *

Section 5.  Sections 1204, 1207(7), (8) and (14), 1208(1),

1211(a), 1301, 1303(a), (c) and (d) and 1308(a) of Title 4 are

amended to read:

§ 1204.  Licensed gaming entity application appeals from board.

The Supreme Court of Pennsylvania shall be vested with

exclusive appellate jurisdiction to consider appeals of any

final order, determination or decision of the board involving

the approval, issuance, denial or conditioning of a slot machine

license or table game operation certificate. Notwithstanding the

provisions of 2 Pa.C.S. Ch. 7 Subch. A (relating to judicial

review of Commonwealth agency action) and 42 Pa.C.S. § 763 

(relating to direct appeals from government agencies), the

Supreme Court shall affirm all final orders, determinations or

decisions of the board involving the approval, issuance, denial

or conditioning of a slot machine license or table game

operation certificate unless it shall find that the board

committed an error of law or that the order, determination or

decision of the board was arbitrary and there was a capricious

disregard of the evidence.

§ 1207.  Regulatory authority of board.

The board shall have the power and its duties shall be to:

* * *

(7)  Enforce prescribed hours for the operation of slot

machines and table games so that slot machine licensees may

operate slot machines and table games on any day during the

year in order to meet the needs of patrons or to meet

competition.

(8)  Require that each licensed gaming entity prohibit

persons under 21 years of age from operating or using slot

machines or playing table games.

* * *

(14)  Consult with members of the Pennsylvania State

Police, the Office of Attorney General, the department and

such other persons it deems necessary for advice regarding

the various aspects of the powers and duties imposed on it

under this part and its jurisdiction over the authorization

and operation of slot machines, table games and licensed

facilities.

* * *

§ 1208.  Collection of fees and fines.

The board has the following powers and duties:

(1)  To levy and collect fees from the various

applicants, licensees and permittees to fund the operations

of the board. The fees shall be deposited into the State

Gaming Fund as established in section 1403 (relating to

establishment of State Gaming Fund and net slot machine

revenue distribution) and distributed to the board upon

appropriation by the General Assembly. In addition to the

fees set forth in sections 1209 (relating to slot machine

license fee) and 1305 (relating to Category 3 slot machine

license), the board shall assess and collect fees as follows:

(i)  Supplier licensees shall pay a fee of $25,000

upon the issuance of a license [and $10,000 for the

annual renewal of a supplier license]. Upon approval by

the board for authority to supply table games, table game

devices or other equipment associated with table games,

the supplier licensee shall pay an additional fee of

$25,000. A fee of $15,000 shall be paid for the annual

renewal of a supplier license.

(ii)  Manufacturer licensees shall pay a fee of

$50,000 upon the issuance of a license [and $25,000 for

the annual renewal of a manufacturer license]. Upon

approval of the board for authority to manufacture table

games, table game devices or other equipment associated

with table games for use in this Commonwealth, the

manufacturer license shall pay an additional fee of

$50,000. The manufacturer licensee shall pay an annual

fee of $30,000 for the annual renewal of a manufacturer

license.

(iii)  Each application for a slot machine license,

supplier license or manufacturer license must be

accompanied by a nonrefundable fee set by the board for

the cost of each individual requiring a background

investigation. The reasonable and necessary costs and

expenses incurred in any background investigation or

other investigation or proceeding concerning any

applicant, licensee, permittee or registrant shall be

reimbursed to the board by those persons.

* * *

§ 1211.  Reports of board.

(a)  Report of board.--Eighteen months after the effective

date of this part and every year on that date thereafter, the

board shall issue a report to the Governor and each member of

the General Assembly on the general operation of the board and

each slot machine licensee's performance, including, but not

limited to, number and win per slot machine and total gross

table game revenue at each licensed [facilities] facility during

the previous year, all taxes, fees, fines and other revenues

collected and, where appropriate, disbursed, the costs of

operation of the board, all hearings conducted and the results

of the hearings and other information that the board deems

necessary and appropriate.

* * *

§ 1301.  Authorized slot machine licenses.

There shall be three distinct classifications of slot machine

licenses, designated by category, each permitting a licensed

racing entity or person to apply for a qualifying license

category and, upon issuance by the board in its discretion, to

place and operate slot machines and, if not prohibited under

Chapter 13A (relating to table games), table games at a licensed

facility. Except for conditional Category 1 license applications

pursuant to section 1315 (relating to conditional Category 1

licenses), it is mandatory that the board shall consider,

approve, condition or deny the approval of all initial

applications for each and every category of slot machine

licenses collectively and together, in a comprehensive Statewide

manner, within 12 months following the time set by the board at

which all applications are to be filed and deemed complete by

the board. The board shall approve, condition or deny the

issuance of a slot machine license of any category within the

time period provided for herein. Following approval of an

application for a slot machine license, the applicant shall

provide formal notification to the board as soon as:

(1)  it fulfills all required conditions for issuance of

the license; and

(2)  the board's decision approving the application is a

final, binding, nonappealable determination which is not

subject to a pending legal challenge.

Upon receipt of such formal notification and upon conducting any

necessary verification, the board shall issue a slot machine

license to the applicant.

§ 1303.  Additional Category 1 slot machine license

requirements.

(a)  Eligibility.--In addition to the criteria prescribed in

section 1302 (relating to Category 1 slot machine license) and

the requirement to file a petition to seek authorization to

operate table games under Chapter 13A (relating to table games),

an applicant for a Category 1 slot machine license shall be

eligible for a slot machine license to place and operate slot

machines at a licensed facility only if the applicant meets one

of the following criteria:

(1)  the licensed racing entity or its predecessor owner

of the licensed racetrack has conducted live horse races for

not less than two years immediately preceding the effective

date of this part; or

(2)  the licensed racing entity has not previously

conducted live racing at a racetrack but will conduct live

racing for a minimum of 150 days to begin in the year which

begins two years following the issuance of its slot machine

license for the racetrack unless the appropriate commission

determines, upon application, that it is not practically

feasible for the licensed racing entity to conduct live

racing for a minimum of 150 days due to projected or actual

weather conditions. Failure to meet the required minimum

number of days will result in immediate suspension of the

slot machine license.

* * *

(c)  Limitations.--The issuance of a Category 1 slot machine

license shall entitle the licensee to operate slot machines and,

if authorized, table games only within the grounds of a licensed

racetrack.

(d)  Authorization.--Authorization for a Category 1 slot

machine licensee to continue the operation of slot machines and,

if authorized, table games shall be limited to those licensees

that:

(1)  Have a written live racing agreement with a

horsemen's organization representing a majority of owners and

trainers at the racetrack where the licensed racing entity

conducts live racing.

(2)  Have 95% of the total number of horse or harness

racing days that were scheduled in 1986 by it or its

predecessor at the racetrack where the Category 1 slot

machine licensee conducts live racing, and the aggregate

number of live racing days at the racetrack where the

Category 1 slot machine licensee conducts live racing shall

not be less than 95% of the total number of horse or harness

racing days that were scheduled in 1986 at that racetrack. A

new licensee which opens a new racetrack and which will

successfully conduct live racing for a minimum of 150 days to

begin no later than in the year which begins two years

following the issuance of its slot machine license for the

racetrack, unless the appropriate commission determines upon

application that it is not practically feasible for the

licensed racing entity to conduct live racing for a minimum

of 150 days due to projected or actual weather conditions,

shall be allowed to operate slot machines and, if authorized,

table games pursuant to a table game operation certificate,

from the date its slot machine license is issued and

intrastate and interstate simulcast in accordance with the

Race Horse Industry Reform Act, from the first day of the

calendar year in which it conducts live racing days.

(3)  Unless the horsemen's organization representing a

majority of the owners and trainers consents to a lower

number of required racing days at the racetrack, subject to

actions or activities beyond the control of the licensee,

conduct not fewer than eight live races per race date during

each meet at the racetrack where the licensed racing entity

conducts live racing, except for thoroughbred tracks on the

day designated as a Breeder's Cup event day when the licensed

racing entity shall hold a minimum of five live races. The

Category 1 slot machine licensee shall not waive or modify

the provisions pertaining to the required number of racing

days under paragraph (2) and races per day scheduled in this

paragraph without the consent of the horsemen's organization

representing a majority of owners and trainers at the

racetrack.

(4)  Notwithstanding the provisions of paragraph (1), in

the event that a written live racing agreement has not been

entered into, permission for any licensee to operate slot

machines and, if authorized, table games at racetracks shall

be granted provided that the Category 1 slot machine licensee

has continued to conduct live racing in accordance with

paragraphs (2) and (3) and keeps its racetrack open to the

general population of owners, trainers and horses stabled

there for training and stabling on a regular basis, when it

is normally open for live racing and during such periods, and

continues to comply with all provisions of the most recently

expired live racing agreement, including recognition of the

then existing horsemen's organization at each such racetrack

as the sole representative of the horsemen at that time, and

pays purses as defined in the most recently expired live

racing agreement plus the applicable purse revenue

distributed to licensed racing entities from the operation of

slot machines under this part. Nothing in this part shall

exempt an existing or future licensed racetrack from the

requirements of the Race Horse Industry Reform Act requiring

a licensed corporation to have a written and unexpired live

racing agreement with the horsemen's organization

representing a majority of owners and trainers at the

racetrack where the licensed corporation conducts or will

conduct live racing dates in order to continue or commence

any form of simulcasting.

(5)  Notwithstanding any other provision of the law to

the contrary, account wagers authorized pursuant to section

218(b) of the Race Horse Industry Reform Act shall only be

accepted by a licensed corporation in accordance with the

provisions of the Race Horse Industry Reform Act, and no

entity that is not a licensed corporation under that act

shall accept an account wager from any person within this

Commonwealth.

§ 1308.  Applications for license or permit.

(a)  Applications.--An application for a license or permit to

be issued by the board under this chapter shall be submitted on

a form and in a manner as shall be required by the board. In

reviewing applications, the board shall confirm that all the

applicable license or permit fees have been paid in accordance

with this part.

* * *

Section 6.  Sections 1317(a) and 1317.1(a), (b)(5), (d.1) and

(e) of Title 4 are amended and the sections are amended by

adding subsections to read:

§ 1317.  Supplier licenses.

(a)  Application.--A manufacturer that elects to contract

with a supplier under section 1317.1(d.1) (relating to

manufacturer licenses) shall ensure that the supplier is

licensed under this section. A person seeking to provide slot

machines, table game devices or associated equipment to a slot

machine licensee within this Commonwealth through a contract

with a licensed manufacturer shall apply to the board for a

supplier license.

* * *

(c.1)  Waiver.--The board shall establish a procedure to

allow the board to waive the requirements of subsections (a) and

(b) for any person who has been approved for and who holds a

supplier license under this section and who seeks to supply

table game devices or associated equipment at a licensed

facility authorized to operate table games pursuant to a table

game operation certificate under Chapter 13A (relating to table

games). The board may only waive the application requirement

under this subsection if:

(1)  the supplier license was issued by the board within

a 36-month period immediately preceding the date the supplier

licensee files an application to supply table games or

associated equipment; and

(2)  there has been no material change in circumstances

relating to the licensee that necessitates, at the discretion

of the board, that the requirements of subsections (a) and

(b) not be waived.

* * *

§ 1317.1.  Manufacturer licenses.

(a)  Application.--A person seeking to manufacture slot

machines, table game devices and associated equipment for use in

this Commonwealth shall apply to the board for a manufacturer

license.

(b)  Requirements.--An application for a manufacturer license

shall be on the form required by the board, accompanied by the

application fee, and shall include all of the following:

* * *

(5)  The type of slot machines, table game devices or

associated equipment to be manufactured or repaired.

* * *

(c.1)  Waiver.--The board shall establish a procedure to

allow the board to waive the requirements of subsections (a) and

(b) for any person who has been approved for and who holds a

manufacturer license under this section and who seeks to

manufacture table game devices or associated equipment for use

at a licensed facility authorized to operate table games

pursuant to a table game operation certificate under Chapter 13A

(relating to table games). The board may only waive the

application requirement under this subsection if:

(1)  the manufacturer license was issued by the board

within a 36-month period immediately preceding the date the

manufacturer licensee files an application to manufacture

table game devices or associated equipment; and

(2)  there has been no material change in circumstances

of the licensee that necessitates, at the discretion of the

board, that the requirements of subsections (a) and (b) not

be waived.

* * *

(d.1)  Authority.--The following shall apply to a licensed

manufacturer:

(1)  A licensed manufacturer or its designee, as licensed

by the board, may supply or repair any slot machine, table

game devices or associated equipment manufactured by the

licensed manufacturer.

(2)  A manufacturer may contract with a supplier under

section 1317 (relating to supplier licenses) to provide slot

machines, table games devices or associated equipment to a

slot machine licensee within this Commonwealth.

(e)  Prohibitions.--

(1)  No person may manufacture slot machines, table game

devices or associated equipment for use within this

Commonwealth by a slot machine licensee unless the person has

been issued a manufacturer license under this section.

(2)  No slot machine licensee may use slot machines,

table game devices or associated equipment unless the slot

machines, table game devices or associated equipment were

manufactured by a person that has been issued a manufacturer

license under this section.

(3)  No person issued a license under this section shall

apply for or be issued a license under section 1317.

(4)  No limitation shall be placed on the number of

manufacturer licenses issued or the time period to submit

applications for licensure, except as required to comply with

section 1306 (relating to order of initial license issuance).

Section 7.  Sections 1318(c), 1319 and 1321 of Title 4 are

amended to read:

§ 1318.  Occupation permit application.

* * *

(c)  Prohibition.--No slot machine licensee may employ or

permit any person under 18 years of age to render any service

whatsoever in any area of its licensed facility at which slot

machines or table games are physically located.

§ 1319.  Alternative manufacturer licensing standards.

(a)  General rule.--The board may determine whether the

licensing standards of another jurisdiction within the United

States in which an applicant for a manufacturer license is

similarly licensed are comprehensive and thorough and provide

similar adequate safeguards as those required by this part. If

the board makes that determination, it may issue a manufacturer

license to an applicant who holds a similar manufacturer license

in such other jurisdiction after conducting an evaluation of the

information relating to the applicant from such other

jurisdictions, as updated by the board, and evaluating other

information related to the applicant received from that

jurisdiction and other jurisdictions where the applicant may be

licensed, the board may incorporate such information in whole or

in part into its evaluation of the applicant.

(b)  Abbreviated process.--In the event an applicant for a

[slot machine] manufacturer license is licensed in another

jurisdiction, the board may determine to use an alternate

process requiring only that information determined by the board

to be necessary to consider the issuance of a license, including

financial viability of the licensee, to such an applicant.

Nothing in this section shall be construed to waive any fees

associated with obtaining a license through the normal

application process.

§ 1321.  Additional licenses and permits and approval of

agreements.

(a)  Requirements.--In addition to the requirements for a

license or permit specifically set forth in this part, the board

may require a license or permit, and set a fee for the same, for

any key or gaming employee or any person who satisfies any of

the following criteria:

(1)  The person transacts business within this

Commonwealth with a slot machine licensee as a ticket

purveyor, tour operator, operator of a bus trip program or

operator of any other type of travel program or promotional

business related to slot machines or table games. The board

may also review, deny, order modification or approve, at its

discretion, proposed tours, bus routes and travel programs.

(2)  The person is presently not otherwise required to be

licensed under this part and provides any goods, property or

services, including, but not limited to, management contracts

for compensation to a slot machine licensee at the licensed

facility.

(b)  Agreement.--Any agreement to conduct business within

this Commonwealth between a person and a slot machine licensee

relating to slot machines, table games, table game devices or

associated equipment is subject to the approval of the board in

accordance with rules and regulations promulgated by the board.

Every agreement shall be in writing and shall include a

provision for its termination without liability on the part of

the slot machine licensee upon a finding by the board that the

agreement is not approved or that it is terminated. Failure to

expressly include this condition in the agreement is not a

defense in any action brought under this section relating to the

termination of the agreement.

Section 8.  Title 4 is amended by adding a chapter to read:

CHAPTER 13A

TABLE GAMES

Subchapter

A.  General Provisions

B.  Table Games Authorized

C.  Table Game Operations

D.  (Reserved)

E.  Table Game Testing and Certification

F.  Gaming Schools

G.  Table Game Taxes and Fees

SUBCHAPTER A

GENERAL PROVISIONS

Sec.

1301A.  Scope of chapter.

1302A.  Regulatory authority.

1303A.  Temporary table game regulations.

1304A.  (Reserved).

§ 1301A.  Scope of chapter.

This chapter shall apply to all persons authorized, licensed,

permitted or certified by the board to conduct table games or to

otherwise participate in table gaming authorized under this

part.

§ 1302A.  Regulatory authority.

In addition to regulatory authority granted to the board

under section 1207 (relating to regulatory authority of board),

the board shall promulgate regulations:

(1)  Establishing standards for table games, table game

devices, equipment, associated equipment, apparatuses and

supplies, including electronic or computerized table game

devices.

(2)  Establishing standards to govern the operation of

table games and the system of wagering associated with table

games, including the maintenance of financial books, records

and audits.

(3)  Setting patron notice requirements pertaining to

minimum and maximum wagers on table games that may be

adjusted from time to time by the slot machine licensee in

the normal course of table game operations, except that

changes in minimum wagers at any given table shall not apply

to persons already engaged in wagering at that table when the

minimum wager is changed, unless 30 minutes' notice is

provided to each patron at that table.

(4)  Requiring each slot machine licensee to:

(i)  Provide written information at each operational

gaming table about table game rules, payoffs or winning

wagers and other information to the player as the board

may require.

(ii)  Provide specifications approved by the board

under section 1207(11) to integrate the licensed

facility's surveillance system to cover all areas where

table games are operated. The specifications shall

require on-site access to the system or its signal to the

board, the bureau and such agents or other persons

authorized by the board or bureau.

(iii)  Designate one or more locations within or

about the licensed facility to operate table games.

(iv)  Ensure that visibility in a licensed facility

is not obstructed in any way that could interfere with

the ability of the licensee, the board and such agents or

other persons authorized by the board to oversee the

table game operations.

(v)  Integrate the licensed facility's count room for

the counting and storage of cash, coins, plaques, chips

and checks received in the conduct of table games and for

the inspection, counting and storage of dice, cards,

tiles, dominoes and chips and other such representations

of value as may be approved by the board and used in the

conduct and operation of table games.

(vi)  Equip each gaming table with a sign indicating

the permissible minimum and maximum wagers at the gaming

table.

(vii)  Adopt such policies or procedures to prohibit

any table game, table game device, equipment or supplies

from being possessed, maintained or exhibited by any

person on the premises of a licensed facility except in

the areas of a licensed facility where table games are

authorized or in a restricted area used for the

inspection, service, repair or storage of the table

games, table game devices, apparatuses, equipment,

associated equipment or supplies and specifically

designated for that purpose by the slot machine licensee

that holds a table game operation certificate approved by

the board.

(viii)  Equip all drop boxes in which cash, coins,

fill slips, credit slips, inventory slips, chips or

plaques are deposited at the gaming tables, and all areas

where drop boxes are kept while in use, with two locking

devices or keys, of which one locking device or key shall

be under the exclusive control of the board or an agent

thereof, and the second locking device or key shall be

under the exclusive control of the slot machine licensee.

The drop boxes shall not be brought into or removed from

an area where table games are operated or locked or

unlocked, except at times, in places and according to

procedures that the board may require.

(5)  Establishing the size and uniform color by

denomination of all chips and plaques, as well as policy for

the use of promotional or commemorative chips, used in the

play of table games.

(6)  Establishing minimum standards relating to the

acceptance of tips or gratuities by dealers at a table game,

including the requirement that tips or gratuities be placed

in a common pool for complete distribution pro rata among all

dealers, with the distribution based upon the number of hours

each dealer has worked. Nothing in this paragraph shall

prohibit a licensed facility from adopting a formal policy

relating to acceptance of tips and gratuities, provided that

the policy meets the minimum standard established by the

board under this paragraph.

(7)  Requiring each slot machine licensee to agree to

maintain the same number of slot machines in operation at the

time the slot machine licensee submits a petition to operate

table games and to agree as part of that petition not to

decrease the number of slot machines in its licensed facility

without formal board approval.

(8)  Establishing the minimal proficiency requirements

for individuals to successfully complete a course of training

at an approved school under Subchapter F (relating to gaming

schools). Nothing in this paragraph or in Subchapter F shall

be construed to prohibit a licensee from establishing a

course of training for its table game employees or to

prohibit a licensee from offering employment to an individual

who has not attended or completed a course of instruction at

a gaming school. In the event that a licensee elects to train