PRINTER'S NO. 3889
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2353
Session of
2015
INTRODUCED BY PAYNE, MUSTIO, DIAMOND, D. PARKER AND MILLARD,
SEPTEMBER 21, 2016
REFERRED TO COMMITTEE ON GAMING OVERSIGHT, SEPTEMBER 21, 2016
AN ACT
Amending Title 4 (Amusements) of the Pennsylvania Consolidated
Statutes, in licensees, further providing for Category 2 slot
machine license, for number of slot machine licenses and for
multiple slot machine license prohibition.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1304(b) of Title 4 of the Pennsylvania
Consolidated Statutes is amended by adding a paragraph to read:
§ 1304. Category 2 slot machine license.
* * *
(b) Location.--
* * *
(4) Notwithstanding paragraph (1), no Category 2
licensed facility shall be located by the board within 30
linear miles of another licensed facility. This paragraph
shall not apply to any of the following:
(i) A Category 2 licensed facility issued a Category
2 slot machine license by the board prior to the
effective date of this paragraph.
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(ii) A Category 2 slot machine licensee that is
approved by the board for a change in ownership or
control as permitted by section 1328 (relating to change
in ownership or control of slot machine licensee) and
continues operation at the same physical land-based
location.
(iii) A Category 2 licensed facility located by the
board within a city of the first or second class.
Section 2. Sections 1307 and 1330 of Title 4 are amended to
read:
§ 1307. Number of slot machine licenses.
The board may license no more than [seven] six Category 1
licensed facilities and no more than [five] six Category 2
licensed facilities, as it may deem appropriate, as long as two,
and not more, Category 2 licensed facilities are located by the
board within the city of the first class and that one, and not
more, Category 2 licensed facility is located by the board
within the city of the second class. [The board may at its
discretion increase the total number of Category 2 licensed
facilities permitted to be licensed by the board by an amount
not to exceed the total number of Category 1 licenses not
applied for within five years following the effective date of
this part. Except as permitted by section 1328 (relating to
change in ownership or control of slot machine licensee), any
Category 1 license may be reissued by the board at its
discretion as a Category 2 license if an application for
issuance of such license has not been made to the board.] The
board may license no more than three Category 3 licensed
facilities.
§ 1330. Multiple slot machine license prohibition.
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[No] (a) General rule.--Except as otherwise provided in
subsection (b), no slot machine licensee, its affiliate,
intermediary, subsidiary or holding company may possess an
ownership or financial interest that is greater than 33.3% of
another slot machine licensee or person eligible to apply for a
Category 1 license, its affiliate, intermediary, subsidiary or
holding company. The board shall approve the terms and
conditions of any divestiture under this section. Under no
circumstances shall any such divestiture be approved by the
board if the compensation for the divested interest in a person
eligible to apply for a Category 1 license exceeds the greater
of the original cost of the interest, the book value of the
interest or an independently assessed value of the interest one
month prior to the effective date of this part and, in the case
of a person eligible to apply for a Category 1 license, unless
the person acquiring the divested interest is required to
continue conducting live racing at the location where live
racing is currently being conducted in accordance with section
1303 (relating to additional Category 1 slot machine license
requirements) and be approved for a Category 1 slot machine
license. No such slot machine license applicant shall be issued
a slot machine license until the applicant has completely
divested its ownership or financial interest that is in excess
of 33.3% in another slot machine licensee or person eligible to
apply for a Category 1 license, its affiliate, intermediary,
subsidiary or holding company.
(b) New Category 2 slot machine licenses.--
(1) A slot machine licensee that was issued a slot
machine license prior to the effective date of this
subsection may possess a partial or complete ownership or
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financial interest of a Category 2 slot machine license
applied for and issued by the board after the effective date
of this subsection.
(2) The ownership or financial interest limitation
contained in subsection (a) shall not apply to an applicant
for a Category 2 slot machine license if:
(i) the application is submitted to the board after
the effective date of this subsection; and
(ii) the applicant possesses an ownership or
financial interest in one or more slot machine licenses
issued prior to the effective date of this subsection.
(3) This subsection shall also apply to any affiliate,
intermediary, subsidiary or holding company of a slot machine
licensee or applicant.
Section 3. This act shall take effect immediately.
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