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A07622
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1925
Session of
2015
INTRODUCED BY SANTORA, JOZWIAK, NEILSON, MASSER, KLUNK AND
KORTZ, MARCH 24, 2016
AS REPORTED FROM COMMITTEE ON GAMING OVERSIGHT, HOUSE OF
REPRESENTATIVES, AS AMENDED, APRIL 13, 2016
AN ACT
Amending Title 4 (Amusements) of the Pennsylvania Consolidated
Statutes, in revenues, further providing for transfers from
State Gaming Fund.
Amending Title 4 (Amusements) of the Pennsylvania Consolidated
Statutes, in general provisions, further providing for
legislative intent and for definitions; providing for video
gaming; in Pennsylvania Gaming Control Board, further
providing for general and specific powers, for licensed
gaming entity application appeals from board, for board
minutes and records, for regulatory authority of board, for
slot machine license fee, for reports of board and for
diversity goals of board; in licensees, further providing for
Category 3 slot machine license, for slot machine license
application, for supplier licenses and for manufacturer
licenses, providing for nongaming service provider and
further providing for slot machine testing and certification
standards and for license renewals; in table games, further
providing for authorization to conduct table games, for table
game tournaments, for other financial transactions, for table
game device and associated equipment testing and
certification standards, for table game authorization fee and
for local share assessment; providing for interactive gaming,
for slot machines at nonprimary locations and for slot
machines in qualified airports; in revenues, further
providing for establishment of State Gaming Fund and net slot
machine revenue distribution, for Pennsylvania Race Horse
Development Fund, for Pennsylvania Gaming Economic
Development and Tourism Fund and for transfers from State
Gaming Fund and establishing the Public School Employees'
Retirement Contribution Fund; in administration and
enforcement, further providing for responsibility and
authority of the Department of Revenue, for compulsive and
problem gambling program, providing for child endangerment
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protection, further providing for financial and employment
interests, for regulation requiring exclusion or ejection of
certain persons, for repeat offenders excludable from
licensed gaming facility, for list of persons self excluded
from gaming activities, for investigations and enforcement,
for prohibited acts and penalties and providing for casino
liquor license; in miscellaneous provisions, further
providing for appropriations; making an editorial change; and
making a related repeal.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1408(c) of Title 4 of the Pennsylvania
Consolidated Statutes is amended to read:
Section 1. Section 1102 of Title 4 of the Pennsylvania
Consolidated Statutes 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:
* * *
(12.1) The continued growth and success of the
commercial gaming industry in this Commonwealth is dependent
upon a regulatory environment which promotes and fosters
technological advances and encourages the development and
delivery of innovative gaming products.
(12.2) It is also the intent of the General Assembly to
ensure the sustainability and competitiveness of the
commercial gaming industry in this Commonwealth by
authorizing interactive gaming, the operation of multistate
wide-area progressive slot machines, skill and hybrid slot
machines and the operation of slot machines at nonprimary
locations.
* * *
Section 2. The definitions of "associated equipment," "cash
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equivalent," "cheat," "cheating or thieving device,"
"commission" or "commissions," "conduct of gaming," "contest,"
"counterfeit chip," "fully automated electronic gaming table,"
"gaming employee," "gaming school," "gaming service provider,"
"key employee," "licensed facility," "manufacturer,"
"manufacturer license," "player," "progressive payout,"
"progressive system," "slot machine," "supplier," "supplier
license" and "table game device" 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:
* * *
"Airport authority." The governing body of a municipal
authority organized and incorporated to oversee the operations
of a qualified airport under 53 Pa.C.S. Ch. 56 (relating to
municipal authorities) or the governing body of a city of the
first class, which regulates the use and control of a qualified
airport.
"Airport gaming area." A location or locations within a
qualified airport approved for the conduct of authorized
interactive games through the use of multi-use computing devices
by eligible passengers as approved by the airport authority and
the Pennsylvania Gaming Control Board.
* * *
"Associated equipment." Any equipment or mechanical,
electromechanical or electronic contrivance, component or
machine used in connection with slot machines or table games,
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including linking devices which connect to progressive slot
machines and multistate wide-area progressive slot machines or
slot [machines, replacement] machine replacement parts,
equipment which affects the proper reporting and counting of
gross terminal revenue [and], gross table game revenue and gross
interactive gaming revenue, computerized systems for controlling
and monitoring slot machines [or], table games or interactive
games, including, but not limited to, the central control
computer to which all slot machines communicate [and], devices
for weighing or counting money[.] and interactive gaming devices
and associated equipment necessary for the operation of
interactive games as approved by the Pennsylvania Gaming Control
Board. The term shall not include count room equipment.
* * *
"Authorized interactive game." An interactive game approved
by regulation of the Pennsylvania Gaming Control Board to be
suitable for interactive gaming offered by an interactive gaming
certificate holder or other persons on behalf of a slot machine
licensee in accordance with Chapter 13B (relating to interactive
gaming). The term shall include any interactive game approved by
regulation of the Pennsylvania Control Board to be suitable for
interactive gaming through the use of a multi-use computing
device.
* * *
"Cash equivalent." An asset that is readily convertible to
cash, including, but not limited to, any of the following:
(1) Chips or tokens.
(2) Travelers checks.
(3) Foreign currency and coin.
(4) Certified checks, cashier's checks and money orders.
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(5) Personal checks or drafts.
(6) A negotiable instrument applied against credit
extended by a certificate holder, an interactive gaming
certificate holder, a holder of an interactive gaming license
or a financial institution.
(7) Any other instrument or representation of value that
the Pennsylvania Gaming Control Board deems a cash
equivalent.
* * *
"Cheat." To defraud or steal from any player, slot machine
licensee or the Commonwealth while operating or playing a slot
machine [or], table game[,] or authorized interactive game,
including causing, aiding, abetting or conspiring with another
person to do so. The term shall also mean to alter or causing,
aiding, abetting or conspiring with another person to alter the
elements of chance, method of selection or criteria which
determine:
(1) The result of a slot machine game [or], table game
or authorized interactive game.
(2) The amount or frequency of payment in a slot machine
game [or], table game or authorized interactive game.
(3) The value of a wagering instrument.
(4) The value of a wagering credit.
The term does not include altering a slot machine, table game
device or associated equipment or interactive gaming device or
associated equipment for maintenance or repair with the approval
of a slot machine licensee.
"Cheating or thieving device." A device, software or
hardware used or possessed with the intent to be used to cheat
during the operation or play of any slot machine [or], table
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game or authorized interactive game. The term shall also include
any device used to alter a slot machine [or], a table game
device or associated equipment, an authorized interactive game
or interactive gaming device or associated equipment without the
slot machine licensee's approval.
* * *
["Commission" or "commissions."] "Commission." The State
Horse Racing Commission [or the State Harness Racing Commission,
or both as the context may require.] as defined in section 2801-
D of the act of April 9, 1929 (P.L.177, No.175), known as The
Administrative Code of 1929 .
* * *
"Concession operator." A person engaged in the sale or
offering for sale of consumer goods or services to the public at
a qualified airport, or authorized to conduct other commercial
activities related to passenger services at a qualified airport,
in accordance with the terms and conditions of an agreement or
contract with an airport authority, government entity or other
person.
"Conduct of gaming." The licensed placement, operation and
play of slot machines [and], table games and interactive games
under this part, as authorized and approved by the Pennsylvania
Gaming Control Board. The term shall include the licensed
placement, operation and play of authorized interactive games
through the use of multi-use computing devices at a qualified
airport, as authorized and approved by the Pennsylvania Gaming
Control Board.
"Contest." A slot machine, table game or authorized
interactive game competition among players for cash, cash
equivalents or prizes.
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* * *
"Counterfeit chip." Any object or thing that is:
(1) used or intended to be used to play a table game at
a certificate holder's licensed facility and which was not
issued by that certificate holder for such use; [or]
(2) presented to a certificate holder for redemption if
the object was not issued by the certificate holder[.];
(3) used or intended to be used to play an authorized
interactive game which was not approved by the interactive
gaming certificate holder for such use; or
(4) presented during play of an authorized interactive
game for redemption, if the object or thing was not issued by
the interactive gaming certificate holder or other person on
behalf of an interactive gaming certificate holder.
* * *
"Eligible passenger" or "passenger." An individual 21 years
of age or older who has cleared security check points with a
valid airline boarding pass for travel from one destination to
another by airplane.
* * *
"Fully automated electronic gaming table." An electronic
gaming table determined by the Pennsylvania Gaming Control Board
to be playable or operable as a table game without the
assistance or participation of a person acting on behalf of a
certificate holder. The term shall include a multi-use computing
device, which through the use of digital, electronic or other
communications technology, is capable of simulating a table
game.
* * *
"Gaming employee." Any employee of a slot machine licensee,
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including, but not limited to:
(1) Cashiers.
(2) Change personnel.
(3) Count room personnel.
(4) Slot attendants.
(5) Hosts or other individuals authorized to extend
complimentary services, including employees performing
functions similar to those performed by a gaming junket
representative.
(6) Machine mechanics, computer machine technicians or
table game device technicians.
(7) Security personnel.
(8) Surveillance personnel.
(9) Promotional play supervisors, credit supervisors,
pit supervisors, cashier supervisors, shift supervisors,
table game managers and assistant managers and other
supervisors and managers, except for those specifically
identified in this part as key employees.
(10) Boxmen.
(11) Dealers or croupiers.
(12) Floormen.
(13) Personnel authorized to issue promotional play.
(14) Personnel authorized to issue credit.
The term shall include 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 or
associated equipment or interactive gaming devices or associated
equipment sold or provided to a licensed facility within this
Commonwealth as determined by the Pennsylvania Gaming Control
Board. The term shall further include employees of a person
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authorized by the board to supply goods and services related to
interactive gaming or any subcontractor or an employee of a
subcontractor that supplies interactive gaming devices,
including multi-use computing devices, or associated equipment
to a holder of an interactive gaming certificate or interactive
gaming license . 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 floor." Any portion of a licensed facility where
slot machines or table games have been installed for use or
play.
* * *
"Gaming-related restricted area." Any room or area of a
licensed facility, as approved by the Pennsylvania Gaming
Control Board, used by a slot machine licensee to manage,
control and operate gaming activities authorized under this part
and where access is limited to individuals specifically
designated by the slot machine licensee.
* * *
"Gaming school." Any educational institution approved by the
Department of Education as an accredited college or university,
community college, Pennsylvania private licensed school or its
equivalent and whose curriculum guidelines are approved by the
Department of Labor and Industry to provide education and job
training related to employment opportunities associated with
slot machines [or], table games or interactive games , including
slot machine, table game device and associated equipment
maintenance and repair and interactive gaming devices and
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associated equipment maintenance and repair.
"Gaming service provider." A person that is not required to
be licensed as a manufacturer, supplier, management company or
gaming junket enterprise under this part or regulations of the
Pennsylvania Gaming Control Board and:
(1) provides goods or services, including, but not
limited to, count room equipment, to a slot machine licensee
or an applicant for a slot machine license for use in the
operation of a licensed facility; [or] and
(2) provides goods or services [at] to a slot machine
licensee or an applicant for a slot machine license that
requires access to the gaming floor or a gaming-related
restricted area of a licensed facility as determined by the
Pennsylvania Gaming Control Board.
* * *
"Gross interactive gaming revenue." The total of all cash or
cash equivalent wagers paid by registered players to an
interactive gaming certificate holder in consideration for the
play of authorized interactive games, minus:
(1) The total of cash or cash equivalents paid out to
registered players as winnings.
(2) The cash equivalent value of any personal property
or other noncash items or things of value included in a
drawing, contest or tournament and distributed to registered
players as a result of playing authorized interactive games.
(3) Any administrative fee, operations fee or tax paid
to another state or jurisdiction pursuant to an interactive
gaming reciprocal agreement.
Amounts deposited with an interactive gaming certificate holder
for purposes of interactive gaming and amounts taken in
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fraudulent acts perpetrated against an interactive gaming
certificate holder for which the interactive gaming certificate
holder is not reimbursed may not be considered to have been paid
to the interactive gaming certificate holder for purposes of
calculating gross interactive gaming revenue.
* * *
"Hybrid slot machine." A slot machine in which a combination
of the skill of the player and elements of chance affects the
outcome of the game.
* * *
"Interactive game." Any gambling game offered through the
use of communications technology that allows a person, utilizing
money, checks, electronic checks, electronic transfers of money,
credit cards or any other instrumentality to transmit electronic
information to assist in the placement of a bet or wager and
corresponding information related to the display of the game,
game outcomes or other similar information. The term shall not
include:
(1) A lottery game or Internet instant game as defined
in the act of August 26, 1971 (P.L.351, No.91), known as the
State Lottery Law.
(2) Nongambling games that do not otherwise require a
license under the laws of this Commonwealth.
For the purposes of this definition, the term "communications
technology" shall mean any method used and the components
employed to facilitate the transmission and receipt of
information, including transmission and reception by systems
using wire, wireless, cable, radio, microwave, light, fiber
optics, satellite or computer data networks, including the
Internet and intranets, as approved by the board.
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"Interactive gaming." The placing of bets or wagers with an
interactive gaming certificate holder or interactive gaming
licensee located in this Commonwealth using a computer network
of both Federal and non-Federal interoperable packet switched
data networks through which an interactive gaming certificate
holder may offer authorized interactive games to registered
players. The term shall include the placing of bets or wagers
through the use of a multi-use computing device.
"Interactive gaming account." The formal, electronic system
implemented by an interactive gaming certificate holder to
record the balance of a registered player's debits, credits and
other activity related to interactive gaming.
"Interactive gaming account agreement." An agreement entered
into between an interactive gaming certificate holder or other
person on behalf of an interactive gaming certificate holder and
an individual which governs the terms and conditions of the
individual's interactive gaming account and the use of the
Internet for purposes of placing bets or wagers on authorized
interactive games operated by an interactive gaming certificate
holder or other person on behalf of an interactive gaming
certificate holder.
"Interactive gaming agreement." An agreement entered into by
or between an interactive gaming certificate holder and an
interactive gaming operator related to the offering or operation
of interactive gaming or an interactive gaming system on behalf
of an interactive gaming certificate holder. The term shall
include an interactive gaming agreement entered into by or
between an interactive gaming certificate holder and an
interactive gaming operator for the conduct of interactive
gaming through the use of multi-use computing devices at a
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qualified airport in accordance with this part.
"Interactive gaming certificate." The authorization issued
to a slot machine licensee by the Pennsylvania Gaming Control
Board authorizing the operation and conduct of interactive
gaming by a slot machine licensee or other person on behalf of a
slot machine licensee in accordance with Chapter 13B.
"Interactive gaming certificate holder." A slot machine
licensee that has been granted authorization by the Pennsylvania
Gaming Control Board to operate authorized interactive games in
accordance with Chapter 13B.
"Interactive gaming device." All hardware and software and
other technology, equipment or device of any kind as determined
by the Pennsylvania Gaming Control Board to be necessary for the
conduct of authorized interactive games.
"Interactive gaming license." A license issued to a person
by the Pennsylvania Gaming Control Board under Chapter 13B.
"Interactive gaming licensee." A person who has been issued
a license to act as an interactive gaming operator under Chapter
13B.
"Interactive gaming operator." A person, including an
affiliate of a slot machine licensee, licensed by the
Pennsylvania Gaming Control Board to operate interactive gaming
or an interactive gaming system on behalf of an interactive
gaming certificate holder.
"Interactive gaming platform." The combination of hardware
and software or other technology designed and used to manage,
conduct and record interactive games and the bets or wagers
associated with interactive games, as approved by the
Pennsylvania Gaming Control Board. The term shall include any
emerging or new technology deployed to advance the conduct and
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operation of interactive gaming, as approved through regulation
by the Pennsylvania Gaming Control Board.
"Interactive gaming reciprocal agreement." An agreement
negotiated by the Pennsylvania Gaming Control Board on behalf of
the Commonwealth with the authorized agency of one or more
states or jurisdictions where interactive gaming is legally
authorized which will permit the conduct of interactive gaming
between interactive gaming certificate holders in this
Commonwealth and gaming entities in the states or jurisdictions
that are parties to the agreement.
"Interactive gaming restricted area." Any room or area, as
approved by the Pennsylvania Gaming Control Board, used by an
interactive gaming certificate holder or interactive gaming
license holder to manage, control and operate interactive
gaming, including, where approved by the board, redundancy
facilities.
"Interactive gaming skin or skins." The portal or portals to
an interactive gaming platform or Internet website through which
authorized interactive games are made available to registered
players by an interactive gaming certificate holder or other
person on behalf of an interactive gaming certificate holder in
this Commonwealth or players in any other state or jurisdiction
in which an interactive gaming reciprocal agreement has been
entered.
"Interactive gaming system." All hardware, software and
communications that comprise a type of server-based gaming
system for the purpose of offering authorized interactive games.
"Internet website." The interactive gaming skin or skins or
Internet portal or portals through which an interactive gaming
certificate holder or other person makes authorized interactive
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games available for play.
* * *
"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 or interactive gaming operations, including the
general manager and assistant manager of the licensed facility,
director of slot operations, director of table game operations,
director of interactive gaming, director of cage and/or credit
operations, director of surveillance, director of marketing,
director of management information systems, director of
interactive gaming system programs or other similar job
classifications associated with interactive gaming , persons who
manage, control or administer interactive gaming or the bets and
wagers associated with authorized interactive games, director of
security, comptroller and any employee who is not otherwise
designated as a gaming employee and who supervises the
operations of these departments or to whom these department
directors or department heads report and such other positions
not otherwise designated or defined under this part 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
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Gaming Control Board under Chapter 13A (relating to table
games), to conduct table games and if authorized under Chapter
13B (relating to interactive gaming), to conduct interactive
gaming. The term includes any:
(1) area of a licensed racetrack at which a slot machine
licensee was previously authorized pursuant to section
1207(17) (relating to regulatory authority of board) to
operate slot machines prior to the effective date of this
paragraph;
(2) board-approved interim facility or temporary
facility; [and]
(3) area of a hotel which the Pennsylvania Gaming
Control Board determines is suitable to conduct table
games[.];
(4) for the purposes of Chapter 13D (relating to slot
machines at nonprimary locations), the area of a nonprimary
location in which a Category 1 slot machine licensee is
authorized to place and make slot machines available for
play.
The term shall not include a redundancy facility or an
interactive gaming restricted area which is not located on the
premises of a licensed facility as approved by the Pennsylvania
Gaming Control Board and which is maintained and operated by an
interactive gaming certificate holder in connection with
interactive gaming or by a Category 1 slot machine licensee in
connection with the operation of slot machines at a nonprimary
location.
* * *
"Licensed racing entity." Any legal entity that has obtained
a license to conduct live thoroughbred or harness horse race
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meetings respectively with pari-mutuel wagering from [either]
the State Horse Racing Commission [or the State Harness Racing
Commission] pursuant to the act of [December 17, 1981 (P.L.435,
No.135), known as the Race Horse Industry Reform Act] April 9,
1929 (P.L.177, No.175), known as The Administrative Code of
1929.
"Manufacturer." A person who manufactures, builds, rebuilds,
fabricates, assembles, produces, programs, designs or otherwise
makes modifications to any slot machine, table game device or
associated equipment or authorized interactive games for use or
play of slot machines [or], table games or authorized
interactive games in this Commonwealth for gaming purposes. The
term shall not include a person who manufactures, builds,
rebuilds, fabricates, assembles, produces, programs, designs or
otherwise makes modifications to multi-use computing devices
used in connection with the conduct of interactive gaming at a
qualified airport.
"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, interactive gaming devices or associated equipment or
associated equipment, or casino simulcasting technology or
equipment for use in this Commonwealth for gaming purposes.
* * *
"Multi-use computing device." As follows:
(1) A computing device, including, but not limited to, a
tablet computer, that:
(i) Allows a player to access an authorized
interactive game.
(ii) Is located and accessible to eligible
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passengers only in an airport gaming area.
(iii) Communicates with a server that is in a
location approved by the Pennsylvania Gaming Control
Board.
(iv) Is approved by the Pennsylvania Gaming Control
Board.
(v) Has the capability of being linked to and
monitored by the department's central control computer
system, as applicable for any particular interactive
game, in accordance with section 1323 (relating to
central control computer system).
(vi) Offers a player additional functions which
shall include Internet browsing, the capability of
checking flight status and ordering food or beverages.
(2) The term shall not include any tablet or computing
device that restricts, prohibits or is incapable of providing
access to interactive gaming, interactive gaming skins or
interactive gaming platforms.
"Multistate wide-area progressive slot machine system." The
linking of slot machines located in this Commonwealth with slot
machines located in one or more states or jurisdictions in which
the Pennsylvania Gaming Control Board has entered into an
agreement authorizing the conduct of a multistate wide-area
progressive slot machine system by slot machine licensees in
this Commonwealth with gaming entities in such other state or
jurisdiction, as approved by the Pennsylvania Gaming Control
Board.
* * *
"Nongaming service provider." A person that is not a gaming
service provider or required to be licensed as a manufacturer,
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supplier, management company or gaming junket enterprise under
this part or regulations of the Pennsylvania Gaming Control
Board and that provides goods or services:
(1) to a slot machine licensee or applicant for a slot
machine license for use in the operation of a licensed
facility; and
(2) that does not require access to the gaming floor or
a gaming-related restricted area of a licensed facility.
* * *
"Nonprimary location permit." The permit issued to a
Category 1 slot machine licensee authorizing the placement and
operation of slot machines at a nonprimary location in
accordance with Chapter 13D (relating to slot machines at
nonprimary locations).
"Nonprimary location permit holder." A Category 1 slot
machine licensee that has been approved for and issued a permit
to place and make slot machines available for play at a
nonprimary location in accordance with Chapter 13D (relating to
slot machines at nonprimary locations).
* * *
"Player." An individual wagering cash, a cash equivalent or
other thing of value in the play or operation of a slot machine
[or], an authorized interactive game or a table game, including
during a contest or tournament, the play or operation of which
may deliver or entitle the individual playing or operating the
slot machine [or], authorized interactive game or table game to
receive cash, a cash equivalent or other thing of value from
another player or a slot machine licensee.
* * *
"Progressive payout." A slot machine wager payout that
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increases in a monetary amount based on the amounts wagered in a
progressive system, including a multistate wide-area progressive
slot machine system.
"Progressive system." A computerized system linking slot
machines in one or more licensed facilities within this
Commonwealth and offering one or more common progressive payouts
based on the amounts wagered. The term shall include the linking
of slot machines in a licensed facility in this Commonwealth
with a multistate wide-area progressive system operated by
gaming entities in one or more states or jurisdictions.
* * *
"Qualified airport." A publicly owned commercial service
airport that is designated by the Federal Government as an
international airport.
* * *
["Race Horse Industry Reform Act." The act of December 17,
1981 (P.L.435, No.135), known as the Race Horse Industry Reform
Act.]
"Redundancy facilities." Any and all rooms or areas used by
a slot machine licensee for emergency backup, redundancy or
secondary operations attendant to interactive gaming as approved
by the Pennsylvania Gaming Control Board.
"Registered player." An individual who has entered into an
interactive gaming account agreement with an interactive gaming
certificate holder.
* * *
"Skill." The knowledge, dexterity, adroitness, acumen or
other mental skill of an individual.
"Skill slot machine." A slot machine in which the skill of
the player, rather than the elements of chance, is the
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predominant factor in affecting the outcome of the game .
"Slot machine." Includes:
(1) Any mechanical, electrical or computerized
contrivance, terminal, machine or other device approved by
the Pennsylvania Gaming Control Board which, upon insertion
of a coin, bill, ticket, token or similar object therein or
upon payment of any consideration whatsoever, including the
use of any electronic payment system except a credit card or
debit card, is available to play or operate, the play or
operation of which, whether by reason of skill or application
of the element of chance or both, may deliver or entitle the
person or persons playing or operating the contrivance,
terminal, machine or other device to receive cash, billets,
tickets, tokens or electronic credits to be exchanged for
cash or to receive merchandise or anything of value
whatsoever, whether the payoff is made automatically from the
machine or manually. A slot machine:
[(1)] (i) May utilize spinning reels or video
displays or both.
[(2)] (ii) May or may not dispense coins, tickets or
tokens to winning patrons.
[(3)] (iii) May use an electronic credit system for
receiving wagers and making payouts.
(2) The term shall include [associated equipment] all of
the following:
(i) Associated equipment necessary to conduct the
operation of the contrivance, terminal, machine or other
device.
(ii) A skill slot machine, hybrid slot machine and
the devices or associated equipment necessary to conduct
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the operation of a skill slot machine or hybrid slot
machine.
(iii) A multistate wide-area progressive slot
machine and devices and associated equipment as defined
by the board through regulations.
(iv) A multi-use computing device which is capable
of simulating, either digitally or electronically, a slot
machine.
* * *
"Supplier." A person that sells, leases, offers or otherwise
provides, distributes or services any slot machine, table game
device or associated equipment, interactive gaming device or
associated equipment for use or play of slot machines [or],
table games or interactive games in this Commonwealth. The term
shall include a person that sells, leases, offers or otherwise
provides, distributes or services any multi-use computing device
as approved by the Pennsylvania Gaming Control Board.
"Supplier license." A license issued by the Pennsylvania
Gaming Control Board authorizing a supplier to provide products
or services related to slot machines, table game devices or
associated equipment, interactive gaming device, including any
multi-use computing device or associated equipment to slot
machine licensees for use in this Commonwealth for gaming
purposes.
"Table game device." Includes gaming tables, cards, dice,
chips, shufflers, tiles, dominoes, wheels[, drop boxes] or any
mechanical, electrical or computerized contrivance, terminal,
machine or other device, apparatus, equipment or supplies
approved by the Pennsylvania Gaming Control Board and used to
conduct a table game or that is capable, through the use of
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digital, electronic or other communications technology, of
simulating play of a table game.
* * *
Section 2.1. Title 4 is amended by adding a chapter to read:
CHAPTER 11A
VIDEO GAMING
Sec.
11A01. Definitions.
11A02. Powers and duties.
11A03. Licensing of manufacturers, distributors, terminal
operators and service technicians.
11A04. Video gaming license.
11A05. License prohibitions.
11A06. Video gaming limitations.
11A07. Central computer system.
11A08. Video gaming terminal and redemption terminal.
11A09. Unlawful acts.
11A10. Enforcement.
11A11. Multiple types of licenses prohibited.
11A12. Establishment of account and distribution of funds.
11A13. Initial funding.
11A14. Preemption of local taxes and license fees.
11A15. Exemption from State gaming laws.
11A16. Exemption from Federal regulation.
11A17. Preemption.
11A18. Compulsive and problem gambling.
11A19. Provisional licenses.
11A20. Temporary video gaming regulations.
§ 11A01. Definitions.
The following words and phrases when used in this chapter
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shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Central computer system." A central site computer system
controlled by the department and accessible by the board that at
all times is connected to video gaming terminals at licensed
establishments and that, at a minimum, is capable of monitoring,
communicating, auditing, retrieving information, generating
games, activating and disabling each video gaming terminal.
"Coin-operated amusement game." A machine that requires the
insertion of a coin, currency or token to play or activate a
game, the outcome of which is predominantly and primarily
determined by the skill of the player. The term does not include
a video gaming terminal.
"Department." The Department of Revenue of the Commonwealth.
"Distributor." A person licensed by the board to buy, sell,
lease, service or distribute video gaming terminals. The term
does not include a terminal operator or a manufacturer.
"Enforcement Bureau." The Bureau of Liquor Control
Enforcement of the Pennsylvania State Police.
"Gaming machine." A device or game that has the outcome of
play primarily determined by chance. The term includes an
antique slot machine under 18 Pa.C.S. § 5513(c) (relating to
gambling devices, gambling, etc.) when used for profit. The term
shall not include any of the following:
(1) A coin-operated amusement game.
(2) A video gaming terminal that has all of its seals or
identification plates.
(3) A slot machine as defined under section 1103
(relating to definitions).
(4) A game of chance under the act of December 19, 1988
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(P.L.1262, No.156), known as the Local Option Small Games of
Chance Act.
(5) A lottery terminal used under the act of August 26,
1971 (P.L.351, No.91), known as the State Lottery Law.
"Grocery store." A retail establishment, commonly known as a
grocery store, supermarket or delicatessen, where food, food
products and supplies are sold for human consumption on or off
the premises. The term shall include a restaurant with an
interior connection to, and the separate and segregated portion
of, any other retail establishment which is dedicated solely to
the sale of food, food products and supplies for the table for
human consumption on or off the premises.
"Gross revenue." The total of cash or cash equivalents used
for the play of a video gaming terminal minus cash or cash
equivalent paid players as a result of playing a video gaming
terminal.
"Incentive." Any consideration, including a promotion or
prize, provided from a licensee under this chapter or an
employee of a licensee to a patron of a licensed establishment
as an enticement to play a video gaming terminal.
"Inducement." Any consideration paid directly or indirectly,
from a terminal operator, employee of the terminal operator or
any other person on behalf of the terminal operator, to a
licensed establishment owner or an employee of the licensed
establishment, directly or indirectly as an enticement to
solicit or maintain the licensed establishment owner's business.
The term includes cash, a gift, loan and prepayment of gross
revenue.
"Licensed establishment." A licensed liquor establishment or
a truck stop establishment with a video gaming license granted
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under § 11A05 (relating to license prohibitions).
"Licensed liquor establishment." A brew pub, club, hotel,
privately owned public golf course or restaurant as defined or
licensed under the act of April 12, 1951 (P.L.90, No.21), known
as the Liquor Code, that operates under a valid liquor or malt
or brewed beverage license under Article IV of the Liquor Code.
The term shall not include a grocery store or a hotel or
restaurant whose place of business is located in a licensed
facility as defined in 4 Pa.C.S. § 1103 (relating to
definitions).
"Manufacturer." A person that:
(1) is licensed by the board; and
(2) manufactures, produces or assembles video gaming
terminals or major parts and components of video gaming
terminals.
"Minor." An individual who is less than 21 years of age.
"Redemption terminal." The collective hardware, software,
communications technology and other ancillary equipment used to
facilitate the payment of cash or cash equivalent to a player as
a result of playing a video gaming terminal.
"Service technician." An individual licensed by the board to
service, maintain and repair video gaming terminals.
"State Lottery." The lottery established and operated under
the act of August 26, 1971 (P.L.351, No.91), known as the State
Lottery Law.
"Terminal operator." A person that:
(1) is licensed by the board; and
(2) owns, services or maintains video gaming terminals
for placement in licensed establishments.
"Truck stop establishment." A premises that is equipped with
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diesel islands used for fueling commercial motor vehicles, has
sold on average 50,000 gallons of diesel or biodiesel fuel each
month for the previous 12 months or is projected to sell an
average of 50,000 gallons of diesel or biodiesel fuel each month
for the next 12 months, has parking spaces dedicated for
commercial motor vehicles, has a convenience store and is
situated on a parcel of land not less than three acres.
"Video gaming license." A license issued by the board
authorizing the placement and operation of video gaming
terminals at the licensed establishment specified in the
application for licensure.
"Video gaming terminal." A device or terminal:
(1) that, upon insertion of a coin or currency, will
play or simulate the play of a video poker, bingo, keno, slot
machine, blackjack or any other game authorized by the board;
(2) that utilizes a video display and microprocessor;
and
(3) in which, by the skill of the player or by chance,
the player may receive a free game or credit that may be
redeemed for cash at a redemption terminal.
§ 11A02. Powers and duties.
The board shall regulate and adopt standards for video gaming
as authorized under this chapter.
§ 11A03. Licensing of manufacturers, distributors, terminal
operators and service technicians.
(a) Application.--A person that applies to the board for a
manufacturer, distributor, terminal operator or service
technician license related to video gaming under this section
shall do so on a form prescribed by the board.
(b) Application fee.--
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(1) An applicant for a manufacturer or distributor
license must pay a nonrefundable application fee of $50,000.
(2) An applicant for a terminal operator license must
pay a nonrefundable application fee of $10,000.
(3) An applicant for a service technician license must
pay a nonrefundable application fee of $100.
(c) Production of information.--An applicant must produce
information, documentation and assurances as required by the
board, including:
(1) Written consent by the applicant to provide for the
examination of financial and business accounts, bank
accounts, tax returns and related records in the applicant's
possession or under the applicant's control that establish
the financial stability, integrity and responsibility of the
license applicant.
(2) Written authorization by the applicant for third
parties in possession or control of accounts or records under
paragraph (1) to allow for examination of such documents as
deemed necessary by the board or the Pennsylvania State
Police in conducting background investigations.
(3) If the applicant has conducted a gaming operation in
a jurisdiction that permits such activity, a letter of
reference from the gaming or casino enforcement or control
agency that specifies the experience of the agency with the
applicant, the applicant's associates and the applicant's
gaming operations. If the applicant is unable to obtain the
letter within 60 days of the request, the applicant may
submit a copy of the letter requesting the information,
together with a statement under oath or affirmation that,
during the period activities were conducted, the applicant
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was in good standing with the appropriate gambling or casino
enforcement control agency.
(4) Information, documentation and assurances as
required by the board to establish the applicant's good
character, honesty and integrity. Information under this
paragraph may relate to family, habits, character,
reputation, business affairs, financial affairs, business
associates, professional associates and personal associates,
covering the 10-year period immediately preceding the filing
of the application.
(d) Background investigation.--Pennsylvania State Police
shall conduct, at the request of the board, a background
investigation of an applicant for a manufacturer, distributor or
terminal operator license as follows:
(1) The applicant shall consent to a background
investigation and provide any and all information requested
by the Pennsylvania State Police and consent to a release of
any and all information necessary for the completion of the
background investigation, which information shall include
fingerprints.
(2) The background investigation shall include a
security, criminal and credit investigation by the
Pennsylvania State Police, which shall include records of
criminal arrests and convictions, in any jurisdiction,
including Federal criminal history record information. The
investigation may utilize information about the applicant
compiled by the Pennsylvania Liquor Control Board. The
Pennsylvania State Police may share investigation information
with the board to the extent permitted by Federal and State
law as determined by the Pennsylvania State Police. None of
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the information obtained by the Pennsylvania State Police may
be disclosed publicly nor be subject to disclosure under the
act of February 14, 2008 (P.L.6, No.3), known as the Right-
to-Know Law.
(3) The background investigation shall include an
examination of personal, financial or business records,
including tax returns, bank accounts, business accounts,
mortgages and contracts to which the applicant is a party or
has an interest.
(4) The background investigation shall include an
examination of personal or business relationships that:
(i) Include a partial ownership or voting interest
in a partnership, association or corporation.
(ii) Bear on the fitness of the applicant for
licensure.
(5) The applicant shall reimburse the bureau for the
actual costs of conducting the background investigation. The
board may not approve an applicant that has not fully
reimbursed the Pennsylvania State Police for the
investigation.
(e) Eligibility.--To be eligible for a license under this
section, an applicant for a manufacturer, distributor, terminal
operator or service technician license must comply with all of
the following:
(1) Be of good moral character and reputation in the
community.
(2) Be 18 years of age or older.
(3) Be current in the payment of all taxes, interest and
penalties owed to the Commonwealth and political subdivisions
of the Commonwealth. This paragraph excludes taxes subject to
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a timely administrative or judicial appeal or subject to a
duly authorized deferred payment plan.
(4) An applicant for a manufacturer, distributor or
terminal operator license must also demonstrate sufficient
financial resources to support the activities required of,
respectively, a manufacturer, distributor or terminal
operator related to video gaming terminals.
(f) Review and approval.--The board shall review the
information submitted by the applicant and the investigation
information provided by the Pennsylvania State Police. If being
satisfied that the requirements of subsection (e) have been met,
the board may approve the application and grant the applicant a
manufacturer, distributor or terminal operator license
consistent with all of the following:
(1) The license shall be valid for a period of two
years. Nothing in this paragraph shall be construed to
relieve the licensee of the affirmative duty to notify the
board of any change relating to the status of its license or
to any other information contained in application materials
on file with the board.
(2) The license shall be nontransferable.
(3) Any other condition established by the board.
(g) Annual fees.--
(1) The annual fee for a terminal operator license shall
be $25,000 for a terminal operator that has placed 50 or
fewer video gaming terminals at licensed establishments in
this Commonwealth. An additional annual fee of $500 shall be
charged per video gaming terminal license for a terminal
operator that has placed more than 50 video gaming terminals
at licensed establishments in this Commonwealth.
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(2) The annual fee for a distributor license shall be
$10,000.
(3) The annual fee for a manufacturer license shall be
$10,000.
(4) The annual fee for a service technician license
shall be $100.
(h) Renewal and late filing fees.--
(1) Sixty days prior to expiration of the license, the
licensee seeking renewal of the license shall submit a
renewal application accompanied by the annual fee or the
license shall be subject to appropriate late filing fees.
(2) If the renewal application satisfies the
requirements of subsection (e), the board may renew the
license.
(3) If the board receives a complete renewal application
but fails to act upon the renewal application prior to the
expiration of the license, the license shall continue in
effect for an additional six-month period or until acted upon
by the board, whichever occurs first.
(4) The board may accept renewal applications filed less
than 60 days before the effective date of renewal upon the
payment of the requisite annual fees and an additional late
filing fee of $100. A renewal application filed on or after
the effective date of renewal shall be accompanied by the
requisite annual fee and an additional late filing fee of
$250. A renewal application may not be considered for
approval unless accompanied by the requisite annual and late
filing fees, tax clearance and any other information required
by the board.
(i) Validation of licenses and late filing fees.--
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(1) One year after the issuance or renewal of a license,
the licensee shall file an application for validation of the
license with the requisite annual fees and tax clearance, at
least 60 days before the effective date of the validation or
the license shall be subject to appropriate late filing fees.
(2) The board may accept a validation application filed
less than 60 days before the effective date of renewal upon
the payment of the requisite annual fee and an additional
late filing fee of $100. A validation application filed on or
after the effective date of validation shall be accompanied
by the requisite annual fee and an additional late filing fee
of $250. A validation application may not be considered for
approval unless accompanied by the requisite annual and late
filing fees, tax clearance and any other information required
by the board.
(j) Third-party disclosure.--An applicant must accept any
risk of adverse public notice, embarrassment, criticism, damages
or financial loss, which may result from disclosure or
publication by a third party of material or information
requested by the board pursuant to action on an application. The
applicant expressly must waive a claim against the board or the
Commonwealth and the applicant's employees from damages as a
result of disclosure or publication by a third party.
(k) Hearing upon denial.--A person that is denied a license
or the renewal of a license under this section has the right to
a hearing before the board in accordance with the provisions of
2 Pa.C.S. Chs. 5 Subch. A (relating to practice and procedure of
Commonwealth agencies) and 7 Subch. A (relating to judicial
review of Commonwealth agency action).
§ 11A04. Video gaming license.
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(a) Application.--A person that applies to the board for a
video gaming license under this section shall do so on a form
prescribed by the board.
(b) Licensed liquor establishment.--Except as provided in
section 11A05 (relating to license prohibitions), the board
shall issue a video gaming license to a licensed liquor
establishment upon a showing that the establishment's liquor or
retail dispenser license is valid and is in good standing with
the Pennsylvania Liquor Control Board.
(c) Truck stop establishment.--The board shall issue a
license to a truck stop establishment if the person who owns
establishment meets the following requirements:
(1) Is of good moral character and reputation in the
community.
(2) Is 18 years of age or older.
(3) Is current in the payment of all taxes, interest and
penalties owed to the Commonwealth and political subdivisions
of the Commonwealth. This paragraph excludes taxes subject to
a timely administrative or judicial appeal or subject to a
duly authorized deferred payment plan.
(4) Demonstrates sufficient financial resources to
support the activities required of a manufacturer,
distributor or terminal operator related to video gaming
terminals.
(5) Produces information, documentation and assurances
as required by the board, including:
(i) Written consent by the applicant to provide for
the examination of financial and business accounts, bank
accounts, tax returns and related records in the
applicant's possession or under the applicant's control
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that establish the financial stability, integrity and
responsibility of the license applicant.
(ii) Written authorization by the applicant for
third parties in possession or control of accounts or
records under paragraph (1) to allow for examination of
such documents as deemed necessary by the board or the
Pennsylvania State Police in conducting background
investigations.
(iii) If the applicant has conducted a gaming
operation in a jurisdiction that permits such activity, a
letter of reference from the gaming or casino enforcement
or control agency that specifies the experience of the
agency with the applicant, the applicant's associates and
the applicant's gaming operations. If the applicant is
unable to obtain the letter within 60 days of the
request, the applicant may submit a copy of the letter
requesting the information, together with a statement
under oath or affirmation that, during the period
activities were conducted, the applicant was in good
standing with the appropriate gambling or casino
enforcement control agency.
(iv) The applicant must provide information,
documentation and assurances as required by the board to
establish the applicant's good character, honesty and
integrity. Information under this paragraph may relate to
family, habits, character, reputation, business affairs,
financial affairs, business associates, professional
associates and personal associates, covering the 10-year
period immediately preceding the filing of the
application.
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(6) Consent to a background investigation and provide
any and all information requested by the Pennsylvania State
Police and consent to a release to obtain any and all
information necessary for the completion of the background
investigation, which information shall include fingerprints.
The background investigation shall include the following:
(i) A security, criminal and credit investigation by
the Pennsylvania State Police, which shall include
records of criminal arrests and convictions, in any
jurisdiction, including Federal criminal history record
information. The investigation may utilize information
about the applicant compiled by the Pennsylvania Liquor
Control Board. The Pennsylvania State Police may share
investigation information with the board to the extent
permitted by Federal and State law as determined by the
Pennsylvania State Police. None of the information
obtained by the Pennsylvania State Police shall be
disclosed publicly nor be subject to disclosure under the
act of February 14, 2008 (P.L.6, No.3), known as the
Right-to-Know Law.
(ii) An examination of personal, financial or
business records, including tax returns, bank accounts,
business accounts, mortgages and contracts to which the
applicant is a party or has an interest.
(iii) An examination of personal or business
relationships that include a partial ownership or voting
interest in a partnership, association or corporation and
bear on the fitness of the applicant for licensure.
(iv) The applicant shall reimburse the bureau for
the actual costs of conducting the background
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investigation. The board may not approve an applicant
that has not fully reimbursed the Pennsylvania State
Police for the investigation.
(d) Application fee.--A licensed establishment shall pay an
application fee of $100.
(e) Annual fees.--A licensed establishment shall pay an
annual fee of $1,000 and an annual fee of $500 per video gaming
terminal.
(f) Review and approval.--The board shall review the
information submitted by the applicant and, if the applicant is
a truck stop establishment, the investigation information
provided by the Pennsylvania State Police. If satisfied that the
requirements for a video gaming license have been met, the board
shall approve the application and grant the applicant a video
gaming license consistent with all of the following:
(1) The license shall be valid for a period of two
years. Nothing in this paragraph shall be construed to
relieve the licensee of the affirmative duty to notify the
board of any change relating to the status of its license or
to any other information contained in application materials
on file with the board.
(2) The license shall be nontransferable.
(3) Any other condition established by the board.
(g) Renewal and late filing fees.--
(1) Sixty days prior to expiration of the license, the
licensee seeking renewal of the license shall submit a
renewal application accompanied by the renewal fee or the
license shall be subject to appropriate late filing fees.
(2) If the renewal application satisfies the
requirements for the video gaming license, the board may
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renew the license.
(3) If the board receives a complete renewal application
but fails to act upon the renewal application prior to
the expiration of the license, the license shall continue in
effect for an additional six-month period or until acted upon
by the board, whichever occurs first.
(4) The board may accept a renewal application filed
less than 60 days before the effective date of renewal upon
the payment of the requisite license and filing fee and an
additional late filing fee of $100. A renewal application
filed on or after the effective date of renewal shall be
accompanied by the requisite license and filing fee and an
additional late filing fee of $250. A renewal application may
not be considered for approval unless accompanied by the
requisite annual and late filing fees, tax clearance and any
other information required by the board.
(h) Validation of licenses and late filing fees.--
(1) One year after the issuance or renewal of a license,
the licensee shall file an application for validation of
the license with the requisite annual fees and tax clearance,
at least 60 days before the effective date of the validation
or the license shall be subject to appropriate late filing
fees.
(2) The board may accept a validation application filed
less than 60 days before the effective date of renewal upon
the payment of the requisite annual fee and an additional
late filing fee of $100. A validation application filed on or
after the effective date of validation shall be accompanied
by the requisite annual fee and an additional late filing fee
of $250. A validation application will not be considered for
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approval unless accompanied by the requisite filing, license
and late filing fees, tax clearance and any other information
required by the board.
(i) Third-party disclosure.--An applicant must accept any
risk of adverse public notice, embarrassment, criticism, damages
or financial loss, which may result from disclosure or
publication by a third party of material or information
requested by the board pursuant to action on an application. The
applicant expressly must waive a claim against the board or the
Commonwealth and the applicant's employees from damages as a
result of disclosure or publication by a third party.
(j) Hearing upon denial.--A person who is denied a license
or the renewal of a license under this section has the right to
a hearing before the board in accordance with the provisions of
2 Pa.C.S. Chs. 5 Subch. A (relating to practice and procedure of
Commonwealth agencies) and 7 Subch. A (relating to judicial
review of Commonwealth agency action).
§ 11A05. License prohibitions.
(a) Felony conviction prohibition.--A person that has been
convicted of a felony in any jurisdiction may not be issued a
license under this chapter.
(b) Gambling offense prohibition.--A person that has been
convicted in any jurisdiction of a gambling offense, including a
violation of 18 Pa.C.S. § 5516 (relating to gambling devices,
gambling, etc.), unless 15 years have elapsed from the date of
conviction for the offense, may not be issued a license under
this chapter.
(c) Factors to be considered.--Following the expiration of
any prohibition period applicable to an applicant under
subsection (b), in determining whether to issue a license, the
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board shall consider the following factors:
(1) The nature and seriousness of the offense or
conduct.
(2) The circumstances under which the offense or conduct
occurred.
(3) The age of the applicant when the offense or conduct
was committed.
(4) Whether the offense or conduct was an isolated or
repeated incident.
(5) Any evidence of rehabilitation, including good
conduct in the community, counseling or psychiatric treatment
received and the recommendation of persons who have
substantial contact with the applicant.
(d) Felony offenses.--For purposes of this section, a felony
offense is any of the following:
(1) An offense punishable under the laws of this
Commonwealth by imprisonment for more than five years.
(2) An offense which, under the laws of another
jurisdiction, is:
(i) classified as a felony; or
(ii) punishable by imprisonment for more than five
years.
(3) An offense under the laws of another jurisdiction
which, if committed in this Commonwealth, would be subject to
imprisonment for more than five years.
§ 11A06. Video gaming limitations.
(a) General rule.--A licensed establishment shall be subject
to the following limitations:
(1) No more than five video gaming terminals may be
placed on the premises of the licensed establishment.
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(2) With the exception of tickets indicating amounts
won, which are redeemable for cash, or which can be
reinserted into video gaming machines for play of games
authorized by the board, no video gaming terminal may
directly dispense a coin, cash, token or anything else of
value. The winning ticket may, however, be used in other
video gaming terminals in the same licensed establishment.
(3) (i) The licensed establishment must enter into a
written video gaming terminal placement agreement with a
licensed terminal operator for a minimum 60-month term
and a maximum 120-month term. The form of the agreement
shall be approved by the board and on file and available
for inspection at the licensed establishment. A licensed
establishment or licensed establishment applicant, may
only sign, or agree to sign, a written agreement with a
terminal operator or terminal operator applicant.
(ii) Any person soliciting the execution of a video
gaming terminal placement agreement on behalf of an
applicant or licensee shall be disclosed to the board.
(iii) No video gaming terminal placement agreement
may be transferred or assigned unless the individual or
entity making the assignment and the individual or entity
receiving the assignment of the video gaming terminal
placement agreement are both applicants or licensees
under this chapter.
(iv) No payment may be made to an individual or
entity for or with respect to the procurement of a video
gaming terminal placement agreement to an individual or
entity which or whom is not licensed by or disclosed to
the board.
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(v) If an application for a terminal operator
license is denied or withdrawn, the video gaming terminal
placement agreement shall be null and void.
(vi) A video gaming terminal placement agreement not
in strict compliance with this section is void.
(4) (i) No video gaming terminal may be in an area
easily accessible to a minor. A floor-to-ceiling wall is
not required.
(ii) The entrance to the video gaming area must be
secure and easily seen and observed by the employees or
management of the licensed establishment.
(iii) The video gaming area must at all times be
monitored by an employee of the licensed establishment,
who is at least 18 years of age, either directly or
through video surveillance.
(5) (i) Except as may be approved by the board, no
licensed establishment with a video gaming license may
generally advertise gaming to the general public.
(ii) A customer of a licensed establishment may opt
in to receive written advertising materials from a
licensed establishment.
(6) No licensed establishment or employee of a licensed
establishment may offer an incentive to a patron of the
licensed establishment related to the play of a video gaming
terminal.
(b) Fines.--A person found in violation of any of the
limitations in subsection (a) shall be subject to the following
fines:
(1) A fine of not less than $300, nor more than $500 for
the first violation.
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(2) For more than one violation or subsequent
violations, a fine of not less than $500, nor more than
$1,000.
(3) The right to suspend and revoke licenses granted
under this chapter shall be in addition to the fines
enumerated in this subsection.
§ 11A07. Central computer system.
The department shall establish and procure a central computer
system capable of monitoring and communicating with each video
gaming terminal. The following shall apply:
(1) All video gaming terminals shall be linked to the
central computer system under the control of the department
and accessible by the board.
(2) The department may utilize the central control
computer system employed by the department to monitor slot
machine gaming or the State Lottery.
(3) All communications data collected by the central
computer system may be provided to the terminal operator.
(4) Interconnection of jackpots, pursuant to a wide area
progressive system, shall be allowed.
§ 11A08. Video gaming terminal and redemption terminal.
(a) Specifications.--
(1) The board shall approve one or more video gaming
terminals and redemption terminals that include hardware and
software specifications. All video gaming terminals and
redemption terminals offered for play or use in this
Commonwealth shall conform to the approved specifications.
(2) The board may utilize the standards and models
approved by other states, and may contract for the services
of the board's testing laboratory.
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(b) Service contracts authorized.--The board may also
contract for services of one or more independent outside testing
laboratories that have been accredited by a national
accreditation body and that, in the judgment of the board, are
qualified to perform such examinations and tests.
(c) Contents of specifications.--The specifications shall
include:
(1) All video gaming terminals shall have the ability to
interact with the central communications system.
(2) Unremovable identification plates shall appear on
the exterior of the video gaming terminal containing the name
of the manufacturer and the serial and model number of the
video gaming terminal.
(3) Rules of play shall be displayed on the video gaming
terminal face or screen as promulgated by the board.
(4) A video gaming terminal may not directly dispense
coins, cash, tokens or any other article of exchange or value
except for tickets. Such tickets shall be dispensed by
pressing the ticket dispensing button on the video gaming
terminal at the end of one's turn or play. The ticket shall
indicate the total amount of the cash award. The player shall
be permitted to insert the ticket into another terminal in
the same licensed establishment or turn in the ticket for
redemption. Redemption shall be made by giving the ticket to
the responsible person in charge who is over 18 years of age
at the licensed establishment or through the use of an
approved redemption machine. A redemption machine is required
at the licensed establishment if the establishment has three
or more terminals.
(5) The cost of a credit shall be 1¢, 5¢, 10¢ or 25¢ and
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the maximum wager played per game shall not exceed $2.50. A
game may result in one or more prizes.
(6) No cash award for any individual game may exceed
$1,000.
(7) All video gaming terminals must be designed and
manufactured with total accountability to include gross
proceeds, net profits, winning percentages and any other
information the board requires.
(8) Each video gaming terminal shall pay out a minimum
of 85% of the amount wagered.
§ 11A09. Unlawful acts.
(a) General rule.--It shall be unlawful for any person to do
any of the following:
(1) To operate or attempt to operate a video gaming
terminal or to receive or attempt to receive payment from a
redemption terminal if the person is under 21 years of age.
(2) To permit a person under 21 years of age to play a
video gaming terminal or to provide payment as a result of
playing video gaming to a person under 21 years of age.
(3) To permit a visibly intoxicated person to play a
video gaming terminal.
(4) To possess a gaming machine.
(5) To install or operate more video gaming terminals in
a licensed establishment than permitted by this chapter or
the board.
(6) To tamper with the connection of a video gaming
terminal to the central communications system.
(7) To sell, distribute, service, own, operate or place
on location a video gaming terminal unless the person holds
the appropriate license under this chapter and is in
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compliance with all requirements of this chapter.
(8) As a terminal operator, to give, or offer to give,
directly or indirectly, any type of inducement to a licensed
liquor establishment or truck stop establishment to secure a
video gaming terminal placement agreement.
(9) As a licensed liquor establishment or truck stop
establishment, to accept any inducement from a terminal
operator or any other third party, directly or indirectly,
associated with a terminal operator.
(b) Penalties and fines.--In addition to any other penalty
provided by law, the following shall apply:
(1) A person convicted of violating subsection (a)(1) or
(3) is guilty of a summary offense.
(2) A person convicted of violating subsection (a)(4) is
guilty of a misdemeanor of the first degree and shall be
subject to additional penalties as provided in subsection
(c).
(3) Except for subsection (a)(1), (3) or (4):
(i) A person convicted of violating any other
provision of subsection (a) is guilty of a misdemeanor of
the third degree and shall pay fine of not less than
$5,000.
(ii) A person convicted of violating any other
provision of subsection (a) that is convicted of a second
or subsequent violation is guilty of a misdemeanor of the
second degree and shall pay a fine of not less than
$15,000.
(c) Seizure, forfeiture and destruction of gaming machines
and fines.--
(1) A licensee under this chapter shall consent to
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seizure of its gaming machines. Gaming machines and the
proceeds of gaming machines shall be subject to seizure under
sections 1517(e) (relating to investigations and enforcement)
and 1518(f) (relating to prohibited acts; penalties).
(2) In the case of a gaming machine seized from a
licensed establishment:
(i) For a first violation, the penalty shall be a
fine of at least $10,000 and not more than $25,000 and a
suspension of the licensed establishment owner's liquor
license for not less than seven consecutive days.
(ii) For a second or subsequent violation, the
penalty shall be a fine of $50,000 and a suspension of
the liquor license for not less than 60 consecutive days,
or a revocation of the establishment's license.
(3) In the case of a gaming machine seized from a place
of business other than a licensed establishment:
(i) For a first violation, the penalty shall be a
fine of at least $10,000 and not more than $25,000
against the owner of the business from which the gaming
machine was seized, and a suspension of the licensed
establishment owner's liquor license for not less than 30
consecutive days.
(ii) For a second or subsequent violation, the
penalty shall be a fine of $50,000, and a suspension of
the liquor license for not less than 60 consecutive days.
§ 11A10. Enforcement.
In addition to any other law enforcement agency with
jurisdiction, the enforcement bureau shall have the jurisdiction
and the authority to enter a business in order to enforce the
provisions of this chapter.
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§ 11A11. Multiple types of licenses prohibited.
(a) Manufacturer restriction.--A manufacturer may not be
licensed as a video gaming terminal distributor or a terminal
operator, or own, manage or control a licensed establishment,
and shall be licensed only to sell to licensed distributors.
(b) Distributor restriction.--A licensed video gaming
terminal distributor may not be licensed as a manufacturer or a
terminal operator, or own, manage or control a licensed
establishment.
(c) Terminal operator restriction.--A terminal operator may
not be licensed as a manufacturer or distributor and shall be
licensed only to contract with licensed distributors and
licensed establishments.
(d) Licensed establishment restriction.--An owner of a
licensed establishment may not be licensed as a manufacturer,
distributor or terminal operator.
§ 11A12. Establishment of account and distribution of funds.
(a) Video Gaming Account.--The Video Gaming Account is
established as a separate account in the State Treasury. Except
as otherwise provided in this chapter, fees and fines collected
under this chapter and the portion of gross revenue
distributable to the Commonwealth under subsection (c)(3) shall
be deposited in the Video Gaming Account.
(b) Video operator accounts.--A video operator shall
establish and maintain an account in a State depository in this
Commonwealth into which the video operator shall deposit gross
revenue generated by the play of all video gaming terminals for
which the operator has been issued a video operator license. The
sums in the video operator account shall be withdrawn weekly by
the department and deposited as provided in subsection (a).
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(c) Distribution of gross revenue.--The gross revenue from
each video gaming terminal shall be distributed in the following
manner:
(1) To the licensed establishment, 33%.
(2) To the terminal operator, 33%.
(3) To the Commonwealth, 34%.
(d) Video Gaming Account appropriations.--
(1) Money from the Video Gaming Account shall be
appropriated to:
(i) The board for its operations related to the
licensing and regulation of video gaming.
(ii) To the department for operation of the central
management system.
(iii) To the bureau for enforcement of this chapter
upon appropriation by the General Assembly.
(2) The board, department and bureau shall prepare and
annually submit to the chairperson and minority chairperson
of the Appropriations Committee of the Senate and the
chairperson and minority chairperson of the Appropriations
Committee of the House of Representatives, an itemized budget
consisting of amounts to be appropriated out of the Video
Gaming Account necessary to pay such costs.
(e) Payments to municipalities.--On an annual basis, each
municipality that has one or more licensed establishments within
the municipality shall be paid $1,000 per licensed terminal
located in the municipality from the Video Gaming Account.
(f) Funding for compulsive gambling programs.--The board
shall allocate from the Video Gaming Account $1,000,000
annually for the purpose of treating compulsive gambling in this
Commonwealth.
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§ 11A13. Initial funding.
The sum of $10,000,000 is hereby appropriated from the
General Fund to the board for the purpose of paying costs
associated with the licensing and regulation of video gaming and
the initial implementation of this chapter and other costs
associated with this chapter by the board. The appropriated
amount shall be repaid from the Video Gaming Account to the
General Fund by June 30, 2017.
§ 11A14. Preemption of local taxes and license fees.
(a) Statutes.--Video gaming terminals shall be exempt from
taxes levied under the following:
(1) The act of August 5, 1932 (Sp.Sess., P.L.45, No.45),
referred to as the Sterling Act.
(2) The act of December 31, 1965 (P.L.1257, No.511),
known as The Local Tax Enabling Act.
(3) 53 Pa.C.S. Pt. III Subpt. E (relating to home rule
and optional plan government).
(4) Any statute that confers taxing authority to a
political subdivision.
(b) Licensing fees.--
(1) Video gaming terminals are exempt from local
licensing fees.
(2) Local licensing fees imposed on all other coin-
operated amusement games shall not exceed $100.
§ 11A15. Exemption from State gaming laws.
Video gaming terminals authorized under this chapter and the
use of video gaming terminals as authorized under this chapter
are exempt from 18 Pa.C.S. § 5513 (relating to gambling devices,
gambling, etc.).
§ 11A16. Exemption from Federal regulation.
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The General Assembly declares that the Commonwealth is exempt
from section 2 of the Gambling Devices Transportation Act (64
Stat. 1134, 15 U.S.C. § 1172). Shipments of approved video
gaming terminals into this Commonwealth in compliance with
sections 3 and 4 of the Gambling Devices Transportation Act (15
U.S.C. §§ 1173 and 1174) shall be deemed legal shipments into
this Commonwealth.
§ 11A17. Preemption.
This chapter shall preempt all laws of units of local
government to the extent they are inconsistent with this
chapter.
§ 11A18. Compulsive and problem gambling.
(a) Establishment of program.--
(1) The Department of Health shall develop program
guidelines for public education, awareness and training
regarding compulsive and problem gambling and the treatment
and prevention of compulsive and problem gambling
specifically in the area of video gaming. The program shall
supplement and be complimentary to the existing program under
4 Pa.C.S. § 1509 (relating to compulsive and problem gambling
program).
(2) Except as otherwise provided in this subsection, the
provisions of 4 Pa.C.S. § 1509 shall be fully applicable to
video gaming. The guidelines shall include strategies for the
prevention of compulsive and problem gambling. The Department
of Health may consult with the board and licensed gaming
entities to develop such strategies.
(3) The program shall include the following,
specifically with respect to video gaming:
(i) Maintenance of a compulsive gamblers assistance
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organization's toll-free problem gambling telephone
number to provide crisis counseling and referral services
to families experiencing difficulty as a result of
problem or compulsive gambling.
(ii) The promotion of public awareness regarding the
recognition and prevention of problem or compulsive
gambling.
(iii) Facilitation, through in-service training and
other means, of the availability of effective assistance
programs for problem and compulsive gamblers and family
members affected by problem and compulsive gambling.
(iv) Conducting studies to identify adults and
juveniles in this Commonwealth who are, or are at risk of
becoming, problem or compulsive gamblers.
(v) Providing grants to and contracting with
organizations which provide services as provided in this
section.
(vi) Providing reimbursement for organizations for
reasonable expenses in assisting the Department of Health
in carrying out the purposes of this section.
(b) Notice of availability of assistance.--
(1) A licensed establishment shall obtain a toll-free
telephone number to be used to provide persons with
information on assistance for compulsive or problem gambling.
A licensed establishment shall conspicuously post at least
two signs containing language similar to the following
statement: If you or someone you know has a gambling problem,
help is available. Call (toll-free telephone number). The
signs shall be posted within 50 feet of each entrance and
exit and, within 50 feet of each automated video gaming area
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within the licensed establishment and in other appropriate
public areas of the licensed establishment as determined by
the licensed establishment.
(2) A licensed establishment shall have available in its
establishment written handout materials in a format
prescribed by the Department of Health which contain the same
information as the signs referenced in paragraph (1).
(3) A licensed establishment that fails to post or print
the warning sign or provide the written materials in
accordance with paragraph (1) or (2) shall be assessed a fine
of $1,000 per day for each day the minimum number of signs
are not posted as required in this subsection.
(c) Mandatory training.--The board's Office of Compulsive and
Problem Gambling shall develop mandatory training for employees
and management of a licensed establishment who oversee the video
gaming terminal to identify and address compulsory gambling
behaviors and provide assistance to problem gamblers. The board
shall establish a fee to cover the cost of the training.
§ 11A19. Provisional licenses.
(a) General rule.--The General Assembly has determined that
prompt and expedited implementation of video gaming in this
Commonwealth is desirable, to the extent that such expedited
implementation can be accomplished without compromising the
integrity of gaming. The provisional licensing provisions of
this section are found to strike the correct balance between
assuring that licensees meet the licensing criteria without
causing an undue delay in implementation of this chapter.
(b) Provisional licensing of licensed liquor
establishments.--
(1) Within 60 days after the effective date of this
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section, the board shall make applications for a video gaming
license as a licensed liquor establishment available to
applicants.
(2) The board shall issue a provisional license to an
applicant for a video gaming license as a licensed liquor
establishment if the applicant satisfies, as determined by
the board, all of the following criteria:
(i) The applicant has never been convicted of a
felony.
(ii) The applicant is current on all State taxes.
(iii) The applicant has submitted a completed
application for licensure as a licensed establishment,
which may be submitted concurrently with the applicant's
request for a provisional license.
(iv) The applicant held a valid liquor license under
Article IV of the act of April 12, 1951 (P.L.90, No.21),
known as the Liquor Code, on the date of application and
has never had the liquor license revoked.
(v) The applicant has never been convicted of any
gambling law violation in any jurisdiction.
(3) The board shall issue a provisional license to an
applicant for a video gaming license as a licensed liquor
establishment, within 60 days after the application has been
received by the board, provided that the board determines
that the criteria contained in paragraph (2) has been
satisfied. If the board has determined that the criteria
contained in paragraph (2) has not been satisfied, the board
shall give a written explanation to the applicant as to why
it has determined the criteria has not been satisfied.
(4) A provisional license shall be valid until:
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(i) the board either approves or denies the
applicant's application for licensure;
(ii) the provisional license is terminated for a
violation of this chapter; or
(iii) one calendar year has passed since the
provisional license was issued.
If the board fails to act upon the application for a video
gaming license as a licensed liquor establishment, within 60
days after the expiration of a provisional license, the
applicant may apply for a renewal of the provisional license.
(5) Each applicant shall attest by way of affidavit
under penalty of perjury that the applicant is not otherwise
prohibited from licensure according to the requirements of
this section or any other provision of this chapter.
(6) All requests for provisional licensure under this
subsection shall include payment of a $100 fee, which is in
addition to the applicable fee required for an application
for licensure as a licensed establishment.
(7) If the board fails to act upon a request for
provisional licensure within 60 days after receipt of the
request, the request shall be deemed approved and the board
shall issue the applicant a provisional video gaming license
as a licensed liquor establishment.
(b) Provisional licensing of terminal operators.--
(1) Within 60 days after the effective date of this
section, the board shall make applications for licensure as
terminal operator available to applicants.
(2) The board shall accept applications for licensure as
a terminal operator beginning 14 days after applications
become available.
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(3) The board shall issue a provisional license to an
applicant for licensure as a terminal operator if the
applicant satisfies, as determined by the board, all of the
following criteria:
(i) The applicant has never been convicted of a
felony.
(ii) The applicant is current on all State taxes.
(iii) The applicant has submitted a completed
application for licensure as a licensed terminal
operator, which may be submitted concurrently with the
applicant's request for a provisional license.
(iv) The applicant has never had its terminal
operator license or similar gaming license revoked in
another jurisdiction.
(v) The applicant has never been convicted of any
gambling law violation in any jurisdiction.
(4) The board shall issue a provisional license to an
applicant for licensure as a licensed terminal operator,
within 60 days after such application has been received by
the board, provided that the board determines that the
criteria contained in paragraph (3) has been satisfied. If
the board has determined that the criteria contained in
paragraph (3) has not been satisfied, the board shall give a
written explanation to the applicant as to why it has
determined the criteria has not been satisfied.
(5) A provisional license shall be valid until:
(i) the board either approves or denies the
applicant's application for licensure;
(ii) the provisional license is terminated for a
violation of this chapter; or
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(iii) one calendar year has passed since the
provisional license was issued.
If the board fails to act upon the application for licensure
as a terminal operator, within 60 days after the expiration
of a provisional license, the applicant may apply for a
renewal of the provisional license.
(6) Each applicant shall attest by way of affidavit
under penalty of perjury that the applicant is not otherwise
prohibited from licensure according to the requirements of
this subsection or any other provision of this chapter.
(7) All requests for provisional licensure under this
subsection shall include payment of a $5,000 fee, which is in
addition to the applicable fee required for an application
for licensure as a terminal operator.
(8) The board shall initially issue no fewer than 10
provisional licenses to terminal operator applicants, unless
the board receives less than 10 applications for provisional
licenses.
(9) If the board fails to act upon a request for
provisional licensure within 60 days after receipt of the
request, the request shall be deemed approved and the board
shall issue the applicant a provisional license as a licensed
terminal operator.
(c) Provisional licensing of service technicians.--
(1) Within 60 days after the effective date of this
section, the board shall make applications for licensure as a
service technician available to applicants.
(2) The board shall issue a provisional license to an
applicant for licensure as a service technician if the
applicant satisfies, as determined by the board, all of the
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following criteria:
(i) The applicant has never been convicted of a
felony.
(ii) The applicant is current on all State taxes.
(iii) The applicant has submitted a completed
application for licensure as a service technician, which
may be submitted concurrently with the applicant's
request for a provisional license.
(iv) The applicant has never been convicted of any
gambling law violation in any jurisdiction.
An individual who has a valid license issued by the
Commonwealth that allows the individual to serve as a service
technician in a Pennsylvania casino shall be exempt from the
requirements of this section and shall automatically be
eligible for a provisional license as a service technician.
(3) The board shall issue a provisional license to an
applicant for licensure as a service technician, within 60
days after the application has been received by the board,
provided that the board determines that the criteria
contained in paragraph (2) has been satisfied. If the board
has determined that the criteria contained in paragraph (2)
of this subsection has not been satisfied, the board shall
give a written explanation to the applicant as to why it has
determined the criteria has not been satisfied.
(4) A provisional license shall be valid until:
(i) the board either approves or denies the
applicant's application for licensure;
(ii) the provisional license is terminated for a
violation of this chapter; or
(iii) one calendar year has passed since the
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provisional license was issued.
If the board fails to act upon the application for licensure
as a service technician, within 60 days after the expiration
of a provisional license, the applicant may apply for a
renewal of the provisional license.
(5) Each applicant shall attest by way of affidavit
under penalty of perjury that the applicant is not otherwise
prohibited from licensure according to the requirements of
this subsection or any other provision of this chapter.
(6) All requests for provisional licensure under this
subsection shall include payment of a $100 fee, which is in
addition to the applicable fee required for an application
for licensure as a service technician.
(7) If the board fails to act upon a request for
provisional licensure within 60 days after receipt of the
request, the request shall be deemed approved and the board
shall issue the applicant a provisional license as a service
technician.
(d) Provisional licensing of manufacturers and
distributors.--
(1) Within 60 days after the effective date of this
section, the board shall make applications for licensure as
manufacturers or distributors available to applicants.
(2) The board shall issue a provisional license to an
applicant for licensure as a licensed manufacturer or
distributor if the applicant satisfies, as determined by the
board, all of the following criteria:
(i) The applicant has never been convicted of a
felony.
(ii) The applicant is current on all State taxes.
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(iii) The applicant has submitted a completed
application for licensure as a manufacturer or
distributor, which may be submitted concurrently with the
applicant's request for a provisional license;
(iv) The applicant has never been convicted of any
gambling law violation in any jurisdiction.
(3) The board shall issue a provisional license to an
applicant for licensure as a manufacturer or distributor,
within 60 days after such application has been received by
the board, provided that the board determines that the
criteria contained in paragraph (2) has been satisfied. If
the board has determined that the criteria contained in
paragraph (2) has not been satisfied, the board shall give a
written explanation to the applicant as to why it has
determined the criteria has not been satisfied.
(4) A provisional license shall be valid until:
(i) the board either approves or denies the
applicant's application for licensure;
(ii) the provisional license is terminated for a
violation of this chapter; or
(iii) one calendar year has passed since the
provisional license was issued.
If the board fails to act upon the application for licensure
as a manufacturer or distributor, within 60 days after the
expiration of a provisional license, the applicant may apply
for a renewal of the provisional license.
(5) Each applicant shall attest by way of affidavit
under penalty of perjury that the applicant is not otherwise
prohibited from licensure according to the requirements of
this subsection or any other provision of this chapter.
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(6) All requests for provisional licensure under this
subsection shall include payment of a $1,000 fee, which is in
addition to the applicable fee required for an application
for licensure as a manufacturer or distributor.
(7) If the board has not acted upon a request for
provisional licensure within 60 days after receipt of the
request, the request shall be deemed approved and the board
shall issue the applicant a provisional license as a licensed
manufacturer or distributor.
§ 11A20. Temporary video gaming regulations.
(a) General rule.--Regulations promulgated by the board
under this chapter shall be deemed temporary regulations which
shall expire not later than two years following the publication
of the temporary regulation. The board may promulgate temporary
regulations not subject to:
(1) Sections 201, 202, 203, 204 and 205 of the act of
July 31, 1968 (P.L.769, No.240), referred to as the
Commonwealth Documents Law.
(2) The act of June 25, 1982 (P.L.633, No.181), known as
the Regulatory Review Act.
(3) Sections 204(b) and 301(10) of the act of October
15, 1980 (P.L.950, No.164), known as the Commonwealth
Attorneys Act.
(b) Expiration.--The board's authority to adopt temporary
regulations under subsection (a) shall expire two years after
the effective date of this section. Regulations adopted after
this period shall be promulgated as provided by law.
(c) Temporary regulations.--The board shall begin publishing
temporary regulations governing video gaming within 120 days
after the effective date of this section.
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Section 3. Section 1202(a)(1) and (b)(20) and (23) 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] and related
activities as described in this part. The board shall ensure
the integrity of the acquisition and operation of slot
machines, table games, table game devices and associated
equipment and authorized interactive games and interactive
gaming devices and associated equipment and shall have sole
regulatory authority over every aspect of the authorization,
operation and play of slot machines [and], including the
operation of slot machines at nonprimary locations, table
games and interactive gaming devices and associated equipment
and the implementation and regulation of airport gaming.
* * *
(b) Specific powers.--The board shall have the specific
power and duty:
* * *
(12.2) At its discretion, to award, revoke, suspend,
condition or deny an interactive gaming certificate or an
interactive gaming license in accordance with Chapter 13B
(relating to interactive gaming).
(12.3) At its discretion, to award, revoke, suspend,
condition or deny authorization for the placement and
operation of slot machines at a nonprimary location in
accordance with Chapter 13D (relating to slot machines at
nonprimary locations).
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* * *
(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
goods, services or property related to slot machines, table
games, table game devices or associated equipment,
interactive games and interactive gaming devices and
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, table game devices and associated equipment,
interactive games, interactive gaming devices 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 goods,
services or property.
* * *
(23) The board shall not approve an application for or
issue or renew a license, certificate, registration or permit
unless it is satisfied that the applicant has demonstrated by
clear and convincing evidence 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], including the operation of slot machines at
nonprimary locations and qualified airports, table game
operations or interactive gaming operations, or create or
enhance the danger of unsuitable, unfair or illegal
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practices, methods and activities in the conduct of slot
machine or table game operations, interactive gaming
operations or the carrying on of the business and financial
arrangements incidental thereto.
* * *
(27.2) Within six months of the effective date of this
section, to publish on the board's Internet website a
complete list of all slot machine licensees who filed a
petition seeking authorization to conduct interactive gaming
and the status of each petition or interactive gaming
certificate.
* * *
(35) To review detailed site plans identifying the
interactive gaming restricted area or room where a slot
machine licensee proposes to manage, administer or control
interactive gaming operations to determine the adequacy of
the proposed internal and external security and proposed
surveillance measures.
(36) To require each slot machine licensee that holds an
interactive gaming certificate to provide on a quarterly
basis the following information with respect to interactive
gaming:
(i) the name of any person, entity or firm to whom
any payment, remuneration or other benefit or thing of
value has been made or conferred for professional
services, including, but not limited to, interactive
gaming system operations or management, legal, consulting
and lobbying services;
(ii) the amount or value of the payments,
remuneration, benefit or thing of value;
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(iii) the date on which the payments, remuneration,
benefit or thing of value was submitted; and
(iv) the reason or purpose for the procurement of
the services.
(37) To review and approve detailed site and
architectural plans identifying the area of a nonprimary
location where a Category 1 slot machine licensee proposes to
place and make slot machines available for play in accordance
with Chapter 13D in order to determine the adequacy of
proposed internal and external controls, security and
proposed surveillance measures.
(38) To review and approve detailed site and
architectural plans identifying the area of a licensed
facility where a slot machine licensee proposes to place and
make multistate wide-area progressive slot machines, skill
slot machines or hybrid slot machines available for play in
order to determine the adequacy of proposed internal and
external controls, security and proposed surveillance
measures.
Section 4. Sections 1204 and 1206(f)(1) 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], the award, denial or conditioning of a table game
operation certificate[.] or the award, denial or conditioning of
an interactive gaming certificate, an interactive gaming
license, a nonprimary location permit or an airport gaming
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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], the award, denial
or conditioning of a table game operation certificate or the
award, denial or conditioning of an interactive gaming
certificate, an interactive gaming license, a nonprimary
location permit or an airport gaming 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.
§ 1206. Board minutes and records.
* * *
(f) Confidentiality of information.--
(1) The following information submitted by an applicant,
permittee, certificate holder or licensee pursuant to section
1310(a) (relating to slot machine license application
character requirements) [or], 1308(a.1) (relating to
applications for license or permit), 13B12 (relating to
interactive gaming certificate required and content of
petition), 13B14 (relating to interactive gaming operators) ,
13D11 (relating to application for nonprimary location
permit) or 13E12 (relating to application) or obtained by the
board or the bureau as part of a background or other
investigation from any source shall be confidential and
withheld from public disclosure:
(i) All information relating to character, honesty
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and integrity, including family, habits, reputation,
history of criminal activity, business activities,
financial affairs and business, professional and personal
associations submitted under section 1310(a) or 1308(a.1)
or otherwise obtained by the board or the bureau.
(ii) Nonpublic personal information, including home
addresses, telephone numbers and other personal contact
information, Social Security numbers, educational
records, memberships, medical records, tax returns and
declarations, actual or proposed compensation, financial
account records, creditworthiness or financial condition
relating to an applicant, licensee [or], permittee,
including the holder of an interactive gaming
certificate, interactive gaming license, nonprimary
location permit or airport gaming operation certificate
or the immediate family thereof.
(iii) Information relating to proprietary
information, trade secrets, patents or exclusive
licenses, architectural and engineering plans and
information relating to competitive marketing materials
and strategies, which may include customer-identifying
information or customer prospects for services subject to
competition.
(iv) Security information, including risk prevention
plans, detection and countermeasures, location of count
rooms, location of interactive gaming restricted areas
and redundancy facilities, emergency management plans,
security and surveillance plans, equipment and usage
protocols and theft and fraud prevention plans and
countermeasures.
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(v) Information with respect to which there is a
reasonable possibility that public release or inspection
of the information would constitute an unwarranted
invasion into personal privacy of any individual as
determined by the board.
(vi) Records of an applicant or licensee not
required to be filed with the Securities and Exchange
Commission by issuers that either have securities
registered under section 12 of the Securities Exchange
Act of 1934 (48 Stat. 881, 15 U.S.C. § 78l) or are
required to file reports under section 15(d) of the
Securities Exchange Act of 1934 (48 Stat. 881, 15 U.S.C.
§ 78o).
(vii) Records considered nonpublic matters or
information by the Securities and Exchange Commission as
provided by 17 CFR 200.80 (relating to commission records
and information).
(viii) Any financial information deemed confidential
by the board upon a showing of good cause by the
applicant or licensee.
* * *
Section 5. Section 1207(1), (3), (4), (5), (6), (8), (9),
(10) and (21) of Title 4 are amended and the section is amended
by adding paragraphs to read:
§ 1207. Regulatory authority of board.
The board shall have the power and its duties shall be to:
(1) Deny, deny the renewal, revoke, condition or suspend
any license [or], permit, certificate, registration or other
authorizations provided for in this part if the board finds
in its sole discretion that a licensee [or], permittee,
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registrant or certificate holder, including any interactive
gaming operator, under this part, or its officers, employees
or agents, have furnished false or misleading information to
the board or failed to comply with the provisions of this
part or the rules and regulations of the board and that it
would be in the public interest to deny, deny the renewal,
revoke, condition or suspend the license [or], permit,
certificate, registration or other authorizations .
* * *
(3) Prescribe and require periodic financial reporting
and internal control requirements for all licensed entities,
including, in the case of interactive gaming, all interactive
gaming operators.
(4) Require that each licensed entity, including, in the
case of interactive gaming, each interactive gaming operator,
provide to the board its audited annual financial statements,
with such additional detail as the board from time to time
shall require, which information shall be submitted not later
than 90 days after the end of the licensee's fiscal year.
(5) Prescribe the procedures to be followed by slot
machine licensees for any financial event that occurs in the
operation and play of slot machines [or], table games,
authorized interactive games or multi-use computing devices.
(6) Prescribe criteria and conditions for the operation
of slot machine progressive systems, including multistate
wide-area progressive slot machine systems. A wide area
progressive slot system shall be collectively administered by
participating slot machine licensees in accordance with the
terms of a written agreement executed by each participating
slot machine licensee and, in the case of a multistate wide-
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area progressive slot machine system, in accordance with the
terms of an agreement executed by the slot machine licensee
and authorized gaming entities in other states or
jurisdictions, as approved by the board.
(6.1) Collaborate with the appropriate gaming
authorities in other states or jurisdictions to facilitate
the establishment of multistate wide-area progressive slot
machine systems by slot machine licensees in this
Commonwealth and, if determined necessary, enter into the
necessary agreements with such other states or jurisdictions
as necessary for the operation of multistate wide-area
progressive slot machine systems by slot machine licensees in
this Commonwealth.
* * *
(7.2) Enforce prescribed hours for the operation of
authorized interactive games so that an interactive gaming
certificate holder or interactive gaming licensee may conduct
authorized interactive games on any day during the year in
order to meet the needs of registered players 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 or participating in
interactive gaming.
(9) Establish procedures for the inspection and
certification of compliance of each slot machine, table game,
table game device and associated equipment, interactive game
and interactive gaming device and associated equipment prior
to being placed into use by a slot machine licensee.
(10) Require that no slot machine or authorized
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interactive game that replicates the play of a slot machine
may be set to pay out less than the theoretical payout
percentage, which shall be no less than 85%, as specifically
approved by the board. The board shall adopt regulations that
define the theoretical payout percentage of a slot machine
game based on the total value of the jackpots expected to be
paid by a play or a slot machine game divided by the total
value of slot machine wagers expected to be made on that play
or slot machine game during the same portion of the game
cycle. In so doing, the board shall decide whether the
calculation shall include the entire cycle of a slot machine
game or any portion thereof. Except that, in the case of
skill slot machines and hybrid slot machines, the board shall
adopt regulations to define the player's win percentage based
on the relative skill of the player or the combination of
skill and the elements of chance of the game. In the case of
multistate wide-area progressive slot machine system, the
theoretical payout percentage or a player's win percentage
shall be as set forth in the agreement, as approved by the
board.
* * *
(21) Authorize, in its discretion, a slot machine
licensee to conduct slot machine contests or tournaments,
table game tournaments or contests in accordance with section
13A22.1 (relating to table game tournaments) or interactive
gaming contests or tournaments and adopt regulations
governing the conduct of such tournaments and contests.
(21.1) Authorize, at its discretion, a slot machine
licensee to place and make multistate wide-area progressive
slot machines, skill slot machines or hybrid slot machines
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available for play at licensed facilities.
(21.2) Adopt and promulgate regulations to govern the
operation and placement of skill slot machines and hybrid
slot machines by slot machine licensees at licensed
facilities. In order to facilitate the operation and
placement of skill and hybrid slot machines at licensed
facilities pursuant to this paragraph, regulations
promulgated by the board shall be deemed temporary
regulations which shall expire two years after the date of
publication in the Pennsylvania Bulletin.
(22) License, regulate, investigate and take any other
action determined necessary regarding all aspects of
interactive gaming and the operation of slot machines at
nonprimary locations and qualified airports.
(23) Define and limit the areas of operation and the
rules of authorized interactive games, including odds,
devices and associated equipment permitted and the method of
operation of authorized interactive games and interactive
gaming devices and associated equipment.
(24) Require, as applicable, that all wagering offered
through interactive gaming display online the permissible
minimum and maximum wagers associated with each authorized
interactive game.
(25) Negotiate and enter into interactive gaming
reciprocal agreements on behalf of the Commonwealth to govern
the conduct of interactive gaming between interactive gaming
certificate holders in this Commonwealth and gaming entities
of other states or jurisdictions. Notwithstanding any
provision of this part, wagers may be accepted in accordance
with this part and regulations of the board from persons in
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other states or jurisdictions if the board determines that
such wagering is not inconsistent with Federal law or the law
of the state or jurisdiction, including a foreign
jurisdiction, in which the person is located, or such
wagering is conducted pursuant to an interactive gaming
reciprocal agreement to which this Commonwealth is a party
that is not inconsistent with Federal law. The board, with
the approval of the Governor, is hereby designated as the
agency of the Commonwealth with the sole power and authority
to enter into interactive gaming reciprocal agreements with
other states or jurisdictions.
(27) Enter into agreements with other states for the
operation of multistate wide-area progressive slot machine
systems.
(28) Authorize, at its discretion, a Category 1 slot
machine licensee to enter into an agreement with a Category 2
or Category 3 slot machine licensee for the conduct of casino
simulcasting and approve any such agreement.
(29) Adopt, in consultation with the commission,
regulations to govern the conduct of casino simulcasting by a
Category 2 or Category 3 slot machine licensee.
(30) Adopt and promulgate regulations to govern the
installation of video display technology in approved areas of
a Category 1 licensed facility to enable the delivery of
simulcast horse race meetings to patrons through video walls
and other such video display technology. The board may
consult with the commission to facilitate the installation of
video display monitors in accordance with this paragraph and
to facilitate the conduct of casino simulcasting under
paragraph (28).
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Section 5.1. Section 1209(b) of Title 4 is amended to read:
§ 1209. Slot machine license fee.
* * *
(b) Term.--A slot machine license, after payment of the fee,
shall be in effect unless suspended, revoked or not renewed by
the board upon good cause consistent with the license
requirements as provided for in this part. Slot machine
licensees shall be required to update the information in their
initial applications annually, and the license of a licensee in
good standing shall be renewed every [three] five years. Nothing
in this subsection shall relieve a licensee of the affirmative
duty to notify the board of any changes relating to the status
of its license or to any other information contained in the
application materials on file with the board. As to the renewal
of a license, except as required in subsection (f)(3), no
additional license fee pursuant to subsection (a) shall be
required.
* * *
Section 6. Section 1211 of Title 4 is amended by adding
subsections to read:
§ 1211. Reports of board.
* * *
(a.4) Interactive gaming reporting requirements.--
(1) The annual report submitted by the board in
accordance with subsection (a) shall include information on
the conduct of interactive games as follows:
(i) Total gross interactive gaming revenue.
(ii) The number and win by type of authorized
interactive game at each licensed facility conducting
interactive gaming during the previous year.
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(iii) All taxes, fees, fines and other revenue
collected and, where appropriate, revenue disbursed
during the previous year. The department shall
collaborate with the board to carry out the requirements
of this subparagraph.
(2) The board may require interactive gaming certificate
holders and other persons involved in the operation of
interactive gaming on behalf of a slot machine licensee to
provide information to the board to assist in the preparation
of the report.
* * *
(d.1) Impact of interactive gaming, annual report.--One year
after the issuance of the first interactive gaming certificate ,
an annual report shall be prepared and distributed to the
Governor and the standing committees of the General Assembly
with jurisdiction over this part on the impact of interactive
gaming on compulsive and problem gambling and gambling addiction
in this Commonwealth. The report shall be prepared by a private
organization or entity with expertise in serving and treating
the needs of persons with compulsive gambling addictions, which
organization or entity shall be selected by the Department of
Drug and Alcohol Programs. The report may be prepared and
distributed in coordination with the board. Any costs associated
with the preparation and distribution of the report shall be
borne by slot machine licensees who have been authorized by the
board to conduct interactive gaming. The board shall be
authorized to assess a fee against each slot machine licensee
for these purposes.
(d.2) Additional information and annual reporting.--
(1) One year after the commencement of the operation of
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skill slot machines, hybrid slot machines, the operation of
slot machines at nonprimary locations in accordance with
Chapter 13D (relating to slot machines at nonprimary
locations) and the operation of a multistate wide-area slot
machine system, the report required under subsection (a)
shall include information related to the following:
(i) The operation of skill slot machines and hybrid
slot machines.
(ii) The operation of a multistate wide-area
progressive slot machine system.
(iii) The operation of slot machines at nonprimary
locations.
(2) Information on revenue, taxes, fees and fines, if
any, collected during the preceding calendar year and any
other information, data or recommendations related to the
operation of multistate wide-area progressive slot machines,
skill slot machines and hybrid slot machines and the
operation of slot machines at nonprimary locations as
determined by the board, in consultation with the commission,
to be necessary under this part shall be included in the
report.
(d.3) Annual report.--In addition to its duties under
subsection (d), the board shall have the continuing duty to
study and annually report to the chairperson and minority
chairperson of the Community, Economic and Recreational
Development Committee of the Senate and to the chairperson and
minority chairperson of the Gaming Oversight Committee of the
House of Representatives on developments in gaming technology
and the impact, if any, new technologies are having or will have
on the sustainability and competitiveness of the commercial
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gaming industry in this Commonwealth. The report shall
specifically address the following:
(1) Awareness and growth, to the extent known, of any
unregulated commercial gaming products, such as e-Sports and
other such digital-based computer or video technology.
(2) New gaming products, if any, which have been
introduced in other jurisdictions, both foreign and domestic.
(3) Any gaming products which the board may have the
authority to authorize pursuant to its regulatory authority
under this part.
(4) Any legislative or administrative concerns regarding
traditional, new or emerging gaming technologies with
recommendations regarding resolution of such concerns.
(d.4) Time of submission and reports.--Notwithstanding any
provision of this part, all reports and studies required to be
submitted under subsections (d.1), (d.2) and (d.3) after the
effective date of this subsection shall be submitted initially
by October 1, 2017, and by October 1 of each year thereafter.
* * *
Section 7. Section 1212(e) of Title 4 is amended by adding a
paragraph to read:
§ 1212. Diversity goals of board.
* * *
(e) Definition.--As used in this section, the term
"professional services" means those services rendered to a slot
machine licensee which relate to a licensed facility in this
Commonwealth, including, but not limited to:
* * *
(9) Technology related to interactive gaming and
interactive gaming devices and associated equipment.
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Section 8. Section 1305 of Title 4 is amended to read:
§ 1305. Category 3 slot machine license.
(a) Eligibility.--
(1) A person may be eligible to apply for a Category 3
slot machine license if the applicant, its affiliate,
intermediary, subsidiary or holding company has not applied
for or been approved or issued a Category 1 or Category 2
slot machine license and the person is seeking to locate a
Category 3 licensed facility in a well-established resort
hotel having no fewer than 275 guest rooms under common
ownership and having substantial year-round [recreational]
guest amenities. The applicant for a Category 3 license shall
be the owner or be a wholly owned subsidiary of the owner of
the well-established resort hotel. [A Category 3 license may
only be granted upon the express condition that an individual
may not enter a gaming area of the licensed facility if the
individual is not any of the following:
(i) A registered overnight guest of the well-
established resort hotel.
(ii) A patron of one or more of the amenities
provided by the well-established resort hotel.
(iii) An authorized employee of the slot machine
licensee, of a gaming service provider, of the board or
of any regulatory, emergency response or law enforcement
agency while engaged in the performance of the employee's
duties.
(iv) An individual holding a valid membership
approved in accordance with paragraph (1.1) or a guest of
such individual.
(1.1) The board may approve a seasonal or year-round
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membership that allows an individual to use one or more of
the amenities provided by the well-established resort hotel
holding a Category 3 slot machine license. The membership
shall allow the member and one guest to enter the gaming
floor at any time as long as the guest is accompanied by the
individual owning or holding the membership. The board shall
base its approval of a membership on all of the following:
(i) The duration of the membership.
(ii) The amenity covered by the membership.
(iii) Whether the fee charged for the membership
represents the fair market value for the use of the
amenity.]
(2) Notwithstanding section 1512(a) and (a.1) (relating
to public official financial interest), if at the time of
application an applicant has terminated public office or
employment as an executive-level public employee within the
last calendar year, the applicant shall be eligible to apply
for a slot machine license under this section but may not be
issued a license until one year following the date of
termination as a public official or executive-level public
employee. An application submitted in accordance with this
paragraph shall not constitute a violation of section 1512(a)
or (a.1).
(3) If the person seeking a slot machine license
proposes to place the licensed facility upon land designated
a subzone, an expansion subzone or an improvement subzone
under the act of October 6, 1998 (P.L.705, No.92), known as
the Keystone Opportunity Zone, Keystone Opportunity Expansion
Zone and Keystone Opportunity Improvement Zone Act, the
person shall, at any time prior to the application being
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approved, submit a statement waiving the exemptions,
deductions, abatements or credits granted under the Keystone
Opportunity Zone, Keystone Opportunity Expansion Zone and
Keystone Opportunity Improvement Zone Act if the board
approves the application.
(b) Location.--The following shall apply:
(1) [Except as provided in paragraph (1.1), no] No
Category 3 license shall be located by the board within 15
linear miles of another licensed facility.
(1.1) A Category 3 license established on or after [July
20, 2017] January 1, 2016, shall [not be located by the board
within 30 linear miles of another licensed facility.] only be
located in a county that:
(i) does not contain a licensed facility; and
(ii) does not share a geographic border at any point
with a county where a licensed facility, regardless of
category, is located or may be located.
(2) Within five days of approving a license for an
applicant with a proposed licensed facility consisting of
land designated a subzone, an expansion subzone or an
improvement subzone under the Keystone Opportunity Zone,
Keystone Opportunity Expansion Zone and Keystone Opportunity
Improvement Zone Act for a slot machine license under this
section, the board shall notify the Department of Community
and Economic Development. The notice shall include a
description of the land of the proposed licensed facility
which is designated a subzone, an expansion subzone or an
improvement subzone. Within five days of receiving the notice
required by this paragraph, the Secretary of Community and
Economic Development shall decertify the land of the proposed
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license facility as being a subzone, an expansion subzone or
an improvement subzone. Upon decertification in accordance
with this paragraph and notwithstanding Chapter 3 of the
Keystone Opportunity Zone, Keystone Opportunity Expansion
Zone and Keystone Opportunity Improvement Zone Act, a
political subdivision may amend the ordinance, resolution or
other required action which granted the exemptions,
deductions, abatements or credits required by the Keystone
Opportunity Zone, Keystone Opportunity Expansion Zone and
Keystone Opportunity Improvement Zone Act to repeal the
exemptions, deductions, abatements or credits for the land
decertified.
(c) Number of slot machines.--Notwithstanding the number of
permissible slot machines as set forth in section 1210 (relating
to number of slot machines), a Category 3 license granted under
the provisions of this section shall entitle the licensed entity
to operate no more than 500 slot machines at the licensed
facility, provided, however, a Category 3 slot machine licensee
holding a table game operation certificate shall be entitled to
operate no more than 600 slot machines at its licensed facility.
(c.1) Additional slot machines.--Upon submission of a
petition to the board, in such form and manner as the board may
require, the board may authorize the Category 3 slot machine
licensee to increase the number of slot machines at its licensed
facility. An increase in the number of slot machines by a
Category 3 slot machine licensee pursuant to this subsection may
not, at the discretion of the board, exceed 250 additional slot
machines, which shall be in addition to the number of
permissible slot machines authorized under subsection (c).
(c.2) Increase in number.--Upon submission of a petition to
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the board in such form and manner as the board may require, the
board may authorize the Category 3 slot machine licensee to
increase the number of slot machines at its licensed facility
for the conduct of a slot machine tournament or contest. An
increase in the number of slot machines by a Category 3 slot
machine licensee under this subsection may not, at the
discretion of the board, exceed 75 additional slot machines,
which shall be in addition to the number of permissible slot
machines authorized under subsections (c) and (c.1).
(d) Category 3 license fee.--The board shall impose a one-
time Category 3 license fee to be paid by each successful
applicant in the amount of $5,000,000 to be deposited in the
State Gaming Fund. The provisions of section 1209(b), (c), (d)
and (e) shall apply to a Category 3 licensee[.], except that the
holder of a Category 3 slot machine license approved and issued
by the board on or after January 1, 2016, shall pay a fee of
$8,500,000 for deposit in the General Fund.
(d.1) Additional fee.--Notwithstanding subsection (d), no
later than 60 days after the effective date of subsection (a),
each holder of an existing Category 3 slot machine license
issued by the board before January 1, 2016, shall pay a one-time
fee of $1,000,000 for deposit in the General Fund.
(d.2) Fee for additional slot machines.--Notwithstanding
subsection (d), no later than 60 days after the board approves a
request for an increase in the number of slot machines submitted
by a Category 3 slot machine licensee in accordance with
subsection (c.1), the Category 3 slot machine licensee shall pay
a one-time fee of $2,500,000 for deposit into the General Fund.
[(e) Definitions.--For the purpose of subsection (a), the
following words and phrases shall have the meaning given to them
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in this subsection:
"Amenities." Any ancillary activities, services or
facilities in which a registered guest or the transient public,
in return for non-de minimis consideration as defined by board
regulation, may participate at a well-established resort hotel,
including, but not limited to, sports and recreational
activities and facilities such as a golf course or golf driving
range, tennis courts or swimming pool; health spa; convention,
meeting and banquet facilities; entertainment facilities; and
restaurant facilities.
"Patron of the amenities." Any individual who is a
registered attendee of a convention, meeting or banquet event or
a participant in a sport or recreational event or any other
social, cultural or business event held at a resort hotel or who
participates in one or more of the amenities provided to
registered guests of the well-established resort hotel.]
Section 9. Section 1309(a.1) heading of Title 4 is amended
and the subsection is amended by adding a paragraph to read:
§ 1309. Slot machine license application.
* * *
(a.1) Table games and interactive gaming information.--
* * *
(3) Notwithstanding paragraph (2), the board may permit
an applicant for a slot machine license that has an
application pending before the board to supplement its
application with all information required under Chapters 13B
(relating to interactive gaming) and 13D (relating to slot
machines at nonprimary locations) and to request that the
board consider its application for a slot machine license, a
table game operation certificate, an interactive gaming
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certificate or a nonprimary location permit concurrently. All
fees for an interactive gaming certificate and a nonprimary
location permit shall be paid by the applicant in accordance
with the requirements of this part.
* * *
Section 10. Sections 1317(a) and (c) and 1317.1(a), (b),
(c), (c.1), (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
appropriately licensed under this section. A person seeking to
provide slot machines, table game devices or associated
equipment, interactive gaming devices or associated equipment or
multi-use computing devices to a slot machine licensee or an
interactive gaming licensee within this Commonwealth through a
contract with a licensed manufacturer shall apply to the board
for the appropriate supplier license.
* * *
(c) Review and approval.--Upon being satisfied that the
requirements of subsection (b) have been met, the board may
approve the application and issue the applicant a supplier
license consistent with all of the following:
(1) The [initial license shall be for a period of one
year, and, if renewed under subsection (d), the] license
shall be issued for a period of [three] five years and shall
be renewed in accordance with subsection (d). Nothing in this
paragraph shall relieve a licensee of the affirmative duty to
notify the board of any changes relating to the status of its
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license or to any information contained in the application
materials on file with the board.
(2) The license shall be nontransferable.
(3) Any other condition established by the board.
* * *
(c.2) Abbreviated process for supplier.--
(1) Notwithstanding subsection (c.1)(1) or any
regulations of the board to the contrary, the board may
extend the use of the abbreviated process authorized under
subsection (c.1) to an applicant for a supplier license to
supply slot machines used in a multistate wide-area
progressive slot machine system, skill slot machines, hybrid
slot machines and devices or associated equipment used in
connection with multistate wide-area progressive slot machine
systems, skill or hybrid slot machines, interactive gaming
devices or associated equipment used in connection with
interactive gaming, including multi-use computing devices , if
the applicant holds a valid supplier license issued by the
board to supply slot machines or associated equipment or
table games or table game devices and associated equipment.
The requirements of subsection (c.1)(2) and (3) shall apply
to this subsection.
(2) An applicant for a supplier's license to supply slot
machines used in a multistate wide-area progressive systems,
skill or hybrid slot machines or associated equipment or
interactive gaming devices or associated equipment shall be
subject to the applicable provisions of this part.
* * *
§ 1317.1. Manufacturer licenses.
(a) Application.--A person seeking to manufacture slot
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machines, table game devices and associated equipment or
interactive gaming 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:
(1) The name and business address of the applicant and
the applicant's affiliates, intermediaries, subsidiaries and
holding companies; the principals and key employees of each
business; and a list of employees and their positions within
each business, as well as any financial information required
by the board.
(2) A statement that the applicant and each affiliate,
intermediary, subsidiary or holding company of the applicant
are not slot machine licensees.
(3) The consent to a background investigation of the
applicant, its principals and key employees or other persons
required by the board and a release to obtain any and all
information necessary for the completion of the background
investigation.
(4) The details of any equivalent license granted or
denied by other jurisdictions where gaming activities as
authorized by this part are permitted and consent for the
board to acquire copies of applications submitted or licenses
issued in connection therewith.
(5) The type of slot machines, table game devices or
associated equipment or interactive gaming devices or
associated equipment to be manufactured or repaired.
(6) Any other information determined by the board to be
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appropriate.
(c) Review and approval.--Upon being satisfied that the
requirements of subsection (b) have been met, the board may
approve the application and grant the applicant a manufacturer
license consistent with all of the following:
(1) The [initial license shall be for a period of one
year, and, if renewed under subsection (d), the] license
shall be issued for a period of [three] five years and shall
be renewed in accordance with subsection (d). Nothing in this
paragraph shall relieve the licensee of the affirmative duty
to notify the board of any changes relating to the status of
its license or to any other information contained in
application materials on file with the board.
(2) The license shall be nontransferable.
(3) Any other condition established by the board.
(c.1) Abbreviated process.--In the event an applicant for a
manufacturer license to manufacture table game devices or
associated equipment used in connection with table games is
licensed by the board under this section to manufacture slot
machines or associated equipment used in connection with slot
machines, the board may determine to use an abbreviated process
requiring only that information determined by the board to be
necessary to consider the issuance of a license to manufacture
table game devices or associated equipment used in connection
with table games, including financial viability of the
applicant. Nothing in this section shall be construed to waive
any fees associated with obtaining a license, certificate or
permit through the normal application process. The board may
only use the abbreviated process if all of the following apply:
(1) The manufacturer license was issued by the board
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within a 36-month period immediately preceding the date the
manufacturer licensee files an application to manufacture
table game devices or associated equipment.
(2) The person to whom the manufacturer license was
issued affirms there has been no material change in
circumstances relating to the license.
(3) The board determines, in its sole discretion, that
there has been no material change in circumstances relating
to the licensee that necessitates that the abbreviated
process not be used.
(c.2) Abbreviated process for manufacturer.--
(1) Notwithstanding subsection (c.1)(1) or any
regulations of the board to the contrary, the board may
extend the use of the abbreviated process authorized under
subsection (c.1) to an applicant for a manufacturer license
to manufacture multistate wide-area progressive slot
machines, skill slot machines, hybrid slot machines or
associated equipment used in connection with multistate wide-
area progressive slot machines, skill or hybrid slot machines
or interactive gaming devices or associated equipment used in
connection with interactive gaming , if the applicant holds a
valid manufacturer license issued by the board to
manufacturer slot machines or associated equipment or table
games or table game devices or associated equipment. The
requirements of subsection (c.1) (2) and (3) shall apply to
this subsection.
(2) An applicant for a manufacturer license to
manufacture slot machines used in a multistate wide-area
progressive system, skill or hybrid slot machines or
associated equipment or interactive gaming devices or
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associated equipment shall be subject to the applicable
provisions of this part.
* * *
(d.1) Authority.--The following shall apply to a licensed
manufacturer:
(1) A manufacturer or its designee, as licensed by the
board, may supply or repair any slot machine, table game
device or associated equipment or interactive gaming device
or associated equipment manufactured by the manufacturer,
provided the manufacturer holds the appropriate manufacturer
license.
(2) A manufacturer of slot machines may contract with a
supplier under section 1317 (relating to supplier licenses)
to provide slot machines or associated equipment to a slot
machine licensee within this Commonwealth, provided the
supplier is licensed to supply slot machines or associated
equipment used in connection with slot machines.
(3) A manufacturer may contract with a supplier under
section 1317 to provide table game devices or associated
equipment to a certificate holder, provided the supplier is
licensed to supply table game devices or associated equipment
used in connection with table games.
(4) A manufacturer may contract with a supplier under
section 1317 to provide slot machines used in a multistate
wide-area progressive system, skill or hybrid slot machines
or associated equipment, interactive gaming devices or
associated equipment to a slot machine licensee, provided
that the manufacturer is licensed to manufacture slot
machines used in a multistate wide-area progressive slot
machine system, skill or hybrid slot machines or associated
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equipment or interactive gaming devices or associated
equipment used in connection with interactive games .
(e) Prohibitions.--
(1) No person may manufacture slot machines, table game
devices or associated equipment or interactive gaming devices
or associated equipment for use within this Commonwealth by a
slot machine licensee unless the person has been issued the
appropriate manufacturer license under this section.
(2) Except as permitted in section 13A23.1 (relating to
training equipment), no slot machine licensee may use slot
machines, table game devices or associated equipment,
authorized interactive games or interactive gaming devices or
associated equipment unless the slot machines, table game
devices or associated equipment, interactive games or
interactive gaming devices or associated equipment were
manufactured by a person that has been issued the appropriate
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 10.1. Title 4 is amended by adding a section to
read:
§ 1317.3. Nongaming service provider.
(a) Notification required.--
(1) A slot machine licensee or applicant for a slot
machine license that contracts with or otherwise engages in
business with a nongaming service provider shall provide
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notification to the board prior to:
(i) the nongaming service provider's provision of
goods or services at a licensed facility; or
(ii) the provision of goods or services for use in
the operation of a licensed facility.
(2) Notification under this section shall be on a form
and in a manner as determined by the board. The board may
impose a fee, not to exceed $100, which must accompany the
notification.
(b) Contents of notification.--Notification under this
section shall include:
(1) The name and business address of the nongaming
service provider.
(2) A description of the type or nature of the goods or
services to be provided.
(3) An affirmation from the slot machine licensee or
applicant for a slot machine license that the goods or
services to be provided by the nongaming service provider
will not require access to the gaming floor or a gaming-
related restricted area of a licensed facility.
(4) An affirmation from the slot machine licensee or
applicant for a slot machine license certifying that the
licensee or applicant has performed due diligence regarding
the nongaming service provider and believes that the
nongaming service provider and its employees will not
adversely affect the public interest or integrity of gaming.
(5) Any other information that the board may require.
(c) Duration of notification.--The nongaming service
provider notification required under subsection (a) may be valid
for three years unless modified by the board. In determining the
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duration of a nongaming service provider notification, the board
shall consider the following:
(1) The type or nature of the goods or services.
(2) The frequency of business transactions related to
the provision of such goods or services.
(3) The monetary value of the goods or services provided
or expected to be provided.
(4) Any other information the board deems necessary and
appropriate.
(d) Conditions.--A slot machine licensee or applicant for a
slot machine license that contracts or otherwise engages in
business with a nongaming service provider shall be subject to
the following conditions:
(1) The nongaming service provider or its employees
shall only provide the goods and services described in the
notification under this section.
(2) The slot machine licensee or applicant for a slot
machine license shall notify the board of any material change
in the information provided in the notification under this
section. No fee shall be required for a subsequent change
during the time for which the notification remains valid
under subsection (c).
(3) The slot machine licensee or applicant for a slot
machine license shall ensure that employees of the nongaming
service provider do not enter the gaming floor or a gaming-
related restricted area of the licensed facility.
(4) The slot machine licensee or applicant for a slot
machine license shall report to the board an employee of a
nongaming service provider that does any of the following:
(i) Enters the gaming floor or a gaming-related
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restricted area of the licensed facility.
(ii) Commits an act that adversely affects the
public interest or integrity of gaming.
(5) The board may prohibit a nongaming service provider
and any employees from providing goods or services to a slot
machine licensee or applicant for a slot machine license at a
licensed facility if the bureau determines the prohibition is
necessary to protect the public interest or integrity of
gaming.
(e) Authority to exempt.--The board may exempt a nongaming
service provider from the notification requirements of this
section if the board determines any of the following:
(1) The nongaming service provider or the type or nature
of the nongaming service provider's business is regulated by
an agency of the Federal Government, an agency of the
Commonwealth or the Pennsylvania Supreme Court.
(2) Notification is not necessary to protect the public
interest or integrity of gaming.
(f) Additional authority of board.--The board, at its
discretion, may require an employee, individual or entity
associated with a nongaming service provider to obtain a
license, permit, registration, certification or any other
authorization required by the board under this part.
(g) Criminal history record information.--Notwithstanding
any other provision of this part or regulation of the board, a
nongaming service provider shall provide a criminal history
record information check obtained from the Pennsylvania State
Police as defined in 18 Pa.C.S. § 9102 (relating to definitions)
and permitted by 18 Pa.C.S. § 9121(b) (relating to general
regulations).
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(h) Emergency notification.--
(1) A slot machine licensee may use a nongaming service
provider prior to the board receiving notification under this
section when a threat to public health, welfare or safety
exists or circumstances outside the control of the slot
machine licensee require immediate action to mitigate damage
or loss to the slot machine licensee's licensed facility or
to the Commonwealth.
(2) A slot machine licensee that uses a nongaming
service provider in accordance with paragraph (1) shall:
(i) Notify the board immediately upon engaging a
nongaming service provider for which the board has not
previously received notification in accordance with
subsection (a).
(ii) Provide the notification required under
subsection (a) within a reasonable time as established by
the board.
(i) Nongaming service provider list.--
(1) The board shall have the authority to prohibit a
nongaming service provider from engaging in business with a
slot machine licensee upon a finding by the bureau that the
prohibition is necessary to protect the public interest and
the integrity of gaming.
(2) The board shall develop and maintain a list of
prohibited nongaming service providers.
(3) A slot machine licensee or applicant for a slot
machine license may not enter into an agreement or engage in
business with a nongaming service provider appearing on the
list under this subsection.
(j) Duties of nongaming service provider.--A nongaming
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service provider shall:
(1) Cooperate with the board and bureau regarding an
investigation, hearing, enforcement action or disciplinary
action.
(2) Comply with each condition, restriction,
requirement, order or ruling of the board in accordance with
this part.
(3) Report any change in circumstances to the slot
machine licensee or applicant for a slot machine license that
may render the nongaming service provider ineligible,
unqualified or unsuitable for the provision of goods or
services at a licensed facility or use in the operation of a
licensed facility. The slot machine licensee shall report any
change in circumstances to the board in such form and manner
as the board may establish.
(k) Construction.--Nothing in this section shall be
construed to limit the powers and authority of the board under
section 1202 (relating to general and specific powers of the
board) or the regulatory authority of the board under section
1207 (relating to regulatory authority of the board).
Section 10.2. Section 1320(a) of Title 4 is amended and
the section is amended by adding a subsection to read:
§ 1320. Slot machine testing and certification standards.
(a) Use of other state standards.--[Until such time as the
board establishes an independent testing and certification
facility pursuant to subsection (b), the] The board may
determine, at its discretion, whether the slot machine testing
and certification standards of another jurisdiction within the
United States in which an applicant for a manufacturer license
is licensed are comprehensive and thorough and provide similar
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adequate safeguards as those required by this part. If the board
makes that determination, it may permit a manufacturer through a
licensed supplier as provided in section 1317 (relating to
supplier [and manufacturer licenses application] licenses) to
deploy those slot machines which have met the slot machine
testing and certification standards in such other jurisdictions
without undergoing the full testing and certification process by
a board-established independent facility. In the event slot
machines of an applicant for a manufacturer license are licensed
in such other jurisdiction, the board may determine to use an
abbreviated process requiring only that information determined
by the board to be necessary to consider the issuance of a slot
machine certification to such an applicant. [Alternatively, the
board in its discretion may also rely upon the certification of
a slot machine that has met the testing and certification
standards of a board-approved private testing and certification
facility until such time as the board establishes an independent
testing and certification facility pursuant to subsection (b).
Nothing in this section shall be construed to waive any fees
associated with obtaining a license through the normal
application process.]
* * *
(b.1) Use of private testing and certification facilities.--
Notwithstanding any other provisions of this part or regulation
of the board, if a slot machine is tested and certified by a
private testing and certification facility registered with the
board, the board shall use an abbreviated certification process
requiring only that information determined by it to be necessary
to consider the issuance of a slot machine certification under
this section. Within one year of the effective date of this
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subsection, the board shall promulgate regulations that:
(1) Provide for the registration of private testing and
certification facilities. Persons seeking registration under
this subsection shall be subject to section 1202(b)(9)
(relating to specific powers).
(2) Specify the form and content of the application for
registration.
(3) Establish and collect an application fee for persons
seeking registration. The application fee shall include the
costs of all background investigations as determined
necessary and appropriate by the bureau.
(4) Establish uniform procedures and standards which
private testing and certification facilities must comply with
during the testing and certification of slot machines.
(5) Utilize information provided by private testing and
certification facilities for the abbreviated certification of
slot machines.
(6) Establish an abbreviated certification process that
may be used by registered private testing and certification
facilities to test and certify slot machines.
(7) Establish fees that must be paid by licensed
manufacturers.
(8) Require slot machines submitted for abbreviated
certification to be approved or denied by the board within 30
days from the date of submission to the board. If the board
fails to act within the 30-day period, the abbreviated
certification shall be deemed conditionally approved.
(9) Provide procedures and standards for the suspension
and revocation of the registration of a private testing and
certification facility and the reinstatement of a suspended
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or revoked registration, as determined appropriate by the
board.
* * *
Section 11. Sections 1326(a) and (b), 13A11(b), 13A22.1(c)
and 13A27(c) of Title 4 are amended to read:
§ 1326. [License renewals] Renewals.
(a) Renewal.--All permits [and], licenses, registrations or
certificates issued under this part unless otherwise provided
shall be subject to renewal every [three] five years. Nothing in
this subsection shall relieve a licensee of the affirmative duty
to notify the board of any changes relating to the status of its
license, permit, certificate or registration or to any other
information contained in the application materials on file with
the board. The application for renewal shall be submitted at
least [60] 180 days prior to the expiration of the permit [or],
license, registration or certificate and shall include an update
of the information contained in the initial and any prior
renewal applications and the payment of any renewal fee required
by this part. Unless otherwise specifically provided in this
part, the amount of any renewal fee shall be calculated by the
board to reflect the longer renewal period. A permit [or],
license, registration or certificate for which a completed
renewal application and fee, if required, has been received by
the board will continue in effect unless and until the board
sends written notification to the holder of the permit [or],
license, registration or certificate that the board has denied
the renewal of such permit [or], license, registration or
certificate.
(b) Revocation or failure to renew.--In addition to any
other sanctions the board may impose under this part, the board
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may at its discretion suspend, revoke or deny renewal of any
permit [or], license, registration or certificate issued under
this part if it receives any information from any source that
the applicant or any of its officers, directors, owners or key
employees is in violation of any provision of this part, that
the applicant has furnished the board with false or misleading
information or that the information contained in the applicant's
initial application or any renewal application is no longer true
and correct. In the event of a revocation or failure to renew,
the applicant's authorization to conduct the previously approved
activity shall immediately cease, and all fees paid in
connection therewith shall be deemed to be forfeited. In the
event of a suspension, the applicant's authorization to conduct
the previously approved activity shall immediately cease until
the board has notified the applicant that the suspension is no
longer in effect.
§ 13A11. Authorization to conduct table games.
* * *
(b) Number of authorized gaming tables.--
(1) A Category 1 and Category 2 slot machine licensee
awarded a table game operation certificate may operate up to
250 gaming tables at any one time at its licensed facility.
No more than 30% of these gaming tables may be used to play
nonbanking games at any one time. Six months following the
date of commencement of table game operations, the board may
permit a Category 1 or Category 2 certificate holder to
increase the number of gaming tables above the number
authorized under this paragraph. The certificate holder shall
petition the board for the increase at its licensed facility.
The board, in considering the petition, shall take into
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account the appropriateness of the physical space where the
gaming tables will be located and the convenience of the
public attending the facility. The board may also take into
account the potential benefit to the Commonwealth.
(2) A Category 3 slot machine licensee awarded a table
game operation certificate may operate up to 50 gaming tables
at any one time at its licensed facility. [No more than 30%
of these gaming tables may be used to play nonbanking games
at any one time.]
(2.1) A Category 3 slot machine licensee awarded a table
game operation certificate may petition the board for
additional table games at its licensed facility. The board
may authorize up to 15 additional gaming tables. The
additional tables shall be used to play nonbanking games. The
board, in considering the petition, shall take into account
the appropriateness of the physical space where the gaming
tables will be located and the convenience of the public
attending the facility. The board may also take into account
the potential benefit to the Commonwealth.
(3) Nonbanking gaming tables shall seat a maximum of ten
players.
§ 13A22.1. Table game tournaments.
* * *
(c) Exemptions and additional tables.--The following shall
apply:
(1) For a Category 1 or Category 2 licensed facility,
gaming tables used in tournaments shall be exempt from
section 13A11 (b)(1) (relating to authorization to conduct
table games) and shall not be used in any calculation of the
total number of gaming tables authorized in the table game
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authorization certificate.
(2) For a Category 3 licensed facility, the executive
director may authorize the licensed facility to operate up to
15 additional gaming tables for use in tournaments. [The
executive director may grant the use of the additional gaming
tables for tournaments authorized under this paragraph only
one day per month.] Additional gaming tables for use in
tournaments shall be exempt from section 13A11(b)(2)
(relating to authorization to conduct table games) and shall
not be used in any calculation of the total number of gaming
tables authorized in the table game authorization
certificate. The executive director may grant the use of
additional gaming tables on the dates and times listed in the
proposed schedule of tournaments submitted by the Category 3
slot machine licensee in accordance with subsection (b).
* * *
§ 13A27. Other financial transactions.
* * *
(c) Credit application verification.---Prior to approving an
application for credit, a certificate holder shall verify:
(1) The identity, creditworthiness and indebtedness
information of the applicant by conducting a comprehensive
review of the information submitted with the application and
any information regarding the applicant's credit activity at
other licensed facilities which the certificate holder may
obtain through a casino credit bureau and, if appropriate,
through direct contact with other slot machine licensees.
(2) That the applicant's name is not included on an
exclusion list under section 1514 (relating to regulation
requiring exclusion [or], ejection or denial of access of
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certain persons) or 1516 (relating to list of persons self
excluded from gaming activities) or the voluntary credit
suspension list under subsection (h).
* * *
Section 12. Section 13A41 of Title 4 is amended by adding a
subsection to read:
§ 13A41. Table game device and associated equipment testing and
certification standards.
* * *
(b.1) Use of private testing and certification facilities.--
Notwithstanding any provision of this part or regulation of the
board, if a table game device or associated equipment is tested
and certified by a private testing and certification facility
registered with the board, the board shall use an abbreviated
certification process requiring only that information determined
by it to be necessary to consider the issuance of a table game
device or associated equipment certification under this section.
Within one year of the effective date of this subsection, the
board shall promulgate regulations that:
(1) Provide for the registration of private testing and
certification facilities. Persons seeking registration under
this subsection shall be subject to section 1202(b)(9)
(relating to specific powers).
(2) Specify the form and content of the application for
registration.
(3) Establish and collect an application fee for persons
seeking registration. The application fee shall include the
costs of all background investigations as determined
necessary and appropriate by the board.
(4) Establish uniform procedures and standards which
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private testing and certification facilities must comply with
during the testing and certification of table game devices
and associated equipment.
(5) Utilize information provided by private testing and
certification facilities for the abbreviated certification of
table game devices and associated equipment.
(6) Establish an abbreviated certification process that
may be used by registered private testing and certification
facilities to test and certify table game devices and
associated equipment.
(7) Establish fees that must be paid by a licensed
manufacturer.
(8) Require table game devices and associated equipment
submitted for abbreviated certification to be approved or
denied by the board within 30 days from the date of
submission to the board. If the board fails to act within the
30-day period, the abbreviated certification shall be deemed
conditionally approved.
(9) Provide procedures and standards for the suspension
and revocation of the registration of a private testing and
certification facility and the reinstatement of a suspended
or revoked registration.
Section 13. Sections 13A61(a) and (f) and 13A63(b)(4) of
Title 4 are amended to read:
§ 13A61. Table game authorization fee.
(a) Amount of authorization fee.--
(1) A Category 1 or a Category 2 slot machine licensee
that submits a petition for a table game operation
certificate under section 13A12 (relating to petition
requirements) on or before June 1, 2010, shall pay a one-time
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nonrefundable authorization fee in the amount of $16,500,000.
A Category 1 or a Category 2 slot machine licensee that
submits a petition for a table game operation certificate
under section 13A12 after June 1, 2010, shall pay a one-time
nonrefundable authorization fee in the amount of $24,750,000.
(2) A Category 3 slot machine licensee that submits a
petition for a table game operation certificate under section
13A12 on or before June 1, 2010, shall pay a one-time
nonrefundable authorization fee in the amount of $7,500,000.
A Category 3 slot machine licensee that submits a petition
for a table game operation certificate under section 13A12
after June 1, 2010, shall pay a one-time nonrefundable
authorization fee in the amount of $11,250,000.
(3) Notwithstanding paragraphs (1) and (2), the holder
of a Category 1 or Category 3 slot machine license issued
after June 1, 2010, that submits a petition for a table game
operation certificate shall pay a one-time nonrefundable
authorization fee in the amount of $16,500,000 or $7,500,000,
respectively.
(3.1) Notwithstanding paragraphs (2) and (3), the holder
of a Category 3 slot machine license issued on or after
January 1, 2016, that submits a petition for a table game
operation certificate shall pay a one-time nonrefundable
authorization fee in the amount of $8,500,000.
(3.2) Notwithstanding any other provision of this part,
no later than 60 days after the board approves a request for
additional table games in accordance with section 13A11
(relating to authorization to conduct table games) submitted
by the holder of a Category 3 slot machine license issued
prior to January 1, 2016, the Category 3 slot machine
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licensee shall pay a one-time nonrefundable fee in the amount
of $1,000,000.
(4) A table game operation certificate shall not be
subject to renewal or payment of an additional authorization
fee.
* * *
(f) Deposit of fees.--Notwithstanding section 1208 (relating
to collection of fees and fines), all table game authorization
fees and other fees or penalties received by the board under
this subchapter, all table game device and associated equipment
manufacturer and supplier license fees, all table game device or
associated equipment manufacturer and supplier renewal fees and
fees for licenses issued under Chapter 16 (relating to junkets)
shall be deposited in the General Fund.
§ 13A63. Local share assessment.
* * *
(b) Distributions to counties.--The department shall make
quarterly distributions from the local share assessments
deposited into the fund under subsection (a) to counties,
including home rule counties, hosting a licensed facility
authorized to conduct table games under this chapter in
accordance with the following:
* * *
(4) The following apply:
(i) If the facility is a Category 3 licensed
facility located in a county of the second class A: 50%
of the licensed facility's local share assessment shall
be [deposited into a restricted receipts account to be
established in the Commonwealth Financing Authority to be
used exclusively for grants or guarantees for projects in
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the county that qualify under 64 Pa.C.S. §§ 1551
(relating to Business in Our Sites Program), 1556
(relating to Tax Increment Financing Guarantee Program)
and 1558 (relating to Water Supply and Waste Water
Infrastructure Program).] distributed as follows:
(A) Seventy-five percent shall be distributed to
the county hosting the licensed facility from each
such licensed facility for the purpose of supporting
the maintenance and refurbishment of the Parks and
Heritage sites throughout the county in which the
licensee is located.
(B) Twelve and one-half percent shall be
distributed to the county hosting the licensed
facility from each such licensed facility for the
purpose of supporting a child advocacy center located
within the county in which the licensee is located.
(C) Twelve and one-half percent shall be
distributed to the county hosting the licensed
facility from each such licensed facility for the
purpose of supporting an organization providing
comprehensive support services to victims of domestic
violence, including legal and medical aid, shelters,
transitional housing and counseling located within
the county in which the licensee is located.
(ii) Except as provided in subparagraph (i), if the
facility is a Category 3 licensed facility in a county of
any class: 50% of the licensed facility's local share
assessment shall be added to the funds in the restricted
receipts account established under section 1403(c)(2)(iv)
for distribution with those funds.
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* * *
Section 14. Title 4 is amended by adding chapters to read:
CHAPTER 13B
INTERACTIVE GAMING
Subchapter
A. General Provisions
B. Interactive Gaming Authorized
C. Conduct of Interactive Gaming
D. Facilities and Equipment
E. Testing and Certification
F. Taxes and Fees
G. Miscellaneous Provisions
SUBCHAPTER A
GENERAL PROVISIONS
Sec.
13B01. Legislative findings.
13B02. Regulatory authority.
13B03. Temporary interactive gaming regulations.
§ 13B01. Legislative findings.
The General Assembly finds and declares that:
(1) The primary objective of the Pennsylvania Race Horse
Development and Gaming Act, to which all other objectives are
secondary, is to protect the public through the regulation
and policing of all activities involving gaming and practices
that continue to be unlawful.
(2) Legislative authorization of slot machine gaming and
the conduct of table games is intended to enhance live horse
racing, breeding programs, entertainment and employment in
this Commonwealth.
(3) Legalized gaming was seen as a means to provide a
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source of revenue for property and wage tax relief, promote
economic development and enhance development of tourism
markets throughout this Commonwealth.
(4) Legalized gaming in the Category 1, Category 2 and
Category 3 licensed facilities geographically dispersed in
this Commonwealth has become a critical component of economic
development and, if gaming activities continue to be properly
regulated and fostered, it will provide a substantial
contribution to the general health, welfare and prosperity of
this Commonwealth and its citizens.
(5) The General Assembly remains committed to ensuring a
robust gaming industry in this Commonwealth that is capable
of competing internationally, nationally and regionally at
the highest levels of quality while maintaining strict
regulatory oversight to ensure the integrity of all gaming
operations as supervised by the board.
(6) Since its development, the Internet has provided the
opportunity for millions of people worldwide to engage in
online gambling, mostly through illegal, unregulated off-
shore gambling operations.
(7) In 2006, the United States Congress passed and the
President of the United States signed the Unlawful Internet
Gambling Enforcement Act of 2006 (Public Law 109-347, 31
U.S.C. § 5361 et seq.), which generally prohibits the use of
banking instruments, including credit cards, checks and money
transfers for interstate Internet gambling.
(8) Although the Unlawful Internet Gambling Enforcement
Act of 2006 prohibits interstate Internet gambling by United
States citizens, it permits individual states to create a
regulatory framework to govern intrastate Internet or
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interactive gambling .
(9) Interactive gaming is illegal in this Commonwealth
and without legislative authorization and strict regulation,
the public's trust and confidence in legalized commercial
gaming may be impacted.
(10) In this Commonwealth, interactive gaming has been
conducted without oversight, regulation or enforcement, all
of which raises significant concerns for the protection of
the health, welfare and safety of the citizens of this
Commonwealth.
(11) An effective regulatory, licensing and enforcement
system for Interactive gaming in this Commonwealth would
inhibit underage wagering and otherwise protect vulnerable
individuals, ensure that the games offered through the
Internet are fair and safe, stop sending much-needed jobs,
tax and other revenue offshore to illegal operators, provide
a significant source of taxable revenue, create jobs and
economic development and address the concerns of law
enforcement.
(12) By legalizing interactive gaming and subjecting it
to the regulatory oversight of the Pennsylvania Gaming
Control Board, the General Assembly is assuring the citizens
of this Commonwealth that only those persons licensed by the
board to conduct slot machine gaming and table games and to
operate interactive games or interactive gaming systems, in
accordance with the requirements of this part, have been
determined to be suitable to facilitate and conduct
interactive gaming activities in this Commonwealth.
(13) An effective regulatory, licensing and enforcement
system to govern interactive gaming in this Commonwealth is
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consistent with the original objectives and intent of the
Pennsylvania Race Horse Development and Gaming Act, thereby
ensuring the public trust and confidence in the commercial
gaming industry in this Commonwealth.
(14) The Commonwealth has a legitimate State interest in
protecting the integrity of State-authorized interactive
gaming by licensing those entities already engaged in the
conduct of gaming in this Commonwealth, which are subject to
the scrutiny and discipline of the board and other regulatory
agencies and which are in good standing with those agencies.
§ 13B02. Regulatory authority.
(a) Authority.--The board shall promulgate and adopt rules
and regulations to govern the conduct of interactive gaming in
order to ensure that it will be implemented in a manner that
provides for the security and effective management,
administration and control of interactive gaming, including, but
not limited to, regulations:
(1) Ensuring that interactive gaming is offered for play
in this Commonwealth in a manner that is consistent with
Federal law and the provisions of this chapter.
(2) Establishing standards and procedures for testing
and approving interactive games and interactive gaming
devices and associated equipment, and any variations or
composites of authorized interactive games, provided that the
board determines that the interactive games and any new
interactive games or any variations or composites are
suitable for use after a test or experimental period under
any terms and conditions as the board may deem appropriate.
The board may give priority to the testing of interactive
games, interactive gaming devices and associated equipment or
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other gaming equipment which a slot machine licensee has
certified that it will use to conduct interactive gaming in
this Commonwealth. Nothing in this paragraph shall be
construed to prohibit the board from using the testing and
certification standards of another state or jurisdiction in
which interactive gaming is conducted, if it determines that
the standards of the jurisdiction are comprehensive, thorough
and provide similar and adequate safeguards as those required
under this part. If the board makes such a determination and
the applicant for an interactive gaming certificate or an
interactive gaming license is licensed in another state or
jurisdiction to operate interactive gaming, it may use an
abbreviated process requiring only the information determined
by it to be necessary to consider the issuance of a
certification under this chapter. The board, in its
discretion, may also rely upon the certification of
interactive games that have met the testing and certification
standards of a board-approved private testing and
certification facility.
(3) Establishing standards and rules to govern the
conduct of interactive gaming and the system of and wagering
associated with interactive gaming, including internal
controls and accounting controls, and the type, number,
payout, wagering limits and rules for interactive games.
(4) Establishing the method for calculating gross
interactive gaming revenue and standards for the daily
counting and recording of cash and cash equivalents received
in the conduct of authorized interactive games and ensure
that internal controls and accounting controls are followed,
including the maintenance of financial books and records and
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the conduct of audits. The board shall consult with the
department in establishing these regulations.
(5) Establishing notice requirements pertaining to
minimum and maximum wagers on authorized interactive games.
(6) Ensuring that all facilities and interactive gaming
devices and associated equipment are arranged in a manner to
promote appropriate security for interactive gaming.
(7) Establishing technical standards for the approval of
interactive games, interactive gaming devices and associated
equipment, including mechanical, electrical or program
reliability, security against tampering and any other
standards as it may deem necessary to protect registered
players from fraud or deception.
(8) Governing the creation and utilization of
interactive gaming accounts by registered players, including
requiring that:
(i) Interactive gaming accounts be possessed by a
natural person and not in the name of any beneficiary,
custodian, joint trust, corporation, partnership or other
organization or entity.
(ii) Interactive gaming accounts shall not be
assignable or otherwise transferable.
(iii) No account be established for an individual
under 21 years of age.
(9) Establishing procedures for registered players to
log into their interactive gaming accounts, authenticate
identities, agree to terms, conditions and rules applicable
to authorized interactive games and log out of interactive
gaming accounts, including procedures for automatically
logging off registered players from an interactive game after
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a specified period of inactivity.
(10) Establishing procedures for:
(i) Depositing funds in an interactive gaming
account by cash, transfer or other means, as approved by
the board.
(ii) The withdrawal of funds from interactive gaming
accounts.
(iii) The suspension of interactive gaming account
activity for security reasons.
(iv) The termination of interactive gaming accounts
and disposition of proceeds in accounts.
(v) The disposition of unclaimed amounts in dormant
interactive gaming accounts.
(11) Establishing mechanisms by which registered players
may place limits on the amount of money being wagered per
authorized interactive game or during any specified time
period or the amount of losses incurred during any specified
time period.
(12) Establishing mechanisms to exclude from interactive
gaming persons not eligible to play by reason of age,
identity or location or inclusion on a list of persons denied
access to interactive gaming activities in accordance with
sections 1514 (relating to regulation requiring exclusion,
ejection or denial of access 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).
(13) Establishing procedures for the protection,
security and reliability of interactive gaming accounts,
authorized interactive games, interactive gaming devices and
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associated equipment and mechanisms to prevent tampering or
utilization by unauthorized persons.
(14) Establishing data security standards to govern age,
identity and location verification of persons engaged in
interactive gaming activity.
(15) Requiring each interactive gaming certificate
holder to:
(i) Provide written information on its interactive
gaming skin or Internet website, which explains the rules
for each authorized interactive game, payoffs or winning
wagers and other information as the board may require.
(ii) Designate one or more interactive gaming
restricted areas where interactive gaming will be
managed, administered or controlled.
(iii) Provide the board with access to the
interactive gaming skin or website, interactive gaming
platform, signal or transmission used in connection with
interactive gaming and interactive gaming restricted
areas.
(iv) Adopt procedures for the recordation,
replication and storage of all play and transactions for
a period to be determined by the board.
(v) Provide statements on its interactive gaming
skin or website about the permissible minimum and maximum
wagers for each authorized interactive game, as
applicable.
(vi) Adopt policies or procedures to prohibit any
unauthorized person from having access to interactive
gaming devices and associated equipment, including
software, system programs, hardware and any other gaming
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equipment or devices which are used to manage, administer
or control interactive gaming.
(vii) Adopt data security standards to verify the
age, identity and location of persons engaged in
interactive gaming activity and prevent unauthorized
access by any person whose age and location have not been
verified or whose age and location cannot be verified in
accordance with regulations adopted by the board.
(viii) Adopt standards to protect the privacy and
security of registered players engaged in interactive
gaming.
(ix) Collect, report and pay any and all applicable
taxes and fees and maintain all books, records and
documents related to the interactive gaming certificate
holder's interactive gaming activities in a manner and in
a location within this Commonwealth as approved by the
board or the department. All books, records and documents
shall be immediately available for inspection during all
hours of operation in accordance with the regulations of
the board and shall be maintained in a manner and during
periods of time as the board shall by regulation require.
(b) Additional authority.--
(1) At its discretion, the board may determine whether
persons that provide the following goods or services and any
other goods or services related to interactive gaming as the
board may determine shall be required to obtain a license,
permit or other authorization:
(i) Payment processing and related money
transmitting and services.
(ii) Customer identity or age verification and
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geospatial technology services.
(iii) General telecommunications services, which are
not specifically designed for or related to interactive
gaming.
(iv) Other goods or services that are not
specifically designed for use with interactive gaming if
the persons providing the goods or services are not paid
a percentage of gaming revenue or of money wagered on
interactive games or of any fees, not including fees to
financial institutions and payment providers for
facilitating a deposit by an interactive gaming account
holder.
(2) The board shall develop a classification system for
the licensure, permitting or other authorization of persons
that provide the following goods or services related to
interactive gaming:
(i) Persons that provide interactive games and
interactive gaming devices and associated equipment.
(ii) Persons that manage, control or administer the
interactive games or the wagers associated with
interactive games.
(iii) Providers of customer lists comprised of
persons identified or selected, in whole or in part,
because they placed or may place wagers on interactive
gaming.
(c) Definition.--For the purposes of subsection (a)(12),
(14) and (15)(viii) and (ix), the term "person" shall mean a
natural person.
§ 13B03. Temporary interactive gaming regulations.
(a) Promulgation.--
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(1) In order to facilitate the prompt implementation of
this chapter, regulations promulgated by the board shall be
deemed temporary regulations which shall expire not later
than two years following the publication of the temporary
regulation in the Pennsylvania Bulletin and on the board's
publicly accessible Internet website.
(2) The board may promulgate temporary regulations not
subject to:
(i) Sections 201, 202, 203, 204 and 205 of the act
of July 31, 1968 (P.L.769, No.240), referred to as the
Commonwealth Documents Law.
(ii) Sections 204(b) and 301(10) of the act of
October 15, 1980 (P.L.950, No.164), known as the
Commonwealth Attorneys Act.
(iii) The act of June 25, 1982 (P.L.633, No.181),
known as the Regulatory Review Act.
(b) Temporary regulations.--The board shall begin publishing
temporary regulations governing the rules for interactive
gaming, the issuance of interactive gaming certificates and
interactive gaming licenses, standards for approving
manufacturers, suppliers and other persons seeking to provide
interactive games, interactive gaming devices and associated
equipment, including age and location verification software or
system programs and security and surveillance standards in the
Pennsylvania Bulletin within 30 days of the effective date of
this subsection.
(c) Expiration of temporary regulations.--Except for
temporary regulations governing the rules for issuing
certificates and licenses under this chapter, for new
interactive games, for approving interactive games or variations
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thereof, interactive gaming devices and associated equipment and
for approving manufacturers, suppliers and other persons seeking
to provide interactive games, interactive gaming devices and
associated equipment, the board's authority to adopt temporary
regulations under subsection (a) shall expire two years after
the effective date of this section. Regulations adopted after
this period shall be promulgated as provided by law.
SUBCHAPTER B
INTERACTIVE GAMING AUTHORIZED
Sec.
13B11. Authorization to conduct interactive gaming.
13B12. Interactive gaming certificate required and content of
petition.
13B13. Issuance of interactive gaming certificate.
13B14. Interactive gaming operators.
13B15. Interactive gaming certificate and license.
13B16. Timing of initial interactive gaming authorizations.
§ 13B11. Authorization to conduct interactive gaming.
(a) Authority of board.--
(1) The board may authorize a slot machine licensee:
(i) To conduct interactive gaming, including
contests and tournaments and any other game which is
determined by the board to be suitable for interactive
gaming.
(ii) To deploy interactive gaming skins or Internet
websites to facilitate the conduct of interactive gaming
activities.
(2) Except as provided in this part, all individuals
playing authorized interactive games must be physically
located within this Commonwealth or within a state or
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jurisdiction in which the board has entered an interactive
gaming reciprocal agreement. No individual under 21 years of
age shall open, maintain, use or have access to an
interactive gaming account.
(b) Authority to play interactive games.--Notwithstanding
any other provision of law, an individual who is 21 years of age
or older is hereby permitted to participate as a registered
player in interactive gaming and wagering associated with
playing an authorized interactive game offered by an interactive
gaming certificate holder in accordance with regulations of the
board.
§ 13B12. Interactive gaming certificate required and content of
petition.
(a) Certificate required.--No slot machine licensee or any
other person associated with or representing a slot machine
licensee shall operate or conduct or attempt to operate or
conduct interactive gaming, except for test purposes or open
interactive gaming to the public in this Commonwealth without
first obtaining an interactive gaming certificate or an
interactive gaming license from the board. A slot machine
licensee may seek approval to conduct interactive gaming by
filing a petition for an interactive gaming certificate with the
board. The board shall prescribe the form and manner to govern
the submission of a petition for an interactive gaming
certificate.
(b) Content of petition.--In addition to information and
documentation demonstrating that the slot machine licensee is
qualified for an interactive gaming certificate under this
chapter, a petition seeking board approval to conduct
interactive gaming within this Commonwealth shall include the
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following:
(1) The name, business address and contact information
of the slot machine licensee.
(2) The name, business address and contact information
of any affiliate, interactive gaming operator or other person
that will be a party to an agreement related to the operation
of interactive gaming or an interactive gaming system on
behalf of a slot machine licensee.
(3) The name and business address, job title and a
photograph of each principal and key employee of the slot
machine licensee who will be involved in the conduct of
interactive gaming and who is not currently licensed by the
board, if known.
(4) The name and business address, job title and a
photograph of each principal and key employee of the
interactive gaming certificate holder and interactive gaming
licensee, if any, who will be involved in the conduct of
interactive gaming and who is currently licensed by the
board.
(5) An itemized list of the interactive games and any
other game or games the slot machine licensee plans to offer
over the Internet for which authorization is being sought.
The slot machine licensee shall, in accordance with
regulations promulgated by the board, file any changes in the
number of authorized interactive games offered through
interactive gaming with the board.
(6) The estimated number of full-time and part-time
employment positions that will be created at the licensed
facility if interactive gaming is authorized and an updated
hiring plan under section 1510(a) (relating to labor hiring
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preferences) which outlines the slot machine licensee's plan
to promote the representation of diverse groups and
Commonwealth residents in the employment positions.
(7) A brief description of the economic benefits
expected to be realized by the Commonwealth, the host
municipalities and residents if interactive gaming is
authorized.
(8) The details of any financing obtained or that will
be obtained to fund an expansion or modification of the
licensed facility to accommodate interactive gaming and to
otherwise fund the cost of commencing interactive gaming.
(9) Information and documentation concerning financial
background and resources, as the board may require, to
establish by clear and convincing evidence the financial
stability, integrity and responsibility of the slot machine
licensee, and information or documentation concerning any
interactive gaming operator that will operate interactive
gaming or an interactive gaming system on behalf of the slot
machine licensee, as the board may require.
(10) Information and documentation, as the board may
require, to establish by clear and convincing evidence that
the slot machine licensee has sufficient business ability and
experience to conduct a successful interactive gaming
operation. In making this determination, the board may
consider the results of the slot machine licensee's slot
machine and table game operations, including financial
information, employment data and capital investment.
(11) Information and documentation, as the board may
require, to establish by clear and convincing evidence that
the slot machine licensee has or will have the financial
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ability to pay the interactive gaming authorization fee.
(12) Detailed site plans identifying the proposed
interactive gaming restricted area where interactive gaming
operations will be managed, administered or controlled as
approved by the board.
(13) A detailed description of all of the following:
(i) The slot machine licensee's initial system of
internal and accounting controls applicable to
interactive gaming.
(ii) The slot machine licensee's proposed standards
to protect, with a reasonable degree of certainty, the
privacy and security of its registered players.
(iii) How the slot machine licensee will facilitate
compliance with all of the requirements set forth in this
chapter and in section 802(a) of the Unlawful Internet
Gambling Enforcement Act of 2006 (Public Law 109-347, 31
U.S.C. § 5362(10)(B)), including, but not limited to, all
of the following:
(A) Age, identity and location verification
requirements designed to block access to individuals
under 21 years of age.
(B) Appropriate data security standards to
prevent unauthorized access by any person whose age,
identity and location have not been verified or whose
age, identity and location cannot be verified in
accordance with this chapter and applicable
regulations of the board.
(C) Except as provided in this chapter, the
requirement that all wagers made in the conduct of
interactive gaming be initiated and received or
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otherwise made exclusively within this Commonwealth.
(iv) The slot machine licensee's proposed age,
identity and location verification standards designed to
block access to persons under 21 years of age and persons
excluded or prohibited from participating in interactive
gaming under this chapter.
(v) The procedures the slot machine licensee will
use to register individuals who wish to participate in
interactive gaming.
(vi) The procedures the slot machine licensee will
use to establish interactive gaming accounts for
registered players.
(vii) The interactive games and services the slot
machine licensee proposes to offer to registered players.
(viii) Documentation and information relating to all
proposed subcontractors of the slot machine licensee,
including, but not limited to, all of the following:
(A) A description of the services to be provided
by each subcontractor.
(B) Information on the experience and
qualifications of each subcontractor to provide the
services anticipated.
(C) The names of all proposed subcontractors,
owners, executives and employees that will be
directly or indirectly involved in the slot machine
licensee's interactive gaming operations, as well as
sufficient personal identifying information on each
such person to conduct background checks as may be
required by the board.
(14) The interactive gaming devices and associated
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equipment, including the interactive gaming network,
interactive gaming system or systems, that the slot machine
licensee plans to or will utilize to manage, administer or
control its interactive gaming operations.
(15) Compliance certification of its interactive gaming
devices and associated equipment, including interactive
gaming software and hardware, by a board-approved gaming
laboratory to ensure that the gaming software and hardware
comply with the requirements of this chapter and regulations
of the board.
(16) Detailed description of accounting systems,
including, but not limited to, accounting systems for all of
the following:
(i) Interactive gaming accounts.
(ii) Per-hand charges, if applicable.
(iii) Transparency and reporting to the board and
the department.
(iv) Distribution of revenue to the Commonwealth and
winnings to registered players.
(v) Ongoing auditing and internal control compliance
reviews.
(17) Detailed information on security systems at the
licensed facility to protect the interactive gaming skins or
Internet website from internal and external breaches and
threats.
(18) Any other information the board may require.
(c) Confidentiality.--Information submitted to the board
under subsection (b) may be considered confidential by the board
if the information would be confidential under section 1206(f)
(relating to board minutes and records).
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§ 13B13. Issuance of interactive gaming certificate.
(a) Requirements for approval of petition.--
(1) The board may approve a petition under section 13B12
(relating to interactive gaming certificate required and
content of petition) upon finding clear and convincing
evidence of all of the following:
(i) The slot machine licensee's conduct of
interactive gaming complies in all respects with the
requirements of this chapter and regulations promulgated
by the board.
(ii) Age, identity and location verification
requirements designed to block access to individuals
under 21 years of age and persons otherwise prohibited
from engaging in interactive gaming in accordance with
this chapter, as approved by the board, have been
implemented by the slot machine licensee.
(iii) The slot machine licensee has implemented or
will implement appropriate data security standards to
prevent unauthorized access by any person whose age,
identity and location has not been verified or cannot be
verified in accordance with the regulations promulgated
and adopted by the board.
(iv) The slot machine licensee has implemented or
will implement appropriate standards to protect the
privacy and security of registered players.
(v) The slot machine licensee's initial system of
internal and accounting controls applicable to
interactive gaming, and the security and integrity of all
financial transactions in connection with the system,
complies with this chapter and regulations promulgated
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and adopted by the board.
(vi) The slot machine licensee is in good standing
with the board.
(vii) The slot machine licensee agrees that the
number of slot machines and table games in operation at
its licensed facility, as of the effective date of this
section, will not be reduced as a result of the
authorization and commencement of interactive gaming.
(2) It shall be an express condition of any interactive
gaming certificate that a slot machine licensee shall
collect, report and pay all applicable taxes and fees and
shall maintain all books, records and documents pertaining to
the slot machine licensee's interactive gaming operations in
a manner and location within this Commonwealth as approved by
the board. All books, records and documents shall be
immediately available for inspection by the board and the
department during all hours of operation in accordance with
the regulations of the board and shall be maintained in a
manner and during periods of time as the board shall require.
(b) Issuance of interactive gaming certificate.--
(1) Upon approval of a petition for an interactive
gaming certificate, the board shall issue an interactive
gaming certificate to the slot machine licensee. The issuance
of an interactive gaming certificate prior to the full
payment of the authorization fee required under section 13B51
(relating to interactive gaming authorization fee) shall not
relieve the slot machine licensee from the obligation to pay
the authorization fee in accordance with the requirements of
section 13B51.
(2) Upon issuing an interactive gaming certificate, the
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board shall amend the slot machine licensee's statement of
conditions to include conditions pertaining to the
requirements of this chapter.
(c) Term of interactive gaming certificate.--Subject to the
power of the board to deny, revoke or suspend an interactive
gaming certificate issued in accordance with the requirements of
this section, an interactive gaming certificate shall be renewed
every five years and shall be subject to the requirements of
section 1326 (relating to renewals).
(d) Sanctions.--A slot machine licensee that fails to abide
by the requirements of this chapter or any condition contained
in the slot machine licensee's statement of conditions governing
the operation of interactive gaming shall be subject to board-
imposed administrative sanctions or other penalties authorized
under this part. The imposition of administrative sanctions in
accordance with this subsection shall apply to any interactive
gaming operator that fails to abide by the requirements of this
chapter and regulations of the board.
(e) Background investigations.--Each petition for an
interactive gaming certificate shall be accompanied by a
nonrefundable fee established by the board to cover the cost of
background investigations. The board shall determine by
regulation the persons involved, directly or indirectly, in a
slot machine licensee's interactive gaming operations and
persons involved in the operations of an interactive gaming
operator who shall be subject to background investigation. Any
additional costs and expenses incurred in any background
investigation or other investigation or proceeding under this
chapter shall be reimbursed to the board.
§ 13B14. Interactive gaming operators.
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(a) License required.--No person shall serve or attempt to
serve as an interactive gaming operator without first obtaining
an interactive gaming license from the board. A person may seek
approval to serve as an interactive gaming operator by filing an
application with the board. The board shall prescribe the form
and manner to govern the submission of an application for an
interactive gaming license. The board shall provide for the
licensure of interactive gaming operators that operate
interactive gaming or an interactive gaming system on behalf of
an interactive gaming certificate holder. The board shall:
(1) Determine suitability and provide for the licensure,
permitting, registration or certification, as it deems
appropriate, of interactive gaming operators or other persons
directly involved in the operation of interactive gaming or
an interactive gaming system on behalf of a slot machine
licensee. The board shall determine suitability in accordance
with the applicable requirements of this part, provided that
the board may extend suitability to a holder of a valid
license, permit, registration, certificate or other
authorizations approved and issued under this part, which is
in good standing, without additional investigation. The
extension of suitability in accordance with this paragraph
shall not relieve the holder of a valid license, permit,
registration or certificate issued under this chapter from
payment of all fees imposed under this chapter.
(2) Provide for the approval of the terms and conditions
of all agreements entered into by or between an interactive
gaming certificate holder and an interactive gaming operator
or any other person related to the operation of interactive
games or an interactive gaming system on behalf of the
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interactive gaming certificate holder.
(b) Classification and approval of employees.--
(1) The board shall establish a classification system
for employees of interactive gaming operators or other
persons who provide products or services associated with or
related to interactive gaming, interactive gaming platforms
and interactive gaming systems.
(2) The board shall provide for the licensure,
permitting, registration or certification, as it deems
appropriate, of employees in each employee classification
established by it in accordance with paragraph (1).
(c) Applicability of certain provisions.--Interactive gaming
operators shall be subject to the applicable provisions of this
part that apply to interactive gaming certificate holders, as
determined by the board.
(d) Operators owned, controlled by slot machine licensee.--
This section shall not apply to an interactive gaming operator
that is owned by, affiliated with or otherwise controlled by a
slot machine licensee that has been approved for and issued an
interactive gaming certificate under this chapter. The board
shall determine by regulation the criteria or conditions
necessary to determine whether an interactive gaming operator is
owned by, affiliated with or otherwise controlled by a slot
machine licensee to effectuate the purpose of this subsection.
(e) Interactive gaming license and conditional
authorization.--
(1) The following shall apply:
(i) During the first 18 months after the effective
date of this section, the board may issue conditional
authorizations to persons seeking licensure as
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interactive gaming operators.
(ii) Conditional authorization awarded to an
interactive gaming operator may remain in effect until
the shorter of 12 months after the date of issue or the
date by which the board considers the subject
application.
(iii) Conditional authorization may be renewed by
the board not more than once, upon a showing of good
cause.
(iv) Conditional authorization shall allow an
applicant for an interactive gaming license to engage in
all of the functions of a licensed interactive gaming
operator for the duration of the conditional
authorization.
(2) No conditional authorization may be issued unless:
(i) The applicant has submitted a complete
application for an interactive gaming license to the
board.
(ii) The applicant agrees to pay or has paid the fee
prescribed in section 13B51 (relating to interactive
gaming authorization fee) prior to the issuance of
conditional authorization, which may be refundable in the
event the license is not approved and issued by the
board.
(iii) The bureau has no objection to the issuance of
a conditional authorization to the applicant.
(3) Within 45 days of the date that the bureau receives
the completed application for an interactive gaming license
from an applicant for investigation, the bureau shall conduct
a preliminary investigation of the applicant and any key
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interactive gaming employee of the applicant, as determined
by the board, which shall include a criminal background
investigation of the applicant and any interactive gaming
employees of the applicant, as determined by the board in
accordance with section 1202(b) (relating to general and
specific powers).
(4) If the bureau's preliminary investigation discloses
no adverse information that would impact suitability for
licensure, the bureau shall provide the board with a
statement of no objection to issuance of conditional
authorization to the applicant.
(5) If the bureau's preliminary investigation discloses
adverse information that would impact suitability for
licensure, it shall register an objection and no conditional
authorization may be issued until the bureau's concerns are
resolved.
(6) Any conditional authorization approved and issued to
an applicant for an interactive gaming license under this
subsection may be suspended or withdrawn by the board upon a
showing of good cause by the bureau.
§ 13B15. Interactive gaming certificate and license.
The following shall apply:
(1) An interactive gaming certificate and interactive
gaming license shall be in effect unless:
(i) The certificate or license is suspended or
revoked by the board consistent with the requirements of
this part.
(ii) The slot machine license is suspended, revoked
or not renewed by the board consistent with the
requirements of this part.
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(iii) The slot machine licensee relinquishes or does
not seek renewal of its slot machine license.
(iv) The slot machine licensee does not seek renewal
of its interactive gaming certificate.
(2) The interactive gaming certificate may include an
initial itemized list by number and type of authorized
interactive games for interactive gaming to be conducted by
the interactive gaming certificate holder or interactive
gaming operator or other person on behalf of an interactive
gaming certificate holder. The slot machine licensee may
increase or decrease the number of interactive games
authorized for play on its interactive gaming skin or
Internet website or change the type of authorized interactive
games played on its interactive gaming skin or Internet
website upon notice, if required by the board, to the board
and approval by the board or a designated employee of the
board. Unless approved by the board or a designated employee
of the board, the total number and type of authorized
interactive games offered for play by an interactive gaming
certificate holder may not differ from the number and type
approved by the board and authorized in the interactive
gaming certificate.
(3) A slot machine licensee shall be required to update
the information in its initial interactive gaming petition at
times and in the form and manner as prescribed by the board.
§ 13B16. Timing of initial interactive gaming authorizations.
The board shall prescribe the date on which petitions for an
interactive gaming certificate and applications for an
interactive gaming license must be filed with the board and
shall approve or deny a petition or application within 90 days
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following receipt.
SUBCHAPTER B.1
MULTI-USE COMPUTING DEVICES
Sec.
13B20. Authorization.
13B20.1. Board authorization required.
13B20.2. Standard for review of applications.
13B20.3. Fees.
13B20.4. Multi-use gaming device tax.
13B20.5. Local share assessment.
13B20.6. Regulations.
13B20.7. Construction.
§ 13B20. Authorization.
(a) Authority.--
(1) Notwithstanding any provision of this part or
regulation of the board, an interactive gaming certificate
holder may provide for the conduct of interactive gaming at a
qualified airport through the use of multi-use computing
devices or enter into a written agreement with an interactive
gaming operator that provides for the conduct of such
interactive gaming by the interactive gaming operator on
behalf of the interactive gaming certificate holder.
(2) An interactive gaming certificate holder seeking to
make authorized interactive games available for play through
the use of multi-use computing devices at a qualified airport
shall file a petition with the board in such form and manner
as the board, through regulations, shall require.
(b) Place of conduct.--The board, at its discretion, may
authorize an interactive gaming certificate holder or an
interactive gaming operator to place and make authorized
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interactive games available for play at a qualified airport
through the use of multi-use computing devices in accordance
with the requirements of this subchapter and regulations of the
board.
(c) Satisfaction of contingencies.--Authorization for an
interactive gaming certificate holder to conduct interactive
gaming at a qualified airport in accordance with subsection (a)
shall be contingent upon the following:
(1) The interactive gaming certificate holder has
submitted a petition to the board seeking authorization to
manage the conduct of interactive gaming at the qualified
airport and the board has approved the petition.
(2) The interactive gaming certificate holder has
disclosed that it has or will enter into an agreement with an
interactive gaming operator who will manage, operate and
control the conduct of interactive gaming at a qualified
airport on behalf of the interactive gaming certificate
holder and the interactive gaming operator has petitioned the
board for approval and the board has approved the agreement
and the petition.
(3) The interactive gaming certificate holder and
interactive gaming operator, as the case may be, has entered
into an agreement with the concession operator at the
qualified airport for the use of multi-use computing devices
within the airport gaming area.
(4) The interactive gaming certificate holder or
interactive gaming operator, as applicable, has provided
adequate assurances that the conduct of interactive gaming at
the qualified airport will be conducted and operated in
accordance with this part and regulations promulgated by the
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board.
(5) The interactive gaming certificate holder has paid
or will pay all applicable taxes and fees.
(d) Agreement required.--The following shall apply:
(1) An interactive gaming certificate holder may seek
authorization for the operation and placement of authorized
interactive games at a qualified airport or may enter into an
agreement with an interactive gaming operator to provide for
the conduct of interactive gaming at the qualified airport.
(2) An agreement entered into in accordance with this
subsection shall be in writing and shall be submitted to the
board for review and approval.
§ 13B20.1. Board authorization required.
(a) Contents of petition.--An interactive gaming certificate
holder seeking authorization to conduct interactive gaming at a
qualified airport through the use of a multi-use computing
device shall petition the board for approval. The petition shall
include:
(1) The name, business address and contact information
of the interactive gaming certificate holder or the name,
business address and contact information of the interactive
gaming operator, if an interactive gaming operator will
manage the operation of interactive gaming at a qualified
airport on behalf of an interactive gaming certificate holder
pursuant to an interactive gaming agreement.
(2) The name and business address, job title and a
photograph of each principal and key employee of the
interactive gaming certificate holder and, if relevant, the
interactive gaming operator who will be directly involved in
the conduct of authorized interactive games at the qualified
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airport and who is not currently licensed by the board, if
known.
(3) The name and business address of the airport
authority, the location of the qualified airport and the
names of the governing body of the airport authority, if the
airport authority is incorporated in accordance with 53
Pa.C.S. Ch. 56 (relating to municipal authorities).
(4) If the use and control of a qualified airport is
regulated by a city of the first class, an identification of
the municipal agency and primary officials of a city of the
first class, which regulates the use and control of the
qualified airport.
(5) The name and job title of the person or persons who
will be responsible for ensuring the operation and integrity
of the conduct of interactive gaming at a qualified airport
and reviewing reports of suspicious transactions.
(6) The brand name of the multi-use computing devices
that will be placed in operation at the qualified airport.
The board, at its discretion, may require any additional
information related to the conduct of interactive gaming at a
qualified airport through the use of multi-use computing
devices or persons that manufacture or supply multi-use
computing devices that it may determine necessary and
appropriate to ensure the integrity of interactive gaming at
a qualified airport and protect the public interest.
(7) An itemized list of the interactive games for which
authorization is being sought.
(8) Information, as the board may require, on any
computer applications or apps, including gaming apps, which
can be accessed on the multi-use computing devices.
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(9) Information on the terms and conditions of any
interactive gaming agreement entered into by or between an
interactive gaming certificate holder and interactive gaming
operator or other person related to the conduct of
interactive gaming through the use of multi-use computing
devices at a qualified airport, if the board deems necessary
and appropriate.
(10) Detailed site plans illustrating the location of
the proposed airport gaming area at the qualified airport.
(11) Information and documentation concerning financial
background and resources, as the board may require, to
establish by clear and convincing evidence the financial
stability, integrity and responsibility of the petitioner.
(12) Any other information as the board may require.
(b) Confidentiality.--Information submitted to the board
under subsection (a)(8), (9), (11) and (12) may be considered
confidential by the board if the information would be
confidential under section 1206(f) (relating to board minutes
and records).
(c) Approval of petition.--Upon approval of a petition as
required under this section, the board shall authorize an
interactive gaming certificate holder or an interactive gaming
operator, as applicable, to conduct interactive gaming at a
qualified airport through the use of multi-use computing
devices. The authorization of an interactive gaming certificate
holder or an interactive gaming operator, as applicable, to
conduct interactive gaming at a qualified airport in accordance
with this chapter prior to the full payment of the authorization
fee under section 13B20.3 (relating to fees) shall not relieve
the interactive gaming certificate holder or interactive gaming
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operator, as applicable, from the obligation to pay the
authorization fee in accordance with section 13B20.3.
§ 13B20.2. Standard for review of petitions.
The board shall approve a petition under section 13B20.1
(relating to board authorization required) if the interactive
gaming operator has been or will be issued an interactive gaming
license under section 13B14 (relating to interactive gaming
operators), and if it establishes, by clear and convincing
evidence, all of the following:
(1) The interactive gaming certificate holder or
interactive gaming operator, as the case may be, has entered
into an agreement with a concession operator for the conduct
of interactive gaming through the use of multi-use computing
devices within the airport gaming area of a qualified
airport.
(2) The interactive gaming operator has an agreement
with an interactive gaming certificate holder relating to the
conduct of authorized interactive games by the interactive
gaming operator on behalf of the interactive gaming
certificate holder.
(3) The board has approved the agreements under
paragraphs (1) and (2), as applicable.
(4) The interactive gaming operator has paid the
authorization fee under section 13B51 (relating to
interactive gaming authorization fee).
(5) The interactive gaming operator possesses the
necessary funds or has secured adequate financing to commence
the conduct of interactive gaming at the qualified airport.
(6) The proposed internal and external security and
surveillance measures within the airport gaming area of the
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qualified airport are adequate.
§ 13B20.3. Fees.
(a) Required fees.--An interactive gaming certificate holder
shall pay a one-time, nonrefundable fee of $1,000,000 upon the
authorization to conduct interactive gaming at a qualified
airport through the use of multi-use computing devices in
accordance with this chapter.
(b) Deposit of fees.--Notwithstanding section 1208 (relating
to collection of fees and fines), all fees or penalties received
by the board under this chapter shall be deposited in the
General Fund.
§ 13B20.4. Multi-use gaming device tax.
(a) Imposition.--
(1) Each interactive gaming certificate holder
authorized to conduct interactive gaming at a qualified
airport in accordance with the provisions of this subchapter
shall report to the department and pay from its daily gross
interactive gaming revenue generated from the conduct of
interactive gaming through multi-use computing devices at the
qualified airport, on a form and in the manner prescribed by
the department, a tax of 14% of its daily gross interactive
gaming revenue generated from multi-use computing devices at
the qualified airport and a local share assessment.
(2) The tax imposed under subsection (a) shall be
payable to the department on a daily basis and shall be based
upon the gross interactive gaming revenue generated from
multi-use computing devices at a qualified airport derived
during the previous week.
(3) All funds owed to the Commonwealth under this
section shall be held in trust for the Commonwealth by the
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interactive gaming certificate holder until the funds are
paid to the department. An interactive gaming certificate
holder shall establish a separate bank account into which
gross interactive gaming revenue from multi-use computing
devices shall be deposited and maintained until such time as
the funds are paid to the department under this section.
(4) The department shall transfer the tax revenues
collected under this section to the General Fund.
§ 13B20.5. Local share assessment.
(a) Required payment.--In addition to the tax imposed under
section 13B20.4 (relating to multi-use gaming device tax), each
interactive gaming certificate holder shall pay on a weekly
basis and on a form and in a manner prescribed by the department
a local share assessment into a restricted receipts account
established in the fund. All funds owed under this section shall
be held in trust by the interactive gaming certificate holder
until the funds are paid into the account. Funds in the account
are hereby appropriated to the department on a continuing basis
for the purposes set forth in this section.
(b) Distributions to qualified airports.--
(1) The department shall make quarterly distributions
from the local share assessments deposited into the fund
under subsection (a) to qualified airports.
(2) Notwithstanding paragraph (1) or any other provision
of law, the multi-use computing device local share assessment
generated at a qualified airport located in a city of the
first class which regulates the use and control of a
qualified airport shall be distributed to the school district
of the city of the first class for pre-kindergarten programs.
(c) Definition.--As used in this section, the term "multi-
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use computing device local share assessment" means 20% of an
interactive gaming certificate holder's gross interactive gaming
revenue from multi-use computing devices at qualified airports.
§ 13B20.6. Regulations.
(a) Regulations.--The board shall promulgate regulations
related to the operation of authorized interactive games through
the use of multi-use computing devices at qualified airports,
including, but not limited to:
(1) Procedures for the creation of temporary or
provisional interactive gaming accounts that take into
consideration the nature of interactive gaming through multi-
use computing devices at qualified airports.
(2) Procedures to govern credits, debits, deposits and
payments to interactive gaming accounts established through
multi-use computing devices at qualified airports.
(3) Procedures, in consultation with the department, to
govern financial transactions between an interactive gaming
certificate holder, an interactive gaming operator or other
persons that relates to the reporting of gross interactive
gaming revenue generated through the use of multi-use
computing devices at qualified airports.
(b) Temporary regulations.--In order to facilitate the
prompt implementation of this chapter, regulations promulgated
by the board in accordance with subsection (a) shall be deemed
temporary regulations. The board may promulgate temporary
regulations not subject to:
(1) Sections 201, 202, 203, 204 and 205 of the act of
July 31, 1968 (P.L.769, No.240), referred to as the
Commonwealth Documents Law.
(2) Sections 204(b) and 301(10) of the act of October
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15, 1980 (P.L.950, No.164), known as the Commonwealth
Attorneys Act.
(3) The act of June 25, 1982 (P.L.633, No.181), known as
the Regulatory Review Act.
§ 13B20.7. Construction.
Nothing in this subchapter shall be construed to:
(1) Create a separate license governing the use of
multi-use computing devices for the conduct of interactive
games at eligible airports by interactive gaming certificate
holders within this Commonwealth.
(2) Limit the board's authority to determine the
suitability of any person who may be directly or indirectly
involved in or associated with the operation of interactive
gaming at a qualified airport to ensure the integrity of
interactive gaming and protect the public interest.
SUBCHAPTER C
CONDUCT OF INTERACTIVE GAMING
Sec.
13B21. Situs of interactive gaming operations.
13B22. Establishment of interactive gaming accounts.
13B23. Interactive gaming account credits, debits, deposits and
payments.
13B24. Acceptance of account wagers.
13B25. Dormant interactive gaming accounts.
13B26. Log-in procedure required.
13B27. Information provided at login.
13B28. Prohibitions.
13B29. Commencement of interactive gaming operations.
§ 13B21. Situs of interactive gaming operations.
Except as provided in this chapter, all wagers made through
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interactive gaming shall be deemed to be initiated, received or
otherwise made within the geographic boundaries of this
Commonwealth. The intermediate routing of electronic data
associated or in connection with interactive gaming shall not
determine the location or locations in which a bet or wager is
initiated, received or otherwise made.
§ 13B22. Establishment of interactive gaming accounts.
(a) Registration restrictions.--Only a natural person who
has first established an interactive gaming account shall be
permitted to play an authorized interactive game or place any
bet or wager associated with an authorized interactive game. An
interactive gaming account shall be in the name of a natural
person and may not be in the name of any beneficiary, custodian,
joint trust, corporation, partnership or other organization or
entity. An interactive gaming certificate holder shall not
permit an individual to establish an interactive gaming account
unless the person is 21 years of age or older.
(b) Establishment of interactive gaming accounts.--
(1) An interactive gaming account may be executed in
person, provided that the board shall, through regulations,
provide procedures for the establishment of interactive
gaming accounts over the Internet through the interactive
gaming certificate holder's interactive gaming skin or portal
or Internet website. Each interactive gaming account shall
comply with the internal controls of the interactive gaming
certificate holder that, at a minimum, require the following:
(i) The filing and execution of an interactive
gaming account application, the form of which has been
preapproved by the board.
(ii) Proof of age, identity and residency as
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demonstrated by at least two forms of identification
approved by the board through regulation.
(iii) Physical address or the principal residence of
the prospective account holder, e-mail address of the
prospective account holder and other contact information,
as the board or interactive gaming certificate holder may
require.
(iv) Password or other secured identification
provided by the interactive gaming certificate holder to
access the interactive gaming account or some other
mechanism approved by the board to authenticate the
player as the holder to the interactive gaming account.
(v) An acknowledgment under penalty of perjury that
false or misleading statements made in regard to an
application for an interactive gaming account may subject
the applicant to civil and criminal penalties.
(2) The interactive gaming certificate holder may accept
or reject an application after receipt and review of the
application and verification of age and identity for
compliance with the provisions of this chapter. The
interactive gaming certificate holder shall have the right,
at any time with or without cause, to suspend or close any
interactive gaming account at its sole discretion.
(3) The address provided by the applicant in the
application for an interactive gaming account shall be deemed
the address of record for the purposes of mailing checks,
account withdrawals, notices and other materials to the
interactive gaming account holder.
(4) An interactive gaming account shall not be
assignable or otherwise transferable and an interactive
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gaming certificate holder may, at any time, declare all or
any part of an interactive gaming account to be closed for
wagering.
(c) Password required.--As part of the application process,
the interactive gaming certificate holder shall provide the
prospective interactive gaming account holder with a password to
access the interactive gaming account or shall establish some
other method approved by the board to authenticate the
individual as the holder of the interactive gaming account and
allow the registered player access to the interactive gaming
account.
(d) Grounds for rejection.--Any individual who provides
false or misleading information in the application for an
interactive gaming account may be subject to rejection of the
application or cancellation of the account by the interactive
gaming certificate holder.
(e) Suspension of interactive gaming account.--The
interactive gaming certificate holder shall have the right to
suspend or close any interactive gaming account at its
discretion.
(f) Persons prohibited from establishing or maintaining an
interactive gaming account.--The following persons shall not be
entitled to establish or maintain an interactive gaming account:
(1) Any person under 21 years of age.
(2) Any person on the list of persons who are or will be
excluded or ejected from or denied access to any licensed
facility under section 1514 (relating to regulation requiring
exclusion, ejection or denial of access of certain persons),
1515 (relating to repeat offenders excludable from licensed
gaming facility) or 1516 (relating to list of persons self
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excluded from gaming activities).
(3) Any gaming employee, key employee or principal
employee of a slot machine licensee and any employee or key
employee of an interactive gaming operator or any other
person directly involved in the operation of interactive
gaming or an interactive gaming system on behalf of a slot
machine licensee.
§ 13B23. Interactive gaming account credits, debits, deposits
and payments.
(a) Duty of board.--The board shall, by regulation, develop
procedures to govern credits, debits and deposits to interactive
gaming accounts. Notwithstanding any provision of this part to
the contrary, all credits, debits and deposits to interactive
gaming accounts shall be made in accordance with regulations
promulgated by the board, in consultation with the department,
and all payments of winnings shall be made in accordance with
the rules of each particular authorized interactive game.
(b) Rights of interactive gaming certificate holder.--An
interactive gaming certificate holder shall have the right to:
(1) Credit an interactive gaming account as part of a
promotion.
(2) Refuse all or part of any wager or deposit to the
interactive gaming account of a registered player.
(c) Interest prohibited.--Funds deposited in a registered
player's interactive gaming account shall not bear interest to
the account holder.
§ 13B24. Acceptance of account wagers.
(a) Acceptance.--A n interactive gaming certificate holder
may accept interactive gaming wagers or bets only as follows:
(1) The wager shall be placed directly with the
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interactive gaming certificate holder by the registered
player, after the interactive gaming certificate holder has
verified that the individual seeking to place a wager or bet
is the registered player.
(2) The registered player provides the slot machine
licensee with the correct password or other authentication
information for access to the interactive gaming account.
(b) Nonacceptance.--A n interactive gaming certificate holder
may not accept an account wager in an amount in excess of funds
on deposit in an interactive gaming account of the registered
player placing the bet or wager. Funds on deposit include
amounts credited to a registered player's interactive gaming
account in accordance with regulations of the board and any
funds in the account at the time the wager is placed.
§ 13B25. Dormant interactive gaming accounts.
Before closing a dormant interactive gaming account, the
interactive gaming certificate holder shall attempt to contact
the interactive gaming account holder by mail and phone or e-
mail to inform the account holder that the interactive gaming
account is inactive and may be subject to termination at such
time and manner as determined by regulation of the board.
§ 13B26. Log-in procedure required.
Each interactive gaming certificate holder shall establish a
log-in procedure for registered players to access interactive
gaming. The log-in procedure shall include the provision of the
appropriate authentication information by the registered player
for access to the interactive gaming account. The interactive
gaming certificate holder shall not allow a registered player to
log in and access the interactive gaming account unless the
correct password or other authentication information is
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provided.
§ 13B27. Information provided at login.
The interactive gaming certificate holder shall configure its
interactive gaming skin to include a link that, upon login, will
allow a registered player to access all of the following
information:
(1) The current amount of funds in the interactive
gaming account.
(2) The wins and losses since the interactive gaming
account was established.
(3) The wins and losses at the beginning of the current
gaming session and the wins and losses at the end of the
current gaming session.
(4) The complete text in searchable format of the rules
of each authorized interactive game offered by the
interactive gaming certificate holder and any other
information as the board may require.
§ 13B28. Prohibitions.
Except as provided in this part, no interactive gaming
certificate holder or any person licensed under this part to
operate interactive gaming or an interactive gaming system and
no person acting on behalf of, or under any arrangement with, an
interactive gaming certificate holder or other person licensed
under this part shall:
(1) Make any loan to any person for the purpose of
crediting an interactive gaming account.
(2) Release or discharge any debt, either in whole or in
part, or make any loan which represents any losses incurred
by any registered player while playing authorized interactive
games without maintaining a written record thereof in
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accordance with regulations of the board.
§ 13B29. Commencement of interactive gaming operations.
An interactive gaming certificate holder may not operate or
offer interactive games for play on its interactive gaming skin
until the board determines that:
(1) The interactive gaming certificate holder is in
compliance with the requirements of this chapter.
(2) The interactive gaming certificate holder 's
internal, administrative and accounting controls are
sufficient to meet the requirements of section 13B32
(relating to internal, administrative and accounting
controls).
(3) The interactive gaming certificate holder 's
interactive gaming employees, where applicable, are licensed,
permitted, registered, certified or otherwise authorized by
the board to perform their respective duties.
(4) The employees of the interactive gaming operator
are, where applicable, licensed, permitted or otherwise
authorized by the board to perform their duties.
(5) The interactive gaming certificate holder is
prepared in all respects to offer interactive gaming to the
public over its interactive gaming skin.
(6) The interactive gaming certificate holder has
implemented necessary internal, administrative and accounting
controls, security arrangements and surveillance systems for
the operation of interactive gaming.
(7) The interactive gaming certificate holder is in
compliance with or will comply with section 13B31 (relating
to responsibilities of interactive gaming certificate
holder).
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(8) The board has approved an agreement entered between
the interactive gaming certificate holder and an interactive
gaming operator or other person related to the operation of
interactive gaming or the operation of an interactive gaming
system on behalf of such interactive gaming certificate
holder .
SUBCHAPTER D
FACILITIES AND EQUIPMENT
Sec.
13B31. Responsibilities of interactive gaming certificate
holder .
13B32. Internal, administrative and accounting controls.
§ 13B31. Responsibilities of interactive gaming certificate
holder .
(a) Facilities and equipment.--All facilities and
interactive gaming devices and associated equipment shall:
(1) Be arranged in a manner promoting appropriate
security for interactive gaming.
(2) Include a closed-circuit video monitoring system
according to rules or specifications approved by the board,
with board absolute access to the interactive gaming
certificate holder 's interactive gaming skin, Internet
website and platform, signal or transmission used in
connection with interactive gaming.
(3) Not be designed in any way that might interfere with
or impede the board in its regulation of interactive gaming.
(4) Comply in all respects with regulations of the
board.
(b) Location of equipment and interactive gaming restricted
areas.--
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(1) All interactive gaming devices and associated
equipment used by an interactive gaming certificate holder or
an interactive gaming licensee to conduct interactive gaming
may be located, with the prior approval of the board, in an
interactive gaming restricted area on the premises of the
licensed facility, in an interactive gaming restricted area
within the geographic limits of the county in this
Commonwealth where the licensed facility is situated or in
any other area approved by the board.
(2) All wagers associated with interactive gaming shall
be deemed to be placed when received by the interactive
gaming certificate holder .
§ 13B32. Internal, administrative and accounting controls.
(a) Submissions to board.--Notwithstanding any provision of
this part, each slot machine licensee who holds or has applied
for an interactive gaming certificate in accordance with this
chapter shall submit a description of its system of internal
procedures and administrative and accounting controls for
interactive gaming to the board, including provisions that
provide for real-time monitoring, recordation or storage of all
interactive games and a description of any changes to its
procedures and controls. The submission shall be made at least
90 days before authorized interactive gaming is to commence or
at least 90 days before any change in those procedures or
controls is to take effect, unless otherwise directed by the
board.
(b) Filing.--Notwithstanding subsection (a), the procedures
and controls may be implemented by an interactive gaming
certificate holder upon the filing of the procedures and
controls with the board. Each procedure or control submission
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shall contain both narrative and diagrammatic representations of
the system to be utilized with regard to interactive gaming,
including, but not limited to:
(1) Accounting controls, including the standardization
of forms and definition of terms to be utilized in the
interactive gaming operations.
(2) Procedures, forms and, where appropriate, formulas
to govern the following:
(i) calculation of hold percentages;
(ii) revenue drops;
(iii) expense and overhead schedules;
(iv) complimentary services; and
(v) cash-equivalent transactions.
(3) Job descriptions and the system of personnel and
chain of command, establishing a diversity of responsibility
among employees engaged in interactive gaming operations,
including employees of an interactive gaming operator, and
identifying primary and secondary management and supervisory
positions for areas of responsibility, salary structure and
personnel practices.
(4) Procedures for the registration of players and
establishment of interactive gaming accounts, including a
procedure for authenticating the age, identity and location
of applicants for interactive gaming accounts.
(5) Procedures for terminating a registered player's
interactive gaming account and the return of any funds
remaining in the interactive gaming account to the registered
player.
(6) Procedures for suspending or terminating a dormant
interactive gaming account.
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(7) Procedures for the logging in and authentication of
a registered player in order to enable the player to commence
interactive gaming and the logging off of the registered
player when the player has completed play, including a
procedure to automatically log a registered player out of the
player's interactive gaming account after a specified period
of inactivity.
(8) Procedures for the crediting and debiting of
registered players' interactive gaming accounts.
(9) Procedures for cashing checks, receiving electronic
negotiable instruments and for redeeming chips, tokens or
other cash equivalents.
(10) Procedures for withdrawing funds from an
interactive gaming account by the registered player.
(11) Procedures for the protection of player funds,
including the segregation of player funds from operating
funds.
(12) Procedures for recording transactions pertaining to
interactive gaming.
(13) Procedures for the security and sharing of personal
identifiable information of registered players and other
information as required by the board and funds in interactive
gaming accounts. The procedures shall include the means by
which an interactive gaming certificate holder or interactive
gaming operator will provide notice to registered players
related to its sharing of personal identifiable information.
For the purpose of this paragraph, "personal identifiable
information" shall mean any data or information that can be
used, on its own or with other data or information, to
identify, contact or otherwise locate a registered player,
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including a registered player's name, address, date of birth
and Social Security number.
(14) Procedures and security for the calculation and
recordation of revenue.
(15) Procedures for the security of interactive gaming
devices and associated equipment within an interactive gaming
restricted area on the premises of the licensed facility or
in a secure facility inaccessible to the public and
specifically designed for that purpose off the premises of a
licensed facility as approved by the board.
(16) Procedures and security standards as to receipt of
and the handling and storage of interactive gaming devices
and associated equipment.
(17) Procedures and security standards to protect the
interactive gaming certificate holder 's interactive gaming
skin or Internet website and interactive gaming devices and
associated equipment from hacking or tampering by any person.
(18) Procedures for responding to suspected or actual
hacking or tampering with an interactive gaming certificate
holder 's interactive gaming skin or Internet website and
interactive gaming devices and associated equipment,
including partial or complete suspension of interactive
gaming or the suspension of any or all interactive gaming
accounts when warranted.
(19) Procedures to verify each registered player's
physical location each time a wager is placed on an
interactive game.
(20) Procedures to ensure, to a reasonable degree of
certainty, that the interactive games are fair and honest and
that appropriate measures are in place to deter, detect and,
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to the extent reasonably possible, to prevent cheating,
including collusion, and use of cheating devices, including
the use of software programs that make bets or wagers
according to algorithms.
(21) Procedures to assist problem and compulsive
gamblers, including procedures reasonably intended to prevent
a person from participating in interactive gaming activities
in accordance with sections 1514 (relating to regulation
requiring exclusion, ejection or denial of access 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).
(22) Procedures to govern emergencies, including
suspected or actual cyber attacks, hacking or tampering with
the interactive gaming certificate holder's interactive
gaming portal, platform or Internet website.
(c) Review of submissions.--
(1) The board shall review each submission required by
subsections (a) and (b) and shall determine whether the
submission conforms to the requirements of this chapter and
regulations promulgated by the board and whether the system
submitted provides adequate and effective controls for
interactive gaming of the particular interactive gaming
certificate holder.
(2) If the board determines that insufficiencies exist,
it shall specify the insufficiencies in writing to the
interactive gaming certificate holder, who shall make
appropriate alterations to ensure compliance with the
requirements of this chapter and regulations of the board.
When the board determines a submission to be adequate in all
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respects, it shall notify the interactive gaming certificate
holder.
(3) Except as otherwise provided in subsection (a), no
interactive gaming certificate holder, interactive gaming
operator or other person shall commence or alter interactive
gaming operations unless and until the system of procedures,
controls and alternations is approved by the board.
SUBCHAPTER E
TESTING AND CERTIFICATION
Sec.
13B41. Interactive games and interactive gaming devices and
associated equipment testing and certification
standards.
§ 13B41. Interactive games and interactive gaming devices and
associated equipment testing and certification
standards.
(a) Testing required.--
(1) No interactive game or interactive gaming device or
associated equipment shall be used to conduct interactive
gaming unless it has been tested and approved by the board.
The board may, in its discretion and for the purpose of
expediting the approval process, refer testing to any testing
laboratory as approved by the board.
(2) The board shall establish, by regulation, technical
standards for approval of interactive games and interactive
gaming devices and associated equipment, including standards
to govern mechanical, electrical or program reliability and
security against tampering and threats, as it may deem
necessary to protect the registered player from fraud or
deception and to ensure the integrity of interactive gaming.
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(b) Independent testing and certification facility.--Any
costs associated with the board's testing and certification
facility shall be assessed on persons authorized by the board to
manufacture, supply, distribute or otherwise provide interactive
games and interactive gaming devices and associated equipment to
interactive gaming certificate holders or to interactive gaming
operators in this Commonwealth. The costs shall be assessed in
accordance with a schedule adopted by the board.
(c) Use of other state standards.--The board may determine
whether the testing and certification standards for interactive
games and interactive gaming devices and associated equipment as
adopted by another jurisdiction within the United States or any
of the testing and certification standards used by an
interactive gaming certificate holder are comprehensive and
thorough and provide similar and adequate safeguards as those
required by this chapter and regulations of the board. If the
board makes that determination, it may permit the person
authorized to manufacture, supply, distribute or otherwise
provide interactive games and interactive gaming devices or
associated equipment to furnish interactive games or interactive
gaming devices and associated equipment to interactive gaming
certificate holders in this Commonwealth without undergoing the
full testing and certification process by the board's
independent testing and certification facility.
SUBCHAPTER F
TAXES AND FEES
Sec.
13B51. Interactive gaming authorization fee.
13B52. Interactive gaming tax.
13B53. Local share assessment.
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13B54. Compulsive and problem gambling.
§ 13B51. Interactive gaming authorization fee.
(a) Amount of authorization fee.--
(1) Each slot machine licensee that is issued an
interactive gaming certificate to conduct interactive gaming
in accordance with section 13B11 (relating to authorization
to conduct interactive gaming) shall pay a one-time
nonrefundable authorization fee in the amount of $8,000,000.
(2) Each interactive gaming operator or an affiliate of
an interactive gaming certificate holder that is issued an
interactive gaming license under this chapter to operate
interactive gaming or an interactive gaming system on behalf
of a slot machine licensee pursuant to an interactive gaming
agreement and that is not owned, affiliated with or otherwise
controlled by a slot machine licensee shall pay a one-time
nonrefundable authorization fee in the amount of $2,000,000.
(3) Each interactive gaming operator that has been
approved by the board to provide for the conduct of
interactive gaming on behalf of an interactive gaming
certificate holder at a qualified airport in accordance with
Subchapter B.1 shall pay a one-time nonrefundable
authorization fee in the amount of $1,000,000.
(b) Payment of fee.--Persons required to pay the
authorization fee under subsection (a) shall remit the fee to
the board within 60 days of the board's approval of its
petition, license or conditional license to conduct interactive
gaming or to operate interactive gaming or an interactive gaming
system. The board may allow the fee to be paid in installments,
provided that all such installments are paid within the 60-day
period and that the installment payments are made in accordance
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with the terms of an agreement between the board and the
interactive gaming certificate holder or an interactive gaming
operator under subsection (a)(2) that sets forth the terms of
the installment payment.
(c) Renewal fee.--
(1) Notwithstanding any other provision of this chapter,
an interactive gaming certificate holder shall pay a renewal
fee in the amount of $250,000 upon the renewal of its
interactive gaming certificate in accordance with sections
1326 (relating to renewals) and 13B13(c) (relating to
issuance of interactive gaming certificate).
(2) Each interactive gaming operator under subsection
(a)(2) shall pay a renewal fee of $100,000 upon the renewal
of its interactive gaming license in accordance with this
chapter.
(d) Deposit of fees.--The fees imposed and collected under
this section shall be deposited in the General Fund.
§ 13B52. Interactive gaming tax.
(a) Imposition of tax.--Each interactive gaming certificate
holder that conducts interactive gaming shall report to the
department and pay from its daily gross interactive gaming
revenue, on a form and in the manner prescribed by the
department, a tax of 14% of its daily gross interactive gaming
revenue and a local share assessment as provided in section
13B53 (relating to local share assessment).
(b) Deposits and distributions.--
(1) The tax imposed under subsection (a) shall be
payable to the department on a weekly basis and shall be
based upon gross interactive gaming revenue derived during
the previous week.
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(2) All funds owed to the Commonwealth under this
section shall be held in trust for the Commonwealth by the
interactive gaming certificate holder until the funds are
paid to the department for deposit in the General Fund. An
interactive gaming certificate holder shall establish a
separate bank account into which gross interactive gaming
revenue shall be deposited and maintained until such time as
the funds are paid to the department under this section.
(c) Taxes on out-of-State wagering.--The tax rate which
shall be assessed and collected by the department with respect
to any wagers placed by registered players located in this
Commonwealth with an interactive gaming operator outside of this
Commonwealth, but authorized under an interactive gaming
reciprocal agreement shall be governed by the agreement but may
not exceed 16% of gross interactive gaming revenue derived from
registered players located in this Commonwealth.
(d) Deposit of funds.--The tax imposed under subsection (a)
shall be collected by the department for deposit in the General
Fund.
§ 13B53. Local share assessment.
(a) Required payment.--
(1) In addition to the tax imposed under section 13B52
(relating to interactive gaming tax), each interactive gaming
certificate holder that conducts interactive gaming shall pay
on a weekly basis and on a form and in a manner prescribed by
the department a local share assessment into a restricted
receipts account established in the Department of Community
and Economic Development to be used exclusively for grants to
all counties in this Commonwealth, to economic development
authorities or redevelopment authorities within each county,
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for grants for economic development projects, community
improvement projects and other projects in the public
interest.
(2) The Department of Community and Economic Development
shall develop policies and procedures to govern the
distribution of grants from the local share assessment
established under paragraph (1). The policies and procedures
shall be of sufficient scope to ensure equal access to grant
funds by all counties in this Commonwealth.
(b) Definitions.--As used in this section, the following
words and phrases shall have the meaning given to them in this
subsection:
"Local share assessment." Two percent of an interactive
gaming certificate holder's daily gross interactive gaming
revenue.
§ 13B54. Compulsive and problem gambling.
The following shall apply:
(1) Each year, from the tax imposed in section 13B52
(relating to interactive gaming tax), $2,000,000 or an amount
equal to .002 multiplied by the total gross interactive
gaming revenue of all active and operating interactive gaming
certificate holders, whichever is greater, shall be
transferred into the Compulsive and Problem Gambling
Treatment Fund established in section 1509 (relating to
compulsive and problem gambling program).
(2) Each year, from the tax imposed in section 13B52,
$2,000,000 or an amount equal to .002 multiplied by the total
gross interactive gaming revenue of all active and operating
interactive gaming certificate holders, whichever is greater,
shall be transferred to the Department of Drug and Alcohol
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Programs to be used for drug and alcohol addiction treatment
services, including treatment for drug and alcohol addiction
related to compulsive and problem gambling, as set forth in
section 1509.1 (relating to drug and alcohol treatment).
SUBCHAPTER G
MISCELLANEOUS PROVISIONS
Sec.
13B61. Participation in interactive gaming by persons outside
Commonwealth.
13B62. Institutional investors.
13B63. Internet cafes and prohibition.
§ 13B61. Participation in interactive gaming by persons outside
Commonwealth.
Notwithstanding any other provision of this chapter to the
contrary, an interactive gaming certificate holder may accept
interactive gaming wagers from a person who is not physically
present in this Commonwealth, if the board determines the
following:
(1) Participation in interactive gaming and acceptance
of wagers associated with interactive gaming from a person
not physically present in this Commonwealth is not
inconsistent with Federal law or regulation or the law or
regulation of the jurisdiction, including any foreign
jurisdiction, in which the person is located.
(2) Participation in interactive gaming is conducted
pursuant to an interactive gaming reciprocal agreement
between the Commonwealth and another state or jurisdiction,
including a foreign jurisdiction, to which the Commonwealth
is a party and the interactive gaming reciprocal agreement is
not inconsistent with Federal law or regulation.
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§ 13B62. Institutional investors.
(a) Declaration of investment intent.--Notwithstanding any
other provision of this part, the following shall apply:
(1) An institutional investor holding 20% or less of the
equity securities of an interactive gaming certificate
holder's, interactive gaming operator's or applicant's
holding, subsidiary or intermediary companies shall be
granted a waiver of any investigation of suitability or other
requirement if the securities are those of a corporation,
whether publicly traded or privately held, and the holdings
of the securities were purchased for investment purposes
only. The institutional investor shall file a certified
statement that it has no intention of influencing or
affecting the affairs of the interactive gaming certificate
holder, interactive gaming operator, applicant or any
holding, subsidiary or intermediary company of an interactive
gaming certificate holder, interactive gaming operator or
applicant. However, an institutional investor shall be
permitted to vote on matters put to the vote of the
outstanding security holders.
(2) The board may grant a waiver to an institutional
investor holding a higher percentage of securities upon a
showing of good cause and if the conditions specified in
paragraph (1) are met.
(3) An institutional investor granted a waiver under
this subsection who subsequently decides to influence or
affect the affairs of an interactive gaming certificate
holder, interactive gaming operator or applicant's holding,
subsidiary or intermediary company of an interactive gaming
certificate holder, interactive gaming operator or applicant
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shall provide not less than 30 days' notice of intent and
shall file with the board a request for determination of
suitability before taking any action that may influence or
affect the affairs of the issuer. An institutional investor
shall be permitted to vote on matters put to the vote of the
outstanding security holders.
(4) If an institutional investor changes its investment
intent or if the board finds reasonable cause to believe that
the institutional investor may be found unsuitable, no action
other than divestiture shall be taken by the institutional
investor with respect to its security holdings until there
has been compliance with any requirements established by the
board, which may include the execution of a trust agreement
in accordance with section 1332 (relating to appointment of
trustee).
(5) The interactive gaming certificate holder or
interactive gaming operator or applicant or any holding,
intermediary or subsidiary company of an interactive gaming
certificate holder, interactive gaming operator or applicant
shall notify the board immediately of any information about,
or actions of, an institutional investor holding its equity
securities where the information or action may impact the
eligibility of the institutional investor for a waiver under
this subsection.
(b) Failure to declare.--If the board finds:
(1) that an institutional investor holding any security
of a holding or intermediary company of an interactive gaming
certificate holder or interactive gaming operator or
applicant or, where relevant, of another subsidiary company
of a holding or intermediary company of an interactive gaming
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certificate holder or interactive gaming operator or
applicant which is related in any way to the financing of the
interactive gaming certificate holder or interactive gaming
operator or applicant, fails to comply with the provisions of
subsection (a); or
(2) by reason of the extent or nature of its holdings,
an institutional investor is in a position to exercise such a
substantial impact upon the controlling interests of an
interactive gaming certificate holder or interactive gaming
operator or applicant that investigation and determination of
suitability of the institutional investor is necessary to
protect the public interest;
then the board may take any necessary action otherwise
authorized under this chapter to protect the public interest.
§ 13B63. Internet cafes and prohibition.
(a) General rule.--No organization or commercial enterprise
shall operate a place of public accommodation, club, including a
club or association limited to dues-paying members or similar
restricted groups, or similar establishment in which computer
terminals or similar access devices are advertised or made
available to be used principally for the purpose of accessing
authorized interactive games. No interactive gaming certificate
holder or interactive gaming operator shall offer or make
available computer terminals or similar access devices to be
used principally for the purpose of accessing interactive games
within a licensed facility.
(b) Construction.--Nothing in this section shall be
construed to:
(1) require the owner or operator of a hotel or motel or
other public place of general use in this Commonwealth to
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prohibit or block guests from playing interactive games; or
(2) require an interactive gaming certificate holder or
an interactive gaming operator to prohibit registered players
within a licensed facility from playing interactive games.
CHAPTER 13C
(RESERVED)
CHAPTER 13D
SLOT MACHINES AT
NONPRIMARY LOCATIONS
Subchapter
A. General Provisions
B. Category 1 Licensed Gaming Entities and Nonprimary
Locations
C. Application and Issuance of Nonprimary Location Permit
D. Fees and Taxes
SUBCHAPTER A
GENERAL PROVISIONS
Sec.
13D01. (Reserved).
13D02. Authority to place slot machines at nonprimary
locations.
13D03. Temporary regulations.
§ 13D01. (Reserved).
§ 13D02. Authority to place slot machines at nonprimary
locations.
(a) Placement of slot machines at nonprimary locations.--
Notwithstanding any provision of this part, Article XXVIII-D of
the act of April 9, 1929 (P.L.177, No.175), known as The
Administrative Code of 1929, or any other law or regulation to
the contrary, a Category 1 licensed gaming entity that is a
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licensed racing entity under Article XXVIII-D of The
Administrative Code of 1929 shall apply to the board for a
nonprimary location permit to place and make slot machines
available for play at nonprimary locations.
(b) Duty of the board and commission.--The board shall have
general and regulatory authority over the placement and
operation of slot machines at nonprimary locations and shall, in
consultation with the commission, promulgate regulations to
govern the placement and operation of slot machines at
nonprimary locations. Except that, any regulations specific to
the operation of nonprimary locations by licensed racing
entities promulgated under 58 Pa. Code Ch. 171 (relating to
nonprimary locations) or any regulations related to the
operation of nonprimary locations which may be adopted by the
commission subsequent to the effective date of this chapter
shall be adopted as regulations under this chapter, unless the
board, in consultation with the commission, determine that such
regulations are not sufficient for the administration and
enforcement of this chapter. In that event, the board shall, in
consultation with the commission, promulgate such regulations
specific to the operation of slot machines at nonprimary
locations as the board and commission deem necessary to
facilitate the administration and enforcement of this chapter.
§ 13D03. Temporary regulations.
(a) Promulgation.--In order to facilitate the prompt
implementation of this chapter, regulations promulgated by the
board or commission shall be deemed temporary regulations which
shall expire not later than two years after the publication of
the temporary regulation in the Pennsylvania Bulletin. The board
may promulgate temporary regulations not subject to:
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(1) Sections 201, 202, 203, 204 and 205 of the act of
July 31, 1968 (P.L.769, No.240), referred to as the
Commonwealth Documents Law.
(2) Sections 204(b) and 301(10) of the act of October
15, 1980 (P.L.950, No.164), known as the Commonwealth
Attorneys Act.
(3) The act of June 25, 1982 (P.L.633, No.181), known as
the Regulatory Review Act.
(b) Expiration.--The authority of the board and the
commission to adopt temporary regulations under subsection (a)
shall expire two years after the effective date of this section.
Regulations adopted after this period shall be promulgated as
provided by law.
(c) Temporary regulations.--The board, in consultation with
the commission , shall begin publishing temporary regulations
governing placement and operation of slot machines at nonprimary
locations in the Pennsylvania Bulletin within 60 days of the
effective date of this section.
SUBCHAPTER B
CATEGORY 1 LICENSED GAMING ENTITIES
AND NONPRIMARY LOCATIONS
Sec.
13D07. Authority to place slot machines at nonprimary
locations.
§ 13D07. Authority to place slot machines at nonprimary
locations.
(a) Category 1 licensed gaming entity and operation of slot
machines at nonprimary locations.--The following shall apply:
(1) Each Category 1 licensed gaming entity that is a
licensed racing entity under section 13D02 (relating to
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authority to place slot machines at nonprimary locations)
that is authorized to hold horse race meetings at a racetrack
at which more than one license is authorized may be granted
approval to place and make slot machines available for play
at four nonprimary locations, if the board, in consultation
with the commission, determines that a nonprimary location
newly proposed or approved in accordance with regulations of
the commission will benefit economic development, employment,
tourism, the race horse industry and result in enhanced
revenues to the Commonwealth and the municipality where the
newly proposed or approved nonprimary location will be or is
situated.
(2) Each Category 1 licensed gaming entity under section
13D02 that is authorized to hold horse race meetings at a
racetrack at which only one license is authorized may be
granted approval to place and make slot machines available
for play at four nonprimary locations, if the board, in
consultation with the commission, determines that a
nonprimary location newly proposed or approved in accordance
with regulations of the commission will benefit economic
development, employment, tourism, the race horse industry and
result in enhanced revenues to the Commonwealth and the
municipality where the newly proposed or approved nonprimary
location will be or is situated.
(3) A Category 1 licensed gaming entity, which is also a
licensed racing entity as set forth in section 13D02(a),
shall not be authorized to place and make slot machines
available for play at any nonprimary location which is within
the primary market area of another licensed racing entity,
regardless of whether the licensed racing entity is
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authorized to conduct horse race meetings or harness horse
race meetings, or both, at the racetrack .
(4) No Category 1 licensed gaming entity, which is also
a licensed racing entity as set forth in section 13D02(a),
shall be authorized to place and make slot machines available
for play at a nonprimary location which is located within the
primary market area of another licensed facility or another
nonprimary location.
(5) A nonprimary location may be located within the
primary market area of a licensed facility if the Category 1
licensed gaming entity owns the nonprimary location and the
licensed gaming entity enters into an agreement with the
affected licensed gaming entity or entities and the agreement
is filed with the commission and the board.
(6) A Category 1 licensed gaming entity that places and
makes slot machines available for play at a nonprimary
location shall be subject to the requirements of section
1303(a), (b) and (d) (relating to additional Category 1 slot
machine license requirements).
(8) For the purposes of this subsection, the term
"primary market area" shall mean the area within 50 linear
miles of a licensed facility or nonprimary location.
(b) Existing and newly established nonprimary locations.--
Notwithstanding any provision of Article XXVIII-D of The
Administrative Code of 1929 or any other law or regulation to
the contrary, the following shall apply:
(1) A licensed racing entity that operated nonprimary
locations prior to the effective date of this subsection
shall not be prohibited from reopening a previously closed
nonprimary location or relocating an existing nonprimary
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location in order to place and make slot machines available
for play in a reopened or relocated nonprimary location:
Provided, that, the previously closed or a relocated
nonprimary location complies with the location requirements
set forth in subsection (a)(3), (4) and (5).
(2) A licensed racing entity may establish a new
nonprimary location in accordance with Article XXVIII-D of
The Administrative Code of 1929 in order to place and make
slot machines available for play and operate race horse
simulcasting:
Provided, that, the new nonprimary location complies with the
location requirements set forth in subsection (a)(3), (4) and
(5).
(c) Permissible number of slot machines.--
(1) Notwithstanding section 1210 (relating to number of
slot machines), a Category 1 licensed gaming entity, upon
approval of the board and remittance of the fee under section
13D17 (relating to nonprimary location permit fee), may place
and make available for play no more than 250 slot machines at
a nonprimary location.
(2) The permissible number of slot machines that may be
placed and made available for play at a nonprimary location
under this subsection shall not be included in the complement
of slot machines authorized for a Category 1 licensed
facility under section 1210.
(3) In determining the permissible number of slot
machines that may be placed at a nonprimary location in
accordance with this subsection, the board shall consider the
appropriateness of the physical space of the nonprimary
location where the slot machines will be placed and the
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convenience of the public patronizing the nonprimary
location. The board may also consider the potential benefit
to economic development, employment, tourism, the race horse
industry and enhanced revenues to the Commonwealth and the
municipality where the nonprimary location is situated.
SUBCHAPTER C
APPLICATION AND ISSUANCE OF
NONPRIMARY LOCATION PERMIT
Sec.
13D11. Application for nonprimary location permit.
13D12. Issuance and terms of nonprimary location permit.
13D13. Confidentiality.
13D14. Key employees and occupation permits.
§ 13D11. Application for nonprimary location permit.
(a) Application.--An application for a nonprimary location
permit to place and make slot machines available for play at a
nonprimary location shall be submitted on a form and in a manner
as shall be required by the board. In reviewing and approving
each application, the board shall:
(1) Ensure that the proposed location of the nonprimary
location complies with the location requirements set forth in
section 13D07(a)(3), (4) and (5) (relating to authority to
place slot machines at nonprimary locations).
(2) Confirm that the nonprimary location permit fee
under section 13D17 (relating to nonprimary location permit
fee) has been paid or will be paid in accordance section
13D17.
(b) Required information.--An application for a nonprimary
location permit shall include, at a minimum:
(1) The name of the Category 1 slot machine licensee and
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the licensed racing entity and location of the existing
nonprimary location, if any, or the location of any proposed
relocated or new nonprimary location.
(2) The name, address and current photograph of the
applicant and of all directors and owners and key employees
and their positions within the licensed racing entity, if
required by the board.
(3) The proposed location of the slot machine area or
areas in the nonprimary location, if known.
(4) Detailed site and architectural plans of the
proposed area or areas within the nonprimary location where
slot machines will be placed and made available for play.
(5) The number of slot machines requested.
(6) The current status of the licensed racing entity's
horse racing license, if required by the board.
(7) The current status of the slot machine license
issued under this part, if required by the board.
(8) The details of any loans or other financing obtained
or that will be obtained to fund an expansion, modification
or construction project at an existing nonprimary location, a
relocated nonprimary location or a proposed or newly approved
nonprimary location to accommodate slot machines at the
nonprimary location.
(9) The consent to conduct a background investigation by
the bureau, the scope of which shall be determined by the
bureau at its discretion consistent with the provisions of
this part, and a release signed by all persons subject to the
investigation of all information required to complete the
investigation, if the bureau, at its discretion, determines
that a background investigation is necessary under this
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chapter.
(10) Any other information determined to be necessary
and appropriate by the board.
§ 13D12. Issuance and terms of nonprimary location permit.
(a) Issuance of permit.--Upon approval of an application for
a nonprimary location permit and payment of the nonprimary
location permit fee under section 13D17 (relating to nonprimary
location permit fee), the board shall issue a nonprimary
location permit to a Category 1 licensed gaming entity
authorizing it to place and make slot machines available for
play at a nonprimary location.
(b) Terms of permit.--A nonprimary location permit approved
and issued by the board in accordance with subsection (a) shall
be in effect unless suspended or revoked by the board upon good
cause consistent with the requirements of this part, regulations
promulgated pursuant to this part or regulations of the
commission.
(c) Notification of change in status.--Nothing in this
section shall relieve a nonprimary location permit holder of the
affirmative duty to notify the board of any changes relating to
the status of its nonprimary location permit, its horse racing
license or to any other information contained in the application
materials on file with the board.
§ 13D13. Confidentiality.
Information submitted to the board under section 13D11
(relating to application for nonprimary location permit) may be
considered confidential by the board if the information would be
confidential under section 1206(f) (relating to board minutes
and records).
§ 13D14. Key employees and occupation permits.
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Nothing in this subchapter shall be construed to require any
individual who holds a principal license, a key employee license
or gaming employee license under Chapters 13 (relating to
licensees) and 13A (relating to table games) or who holds a
license under Article XXVIII-D of the act of April 9, 1929
(P.L.177, No.175), known as The Administrative Code of 1929, to
obtain a separate license, permit or registration to be employed
in a permit holder's slot machine operation at a nonprimary
location under this chapter, if the board determines, in
consultation with the commission, that licensure under the
provisions of this part or Article XXVIII-D of The
Administrative Code of 1929, is sufficient and will not
compromise the integrity of the operation of slot machines at
nonprimary locations.
SUBCHAPTER D
FEES AND TAXES
Sec.
13D17. Nonprimary location permit fee.
13D18. Nonprimary location taxes, imposition, deposits and
distributions.
§ 13D17. Nonprimary location permit fee.
(a) Amount of fee.--At the time a nonprimary location permit
is issued under section 13D12(a) (relating to issuance and terms
of nonprimary location permit), the board shall impose a one-
time fee of $5,000,000 to be paid by the Category 1 licensed
gaming entity for each nonprimary location where it will place
and make slot machines available for play.
(b) Renewal fee not required.--A nonprimary location permit
shall not be subject to renewal or payment of any nonprimary
location permit renewal fee.
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(c) Deposit of fee into General Fund.--Notwithstanding
section 1208 (relating to collection of fees and fines), all
nonprimary location permit fees and penalties collected by the
board under this section shall be deposited in the General Fund.
§ 13D18. Nonprimary location taxes, imposition, deposits and
distributions.
(a) Imposition.--The department shall determine and each
nonprimary location permit holder shall pay a daily tax of 54%
from its daily gross terminal revenue from the slot machines in
operation at its nonprimary location.
(b) Distribution.--
(1) The tax imposed and collected under subsection (a)
shall be distributed as follows:
(i) Ninety-two percent of the tax shall be deposited
by the department in the General Fund.
(ii) Eight percent shall constitute a local share
assessment and be distributed by the department on a
quarterly basis as follows:
(A) Four percent to the county in which the
nonprimary location is located.
(B) Four percent to the municipality in which
the nonprimary location is located.
(2) All money owed to the Commonwealth, a county or a
municipality under this section shall be held in trust by the
licensed racing entity or licensed gaming entity for the
Commonwealth, county or municipality until all funds are
distributed by the department in accordance with this
subsection.
(c) Payments and deposits.--
(1) The tax imposed under subsection (a) shall be
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payable to the department on a weekly basis and shall be
based upon gross slot machine revenue derived from the
operation of slot machines at a nonprimary location during
the previous week.
(2) All money owed to the Commonwealth and collected by
the department in accordance with this subchapter shall be
deposited in the General Fund.
CHAPTER 13E
SLOT MACHINES IN QUALIFIED AIRPORTS
Subchapter
A. Preliminary Provisions
B. Airport Gaming Authorized
C. Conduct of Airport Gaming
D. Airport Gaming Fees and Taxes
E. Miscellaneous Provisions
SUBCHAPTER A
PRELIMINARY PROVISIONS
Sec.
13E01. Definitions.
§ 13E01. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Airport authority." The governing body of a municipal
authority organized and incorporated in accordance with 53
Pa.C.S. Ch. 56 (relating to municipal authorities) to oversee
the operations of a qualified airport. The term shall include
the governing body of any joint municipal authority which
operates a qualified airport and the governing body of a city of
the first class which owns and operates a qualified airport
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located in a county of the first class.
"Airport gaming." The licensed placement, operation and play
of slot machines in a qualified airport as authorized and
approved by the board.
"Airport gaming certificate holder." The authorization
issued under this chapter to conduct airport gaming.
"Airport gaming operation certificate." A certificate issued
by the Pennsylvania Gaming Control Board under Chapter 13B
(relating to interactive gaming) that authorizes a slot machine
licensee to conduct airport gaming in accordance with this
chapter.
"Airport gaming revenue." The daily gross terminal revenue
derived from the conduct of airport gaming.
"Applicant." A slot machine licensee.
"Qualified airport." A publicly owned commercial service
airport that is designated by the Federal Government as an
international airport.
"Specified area." The secure area of a qualified airport
where slot machines are placed and made available to play and
members of the public, other than passengers, are prohibited
from entering.
SUBCHAPTER B
AIRPORT GAMING AUTHORIZED
Sec.
13E11. Authorization.
13E12. Application.
13E13. Standard for review of applications.
13E14. Approval of application.
13E15. Airport gaming operation certificate.
13E16. Timing of initial airport gaming authorizations.
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§ 13E11. Authorization.
(a) General rule.--Upon application of a slot machine
licensee, the board may authorize the slot machine licensee to
conduct airport gaming. A slot machine licensee seeking
authorization to conduct airport gaming must enter into an
agreement with the governing body of a qualified airport and
submit the agreement to the board for approval. No person shall
cause or make slot machines available for play at a qualified
airport without first obtaining an airport gaming operation
certificate in accordance with the provisions of this chapter.
(b) Conditions.--Authorization shall be contingent upon the
slot machine licensee's agreement to ensure that slot machine
operations will be conducted in accordance with this part and
any other conditions established by the board. The agreement
shall specify the fees to be paid to the qualified airport by
the slot machine licensee for the privilege of conducting
airport gaming. Nothing in this part shall be construed to
create a separate license governing the conduct of airport
gaming by slot machine licensees within this Commonwealth.
(c) Number of slot machines.--The board shall approve the
maximum number of slot machines that a slot machine licensee may
operate at a qualified airport. The board, in making its
determination, shall consider the physical space where the slot
machines will be located and the convenience of passengers. The
board may also consider the potential employment, enhanced
revenues to the Commonwealth and other economic indicators it
deems applicable in making its decision.
§ 13E12. Application.
(a) Information to be provided.--An applicant seeking
authorization to conduct airport gaming shall provide the
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following information to the board:
(1) The name, business address and contact information
of the applicant, and the name, business address and contact
information of the airport authority and the location of the
qualified airport.
(2) The name and business address, job title and a
photograph of each principal and key employee of the
applicant who will be involved in the conduct of airport
gaming and who is not currently licensed by the board, if
known.
(3) The number of slot machines for which authorization
is being sought.
(4) The estimated number of full-time and part-time
employment positions that will be created at the qualified
airport if the slot machine licensee is authorized to operate
slot machines under this chapter and an updated hiring plan
under section 1510(a) (relating to labor hiring preferences)
which outlines the applicant's plan to promote the employment
representation of diverse groups and Commonwealth residents.
(5) The details of any financing obtained or that will
be obtained to fund an expansion or modification of the
qualified airport to accommodate the conduct of airport
gaming and to otherwise fund the cost of commencing airport
gaming operations.
(6) Information and documentation concerning financial
background and resources, as the board may require, to
establish by clear and convincing evidence the financial
stability, integrity and responsibility of the applicant.
(7) Information and documentation, as the board may
require, to establish by clear and convincing evidence that
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the applicant has sufficient business ability and experience
to conduct airport gaming. In making this determination, the
board may consider the results of the applicant's slot
machine operation, including financial information,
employment data and capital investment.
(8) Information and documentation, as the board may
require, to establish by clear and convincing evidence that
the applicant has or will have the financial ability to pay
the required fee under section 13E51 (relating to fees).
(9) Detailed site plans identifying the applicant's
proposed specified area.
(10) A copy of the agreement entered into by the slot
machine licensee and the qualified airport. The agreement
shall identify the members of the governing board of the
airport authority and all employees of the airport authority
who, directly or indirectly, regulate the use and control of
the qualified airport and who will oversee airport gaming at
the qualified airport.
(11) Other information as the board may require.
(b) Confidentiality.--Information submitted to the board
under subsection (a)(6), (7), (8), (9) and (10) may be
considered confidential by the board if the information would be
confidential under section 1206(f) (relating to board minutes
and records).
§ 13E13. Standard for review of applications.
The board shall approve an application if the applicant
establishes, by clear and convincing evidence, all of the
following:
(1) The applicant's slot machine license is in good
standing with the board , and the applicant has an agreement
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with the airport authority authorizing the placement of slot
machines at the qualified airport.
(2) The applicant possesses adequate funds or has
secured adequate financing to:
(i) Fund any necessary expansion or modification of
the qualified airport to accommodate the conduct of
airport gaming if required in the agreement with the
governing body of the airport authority.
(ii) Pay the required fee in accordance with section
13E51 (relating to fees).
(iii) Commence airport gaming operations at the
qualified airport.
(3) The applicant has the financial stability, integrity
and responsibility to conduct airport gaming.
(4) The applicant has sufficient business ability and
experience to create and maintain airport gaming.
(5) The applicant's proposed internal and external
security and proposed surveillance measures within the
specified area where the applicant seeks to conduct airport
gaming are adequate.
(6) The applicant agrees that the number of slot
machines in operation at its licensed facility will not be
permanently reduced in order to conduct airport gaming.
§ 13E14. Approval of application.
Upon approval of an application, the board shall issue an
airport gaming operation certificate to the applicant. Issuing
an airport gaming operation certificate prior to the payment in
full of the fee required by section 13E51 (relating to fees)
shall not relieve the applicant from complying with the
provisions of section 13E51.
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§ 13E15. Airport gaming operation certificate.
The following shall apply:
(1) An airport gaming operation certificate shall be in
effect unless:
(i) Suspended or revoked by the board consistent
with the requirements of this part.
(ii) The slot machine license held by the airport
gaming certificate holder is suspended, revoked or not
renewed by the board consistent with the requirements of
this part.
(iii) The airport gaming certificate holder
relinquishes or does not seek renewal of its slot machine
license.
(iv) The agreement between the airport gaming
certificate holder and the governing body of the
authority is not renewed.
(2) The airport gaming operation certificate shall
include the maximum number of slot machines approved by the
board and permitted in the specified area. The airport gaming
certificate holder may increase or decrease the number of
slot machines permitted in the specified area or change the
configuration of the slot machines upon notice to and
approval by the board. Unless approved by the board, the
total number of slot machines in operation in the specified
area may not exceed the number authorized in the airport
gaming operation certificate.
(3) A airport gaming certificate holder shall be
required to update the information in its initial airport
gaming application at times prescribed by the board.
§ 13E16. Timing of initial airport gaming authorizations.
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The board shall approve or deny an application within 180
days following receipt of the completed application.
SUBCHAPTER C
CONDUCT OF AIRPORT GAMING
Sec.
13E31. Authorized locations for operation.
13E32. Commencement of airport gaming operations.
13E33. Condition of continued operation.
13E34. Airport gaming accounting controls and audit protocols.
13E35. Cash equivalents.
13E36. Occupation permits.
§ 13E31. Authorized locations for operation.
(a) Restriction.--An airport gaming certificate holder shall
only be permitted to operate slot machines in the specified area
authorized by the board.
(b) Powers and duties of board.--No airport gaming
certificate holder may be approved to operate slot machines
unless the specified area is equipped with adequate security and
surveillance equipment to ensure the integrity of the conduct of
airport gaming. An authorization granted under this section may
not impose any criteria or requirements regarding the contents
or structure of a qualified airport which are unrelated to the
conduct of airport gaming.
§ 13E32. Commencement of airport gaming operations.
An airport gaming certificate holder may not operate or offer
slot machines for play at a qualified airport until the board
determines that:
(1) The airport gaming certificate holder is in
compliance with the requirements of this part.
(2) The airport gaming certificate holder's internal
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controls and audit protocols are sufficient to meet the
requirements of section 13E34 (relating to airport gaming
accounting controls and audit protocols).
(3) The airport gaming certificate holder's gaming
employees, where applicable, are licensed, permitted or
otherwise authorized by the board to perform their respective
duties.
(4) The airport gaming certificate holder is prepared in
all respects to offer slot machine play to eligible
passengers at the qualified airport.
(5) The airport gaming certificate holder has
implemented necessary internal and management controls and
security arrangements and surveillance systems for the
conduct of airport gaming.
(6) The airport gaming certificate holder is in
compliance with or has complied with section 13E51 (relating
to fees).
(7) All slot machines certified and approved for use
under this chapter have been approved by the board and are
compatible with the central control computer and protocol
specifications approved by the department.
(8) The airport gaming certificate holder has
implemented or will implement the necessary procedures and
safeguards to ensure that no individual under 21 years of age
will be permitted to enter the specified area of the
qualified airport.
§ 13E33. Condition of continued operation.
As a condition of continued operation, an airport gaming
certificate holder shall maintain all books, records and
documents pertaining to airport gaming in a manner and location
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within this Commonwealth as approved by the board. All books,
records and documents related to airport gaming shall:
(1) be segregated by separate accounts within the slot
machine licensee's books, records and documents, except for
any books, records or documents that are common to the
licensee's slot machine operations at a licensed facility and
a qualified airport;
(2) be immediately available for inspection upon request
of the board, the bureau, the department, the Pennsylvania
State Police or the Attorney General, or agents thereof,
during all hours of operation at the qualified airport in
accordance with regulations promulgated by the board; and
(3) be maintained for a period as the board, by
regulation, may require.
§ 13E34. Airport gaming accounting controls and audit
protocols.
(a) Approval.--Prior to the commencement of airport gaming
operations, an airport gaming certificate holder shall submit to
the board for approval all proposed site plans, internal and
accounting control systems and audit protocols for the airport
gaming certificate holder's airport gaming operations.
(b) Minimum requirements.--The airport gaming certificate
holder's internal and accounting controls and audit protocols
shall meet the requirements set forth in section 1322(b) and (c)
(relating to slot machine accounting controls and audits).
§ 13E35. Cash equivalents.
Notwithstanding any other provisions of this part, the board
may, through regulations, determine the cash equivalents that
may be authorized and accepted by an airport gaming certificate
holder in the conduct of airport gaming.
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§ 13E36. Occupation permits.
(a) Application.--Any person who desires to be a gaming
employee and has a bona fide offer of employment from a airport
gaming certificate holder authorized to operate slot machines
under this chapter shall apply to the board for an occupation
permit. A person may not be employed as a gaming employee unless
and until that person holds an appropriate occupation permit
issued under this section. The board may promulgate regulations
to reclassify a category of nongaming employees or gaming
employees upon a finding that the reclassification is in the
public interest and consistent with the objectives of this part.
(b) Requirements.--The application for an occupation permit
shall include, at a minimum:
(1) The name and home address of the person.
(2) The previous employment history of the person.
(3) The criminal history record of the person, as well
as the person's consent for the Pennsylvania State Police to
conduct a background investigation.
(4) A current photograph of the person.
(5) Evidence of the offer of employment and the nature
and scope of the proposed duties of the person, if known.
(6) The details of any occupation permit or similar
license granted or denied to the person in other
jurisdictions .
(7) Any other information determined by the board to be
appropriate.
(c) Prohibition.--No airport gaming certificate holder may
employ or permit any person under 18 years of age to render any
service in any specified area where slot machines are physically
located.
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(d) Construction.--Nothing in this part shall be construed
to require any person who holds a principal license, a key
employee license or gaming employee occupation permit under
Chapter 13 (relating to licensees) to obtain a separate license,
permit, certificate, registration or other authorization to be
employed in an airport gaming certificate holder's airport
gaming operations.
SUBCHAPTER D
AIRPORT GAMING FEES AND TAXES
Sec.
13E51. Fees.
13E52. Airport gaming tax and assessment.
§ 13E51. Fees.
(a) Required fees.--A slot machine licensee shall pay:
(1) Except as set forth in paragraph (2) or (3), a one-
time, nonrefundable fee of $1,000,000 upon the issuance of a
certificate to operate slot machines under this chapter in a
qualified airport.
(2) A one-time, nonrefundable fee of $5,000,000 upon the
issuance of a certificate to operate slot machines under this
chapter in a qualified airport located in a city of the first
class.
(3) A one-time, nonrefundable fee of $2,500,000 upon the
issuance of a certificate to operate slot machines under this
chapter in a qualified airport located in a county of the
second class.
(b) Deposit of fees.--Notwithstanding section 1208 (relating
to collection of fees and fines), all fees or penalties received
by the board under this chapter shall be deposited in the
General Fund.
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§ 13E52. Airport gaming tax and assessment.
(a) Imposition.--Each airport gaming certificate holder
shall report to the department and pay from its airport gaming
revenue, on a form and in the manner prescribed by the
department, a tax of 34% of its airport gaming revenue and an
airport local share assessment.
(b) Deposits and distributions.--
(1) The tax and local share assessment imposed under
subsection (a) shall be payable to the department on a weekly
basis and shall be based upon gross terminal revenue derived
during the previous week.
(2) All funds owed to the Commonwealth under this
section shall be held in trust for the Commonwealth by the
airport gaming certificate holder until the funds are paid to
the department. Unless otherwise agreed to by the board, a
airport gaming certificate holder shall establish a separate
bank account into which gross terminal revenue shall be
deposited and maintained until such time as the funds are
paid to the department under this section.
(3) The department shall transfer the tax revenues
collected under this section to the General Fund.
(4) The department shall quarterly distribute to each
qualified airport the airport local share assessment from the
airport gaming revenue generated from airport gaming at each
qualified airport.
(c) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Airport local share assessment." Twenty percent of an
airport gaming certificate holder's airport gaming revenue.
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SUBCHAPTER E
MISCELLANEOUS PROVISIONS
Sec.
13E91. Regulations.
§ 13E91. Regulations.
(a) Regulations.--The board shall promulgate regulations
consistent with the provisions of this part to govern the
conduct of airport gaming at qualified airports.
(b) Temporary regulations.--In order to facilitate the
prompt implementation of this chapter, regulations promulgated
by the board in accordance with subsection (a) shall be deemed
temporary regulations which shall expire not later than two
years following the publication of the temporary regulation. The
board may promulgate temporary regulations not subject to:
(1) Sections 201, 202, 203, 204 and 205 of the act of
July 31, 1968 (P.L.769, No.240), referred to as the
Commonwealth Documents Law.
(2) The act of June 25, 1982 (P.L.633, No.181), known as
the Regulatory Review Act.
(3) Sections 204(b) and 301(10) of the act of October
15, 1980 (P.L.950, No.164), known as the Commonwealth
Attorneys Act.
(c) Expiration.--The board's authority to adopt temporary
regulations under subsection (a) shall expire two years after
the effective date of this section. Regulations adopted after
this period shall be promulgated as provided by law.
Section 15. Sections 1403(b), (c)(2)(ii)(D), (iii)(A) and
(iv)(B), 1405, 1407 and 1408(c) of Title 4 are amended to read:
§ 1403. Establishment of State Gaming Fund and net slot machine
revenue distribution.
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* * *
(b) Slot machine tax.--The department shall determine and
each slot machine licensee shall pay a daily tax of 34% from its
daily gross terminal revenue from the slot machines in operation
at its licensed facility and a local share assessment as
provided in subsection (c). All funds owed to the Commonwealth,
a county or a municipality under this section shall be held in
trust by the licensed gaming entity for the Commonwealth, the
county and the municipality until the funds are paid or
transferred to the fund. Unless otherwise agreed to by the
board, a licensed gaming entity shall establish a separate bank
account to maintain gross terminal revenue until such time as
the funds are paid or transferred under this section. Moneys in
the fund are hereby appropriated to the department on a
continuing basis for the purposes set forth in subsection (c).
For the purpose of this subsection, the term licensed facility
shall not be construed to include a nonprimary location at which
a Category 1 slot machine licensee is authorized to place and
make slot machines available for play in accordance with Chapter
13D (relating to slot machines at nonprimary locations) or the
physical land-based location of a qualified airport under
Chapter 13E (relating to slot machines in qualified airports).
(c) Transfers and distributions.--The department shall:
* * *
(2) From the local share assessment established in
subsection (b), make quarterly distributions among the
counties hosting a licensed facility in accordance with the
following schedule:
* * *
(ii) If the licensed facility is a Category 1
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licensed facility and is located at a thoroughbred
racetrack and the county in which the licensed facility
is located is:
* * *
(D) A county of the third class: 1% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
An additional 1% of the gross terminal revenue to the
county hosting the licensed facility from each such
licensed facility for the purpose of municipal grants
within the county in which the licensee is located.
Notwithstanding the provisions of the act of February
9, 1999 (P.L.1, No.1), known as the Capital
Facilities Debt Enabling Act, grants made under this
clause may be utilized as local matching funds for
other grants or loans from the Commonwealth.
* * *
(iii) If the facility is a Category 2 licensed
facility and if the county in which the licensed facility
is located is:
(A) A county of the first class: 4% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
Notwithstanding any other provision to the contrary,
funds from licensed gaming entities located within a
county of the first class shall not be distributed
outside of a county of the first class. [The first
$5,000,000] Fifty percent or $5,000,000, whichever is
greater, of the total amount distributed annually to
the county of the first class shall be distributed to
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the Philadelphia School District.
* * *
(iv) * * *
(B) If the facility is a Category 3 licensed
facility located in a county of the second class A,
2% of the gross terminal revenue [from the licensed
facility shall be deposited into a restricted
receipts account to be established in the
Commonwealth Financing Authority to be used
exclusively for grants or guarantees for projects in
the host county that qualify under 64 Pa.C.S. §§ 1551
(relating to Business in Our Sites Program), 1556
(relating to Tax Increment Financing Guarantee
Program) and 1558 (relating to Water Supply and
Wastewater Infrastructure Program).] to the county
hosting the licensed facility from each such licensed
facility shall be deposited as follows:
(I) Seventy-five percent shall be deposited
for the purpose of supporting the maintenance and
refurbishment of the parks and heritage sites
throughout the county in which the licensed
facility is located.
(II) Twelve and one-half percent shall be
deposited for the purpose of supporting a child
advocacy center located within the county in
which the licensed facility is located.
(III) Twelve and one-half percent shall be
deposited for the purpose of supporting an
organization providing comprehensive support
services to victims of domestic violence,
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including legal and medical aid, shelters,
transitional housing and counseling located
within the county in which the licensed facility
is located.
* * *
§ 1405. Pennsylvania Race Horse Development Fund.
(b) Pennsylvania race horse improvement assessment.--Each
active and operating licensed gaming entity shall pay a daily
assessment to the Pennsylvania Race Horse Development Fund as
determined by the department. Subject to the daily assessment
cap established under subsection (c), the licensed gaming
entity's assessment shall be a percentage of each licensed
gaming entity's gross terminal revenue from the slot machines in
operation at its licensed facility, equal to an amount
calculated as "A" multiplied by "B", with "A" being equal to
each licensed gaming entity's gross terminal revenue for that
day divided by the total gross terminal revenue for that day
from all licensed gaming entities, and "B" being equal to 18% of
that day's gross terminal revenue for all active and operating
Category 1 licensees conducting live racing.
(c) Daily assessment cap.--If the resulting daily assessment
for a licensed gaming entity exceeds 12% of that licensed gaming
entity's gross terminal revenue from the slot machines in
operation at its licensed facility for the day, the licensed
gaming entity shall pay a daily assessment of 12% of its gross
terminal revenue for that day.
(e) Definition.--For the purposes of this section, the term
"licensed facility" shall not include the physical land-based
location at which a licensed gaming entity is authorized to
place and operate slot machines in a nonprimary location under
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Chapter 13D (relating to slot machines at nonprimary locations)
or in a qualified airport under Chapter 13E (relating to slot
machines in qualified airports).
§ 1407. Pennsylvania Gaming Economic Development and Tourism
Fund.
(a) Fund established.--There is hereby established a
Pennsylvania Gaming Economic Development and Tourism Fund within
the State Treasury.
(b) Fund administration and distribution.--The Pennsylvania
Gaming Economic Development and Tourism Fund shall be
administered by the Department of Community and Economic
Development. All moneys in the Pennsylvania Gaming Economic
Development and Tourism Fund shall be distributed pursuant to a
subsequently enacted Economic Development Capital Budget that
appropriates money from the fund pursuant to this section. The
procedures for enactment, authorization and release of economic
development and tourism funds authorized under this section for
both capital projects and operational expenditures shall be the
same as those provided for in sections 303(a), (b) and (c) and
318(a) of the act of February 9, 1999 (P.L.1, No.1), known as
the Capital Facilities Debt Enabling Act, without reference to
the nature or purpose of the project, and any other statutory
provision, if any, necessary to effectuate the release of funds
appropriated in such economic development capital budget.
(c) Pennsylvania Gaming Economic Development and Tourism
Fund Assessment.--Each licensed gaming entity shall pay a daily
assessment of 5% of its gross terminal revenue from the slot
machines in operation at its licensed facility to the
Pennsylvania Gaming Economic Development and Tourism Fund.
(d) Restrictions on projects for certain counties and
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cities.--Except as set forth in subsection (d.1), for a ten-year
period beginning with the first fiscal year during which
deposits are made into this fund, no moneys from the
Pennsylvania Gaming Economic Development and Tourism Fund shall
be distributed for any project located in a city or county of
the first or second class except as authorized by this
subsection. Moneys not used for the authorized projects in
cities and counties of the first and second classes may be used
throughout this Commonwealth. Moneys from the fund for projects
within cities and counties of the first and second classes may
only be used for the following projects during this ten-year
period:
(1) for reimbursement to a city of the first class for
debt service made by such city to the extent that such
payments have been made for the expansion of the Pennsylvania
Convention Center;
(2) for distribution to the General Fund to the extent
that the Commonwealth has made debt service payments for the
expansion of the Pennsylvania Convention Center;
(3) for reimbursement to a city of the first class for
payments made by such city for the operation expenses of the
Pennsylvania Convention Center during the prior calendar
year;
(4) for debt service and for development and economic
development projects for an international airport located in
a county of the second class;
(5) for distribution to a community infrastructure
development fund of a county of the second class to fund
construction, development, improvement and maintenance of
infrastructure projects;
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(6) for the retirement of the indebtedness of an urban
redevelopment authority created pursuant to the act of May
24, 1945 (P.L.991, No.385), known as the Urban Redevelopment
Law, in a city of the second class which is financed in part
with the utilization of funds transferred to the regional
asset district pursuant to Article XXXI-B of the act of July
28, 1953 (P.L.723, No.230), known as the Second Class County
Code;
(8) for retirement of indebtedness of a county of the
second class development fund created pursuant to the
authority of Article XXXI-B of the Second Class County Code
and the Urban Redevelopment Law;
(9) for retirement of indebtedness of a convention
center in a city of the second class established pursuant to
the authority of the Public Auditorium Authorities Law;
(10) for payment of the operating deficit for the
operation of a convention center in a city of the second
class established pursuant to the Public Auditorium
Authorities Law.
(d.1) Community and economic development.--
(1) Notwithstanding subsection (b) or any other
provision of law to the contrary, the money authorized but
not expended under former subsection (d)(7) as of the
effective date of this subsection shall be deposited into a
restricted receipts account to be established in the
Commonwealth Financing Authority exclusively for eligible
applications submitted by the redevelopment authority of a
county of the second class created pursuant to the act of May
24, 1945 (P.L.991, No.385), known as the Urban Redevelopment
Law, for economic development, infrastructure development,
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job training, community improvement, public safety or other
projects in the public interest located in a county of the
second class. Community development corporations, political
subdivisions, urban redevelopment authorities, municipal
authorities, for-profit entities and nonprofit entities
located in a county of the second class shall be eligible to
receive funds made available under this paragraph.
(2) Notwithstanding the Capital Facilities Debt Enabling
Act, funding under the paragraph (1) may be utilized as local
matching funds for grants or loans from the Commonwealth.
(e) Annual report.--The Office of the Budget, in cooperation
with the Department of Community and Economic Development and
the Commonwealth Financing Authority, shall submit an annual
report of all distribution of funds under this section to the
chairman and minority chairman of the Appropriations Committee
of the Senate, the chairman and minority chairman of the
Community, Economic and Recreational Development Committee of
the Senate, the chairman and minority chairman of the
Appropriations Committee of the House of Representatives and the
chairman and minority chairman of the Gaming Oversight Committee
of the House of Representatives. The report shall include
detailed information relating to transfers made from the
Pennsylvania Gaming Economic Development and Tourism Fund and
all reimbursements, distributions and payments made under
subsection (b) or the act of July 25, 2007 (P.L.342, No.53),
known as Pennsylvania Gaming Economic Development and Tourism
Fund Capital Budget Itemization Act of 2007. The report shall be
submitted by August 31, 2010, and by August 31 of each year
thereafter.
(f) Local report.--A city of the first class, city of the
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second class, county of the second class, convention center or
convention center authority, sports and exhibition authority of
a county of the second class, urban redevelopment authority,
airport authority or other entity that receives money from the
fund pursuant to an Economic Development Capital Budget under
subsection (b) or the Pennsylvania Gaming Economic Development
and Tourism Fund Capital Budget Itemization Act of 2007 shall
submit an annual report to the Office of the Budget. The report
shall include detailed information, including records of
expenditures, payments and other distributions made from funds
received under subsection (b). The initial report shall include
information on all funds received prior to August 31, 2010. The
report shall be submitted by August 31, 2010, and by August 31
of each year thereafter until all funds under this section are
distributed or received. An entity that receives funds for the
first time after the effective date of this section shall submit
its initial report by August 31 of the year following receipt of
the funds.
(g) Definition.--For the purposes of this section, the term
"licensed facility" shall not include the physical land-based
location at which a licensed gaming entity is authorized to
place and operate slot machines in a nonprimary location under
Chapter 13D (relating to slot machines at nonprimary locations)
or in a qualified airport under Chapter 13E (relating to slot
machines in qualified airports).
§ 1408. Transfers from State Gaming Fund.
* * *
(c) Local law enforcement grants.--
(1) [Annually, the sum of $2,000,000] BEGINNING WITH THE
2016-2017 FISCAL YEAR, THE SUM OF $4,000,000 shall be
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transferred ANNUALLY to the board for the purpose of issuing
grants to local law enforcement agencies to investigate
violations of and enforce laws relating to unlawful gambling
in this Commonwealth, INCLUDING, BUT NOT LIMITED TO, 18
PA.C.S. § 5511(H.1) AND (H.2) (RELATING TO CRUELTY TO
ANIMALS). For purposes of this subsection, the term "local
law enforcement agency" shall include the Pennsylvania State
Police when conducting unlawful gambling enforcement and
prevention activities [in a municipality which does not have
a municipal police department and in which the Pennsylvania
State Police provide the municipality with primary police
coverage].
(2) On July 1 each fiscal year, any portion of the
amount transferred under subsection (a) that is unexpended,
unencumbered or uncommitted as of June 30 of the prior fiscal
year shall automatically lapse and be transferred to the
Compulsive and Problem Gambling Treatment Fund established in
section 1509 (relating to compulsive and problem gambling
program).
* * *
Section 2. This act shall take effect in 60 days JULY 1,
2016, OR IMMEDIATELY, WHICHEVER IS LATER.
Section 15.1. Title 4 is amended by adding a section to
read:
§ 1410. Public School Employees' Retirement Contribution Fund.
(a) Establishment.--The Public School Employees' Retirement
Contribution Fund is established within the State Treasury.
(b) Contents of fund.--The fund shall contain the money
transferred to the fund under subsection (c) and any other money
transferred to or deposited into the fund.
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(c) Transfers to fund.--Notwithstanding any provision of
this part, the following shall apply:
(1) For the 2016-2017 fiscal year, $303,000,000 of the
receipts deposited into the General Fund under Chapters 13A
(relating to table games), 13B (relating to interactive
gaming ), 13D (relating to slot machines at nonprimary
locations ) and 13E (relating to slot machines in qualified
airports) shall be transferred to the fund. The transfers
required by this paragraph shall be made in equal monthly
amounts beginning on the first day of the first month
following the effective date of this paragraph.
(2) For the 2017-2018 fiscal year and each fiscal year
thereafter, $310,000,000 of the receipts deposited into the
General Fund under Chapters 13A, 13B, 13D and 13E shall be
transferred to the fund. The transfers required by this
paragraph shall be made in equal monthly amounts beginning on
July 1, 2017.
(d) Use of money in fund.--Money in the fund is hereby
appropriated to the Department of Education as an augmentation
to the appropriation for required contribution for public school
employees' retirement.
(e) Definition.--As used in this section, the term "fund"
means the Public School Employees' Retirement Contribution Fund.
Section 15.2. Sections 1501(b) and 1509(c) of Title 4 are
amended to read:
§ 1501. Responsibility and authority of department.
* * *
(b) Application of rules and regulations.--The department
may prescribe the extent, if any, to which any rules and
regulations shall be applied without retroactive effect. The
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department shall have authority to prescribe the forms and the
system of accounting and recordkeeping to be employed and
through its representative shall at all times have power of
access to and examination and audit of any equipment and records
relating to all aspects of the operation of slot machines [and],
including slot machines at nonprimary locations and qualified
airports, table games and interactive gaming under this part.
* * *
§ 1509. Compulsive and problem gambling program.
* * *
(c) Notice of availability of assistance.--
(1) Each slot machine licensee shall obtain a toll-free
telephone number to be used to provide persons with
information on assistance for compulsive or problem gambling.
Each licensee shall conspicuously post at least 20 signs
similar to the following statement:
If you or someone you know has a gambling problem, help
is available. Call (Toll-free telephone number).
The signs must be posted within 50 feet of each entrance and
exit, within 50 feet of each automated teller machine
location within the licensed facility and in other
appropriate public areas of the licensed facility as
determined by the slot machine licensee.
(2) Each racetrack where slot machines or table games
are operated shall print a statement on daily racing programs
provided to the general public that is similar to the
following:
If you or someone you know has a gambling problem, help
is available. Call (Toll-free telephone number).
(2.1) Each interactive gaming certificate holder,
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interactive gaming operator or other person that operates
interactive gaming or an interactive gaming system on behalf
of an interactive gaming certificate holder:
(i) Shall cause the words:
If you or someone you know has a gambling problem,
help is available. Call (Toll-free telephone number).
or some comparable language approved by the board, which
language shall include the words "gambling problem" and
"call 1-800-XXXX," to be prominently and continuously
displayed to any person visiting or logged onto the
interactive gaming certificate holder's interactive
gaming skin or Internet website.
(ii) Shall provide a mechanism by which an
interactive gaming account holder may establish the
following controls on wagering activity through the
interactive gaming account:
(A) A limit on the amount of money lost within a
specified period of time and the length of time the
account holder will be unable to participate in
gaming if the holder reaches the established loss
limit.
(B) A limit on the maximum amount of any single
wager on any interactive game.
(C) A temporary suspension of interactive gaming
through the account for any number of hours or days.
(iii) Shall not mail or otherwise forward any
gaming-related promotional material or e-mail to a
registered player during any period in which interactive
gaming through the registered players' interactive gaming
account has been suspended or terminated. The interactive
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gaming certificate holder shall provide a mechanism by
which a registered player may change the controls, except
that, while interactive gaming through the interactive
gaming account is suspended, the registered player may
not change gaming controls until the suspension expires,
but the registered player shall continue to have access
to the account and shall be permitted to withdraw funds
from the account upon proper application for the funds to
the interactive gaming certificate holder.
(3) A [licensed facility] licensed gaming entity which
fails to post or print the warning sign in accordance with
paragraph (1) [or], (2) or (2.1)(i) shall be assessed a fine
of $1,000 a day for each day the minimum number of signs are
not posted or the required statement is not printed as
provided in this subsection.
(4) An interactive gaming certificate holder or
interactive gaming license holder, as the case may be, that
fails to establish the mechanisms, controls and systems in
accordance with paragraph (2.1)(ii) and (iii) shall be
assessed a fine of not less than $5,000 per day for each day
the mechanisms, controls and systems are not available to
interactive gaming account holders.
* * *
Section 16. Title 4 is amended by adding a section to read:
§ 1509.2. Child endangerment protection.
(a) Posting of signs.--The following shall apply:
(1) Each licensed gaming entity shall post the necessary
signage to notify patrons of the prohibition against leaving
a child unattended in a vehicle under section 1518(a)(18)
(relating to prohibited acts; penalties) and underage
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gambling under section 1518(a)(13) and (13.1) and the penalty
for violations.
(2) The signs shall be conspicuously posted in clear
view of all parking areas and other public areas of the
licensed facility and, including where applicable, nonprimary
locations, as determined by the licensed gaming entity and
approved by the board.
(3) The board shall determine the written content and
minimum number of signs to be posted at each licensed
facility.
(b) Fine.--A licensed gaming entity that fails to post
signage in accordance with subsection (a) shall be assessed a
fine of $1,000 per day for each day the minimum number of signs
as prescribed by the board are not posted.
Section 17. Section 1512 of Title 4 is amended by adding a
subsection to read:
§ 1512. Financial and employment interests.
* * *
(a.6) Prohibition related to interactive gaming.--
(1) Except as may be provided by rule or order of the
Pennsylvania Supreme Court and except as provided in section
1202.1 (relating to code of conduct) or 1512.1 (relating to
additional restrictions), no executive-level public employee,
public official or party officer or immediate family member
thereof shall hold, directly or indirectly, a financial
interest in, be employed by or represent, appear for, or
negotiate on behalf of, or derive any remuneration, payment,
benefit or any other thing of value for any services,
including, but not limited to, consulting or similar services
from any holder of or applicant for an interactive gaming
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certificate, holder or applicant for an interactive gaming
license or other authorization to conduct interactive gaming
or any holding, subsidiary or intermediary company with
respect thereto, or any business, association, enterprise or
other entity that is organized in whole or in part for the
purpose of promoting, advocating for or advancing the
interests of the interactive gaming industry generally or any
interactive gaming-related business or businesses in
connection with any cause, application or matter. The
financial interest and employment prohibitions under this
paragraph shall remain in effect for one year following
termination of the individual's status as an executive-level
public employee, public official or party officer.
(2) Notwithstanding paragraph (1), a member of the
immediate family of an executive-level public employee,
public official or party officer may hold employment with the
holder of or applicant for an interactive gaming certificate,
holder or applicant for an interactive gaming license or
other authorization to conduct interactive gaming or any
holding , subsidiary or intermediary company with respect
thereto, if in the judgment of the State Ethics Commission or
the Supreme Court, as appropriate, employment will not
interfere with the responsibilities of the executive-level
public employee, public official or party officer and will
not create a conflict of interest or reasonable risk of the
public perception of a conflict of interest on the part of
the executive-level public employee, public official or party
officer.
(3) The financial interest and employment prohibitions
specified in paragraphs (1) and (2) shall apply to slot
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machines at nonprimary locations under Chapter 13D (relating
to slot machines at nonprimary locations).
* * *
Section 18. Sections 1514 heading, (a), (d), (e) and (f),
1515, 1516 and 1517(b)(1), (c)(12) and (e)(1) of Title 4 are
amended to read:
§ 1514. Regulation requiring exclusion [or], ejection or denial
of access of certain persons.
(a) General rule.--The board shall by regulation provide for
the establishment of a list of persons who are to be excluded or
ejected from any licensed facility or who may be denied access
to interactive gaming or slot machines at nonprimary locations .
The provisions shall define the standards for exclusion and
shall include standards relating to persons who are career or
professional offenders as defined by regulations of the board or
whose presence in a licensed facility or whose access to
interactive gaming and slot machines at nonprimary locations
would, in the opinion of the board, be inimical to the interest
of the Commonwealth or of licensed gaming therein, or both.
* * *
(d) Sanctions.--The board may impose sanctions upon a
licensed gaming entity or interactive gaming licensee in
accordance with this part if the licensed gaming entity
knowingly fails to exclude or eject from the premises of any
licensed facility or deny access to interactive gaming or to
slot machines at a nonprimary location any person placed by the
board on the list of persons to be excluded [or], ejected or
denied access.
(e) List not all-inclusive.--Any list compiled by the board
of persons to be excluded [or], ejected or denied access shall
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not be deemed an all-inclusive list, and a licensed gaming
entity shall have a duty to keep from the licensed facility and
from interactive gaming and slot machines at a nonprimary
location persons known to it to be within the classifications
declared in this section and the regulations promulgated under
this section whose presence in a licensed facility or whose
participation in interactive gaming and the play of slot
machines at a nonprimary location would be inimical to the
interest of the Commonwealth or of licensed gaming therein, or
both, as defined in standards established by the board.
(f) Notice.--Whenever the bureau seeks to place the name of
any person on a list pursuant to this section, the bureau shall
serve notice of this fact to such person by personal service or
certified mail at the last known address of the person. The
notice shall inform the person of the right to request a hearing
under subsection (g). The bureau may also provide notice by e-
mail, if the electronic mail address of the person is known to
the bureau.
* * *
§ 1515. Repeat offenders excludable from licensed gaming
facility.
A licensed gaming entity may exclude or eject from its
licensed facility or deny access to interactive gaming and slot
machines at a nonprimary location any person who is known to it
to have been convicted of a misdemeanor or felony committed in
or on the premises of any licensed facility. Nothing in this
section or in any other law of this Commonwealth shall limit the
right of a licensed gaming entity to exercise its common law
right to exclude or eject permanently from its licensed facility
or permanently deny access to its interactive gaming and slot
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machines at a nonprimary location any person who disrupts the
operations of its premises or its interactive gaming or the
operation of slot machines at a nonprimary location , threatens
the security of its premises or its occupants or is disorderly
or intoxicated[.] or who threatens the security of its licensed
facility, including the area of a nonprimary location where slot
machines are placed and made available for play or the area of a
licensed facility where interactive gaming operations are
managed, administered or controlled .
§ 1516. List of persons self excluded from gaming activities.
(a) General rule.--The board shall provide by regulation for
the establishment of a list of persons self excluded from gaming
activities, including interactive gaming and the play of slot
machines at nonprimary locations, at all licensed facilities.
Any person may request placement on the list of self-excluded
persons by acknowledging in a manner to be established by the
board that the person is a problem gambler and by agreeing that,
during any period of voluntary exclusion, the person may not
collect any winnings or recover any losses resulting from any
gaming activity at licensed facilities, including interactive
gaming and the play of slot machines at a nonprimary location .
(b) Regulations.--The regulations of the board shall
establish procedures for placements on and removals from the
list of self-excluded persons. The regulations shall establish
procedures for the transmittal to licensed gaming entities of
identifying information concerning self-excluded persons and
shall require licensed gaming entities to establish procedures
designed at a minimum to deny self-excluded persons access to
interactive gaming and the play of slot machines at nonprimary
locations and to remove self-excluded persons from targeted
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mailings or other forms of advertising or promotions and deny
self-excluded persons access to complimentaries, check cashing
privileges, club programs and other similar benefits.
(c) Liability.--A licensed gaming entity or employee thereof
shall not be liable to any self-excluded person or to any other
party in any judicial proceeding for any harm, monetary or
otherwise, which may arise as a result of:
(1) the failure of a licensed gaming entity to withhold
gaming privileges from or restore gaming privileges to a
self-excluded person; [or]
(1.1) the failure of a interactive gaming certificate
holder or interactive gaming licensee to withhold interactive
gaming privileges from or restore interactive gaming
privileges to a self-excluded person;
(1.2) the failure of a Category 1 licensed gaming entity
to withhold or restore access to slot machines at a
nonprimary location to a self-excluded person; or
(2) otherwise permitting or not permitting a self-
excluded person to engage in gaming activity in the facility
or participate in interactive gaming or slot machine play at
a nonprimary location while on the list of self-excluded
persons.
(d) Disclosure.--Notwithstanding any other law to the
contrary, the board's list of self-excluded persons shall not be
open to public inspection. Nothing in this section, however,
shall be construed to prohibit a licensed gaming entity from
disclosing the identity of persons self excluded pursuant to
this section to affiliated gaming entities in this Commonwealth
or other jurisdictions for the limited purpose of assisting in
the proper administration of responsible gaming programs
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operated by affiliated licensed gaming entities.
§ 1517. Investigations and enforcement.
* * *
(b) Powers and duties of department.--
(1) The department shall at all times have the power of
access to examine and audit equipment and records relating to
all aspects of the operation of slot machines [or], including
slot machines at nonprimary locations and, consistent with
airport security rules, at qualified airports, table games or
interactive games under this part.
* * *
(c) Powers and duties of the Pennsylvania State Police.--The
Pennsylvania State Police shall have the following powers and
duties:
* * *
(12) Conduct audits or verification of information of
slot machine [or], table game operations, including the
operation of slot machines used in a multistate wide-area
progressive slot machine system and in the operation of skill
or hybrid slot machines, interactive gaming operations and
the operation of slot machines at a nonprimary location and
in the specified area of a qualified airport at such times,
under such circumstances and to such extent as the bureau
determines. This paragraph includes reviews of accounting,
administrative and financial records and management control
systems, procedures and records utilized by a slot machine
licensee.
* * *
(e) Inspection, seizure and warrants.--
(1) The bureau, the department and the Pennsylvania
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State Police shall have the authority without notice and
without warrant to do all of the following in the performance
of their duties:
(i) Inspect and examine all premises, including the
premises of a nonprimary location and the specified area
of a qualified airport, where slot machine [or], table
game and interactive gaming operations are conducted,
slot machines, table game devices and associated
equipment, interactive gaming devices and associated
equipment are manufactured, sold, distributed or serviced
or where records of these activities are prepared or
maintained.
(ii) Inspect all equipment and supplies in, about,
upon or around premises referred to in subparagraph (i).
(iii) Seize, summarily remove and impound equipment
and supplies from premises referred to in subparagraph
(i) for the purposes of examination and inspection.
(iv) Inspect, examine and audit all books, records
and documents pertaining to a slot machine licensee's
operation.
(v) Seize, impound or assume physical control of any
book, record, ledger, game, device, cash box and its
contents, count room or its equipment, interactive gaming
devices and associated equipment or slot machine [or],
table game or interactive gaming operations.
* * *
Section 19. Section 1518(a)(1), (2), (3), (4), (5), (7.1),
(11), (13), (13.1), (15) and (17) and (b)(1), (2) and (3) of
Title 4 are amended, subsections (a) and (b) are amended by
adding paragraphs and subsection (c)(1) is amended by adding a
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subparagraph to read:
§ 1518. Prohibited acts; penalties.
(a) Criminal offenses.--
(1) The provisions of 18 Pa.C.S. § 4902 (relating to
perjury), 4903 (relating to false swearing) or 4904 (relating
to unsworn falsification to authorities) shall apply to any
person providing information or making any statement, whether
written or oral, to the board, the commission, the bureau,
the department, the Pennsylvania State Police or the Office
of Attorney General, as required by this part.
(2) It shall be unlawful for a person to willfully:
(i) fail to report, pay or truthfully account for
and pay over any license fee, authorization fee, permit
fee, tax or assessment imposed under this part; or
(ii) attempt in any manner to evade or defeat any
license fee, authorization fee, permit fee, registration
fee, tax or assessment or any other fee imposed under
this part.
(3) It shall be unlawful for any licensed entity, gaming
employee, key employee or any other person to permit a slot
machine, table game or table game device, interactive game or
interactive gaming device or associated equipment to be
operated, transported, repaired or opened on the premises of
a licensed facility by a person other than a person licensed
or permitted by the board pursuant to this part.
(3.1) It shall be unlawful for any person who does not
possess a valid and then effective interactive gaming
certificate or interactive gaming license issued by the board
in accordance with Chapter 13B (relating to interactive
gaming) to accept any wager associated with any authorized
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interactive game from any individual without verifying the
age, identity and physical location of the player at the time
of play or wager.
(3.2) It shall be unlawful for any person who does not
possess a valid nonprimary location permit issued by the
board in accordance with section 13D12 (relating to issuance
and terms of nonprimary location permit) to place and make
slot machines available for play at a nonprimary location.
(4) It shall be unlawful for any licensed entity or
other person to manufacture, supply or place slot machines,
table games, table game devices or associated equipment,
authorized interactive game or interactive gaming devices or
associated equipment into play or display slot machines,
including slot machines at a nonprimary location or in a
specified area of a qualified airport, table games, table
game devices or associated equipment on the premises of a
licensed facility without the authority of the board.
(4.1) It shall be unlawful for any slot machine licensee
to offer interactive games into play or display such games on
its interactive gaming skin or Internet website without the
approval of the board.
(4.2) It shall be unlawful for any licensed entity or
other person to manufacture, supply or place interactive
gaming devices or associated equipment into operation at a
licensed facility without the approval of the board.
(4.3) It shall be unlawful for any Category 1 slot
machine licensee to place and make slot machines available
for play at a nonprimary location or in a specified area of a
qualified airport without the approval of the board.
(5) Except as provided for in section 1326 (relating to
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[license] renewals), it shall be unlawful for a licensed
entity or other person to manufacture, supply, operate, carry
on or expose for play any slot machine, including slot
machines at a nonprimary location, table game, table game
device or associated equipment, interactive game or
interactive gaming device or associated equipment after the
person's license has expired and prior to the actual renewal
of the license.
* * *
(7.1) It shall be unlawful for an individual to do any
of the following:
(i) Use or possess counterfeit, marked, loaded or
tampered with table game devices or associated equipment,
chips or other cheating devices in the conduct of gaming
under this part, except that an authorized employee of a
licensee or an authorized employee of the board may
possess and use counterfeit chips or table game devices
or associated equipment that have been marked, loaded or
tampered with, or other cheating devices or any
unauthorized interactive gaming device or associated
equipment in performance of the duties of employment for
training, investigative or testing purposes only.
(ii) Knowingly, by a trick or sleight of hand
performance or by fraud or fraudulent scheme, or
manipulation, table game device or other device, or
interactive gaming device for himself or for another, win
or attempt to win any cash, property or prize at a
licensed facility or to reduce or attempt to reduce a
losing wager.
(7.2) It shall be unlawful for a person to knowingly
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alter, tamper or manipulate interactive gaming devices or
associated equipment, including software, system programs,
hardware and any other device or associated equipment used in
interactive gaming operations, in order to alter the odds or
the payout of an interactive game or to disable the
interactive game from operating according to the rules of the
game as authorized by the board.
(7.3) It shall be unlawful for a person to knowingly
offer or allow to be offered any authorized interactive game
that has been altered, tampered with or manipulated in a way
that affects the odds or the payout of an authorized
interactive game or disables the interactive game from
operating according to the authorized rules of the game as
authorized by the board.
* * *
(11) It shall be unlawful for a licensed gaming entity
that is a licensed racing entity and that has lost the
license issued to it by [either] the State Horse Racing
Commission [or the State Harness Racing Commission under the
Race Horse Industry Reform Act] under Article XXVIII-D of the
act of April 19, 1929 (P.L.177, No.175), known as The
Administrative Code of 1929, or that has had that license
suspended to operate slot machines [or], table games or
authorized interactive games at the racetrack or nonprimary
location for which its slot machine license was issued unless
the license issued to it by either the State Horse Racing
Commission or the State Harness Racing Commission will be
subsequently reissued or reinstated within 30 days after the
loss or suspension.
* * *
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(13) It shall be unlawful for an individual under 21
years of age to enter and remain in any area of a licensed
facility where slot machines are operated, including any area
of a nonprimary location or a specified area of a qualified
airport, or the play of table games is conducted, except that
an individual 18 years of age or older employed by a slot
machine licensee, a gaming service provider, the board or any
other regulatory or emergency response agency may enter and
remain in any such area while engaged in the performance of
the individual's employment duties.
(13.1) It shall be unlawful for an individual under 21
years of age to wager, play or attempt to play a slot machine
or table game, or wager, play or attempt to play an
interactive game at a licensed facility, including a
nonprimary location and the specified area of a qualified
airport.
(13.2) It shall be unlawful to allow a person under 21
years of age to open, maintain or use in any way an
interactive gaming account. Any interactive gaming
certificate holder, interactive gaming licensee or employee
of an interactive gaming certificate holder or interactive
gaming licensee or other such person who knowingly allows a
person under 21 years of age to open, maintain or use an
interactive gaming account shall be subject to the penalty
set forth in this section, except that the establishment of
all of the following facts by an interactive gaming
certificate holder, interactive gaming licensee or employee
of an interactive gaming certificate holder, interactive
gaming licensee or other such person shall constitute a
defense to any regulatory action by the board or the penalty
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authorized under this section:
(i) the underage person falsely represented that he
was of the permitted 21 years of age in the application
for an interactive gaming account; and
(ii) the establishment of the interactive gaming
account was made in good faith reliance upon such
representation and in the reasonable belief that the
underage person was 21 years of age.
* * *
(15) It shall be unlawful for a licensed gaming entity
to require a wager to be greater than the stated minimum
wager or less than the stated maximum wager. However, a wager
made by a player and not rejected by a licensed gaming entity
prior to commencement of play shall be treated as a valid
wager. A wager accepted by a dealer or through an authorized
interactive game shall be paid or lost in its entirety in
accordance with the rules of the game, notwithstanding that
the wager exceeded the current table maximum wager or
authorized interactive game wager or was lower than the
current table minimum wager or minimum interactive game
wager.
* * *
(17) It shall be unlawful for an individual to claim,
collect or take, or attempt to claim, collect or take, money
or anything of value in or from a slot machine, including
from slot machines at a nonprimary location or in a specified
area of a qualified airport, gaming table or other table game
device, interactive game or interactive gaming device with
the intent to defraud, or to claim, collect or take an amount
greater than the amount won, or to manipulate with the intent
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to cheat, any component of any slot machine, including slot
machines at a nonprimary location or in a specified area of a
qualified airport, table game or table game device,
interactive game or interactive gaming device in a manner
contrary to the designed and normal operational purpose.
(18) Notwithstanding any other provision of law, it
shall be unlawful for an individual driving or in charge of a
motor vehicle to permit a child under 14 years of age to
remain unattended in the vehicle if the vehicle is located on
property owned, leased or controlled by a licensed gaming
entity or its affiliate, intermediary, subsidiary or holding
company. In addition to the penalties in subsection (b), the
individual shall be subject to exclusion or ejection from
licensed facilities under sections 1514 (relating to
regulation requiring exclusion, ejection or denial of access
of certain persons) and 1515 (relating to repeat offenders
excludable from licensed gaming facility). Notwithstanding
any of the provisions of 18 Pa.C.S. Ch. 91 (relating to
criminal history record information), the investigating
officer in the jurisdiction in which the vehicle is located
shall be responsible for providing written notice of the
violation within 48 hours to the director of the county
children and youth service agency of the county where the
violation occurred. The notice shall contain:
(i) The name of the individual charged under this
section.
(ii) The address or addresses at which the
individual resides.
(iii) The name of the child or children left
unattended.
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(b) Criminal penalties and fines.--
(1) (i) A person that commits a first offense in
violation of 18 Pa.C.S. § 4902, 4903 or 4904 in
connection with providing information or making any
statement, whether written or oral, to the board, the
bureau, the department, the Pennsylvania State Police,
the Office of Attorney General or a district attorney as
required by this part commits an offense to be graded in
accordance with the applicable section violated. A person
that is convicted of a second or subsequent violation of
18 Pa.C.S. § 4902, 4903 or 4904 in connection with
providing information or making any statement, whether
written or oral, to the board, the bureau, the
department, the Pennsylvania State Police, the Office of
Attorney General or a district attorney as required by
this part commits a felony of the second degree.
(ii) A person that violates subsection (a)(2), (3)
and (4) through (12) or (17) commits a misdemeanor of the
first degree. A person that is convicted of a second or
subsequent violation of subsection (a)(2), (3) and (4)
through (12) or (17) commits a felony of the second
degree.
(2) (i) For a first violation of subsection (a)(1)
through (12) or (17), a person shall be sentenced to pay
a fine of:
(A) not less than $75,000 nor more than $150,000
if the person is an individual;
(B) not less than $300,000 nor more than
$600,000 if the person is a licensed gaming entity or
an interactive gaming licensee; or
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(C) not less than $150,000 nor more than
$300,000 if the person is a licensed manufacturer or
supplier.
(ii) For a second or subsequent violation of
subsection (a)(1), (2), (3) and (4) through (12) or (17),
a person shall be sentenced to pay a fine of:
(A) not less than $150,000 nor more than
$300,000 if the person is an individual;
(B) not less than $600,000 nor more than
$1,200,000 if the person is a licensed gaming entity;
or
(C) not less than $300,000 nor more than
$600,000 if the person is a licensed manufacturer or
supplier.
(2.1) A person that commits an offense in violation of
subsection (a)(3.1) or (3.2) commits a felony and, upon
conviction, shall be sentenced to pay a fine of not less than
$500,000 nor more than $1,000,000. A person that is convicted
of a second or subsequent violation of subsection (a)(3.1)
commits a felony of the first degree and shall be sentenced
to pay a fine of not less than $1,000,000 nor more than
$2,500,000.
(3) An individual who commits an offense in violation of
subsection (a)(13) [or], (13.1) or (13.2) commits a
nongambling summary offense and upon conviction of a first
offense shall be sentenced to pay a fine of not less than
$200 nor more than $1,000. An individual that is convicted of
a second or subsequent offense under subsection (a)(13) [or],
(13.1) or (13.2) shall be sentenced to pay a fine of not less
than $500 nor more than $1,500. In addition to the fine
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imposed, an individual convicted of an offense under
subsection (a)(13) [or], (13.1) or (13.2) may be sentenced to
perform a period of community service not to exceed 40 hours.
(3.1) Notwithstanding paragraph (3), whenever an
individual is convicted of a second or subsequent offense
under subsection (a)(13) or (13.1), the court, including a
court not of record if it is exercising jurisdiction pursuant
to 42 Pa.C.S. § 1515(a) (relating to jurisdiction and venue),
shall order the operating privileges of the individual
suspended. A copy of the court order shall be transmitted to
the Department of Transportation.
(3.2) When the department suspends the operating
privilege of a person under paragraph (3.1), the duration of
the suspension shall be as follows:
(i) For a first offense, a period of 90 days from
the date of suspension.
(ii) For a second offense, a period of one year from
the date of suspension.
(iii) For a third offense, and any offense
thereafter, a period of two years from the date of
suspension. Any multiple sentences imposed shall be
served consecutively.
Reinstatement of operating privilege shall be governed by 75
Pa.C.S. § 1545 (relating to restoration of operating
privilege).
* * *
(5) An individual who commits an offense in violation of
subsection (a)(18) commits a misdemeanor of the third degree
for the first offense. A person that is convicted of a second
or subsequent violation of subsection (a)(18) commits a
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misdemeanor of the second degree.
(c) Board-imposed administrative sanctions.--
(1) In addition to any other penalty authorized by law,
the board may impose without limitation the following
sanctions upon any licensee or permittee:
* * *
(x) Assess a fine for failure to report a violation
under subsection (a)(18), of which the licensed gaming
entity knew or should have known, to the appropriate law
enforcement authority. The amount of the fine shall be
not less than $75,000 nor more than $150,000 for a first
violation of this subparagraph, and not less than
$150,000 nor more than $300,000 for a second or
subsequent violation of this subparagraph.
* * *
Section 20. Title 4 is amended by adding a section to read:
§ 1521.1. Casino liquor license.
(a) Application.--Notwithstanding section 1521 (relating to
liquor license at licensed facilities) or any provision of law
or regulation to the contrary, a slot machine licensee holding a
restaurant liquor or eating place retail dispenser license under
the act of April 12, 1951 (P.L.90, No.21), known as the Liquor
Code, may apply to the Pennsylvania Liquor Control Board for a
casino liquor license. The Pennsylvania Liquor Control Board may
issue a casino liquor license to a slot machine licensee for use
at its licensed facility in accordance with this section.
(b) Fees.--Each application for a casino license under this
section shall be accompanied by a fee of $1,000,000.
(c) Renewal.--
(1) The license must be renewed on an annual basis.
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(2) For each year of the first four years after the
initial issue of the license, the license shall not be
subject to an annual renewal fee.
(3) After the expiration of the four-year license period
under paragraph (2), the licensee shall be subject to an
annual renewal fee of $50,000.
(4) All fees collected or received by the Pennsylvania
Liquor Control Board under this subsection shall be paid into
the State Treasury through the Department of Revenue for
deposit into the General Fund.
(d) Disposition of restaurant liquor or eating place retail
dispenser license.--
(1) An applicant under this section that currently holds
a restaurant liquor or eating place retail dispenser license
issued under the authority of the Liquor Code may continue to
utilize that license until such time as the casino liquor
license is issued by the Pennsylvania Liquor Control Board.
Upon the issuance of a license under this section, the
applicant must surrender the restaurant liquor or eating
place retail dispenser license to the Pennsylvania Liquor
Control Board.
(2) An applicant under this section that currently holds
a restaurant liquor or eating place retail dispenser license
purchased through private sale may continue to utilize that
license until such time as the casino liquor license is
issued by the Pennsylvania Liquor Control Board. Upon
issuance of a license under this section, the applicant may
sell the previously purchased restaurant liquor or eating
place retail dispenser license.
(e) Hours of operation.--Notwithstanding any other provision
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of law to the contrary, a holder of a casino liquor license may
sell or serve liquor and malt or brewed beverages 24 hours a
day, seven days a week.
(f) Transfers.--Licenses issued under this section are
nontransferable, provided that nothing in this subsection shall
preclude a transfer of ownership of a casino liquor license to
another eligible person to be used at the same licensed
facility.
(g) Expiration.--Licenses under this section shall expire
under the following circumstances:
(1) revocation by an administrative law judge under
section 471 of the Liquor Code;
(2) nonrenewal by the Pennsylvania Liquor Control Board
under section 470 of the Liquor Code;
(3) nonrenewal of the license by the slot machine
licensee; or
(4) upon request by the slot machine licensee.
(h) New applicant.--The Pennsylvania Liquor Control Board
may issue a license under this section at any time to a new
applicant even if the previous license had:
(1) been revoked by an administrative law judge under
section 471 of the Liquor Code;
(2) not been renewed by the Pennsylvania Liquor Control
Board under section 470 of the Liquor Code;
(3) not been renewed by the slot machine licensee; or
(4) expired upon request by the slot machine licensee.
(i) Restrictions and privileges.--Licenses issued under this
section are subject to the following additional restrictions and
privileges:
(1) Sales may be made at any time the facility is open
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to the public.
(2) Liquor or malt or brewed beverages may be
transported and consumed off the gaming floor so long as it
remains within the premises of the licensed facility.
(3) Sales of malt or brewed beverages for off-premises
consumption are prohibited.
(4) In addition to the provisions of section 493(24)(ii)
of the Liquor Code, the holder of a casino liquor license may
give liquor and malt or brewed beverages free of charge to
any person attending an invitation-only event held anywhere
on the premises of the licensed facility.
(5) Licenses issued under this section shall not be
subject to:
(i) the proximity provisions of sections 402 and 404
of the Liquor Code;
(ii) the restrictions on discount pricing practices
set forth in section 406(g) of the Liquor Code;
(iii) the quota restrictions of section 461 of the
Liquor Code;
(iv) the provisions of section 493(10) of the Liquor
Code, except as it relates to lewd, immoral or improper
entertainment;
(v) the prohibition against minors frequenting as
described in section 493(14) of the Liquor Code;
(vi) the cost and total display area limitations of
section 493(20)(i) of the Liquor Code;
(vii) the restrictions on events, tournaments or
contests set forth in 40 Pa. Code § 5.32 (relating to
restrictions/exceptions); and
(viii) the restrictions on the awarding of trophies,
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prizes or premiums set forth in 40 Pa. Code § 5.32.
(6) The authorization to sell or serve liquor and malt
or brewed beverages by a holder of a casino liquor license
pursuant to subsection (e) shall not apply to the operation
of slot machines at a nonprimary location or at a qualified
airport.
(j) Multiple licenses.--More than one license issued by the
Pennsylvania Liquor Control Board may be in effect at a licensed
facility at any one time. However, no more than one license
issued under this section shall be in effect at any specific
location within the premises of a licensed facility at the same
time.
Section 21. Section 1901(a) of Title 4 is amended by adding
a paragraph to read:
§ 1901. Appropriations.
(a) Appropriation to board.--
* * *
(3) The sum of $5,000,000 is hereby appropriated from
the State Gaming Fund to the Pennsylvania Gaming Control
Board for salaries, wages and all necessary expenses for the
proper operation and administration of the board for the
activities authorized under this act. This appropriation
shall be a supplemental appropriation for fiscal year 2015-
2016 and shall be in addition to the appropriation contained
in the act of July 2, 2015 (P.L. , No. ), known as the
Gaming Control Appropriation Act of 2015.
* * *
Section 22. The amendment of 4 Pa.C.S. § 1305 in the act of
January 7, 2010 (P.L.1, No.1), entitled "An act amending Title 4
(Amusements) of the Pennsylvania Consolidated Statutes, making
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extensive revisions to provisions on gaming, in the areas of
legislative intent, definitions, the Pennsylvania Gaming Control
Board, applicability of other statutes, powers of the board,
code of conduct, expenses of regulatory agencies, licensed
gaming entity application appeals from board, license or permit
application hearing process and public hearings, board minutes
and records, regulatory authority, collection of fees and fines,
slot machine license fee, number of slot machines, reports of
board, diversity goals of board, license or permit prohibition,
specific authority to suspend slot machine license, Category 2
slot machine license, Category 3 slot machine license, number of
slot machine licenses, applications for license or permit, slot
machine license application, slot machine license application
character requirements, supplier licenses, manufacturer
licenses, gaming service provider, occupation permit
application, alternative manufacturer licensing standards,
alternative supplier licensing standards, additional licenses
and permits and approval of agreements, license renewals, change
in ownership or control of slot machine licensee, nonportability
of slot machine license, appointment of trustee, table games,
slot machine licensee deposits, gross terminal revenue
deductions, itemized budget reporting, establishment of State
Gaming Fund and net slot machine revenue distribution,
distributions from Pennsylvania Race Horse Development Fund,
Pennsylvania Gaming Economic Development and Tourism Fund,
transfers from State Gaming Fund, responsibility and authority
of Department of Revenue, wagering on credit, eminent domain
authority, compulsive and problem gambling program, drug and
alcohol treatment, labor hiring preferences, declaration of
exemption from Federal laws prohibiting slot machines, financial
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and employment interests, additional restrictions, political
influence, regulation requiring exclusion of certain persons,
prosecutorial and adjudicative functions, investigations and
enforcement, conduct of public officials and employees,
prohibited acts and penalties, report of suspicious
transactions, additional authority, applicability of Clean
Indoor Air Act, liquor licenses at licensed facilities,
interception of oral communications, electronic funds transfer
terminals, junkets, gaming schools, appropriations and
Commonwealth Financing Authority; and making related repeals,"
shall take effect on January 1, 2016, if all Category 3 licensed
facilities authorized by 4 Pa.C.S. Pt. II before the effective
date of this section have commenced the operation of slot
machines.
Section 23. Repeals are as follows:
(1) The General Assembly finds that the repeal under
paragraph (2) is necessary to effectuate this act.
(2) Section 21(2) of the act of January 7, 2010 (P.L.1,
No.1), entitled "An act amending Title 4 (Amusements) of the
Pennsylvania Consolidated Statutes, making extensive
revisions to provisions on gaming, in the areas of
legislative intent, definitions, the Pennsylvania Gaming
Control Board, applicability of other statutes, powers of the
board, code of conduct, expenses of regulatory agencies,
licensed gaming entity application appeals from board,
license or permit application hearing process and public
hearings, board minutes and records, regulatory authority,
collection of fees and fines, slot machine license fee,
number of slot machines, reports of board, diversity goals of
board, license or permit prohibition, specific authority to
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suspend slot machine license, Category 2 slot machine
license, Category 3 slot machine license, number of slot
machine licenses, applications for license or permit, slot
machine license application, slot machine license application
character requirements, supplier licenses, manufacturer
licenses, gaming service provider, occupation permit
application, alternative manufacturer licensing standards,
alternative supplier licensing standards, additional licenses
and permits and approval of agreements, license renewals,
change in ownership or control of slot machine licensee,
nonportability of slot machine license, appointment of
trustee, table games, slot machine licensee deposits, gross
terminal revenue deductions, itemized budget reporting,
establishment of State Gaming Fund and net slot machine
revenue distribution, distributions from Pennsylvania Race
Horse Development Fund, Pennsylvania Gaming Economic
Development and Tourism Fund, transfers from State Gaming
Fund, responsibility and authority of Department of Revenue,
wagering on credit, eminent domain authority, compulsive and
problem gambling program, drug and alcohol treatment, labor
hiring preferences, declaration of exemption from Federal
laws prohibiting slot machines, financial and employment
interests, additional restrictions, political influence,
regulation requiring exclusion of certain persons,
prosecutorial and adjudicative functions, investigations and
enforcement, conduct of public officials and employees,
prohibited acts and penalties, report of suspicious
transactions, additional authority, applicability of Clean
Indoor Air Act, liquor licenses at licensed facilities,
interception of oral communications, electronic funds
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transfer terminals, junkets, gaming schools, appropriations
and Commonwealth Financing Authority; and making related
repeals," is repealed.
Section 24. This act shall take effect immediately.
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