H1925B3194A07619 BIL:EJH 05/23/16 #90 A07619
AMENDMENTS TO HOUSE BILL NO. 1925
Sponsor: REPRESENTATIVE PAYNE
Printer's No. 3194
Amend Bill, page 1, lines 1 through 3, by striking out all of
said lines and inserting
Amending Title 4 (Amusements) of the Pennsylvania Consolidated
Statutes, in general provisions, further providing for
legislative intent and for definitions; 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 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
2016/90BIL/HB1925A07619 - 1 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
miscellaneous provisions, further providing for
appropriations; making an editorial change; and making a
related repeal.
Amend Bill, page 1, lines 6 and 7, by striking out all of
said lines and inserting
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
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
2016/90BIL/HB1925A07619 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
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,
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.
(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,
2016/90BIL/HB1925A07619 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
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
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.
* * *
"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]
2016/90BIL/HB1925A07619 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
(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,
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
2016/90BIL/HB1925A07619 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
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
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
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
2016/90BIL/HB1925A07619 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
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
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.
"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.
2016/90BIL/HB1925A07619 - 7 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
"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
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
2016/90BIL/HB1925A07619 - 8 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
emerging or new technology deployed to advance the conduct and
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
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
2016/90BIL/HB1925A07619 - 9 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
Pennsylvania Gaming Control Board shall determine based on
detailed analyses of job descriptions as provided in the
internal controls of the licensee as approved by the
Pennsylvania Gaming Control Board. All other gaming employees
unless otherwise designated by the Pennsylvania Gaming Control
Board shall be classified as non-key employees.
* * *
"Licensed facility." The physical land-based location at
which a licensed gaming entity is authorized to place and
operate slot machines and, if authorized by the Pennsylvania
Gaming Control Board 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
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
2016/90BIL/HB1925A07619 - 10 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
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
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,
supplier, management company or gaming junket enterprise under
this part or regulations of the Pennsylvania Gaming Control
2016/90BIL/HB1925A07619 - 11 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
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
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
2016/90BIL/HB1925A07619 - 12 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
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
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
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
2016/90BIL/HB1925A07619 - 13 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
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
digital, electronic or other communications technology, of
simulating play of a table game.
* * *
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).
* * *
(20) In addition to the power of the board regarding
2016/90BIL/HB1925A07619 - 14 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
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
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
2016/90BIL/HB1925A07619 - 15 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
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;
(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
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.
2016/90BIL/HB1925A07619 - 16 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
§ 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
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.
(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.
2016/90BIL/HB1925A07619 - 17 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
(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,
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
2016/90BIL/HB1925A07619 - 18 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
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-
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
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
2016/90BIL/HB1925A07619 - 19 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
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
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
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
2016/90BIL/HB1925A07619 - 20 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
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).
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
2016/90BIL/HB1925A07619 - 21 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
interactive gaming during the previous year.
(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
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
2016/90BIL/HB1925A07619 - 22 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
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
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.
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]
2016/90BIL/HB1925A07619 - 23 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
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
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
approved, submit a statement waiving the exemptions,
deductions, abatements or credits granted under the Keystone
2016/90BIL/HB1925A07619 - 24 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
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
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
2016/90BIL/HB1925A07619 - 25 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
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
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
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
2016/90BIL/HB1925A07619 - 26 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
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
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
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.
* * *
2016/90BIL/HB1925A07619 - 27 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
(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
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.
<