PRINTER'S NO. 322
No. 318 Session of 1979
INTRODUCED BY McKINNEY, ARLENE, SMITH, LYNCH AND FUMO, FEBRUARY 27, 1979
REFERRED TO STATE GOVERNMENT, FEBRUARY 27, 1979
AN ACT 1 Authorizing the establishment of gambling casinos in the 2 Commonwealth, providing for the licensing, regulation and 3 taxation thereof, creating the Commonwealth Casino Control 4 Commission and the Bureau of Gaming Enforcement, prescribing 5 the powers, duties and functions of the commission and bureau 6 and making an appropriation. 7 TABLE OF CONTENTS 8 Chapter 1. General Provisions 9 Section 101. Short title. 10 Section 102. Declaration of policy. 11 Section 103. Definitions. 12 Chapter 2. Establishment and Organization of the Commonwealth 13 Casino Control Commission and the Bureau of Gaming 14 Enforcement 15 Section 201. Commonwealth Casino Control Commission. 16 Section 202. Commission members; appointment and 17 qualifications. 18 Section 203. Term of office; removal. 19 Section 204. Compensation of members. 20 Section 205. Organization and employees.
1 Section 206. Bureau of Gaming Enforcement. 2 Section 207. Expenses of bureau. 3 Section 208. Restrictions on preemployment by commissions, 4 commission employees and bureau employees and 5 agents. 6 Section 209. Employment restrictions on commissioners, 7 commission employees and bureau employees. 8 Section 210. Post-employment restrictions. 9 Section 211. Applicant and licensee liability for 10 violations. 11 Section 212. Enforcement. 12 Chapter 3. Powers and Duties of the Commonwealth Casino Control 13 Commission 14 Section 301. General responsibilities of the commission. 15 Section 302. Commission powers; denials and sanctions. 16 Section 303. Subpoenas and oaths. 17 Section 304. Investigative hearings. 18 Section 305. Testimonial immunity. 19 Section 306. Collection of fees, penalties or tax. 20 Section 307. Regulations. 21 Section 308. Required regulations. 22 Section 309. Regulation requiring exclusion of certain 23 persons. 24 Section 310. Commission reports and recommendations. 25 Section 311. Meetings; quorum. 26 Section 312. Minutes and records. 27 Section 313. Powers not enumerated. 28 Chapter 4. Powers and Duties of the Bureau of Gaming 29 Enforcement 30 Section 401. General duties and powers. 19790S0318B0322 - 2 -
1 Section 402. Prosecution. 2 Section 403. Cooperation by licensee or registrant. 3 Section 404. Inspection, seizure and warrants. 4 Chapter 5. Licensing 5 Section 501. General provisions. 6 Section 502. Statement of compliance. 7 Section 503. Casino license; applicant eligibility. 8 Section 504. Approved hotel. 9 Section 505. Casino license; applicant requirements. 10 Section 506. Additional requirements. 11 Section 507. Casino license; disqualification criteria. 12 Section 508. Investigation of applicants; order approving 13 or denying license. 14 Section 509. Renewal of casino licenses. 15 Section 510. Licensing of casino key employees. 16 Section 511. Licensing of casino employees. 17 Section 512. Casino hotel employee licenses. 18 Section 513. Licensing and registration of casino service 19 industries. 20 Section 514. Registration of labor organizations. 21 Section 515. Approval and denial of registrations and 22 licenses other than casino licenses. 23 Section 516. Renewal of licenses and registrations. 24 Chapter 6. Conditions of Operation 25 Section 601. Operation certificate. 26 Section 602. Hours of operation. 27 Section 603. Casino facility requirements. 28 Section 604. Internal controls. 29 Section 605. Games and gaming equipment. 30 Section 606. Credit. 19790S0318B0322 - 3 -
1 Section 607. Junkets; complimentary services. 2 Section 608. Alcoholic beverages on casino hotel 3 facilities. 4 Section 609. Casino licensee; leases and contracts. 5 Section 610. Disposition of securities by corporate 6 licensee. 7 Section 611. Work permits. 8 Chapter 7. Hearings 9 Section 701. Commencement. 10 Section 702. Conduct of hearings; rules of evidence; 11 punishment of contempts; decisions; rehearing. 12 Section 703. Emergency orders. 13 Section 704. Judicial review. 14 Chapter 8. Sanctions 15 Section 801. Penalties for willful evasion of payment of 16 license fees, other acts and omissions. 17 Section 802. Unlicensed casino gambling games unlawful; 18 penalties. 19 Section 803. Swindling and cheating; penalties. 20 Section 804. Unlawful use of bogus chips, marked cards, 21 dice, cheating devices, unlawful coins; 22 penalty. 23 Section 805. Cheating games and devices in a licensed 24 casino; penalty. 25 Section 806. Unlawful possession of device, equipment or 26 other material illegally manufactured, 27 distributed, sold or serviced. 28 Section 807. Employment without license and work permit; 29 penalty. 30 Section 808. Unlawful entry by person whose name has been 19790S0318B0322 - 4 -
1 placed on list; penalty. 2 Section 809. Gaming by minors prohibited; penalties; 3 defenses. 4 Section 810. Prohibited political contributions; penalty. 5 Section 811. Authority of gaming licensee and agents to 6 detain or question persons suspected of 7 cheating; immunity from liability; posted 8 notice required. 9 Section 812. Other offenses; general penalty. 10 Section 813. Continuing offenses. 11 Section 814. Exemption from gambling statutes. 12 Section 815. Racketeer; influenced and corrupt 13 organizations; definitions. 14 Section 816. Prohibited activities. 15 Section 817. Civil remedies. 16 Section 818. Civil investigative demand. 17 Section 819. Supplemental sanctions. 18 Section 820. Imposition of sanctions; standards. 19 Chapter 9. Miscellaneous Provisions 20 Section 901. Declaration of Commonwealth's exemption from 21 operation of provisions of 15 U.S.C. § 1172. 22 Section 902. Legal shipments of gaming devices into 23 Pennsylvania. 24 Section 903. Severability and preemption. 25 Section 904. Equal employment opportunity; requirements of 26 license. 27 Section 905. Equal employment opportunity; enforcement by 28 the commission. 29 Section 906. Facilities for the handicapped. 30 Section 907. Early settlement dates and certain transfers 19790S0318B0322 - 5 -
1 of gaming property prohibited. 2 Section 908. Prohibited political contributions. 3 Chapter 10. Fees and Taxes 4 Section 1001. Casino license fees. 5 Section 1002. License fee on slot machines. 6 Section 1003. License fees for other than casino licenses. 7 Section 1004. Work permit fee. 8 Section 1005. Casino Control Fund. 9 Section 1006. Tax on gross revenues. 10 Section 1007. Commonwealth Casino Revenue Fund. 11 Section 1008. Payment of taxes. 12 Section 1009. Determination of tax liability. 13 Section 1010. Penalties. 14 Section 1011. Forms. 15 Chapter 11. Appropriations and Effective Date 16 Section 1101. Appropriations. 17 Section 1102. Effective date. 18 The General Assembly of the Commonwealth of Pennsylvania 19 hereby enacts as follows: 20 CHAPTER 1 21 GENERAL PROVISIONS 22 Section 101. Short title. 23 This act shall be known and may be cited as the "Commonwealth 24 Casino Control Act." 25 Section 102. Declaration of policy. 26 The General Assembly hereby finds, and declares to be the 27 public policy of this Commonwealth, the following: 28 The tourist, resort and convention industry of this 29 Commonwealth constitutes a critical component of its economic 30 structure and, if properly developed, controlled and fostered, 19790S0318B0322 - 6 -
1 is capable of providing a substantial contribution to the 2 general welfare, health and prosperity of the Commonwealth and 3 its inhabitants. 4 The rehabilitation and redevelopment of existing tourist and 5 convention facilities in the major cities of the Commonwealth 6 and the fostering and encouragement of new construction in these 7 cities will improve the quality of life in the Commonwealth's 8 major cities. 9 The resort areas of the Commonwealth are valuable assets and 10 their continued prosperity is of critical importance to the 11 inhabitants of the Commonwealth. 12 The establishment of casino gambling in the Commonwealth 13 especially in the major cities and resort areas would attract 14 new investment capital to the Commonwealth. 15 The establishment of casino gambling in the Commonwealth 16 would benefit all of the Commonwealth's inhabitants. 17 An integral and essential element of the regulation and 18 control of casino gambling facilities by the Commonwealth rests 19 in the public confidence and trust in the credibility and 20 integrity of the regulatory process and of casino operations. To 21 further such public confidence and trust, the regulatory 22 provisions of this act are designed to extend strict 23 Commonwealth regulation to all persons, locations, practices and 24 associations related to the operation of licensed casino 25 enterprises and all related service industries as herein 26 provided. 27 Legalized casino gaming in the Commonwealth can attain, 28 maintain and retain integrity, public confidence and trust, and 29 remain compatible with the general public interest only under 30 such a system of control and regulation as insures, so far as 19790S0318B0322 - 7 -
1 practicable, the exclusion from participation therein of persons 2 with known criminal records, habits or associations, and the 3 exclusion or removal from any positions of authority or 4 responsibility within casino gaming operations and 5 establishments of any persons known to be so deficient in 6 business probity, ability or experience, either generally or 7 with specific reference to gaming, as to create or enhance the 8 dangers of unsound, unfair or illegal practices, methods and 9 activities in the conduct of gaming or the carrying on of the 10 business and financial arrangements incident thereto. 11 Since the public has a vital interest in casino operations, 12 participation in casino operations as a licensee under this act 13 shall be deemed a revokable privilege conditioned upon the 14 proper and continued qualification of the individual licensee 15 and upon the discharge of the affirmative responsibility of each 16 such licensee to provide to the regulatory and investigatory 17 authorities established by this act any assistance and 18 information necessary to assure that the policies declared by 19 this act are achieved. Consistent with this policy, it is the 20 intent of this act to preclude the creation of any property 21 right in any license, certificate or reservation permitted by 22 this act, the accrual of any value to the privilege of 23 participation in gaming operations, or the transfer of any 24 license, certificate, or reservation, and to require that 25 participation in gaming be solely conditioned upon the 26 individual qualifications of the person seeking such privilege. 27 Since casino operations are especially sensitive and in need 28 of public control and supervision, and since it is vital to the 29 interests of the Commonwealth to prevent entry, directly or 30 indirectly, into such operations or the ancillary industries 19790S0318B0322 - 8 -
1 regulated by this act of persons who have pursued economic gains 2 in an occupational manner or context which are in violation of 3 the criminal or civil public policies of the Commonwealth, the 4 regulatory and investigatory powers and duties shall be 5 exercised to the fullest extent consistent with law to avoid 6 entry of such persons into the casino operations or the 7 ancillary industries regulated by this act. 8 The facilities in which licensed casinos are to be located 9 are of vital law enforcement and social interest to the 10 Commonwealth, and it is in the public interest that the 11 regulatory and investigatory powers and duties conferred by this 12 act include the power and duty to review architectural and site 13 plans to assure that the proposal is suitable by law 14 enforcement, aesthetic and architectural standards. 15 Since the economic stability of casino operations is in the 16 public interest and competition in casino operations is 17 desirable and necessary to assure the residents of the 18 Commonwealth and visitors varied attractions and exceptional 19 facilities, the regulatory and investigatory powers and duties 20 conferred by this act shall include the power and duty to 21 regulate, control and prevent economic concentration in the 22 casino operations and the ancillary industries regulated by this 23 act, and to encourage and preserve competition. 24 It is in the public interest that the institution of licensed 25 casino establishments in the Commonwealth be strictly regulated 26 and controlled pursuant to the above findings and pursuant to 27 the provisions of this act, which provisions are designed to 28 engender and maintain public confidence and trust in the 29 regulation of the licensed enterprises, to provide an effective 30 method of rebuilding and redeveloping existing facilities and of 19790S0318B0322 - 9 -
1 encouraging new capital investment in the Commonwealth, and to 2 provide a meaningful and permanent contribution to the economic 3 viability of the resort, convention and tourist industry of the 4 Commonwealth and its major cities. 5 Section 103. Definitions. 6 The following words and phrases when used in this act shall 7 have, unless the context clearly indicates otherwise, the 8 meanings given to them in this section: 9 "Applicant." Any person who on his own behalf or on behalf 10 of another has applied for permission to engage in any act or 11 activity which is regulated under the provisions of this act. 12 "Application." A written request for permission to engage in 13 any act or activity which is regulated under the provisions of 14 this act. 15 "Authorized game " or "authorized gambling game." Roulette, 16 baccarat, blackjack, craps, big six wheel and slot machines. 17 "Bureau." The Bureau of Gaming Enforcement. 18 "Casino." A single room of at least 15,000 square feet in 19 which casino gaming is conducted pursuant to the provisions of 20 this act. 21 "Casino employee." Any natural person employed in the 22 operation of a licensed casino, including, without limitation, 23 boxmen; dealers or croupiers; floormen; machine mechanics; and 24 bartenders, waiters and waitresses or other persons whose 25 employment duties require or authorize access to the casino but 26 who are not included in the definition of casino hotel employee, 27 casino key employee, casino security employee, or principal 28 employee as hereinafter stated. 29 "Casino hotel employee." Any natural person employed by a 30 casino hotel licensed under this act to perform service or 19790S0318B0322 - 10 -
1 custodial duties not directly related to operations of the 2 casino, including, without limitation, bartenders, waiters, 3 waitresses, maintenance personnel, kitchen staff, but whose 4 employment duties do not require or authorize access to the 5 casino. 6 "Casino key employee." Any natural person employed in the 7 operation of a licensed casino in a supervisory capacity or 8 empowered to make discretionary decisions which regulate casino 9 operation, and who is not within an employee category defined 10 elsewhere in this act, including, without limitation, pit 11 bosses, shift bosses, supervisors and cashiers; casino managers 12 and assistant managers; managers or supervisors of casino 13 security employees; and any other employee so designated by the 14 Casino Control Commission. 15 "Casino license." Any license issued pursuant to this act 16 which authorizes the holder thereof to own or operate a casino. 17 "Casino security employee." Any natural person employed by a 18 casino or its agent to provide physical security in a casino 19 hotel. 20 "Casino service industry." Any form of enterprise which 21 provides casinos with goods or services on a regular or 22 continuing basis, including, without limitation, security 23 businesses, gaming schools, manufacturers, distributors and 24 servicers of gaming devices or equipment, garbage haulers, 25 maintenance companies, food purveyors, or any other enterprise 26 which does business with licensed casinos on a regular or 27 continuing basis. 28 "Chairman" and "commissioner" or "member." The chairman and 29 any member of the Casino Control Commission, respectively. 30 "Commission." The Commonwealth Casino Control Commission. 19790S0318B0322 - 11 -
1 "Director." The Director of the Bureau of Gaming 2 Enforcement. 3 "Equal employment opportunity." Equality in opportunity for 4 employment by any person licensed pursuant to the provisions of 5 this act. 6 "Equity security." Any voting stock of a corporation or 7 similar security; any security convertible, with or without 8 consideration, into such a security or carrying any warrant or 9 right to subscribe to or purchase such a security; any such 10 warrant or right; or any security having a direct or indirect 11 participation in the profits of the issuer. 12 "Establishment." Any premises wherein or whereon any gaming 13 is done. 14 "Family." Spouse, parents, grandparents, children, 15 grandchildren, siblings, uncles, aunts, nephews, nieces, 16 fathers-in-law, mothers-in-law, daughters-in-law, sons-in-law, 17 brothers-in-law and sisters-in-law, whether by the whole or half 18 blood, by marriage, adoption or natural relationship. 19 "Game" or "gambling game." Any banking or percentage game 20 located exclusively within the casino played with cards, dice or 21 any mechanical device or machine for money, property or any 22 representative of value. 23 "Gaming" or "gambling." The dealing, operating, carrying on, 24 conducting, maintaining or exposing for pay of any game. 25 "Gaming device" or "gaming equipment." Any mechanical 26 contrivance or machine used in connection with gaming or any 27 game. 28 "Gross revenue." The total of all sums, including checks 29 received pursuant to the provisions of this act, whether 30 collected or not, actually received by a licensee from gaming 19790S0318B0322 - 12 -
1 operations, less only the total of all sums paid out as winnings 2 to patrons and an allowance for uncollected gaming receivables 3 not to exceed the lesser of such receivables actually 4 uncollected or 4% of the total of all sums including checks, 5 whether collected or not. 6 "Hearing examiner." A commissioner or other person 7 authorized by the commission to conduct hearings. 8 "Holding company." Any corporation, association, firm, 9 partnership, trust or other form of business organization not a 10 natural person which, directly or indirectly, owns, has the 11 power or right to control, or has the power to vote all or any 12 part of the outstanding voting securities of a corporation which 13 holds or applies for a casino license. For the purpose of this 14 section, in addition to any other reasonable meaning of the 15 words used, a "holding company" indirectly has, holds or owns 16 any such power, right or security if it does so through any 17 interest in a subsidiary or successive subsidiaries, however, 18 many such subsidiaries may intervene between the holding company 19 and the corporate licensee or applicant. 20 "Hotel" or "approved hotel." A single building under one 21 ownership and containing not fewer than 100 sleeping units, each 22 of at least 250 square feet measured to the center of perimeter 23 walls, including bathroom and closet space and excluding 24 hallways, balconies and lounges; each containing private 25 bathroom facilities; and each held available and used regularly 26 for the lodging of tourists and convention guests and conforming 27 in all respects to the facilities requirements contained in this 28 act. For the purpose of exceeding the maximum casino size 29 specified in this act, an approved hotel may, by means of 30 physical connection, annex additional buildings or facilities. 19790S0318B0322 - 13 -
1 "Physical connection" for the purposes herein means an enclosed 2 permanent pedestrian passageway. In no event shall the main 3 entrance or only access to an approved hotel by through a 4 casino. 5 "Intermediary company." Any corporation, association, firm, 6 partnership, trust or any other form of business organization 7 other than a natural person which: 8 (1) is a holding company with respect to a corporation 9 which holds or applies for a casino license; and 10 (2) is a subsidiary with respect to any holding company. 11 "Junket." An arrangement or arrangements the primary purpose 12 of which is to induce any person to gamble at a licensed casino 13 hotel and pursuant to which, and as consideration for which, 14 over $200 of the cost of transportation, food, lodging, and 15 entertainment for said person is directly or indirectly paid by 16 a casino licensee or employee or agent thereof. For purposes of 17 this act, the furnishing of any of the above items on a 18 complimentary basis shall be deemed to constitute the indirect 19 payment for such food or lodging in the amount of the retail 20 price normally charged by the licensee. 21 "License." Any license required by this act. 22 "License fee." Any moneys required by law to be paid for the 23 issuance or renewal of a casino license, or any other license 24 required by this act. 25 "Licensed casino operation." Any casino licensed pursuant to 26 the provisions of this act. 27 "Licensee." Any person who is licensed under any of the 28 provisions of this act. 29 "Operation." The conduct of gaming as herein defined. 30 "Operation certificate." A certificate issued by the 19790S0318B0322 - 14 -
1 commission which certifies that operation of a casino conforms 2 to the requirements of this act and applicable regulations and 3 that its personnel and procedures are efficient and prepared to 4 entertain the public. 5 "Party." The commission, or any licensee, or any person 6 appearing of record for any licensee in any proceeding before 7 the commission or in any proceeding for judicial review of any 8 action, decision or order of the commission. 9 "Person." Any corporation, association, operation, firm, 10 partnership, trust or other form of business association, as 11 well as a natural person. 12 "Principal employee." Any employee who, by reason of 13 remuneration or of a management, supervisory or policy-making 14 position or such other criteria as may be established by the 15 commission by regulation, holds or exercises such authority as 16 shall in the judgment of the commission be sufficiently related 17 to the operation of a licensee so as to require approval by the 18 commission in the protection of the public interest. 19 "Publicly traded corporation." Any corporation or other 20 legal entity, except a natural person, which has one or more 21 classes of security registered pursuant to section 102 of the 22 Securities Exchange Act of 1934, as amended (15 U.S.C. Section 23 78l.), or is an issuer subject to section 15(d) of the 24 Securities Exchange Act of 1934 as amended (15 U.S.C. 78o). 25 "Registration." Any requirement other than one which 26 requires a license as a prerequisite to conduct a particular 27 business as specified by this act. 28 "Registrant." Any person who is registered pursuant to the 29 provisions of this act. 30 "Regulated complimentary service account." An account 19790S0318B0322 - 15 -
1 maintained by a casino licensee on a regular basis which 2 itemizes complimentary services and includes, without 3 limitation, a listing of the cost of junket activities and any 4 other service provided at no cost or reduced price. 5 "Respondent." Any person against whom a complaint has been 6 filed or a written request for information served. 7 "Security." Any instrument evidencing a direct or indirect 8 beneficial ownership or creditor interest in a corporation, 9 including but not limited to, stock, common and preferred; 10 bonds; mortgages; debentures; security agreements; notes; 11 warrants; options and rights. 12 "Slot machine." Any mechanical, electrical or other device, 13 contrivance or machine which, upon insertion of a coin, token or 14 similar object therein, or upon payment of any consideration 15 whatsoever, is available to play or operate, the play or 16 operation of which, whether by reason of the skill of the 17 operator or application of the element of chance, or both, may 18 deliver or entitle the person playing or operating the machine 19 to receive cash or tokens to be exchanged for cash, whether the 20 payoff is made automatically from the machine or in any other 21 manner whatsoever. 22 "Statement of compliance." A statement by the commission 23 which may be issued to an applicant indicating satisfactory 24 completion of a particular stage or stages of the license 25 consideration process, and which states that unless there is a 26 change of any material circumstance pertaining to such 27 particular stage or stages of license consideration involved in 28 the statement, such applicant has complied with requirements 29 mandated by this act and by the commission and is therefore 30 approved for license qualification to the stage or stages for 19790S0318B0322 - 16 -
1 which the statement has been issued. 2 "Subsidiary." Any corporation, all or any part of whose 3 outstanding equity securities are owned, subject to a power or 4 right of control, or held with power to vote, by a holding 5 company or an intermediary company; or any firm, association, 6 partnership, trust or other form of business organization, not a 7 natural person, or any interest therein, which is owned, subject 8 to a power or right of control, or held with power to vote, by a 9 holding company or an intermediary company. 10 "Work permit." A writing provided by the commission to a 11 casino licensee which authorizes the employment of a particular 12 casino hotel employee, casino employee or casino key employee in 13 a particular capacity by a casino licensee. 14 CHAPTER 2 15 ESTABLISHMENT AND ORGANIZATION OF 16 THE COMMONWEALTH CASINO CONTROL COMMISSION 17 AND THE BUREAU OF GAMING ENFORCEMENT 18 Section 201. Commonwealth Casino Control Commission. 19 There is hereby created as an independent administrative 20 commission the Commonwealth Casino Control Commission which 21 shall consist of five members. 22 Section 202. Commission members; appointment and 23 qualifications. 24 The members of the commission shall be appointed by the 25 Governor by and with the advice and consent of a majority of the 26 members elected to the Senate. Prior to nomination, the Governor 27 shall cause an inquiry to be conducted by the Attorney General 28 into the nominee's background, with particular regard to the 29 nominee's financial stability, integrity, and responsibility and 30 his reputation for good character, honesty and integrity. No 19790S0318B0322 - 17 -
1 more than three members of the commission may be of the same 2 political affiliation. Each member of the commission shall be a 3 citizen of the United States and a resident of the Commonwealth 4 of Pennsylvania. No member of the General Assembly, or person 5 holding any elective or appointive office in Federal, State or 6 local government shall be eligible to serve as a member of the 7 commission. 8 Section 203. Term of office; removal. 9 (a) Initial appointments to the commission shall be for 10 terms as follows: 11 (1) one member for one year; 12 (2) One member for two years; 13 (3) one member for three years; 14 (4) One member for four years; and 15 (5) One member for five years, who shall be designated 16 chairman. 17 (b) The term of each of the members first appointed shall be 18 designated by the Governor. 19 (c) After the initial appointments, all members shall be 20 appointed for terms of five years: Provided, however, That no 21 member shall serve more than two terms of five years each. 22 (d) Appointments to fill vacancies on the commission shall 23 be for the unexpired term of the member to be replaced. 24 (e) The member designated by the Governor to serve as 25 chairman shall serve in such capacity throughout such member's 26 entire term and until his successor shall have been duly 27 appointed and qualified. No such member, however, shall serve in 28 such capacity for more than ten years. The chairman shall be the 29 chief executive officer of the commission, shall devote full 30 time to the duties of his office and shall not pursue or engage 19790S0318B0322 - 18 -
1 in any other business, occupation or other gainful employment. 2 (f) A commissioner may be removed from office for misconduct 3 in office, willful neglect of duty, or other conduct evidencing 4 unfitness for his office, or for incompetence. A proceeding for 5 removal may be instituted by the Attorney General in the 6 Commonwealth Court. Notwithstanding any provision of this or any 7 other act, any commissioner or employee of the commission shall 8 automatically forfeit his office or position upon conviction of 9 any crime. 10 (g) Each member of the commission shall serve for the 11 duration of his term and until his successor shall be duly 12 appointed and qualified, subject to the limitations contained in 13 this section. 14 Section 204. Compensation of members. 15 Each member of the commission other than the chairman shall 16 receive compensation of $18,000 per annum and shall also be 17 entitled to reimbursement for his expenses actually and 18 necessarily incurred in the performance of his duties, including 19 expenses of travel outside of the Commonwealth. The compensation 20 of the chairman shall be $60,000 per annum. 21 Section 205. Organization and employees. 22 (a) The commission may establish, and from time to time 23 alter, such plan of organization as it may deem expedient, and 24 may incur expenses within the limits of funds available to it. 25 (b) The commission shall elect annually by a majority of the 26 full commission one of its members, other than the chairman, to 27 serve as vice-chairman for the ensuing year. The vice-chairman 28 shall be empowered to carry out all of the responsibilities of 29 the chairman as prescribed in this act during his absence or 30 inability to serve. 19790S0318B0322 - 19 -
1 (c) The Commission shall appoint an executive secretary who 2 shall serve at its pleasure and shall be responsible for the 3 conduct of its administrative affairs. No person shall be 4 eligible for such appointment unless he shall have at least five 5 years of responsible experience in public or business 6 administration or possesses broad management skills. The salary 7 of the executive secretary shall be fixed by the commission: 8 Provided, however, That such salary shall not exceed $35,000. 9 (d) The commission may employ such other personnel as it 10 deems necessary. No employees of the commission, except for 11 secretarial and clerical personnel, shall be included in 12 "classified service" for purposes of (d) of the act of August 5, 13 1941 (P.L.752, No.286), as amended, known as the "Civil Service 14 Act." All employees of the commission shall be deemed 15 confidential employees for the purposes of the act of July 23, 16 1970 (P.L.563, No.195), known as the "Public Employe Relations 17 Act." 18 (e) The commission may employ legal counsel who shall 19 represent the commission in any proceeding to which it is a 20 party, and who shall render legal advice to the commission upon 21 its request. The commission may contract for the services of 22 other professional, technical and operational personnel and 23 consultants as may be necessary to the performance of its 24 responsibilities under this act. 25 Section 206. Bureau of Gaming Enforcement. 26 (a) There is hereby established in the Department of Justice 27 the Bureau of Gaming Enforcement. The bureau shall be under the 28 immediate supervision of a director who shall also be sworn as 29 an Assistant Attorney General and who shall administer the work 30 of the bureau under the direction and supervision of the 19790S0318B0322 - 20 -
1 Attorney General. The director shall be appointed by the 2 Governor by and with the advice and consent of a majority of the 3 members elected to the Senate, and shall serve during the term 4 of office of the Governor, except that the first director shall 5 be appointed for a term of two years. The director may be 6 removed from office by the Attorney General for cause upon 7 notice and opportunity to be heard. The Attorney General shall 8 be responsible for the exercise of the duties and powers 9 assigned to the bureau. 10 (b) The Attorney General shall organize the work of the 11 bureau in such organizational units as he may determine to be 12 necessary for efficient and effective operation and shall assign 13 to the bureau such employees of the Department of Justice as may 14 be necessary to assist the director in the performance of his 15 duties. Subject to approval of the Attorney General, the 16 commission of State Police shall assign such supervisory and 17 investigative personnel and other resources to the Bureau of 18 Gaming Enforcement as may be necessary to fulfill its 19 obligations under this act. 20 (c) No employees of the bureau, except for secretarial and 21 clerical personnel, shall be included in "classified service" 22 for purposes of the "Civil Service Act." All employees of the 23 division shall be deemed confidential employees for the purposes 24 of the "Public Employe Relations Act." 25 The bureau may incur expenses within the limits of funds 26 available to it. 27 Section 207. Expenses of bureau. 28 The bureau may incur expenses within the limits of funds 29 available. 30 Section 208. Restrictions on preemployment by commissions, 19790S0318B0322 - 21 -
1 commission employees and bureau employees and 2 agents. 3 (a) No person shall be appointed to or be employed by the 4 commission or bureau if, during the period commencing three 5 years prior to appointment or employment, said person held any 6 direct or indirect interest in, or any employment by, any person 7 engaged in gaming; any manufacturer, distributor or servicer of 8 gaming equipment; or any operator of licensed pari-mutuel 9 betting. 10 (b) No person shall be appointed to or employed by the 11 commission or bureau if, during the period commencing three 12 years prior to appointment or employment, said person held any 13 direct or indirect interest in, or any employment by, any person 14 which is licensed by or has an application for a license pending 15 before or is registered with the commission. 16 (c) Prior to appointment or employment, each member of the 17 commission, each employee of the commission, the director of the 18 Bureau of Gaming Enforcement and each employee and agent of the 19 bureau shall swear or affirm that he possesses no interest in 20 any business or organization licensed by or registered with the 21 commission. 22 (d) Each member of the commission and the director of the 23 bureau shall file with the Office of the Governor a financial 24 disclosure statement listing all assets and liabilities, 25 property and business interests, and sources of income of said 26 member or director and his spouse and shall provide to the 27 Attorney General a financial disclosure statement listing all 28 assets and liabilities, property and business interests, and 29 sources of income of the parents, brothers, sisters, and 30 children of said member or director. Such statement shall be 19790S0318B0322 - 22 -
1 under oath and shall be filed at the time of appointment and 2 annually thereafter. 3 (e) Each employee of the commission, except for secretarial 4 and clerical personnel, and each employee and agent of the 5 bureau, except for secretarial and clerical personnel, shall 6 file with the Office of the Governor a financial disclosure 7 statement listing all assets and liabilities, property and 8 business interests, and sources of income of said employee or 9 agent and his spouse. Such statement shall be under oath and 10 shall be filed at the time of employment and annually 11 thereafter. 12 Section 209. Employment restrictions on commissioners, 13 commission employees and bureau employees. 14 (a) A code of ethics governing the specific needs of the 15 commission and the bureau shall be promulgated by each and shall 16 include, among other provisions, that: 17 (1) No commission member or employee or bureau employee 18 or agent shall be permitted to gamble in any establishment 19 licensed by the commission except in the course of his 20 duties. 21 (2) No commission member or employee or bureau employee 22 or agent shall solicit or accept employment from any person 23 licensed by or registered with the commission or from any 24 applicant for a period of four years after termination of 25 service with the commission, or bureau, unless subject to 26 section 210(b). 27 (b) No commission member or employee or bureau employee or 28 agent shall have any interest, direct or indirect, in any 29 applicant or in any person licensed by or registered with the 30 commission during his term of office or employment. 19790S0318B0322 - 23 -
1 (c) No commission member shall be employed in any capacity 2 by any person licensed by or registered with the commission. 3 (d) Each employee of the commission, including legal counsel 4 and hearing examiners, and each employee and agent of the bureau 5 shall devote his entire time and attention to his duties and 6 shall not pursue any other business or occupation or other 7 gainful employment, except that secretarial and clerical 8 personnel may engage in such other gainful employment as shall 9 not interfere with their duties to the commission or bureau, 10 unless otherwise directed. 11 (e) No member of the commission, employee of the commission, 12 or employee or agent of the bureau shall: 13 (1) use his official authority or influence for the 14 purpose of interfering with or affecting the result of an 15 election or a nomination for office; 16 (2) directly or indirectly coerce, attempt to coerce, 17 command or advise any person to pay, lend or contribute 18 anything of value to a party, committee, organization, agency 19 or person for political purposes; or 20 (3) take any active part in political campaigns or the 21 management thereof; provided, however, that nothing herein 22 shall prohibit a person from voting as he chooses or from 23 expressing his personal opinions on political subjects and 24 candidates. 25 Section 210. Post-employment restrictions. 26 (a) No member of the commission shall hold any direct or 27 indirect interest in, or be employed by, any applicant or by any 28 person licensed by or registered with the commission for a 29 period of four years commencing on the date his membership on 30 the commission terminates. 19790S0318B0322 - 24 -
1 (b) No employee of the commission or employee or agent of 2 the bureau may acquire any direct or indirect interest in, or 3 accept employment with, any applicant or any person licensed by 4 or registered with the commission, for a period of two years 5 commencing at the termination of employment with the commission 6 or bureau. At the end of two years, the former employee or agent 7 may acquire an interest in, or accept employment with, any 8 applicant or person licensed by or registered with the 9 commission upon application to and the approval of the 10 commission upon a finding that the interest to be acquired or 11 the employment will not create the appearance of a conflict of 12 interest and does not evidence a conflict of interest in fact. 13 (c) No commission member or person employed by the 14 commission or bureau shall represent any person or party other 15 than the Commonwealth before or against the commission for a 16 period of two years from the termination of his office or 17 employment with the commission or bureau. 18 (d) No partnership, firm or corporation in which a former 19 commission member or employee or former bureau employee or agent 20 has an interest, nor any partner, officer or employee of any 21 such partnership, firm or corporation shall make any appearance 22 or representation which is prohibited to said former member, 23 employee, or agent. 24 Section 211. Applicant and licensee liability for violations. 25 (a) No applicant or person or organization licensed by or 26 registered with the commission shall employ or offer to employ, 27 or provide, transfer or sell, or offer to provide, transfer or 28 sell any interest, direct or indirect, in any person licensed by 29 or registered with the commission to any person restricted from 30 such transactions by the provisions of sections 208, 209 and 19790S0318B0322 - 25 -
1 210. 2 (b) The commission shall impose such sanctions upon an 3 applicant or a licensed or registered person for violations of 4 this section as authorized by this act. 5 Section 212. Enforcement. 6 (a) The Attorney General shall enforce the provisions of 7 sections 208, 209 and 210. 8 (b) Any person who violates the provisions of sections 208, 9 209 and 210 shall be guilty of a misdemeanor of the third 10 degree. 11 CHAPTER 3 12 POWERS AND DUTIES OF THE COMMONWEALTH 13 CASINO CONTROL COMMISSION 14 Section 301. General responsibilities of the commission. 15 The Commonwealth Casino Control Commission shall have general 16 responsibility for the implementation of this act, as 17 hereinafter provided, including, without limitation, the 18 responsibility: 19 (1) to hear and decide promptly and in reasonable order 20 all license, certificate, and permit applications and causes 21 affecting the granting, suspension, revocation, or renewal 22 thereof; 23 (2) to conduct all hearings pertaining to civil 24 violations of this act or regulations promulgated hereunder; 25 (3) to promulgate such regulations as in its judgment 26 may be necessary to fulfill the policies of this act; 27 (4) to collect all license fees and taxes imposed by 28 this act and the regulations issued pursuant hereto; 29 (5) to levy and collect penalties for the violation of 30 provisions of this act and the regulations promulgated 19790S0318B0322 - 26 -
1 hereunder; 2 (6) to be present through its inspectors and agents at 3 all times during the operation of any casino for the purpose 4 of certifying the revenue thereof, receiving complaints from 5 the public, and conducting such other investigations into the 6 conduct of the games and the maintenance of the equipment as 7 from time to time the commission may deem necessary and 8 proper; and 9 (7) to review and rule upon any complaint by a casino 10 licensee regarding any investigative procedures of the bureau 11 which are unnecessarily disruptive of casino operations. The 12 need to inspect and investigate shall be presumed at all 13 times. The disruption of a licensee's operations shall be 14 proved by clear and convincing evidence, and establish that: 15 (i) the procedures had no reasonable law enforcement 16 purpose; and 17 (ii) the procedures were so disruptive as to inhibit 18 unreasonable casino operations. 19 Section 302. Commission powers; denials and sanctions. 20 The commission shall assure that licenses, certificates, or 21 permits shall not be issued to nor held by, nor shall there be 22 any material involvement, directly or indirectly, with the 23 licensed casino operation or the ownership thereof by, 24 unqualified or disqualified persons or unsuitable persons, or 25 persons whose operations are conducted in a manner not 26 conforming with the provisions of this act. For the purposes of 27 this section, "unqualified person," "disqualified person," or 28 "unsuitable person" shall mean any person who is found by the 29 commission to be disqualified pursuant to the criteria set forth 30 hereinafter, or lack the financial responsibility and capability 19790S0318B0322 - 27 -
1 specified hereinafter. In enforcing the provisions of this act, 2 the commission shall have the power and authority to deny any 3 application; limit or restrict any certificate, permit or 4 approval; suspend or revoke any license, certificate, permit or 5 approval; and impose a penalty on any person licensed or 6 previously approved for any cause deemed reasonable by the 7 commission pursuant to rules and regulations promulgated 8 thereby, except that no such denial, limitation, suspension or 9 revocation shall be issued solely by reason of the fact that an 10 applicant or licensee holds an interest in or is associated with 11 any licensed casino enterprise in any other jurisdiction. 12 Section 303. Subpoenas and oaths. 13 The commission shall have the power and authority to issue 14 subpoenas and to compel the attendance of witnesses at any place 15 within this Commonwealth, to administer oaths and to require 16 testimony under oath. The commission may serve its process or 17 notices in a manner provided for the service of process and 18 notice in civil actions in accordance with law. The commission 19 shall have the authority to propound written interrogatories and 20 may appoint hearing examiners, to whom may be delegated the 21 power and authority to administer oaths, issue subpoenas, 22 propound written interrogatories, and require testimony under 23 oath. 24 Section 304. Investigative hearings. 25 The commission shall have the authority to conduct 26 investigative hearings concerning the conduct of gaming and 27 gaming operations as well as the development and well-being of 28 the industries controlled by this act. 29 Section 305. Testimonial immunity. 30 The commission may order any person to answer a question or 19790S0318B0322 - 28 -
1 questions or produce evidence of any kind and confer immunity as 2 provided in this section. If, in the course of any investigation 3 or hearing conducted under this act, a person refuses to answer 4 a question or produce evidence on the ground that he will be 5 exposed to criminal prosecution thereby, then in addition to any 6 other remedies or sanctions provided for by this act, the 7 commission may, by resolution of four of its members and after 8 the written approval of the Attorney General, issue an order to 9 answer or to produce evidence with immunity. 10 If, upon issuance of such an order, the person complies 11 therewith, he shall be immune from having such responsive answer 12 given by him or such responsive evidence produced by him, or 13 evidence derived therefrom, used to expose him to criminal 14 prosecution, except that such person may nevertheless be 15 prosecuted for any perjury committed in such answer or in 16 producing such evidence, or for contempt for failing to give an 17 answer or produce evidence in accordance with the order of the 18 commission; provided, however, that no period of incarceration 19 for contempt shall exceed 18 months in duration pursuant to this 20 section. Any such answer given or evidence produced shall be 21 admissible against him upon any criminal investigation, 22 proceeding or trial against him for such perjury; upon any 23 investigation, proceeding or trial against him for such 24 contempt; or in any manner consonant with State and 25 Constitutional provisions. 26 Section 306. Collection of fees, penalties or tax. 27 At any time within five years after any amount of fees, 28 interest, penalties or tax required to be collected pursuant to 29 the provisions of this act shall become due and payable, the 30 commission may bring a civil action in the courts of this 19790S0318B0322 - 29 -
1 Commonwealth or any other state or of the United States, in the 2 name of the Commonwealth of Pennsylvania, to collect the amount 3 delinquent, together with penalties and interest. An action may 4 be brought whether or not the person owing the amount is at such 5 time a licensee pursuant to the provisions of this act. If such 6 action is brought in this Commonwealth, a writ of attachment may 7 be issued and no bond or affidavit prior to the issuance thereof 8 shall be required. In all actions in this Commonwealth, the 9 records of the commission shall be prima facie evidence of the 10 determination of the tax or the amount of the delinquency. 11 Section 307. Regulations. 12 (a) The commission shall be authorized to adopt, amend, or 13 repeal such regulations, consistent with the policy and 14 objectives of this act, as it may deem necessary or desirable 15 for the public interest in carrying out the provisions of this 16 act. 17 (b) Such regulations shall be adopted, amended, and repealed 18 in accordance with law. 19 (c) Any interested person may file a petition with the 20 commission requesting the adoption, amendment or repeal of a 21 regulation. Such petition shall state clearly and concisely: 22 (1) the substance and nature of the regulation, 23 amendment or repeal requested; 24 (2) the reason for the request; and 25 (3) reference to the authority of the commission to take 26 the action requested. 27 Upon receipt of the petition, the commission shall schedule 28 the matter for hearing within 90 days and shall render a 29 decision within 30 days after the completion of said hearing. 30 Section 308. Required regulations. 19790S0318B0322 - 30 -
1 The commission shall, without limitation on the powers 2 conferred in the preceding section, include within its 3 regulations the following specific provisions in accordance with 4 the provisions of this act: 5 (1) prescribing the methods and forms of application 6 which any applicant shall follow and complete prior to 7 consideration of his application by the commission; 8 (2) prescribing the methods, procedures and form for 9 delivery of information concerning any person's family, 10 habits, character, associates, criminal record, business 11 activities and financial affairs; 12 (3) prescribing procedures for the fingerprinting of an 13 applicant, employee of a licensee, or registrant, or other 14 methods of identification which may be necessary in the 15 judgment of the commission to accomplish effective 16 enforcement of restrictions on access to the casino floor and 17 other restricted areas of the casino hotel complex; 18 (4) prescribing the manner and procedure of all hearings 19 conducted by the commission or any hearing examiner, 20 including special rules of evidence applicable thereto and 21 notices thereof; 22 (5) prescribing the manner and method of collection of 23 payments of taxes, fees, and penalties; 24 (6) defining and limiting the areas of operation, the 25 rules of authorized games, odds, and devices permitted, and 26 the method of operation of such games and devices; 27 (7) regulating the practice and procedures for 28 negotiable transactions involving patrons, including 29 limitations on the circumstances and amounts of such 30 transactions, and the establishment of forms and procedures 19790S0318B0322 - 31 -
1 for negotiable instrument transactions, redemptions, and 2 consolidations; 3 (8) prescribing grounds and procedures for the 4 revocation or suspension of operation certificates and 5 licenses; 6 (9) governing the manufacture, distribution, sale and 7 servicing of gaming devices and equipment; 8 (10) prescribing the procedures, forms and methods of 9 management controls, including employee and supervisory 10 tables of organization and responsibility, and minimum 11 security standards, including security personnel structure, 12 alarm and other electrical or visual security measures; 13 (11) prescribing the qualifications of, and the 14 conditions pursuant to which, engineers, accountants, and 15 others shall be permitted to practice before the commission 16 or to submit materials on behalf of any applicant or 17 licensee; provided, however, that no member of the General 18 Assembly, nor any firm with which said member is associated, 19 shall be permitted to appear or practice or act in any 20 capacity whatsoever before the commission or bureau regarding 21 any matter whatsoever, nor shall any member of the family of 22 the Governor or of a member of the General Assembly be 23 permitted to so practice or appear in any capacity whatsoever 24 before the commission or bureau regarding any matter 25 whatsoever; 26 (12) prescribing minimum procedures for the exercise of 27 effective control over the internal fiscal affairs of a 28 licensee, including provisions for the safeguarding of assets 29 and revenues, the recording of cash and evidence of 30 indebtedness, and the maintenance of reliable records, 19790S0318B0322 - 32 -
1 accounts, and reports of transactions, operations and events, 2 including reports to the commission; 3 (13) providing for a minimum uniform standard of 4 accountancy methods, procedures and forms; a uniform code of 5 accounts and accounting classifications; and other standard 6 operating procedures, as may be necessary to assure 7 consistency, comparability, and effective disclosure of all 8 financial information, including calculations of percentages 9 of profit by game, table, gaming device and slot machines; 10 (14) requiring periodic financial reports and the form 11 thereof, including an annual audit prepared by a certified 12 public accountant licensed to do business in this 13 Commonwealth attesting to the financial condition of a 14 licensee and disclosing whether the accounts, records and 15 control procedures examined are maintained by the licensee as 16 required by this act and the regulations promulgated 17 hereunder; 18 (15) governing the advertising of casino licensees, 19 their employees and agents, with the view toward assuring 20 that gaming is portrayed as an activity for adults conducted 21 in an atmosphere of social graciousness, and that such 22 advertisements are in no way deceptive; provided, however, 23 that such regulations shall not prohibit the advertisement of 24 casino location, hours of operation, or types of games and 25 other amenities offered, but in no circumstance shall permit 26 the advertisement of information about odds, the number of 27 games, or the size of the casino; and provided further, 28 however, that such regulations shall require the words "Bet 29 with your head, not over it" to appear on all billboards, 30 signs, and other on-sight advertising of a casino operation; 19790S0318B0322 - 33 -
1 (16) governing entertainment presented by casino 2 licensees in accordance with the prevailing community 3 standards as determined by the commission; 4 (17) concerning the distribution and consumption of 5 alcoholic beverages on the premises of the licensee, which 6 regulations shall be insofar as possible consistent with the 7 act of April 12, 1951 (P.L.90, No.21), known as the "Liquor 8 Code," as amended, and shall deviate only insofar as 9 necessary because of the unique character of the hotel casino 10 premises and operations; and 11 (18) limiting signs and other on-sight advertising, with 12 a view toward minimizing solicitation for gaming purposes 13 from the public thoroughfares or otherwise dominating or 14 despoiling the architecture or environment. 15 Section 309. Regulation requiring exclusion of certain persons. 16 (a) The commission shall, by regulation, provide for the 17 establishment of a list of persons who are to be excluded or 18 ejected from any licensed casino establishment. Such provisions 19 shall define the standards for exclusion, and shall include 20 standards relating to persons: 21 (1) who are career or professional offenders as defined 22 by regulation of the commission; 23 (2) who have been convicted of a criminal offense under 24 the laws of this Commonwealth or of the United States, which 25 is punishable by more than six months in prison, or any crime 26 or offense involving moral turpitude; or 27 (3) whose presence in a licensed casino would, in the 28 opinion of the commission, be inimical to the interest of the 29 Commonwealth of Pennsylvania or of licensed gaming therein, 30 or both. 19790S0318B0322 - 34 -
1 The commission shall promulgate definitions establishing 2 those categories of persons who shall be excluded pursuant to 3 this section, including cheats and persons whose privileges for 4 licensure have been revoked. 5 (b) Race, color, creed, national origin or ancestry, or sex 6 shall not be a reason for placing the name of any person upon 7 such list. 8 (c) The commission may impose sanctions upon a licensed 9 casino or individual licensee in accordance with the provisions 10 of this act if such casino or individual licensee knowingly 11 fails to exclude or eject from the premises of any licensed 12 casino any person placed by the commission on the list of 13 persons to be excluded or ejected. 14 (d) Any list compiled by the commission of persons to be 15 excluded or ejected shall not be deemed an all inclusive list, 16 and licensed casino establishments shall have a duty to keep 17 from their premises persons known to them to be within the 18 classifications declared in subsection (a) and the regulations 19 promulgated thereunder. 20 (e) Whenever the name or description of any person is placed 21 on a list pursuant to this section, the commission shall serve 22 notice of such fact to such person by personal service, by 23 certified mail at the last known address of such person, or by 24 publication daily for one week in a newspaper of general 25 circulation in the county wherein the last known address is 26 situate. 27 (f) Within 30 days after service by mail or in person or 60 28 days from the time of last publication, as the case may be, the 29 person named for exclusion or ejection may demand a hearing 30 before the commission and show cause why he should have his name 19790S0318B0322 - 35 -
1 removed from such list. Failure to demand such a hearing within 2 the time allotted in this section shall preclude a person from 3 having an administrative hearing, but shall in no way affect his 4 right to judicial review as provided herein. 5 (g) Upon receipt of a demand for a hearing, the commission 6 shall set a time and place for such hearing. Unless otherwise 7 agreed by the commission and the named person, such hearing 8 shall not be later than 30 days after the receipt of a demand 9 for such hearing. 10 (h) If, upon completion of the hearing, the commission 11 determines that the regulation does not or should not apply to 12 the person so listed, the commission shall notify all casino 13 licensees of such determination. 14 (i) If, upon completion of a hearing, the commission 15 determines that the placement of the name of the person on the 16 exclusionary list was appropriate, the commission shall make and 17 enter an order to that effect. Such order shall be subject to 18 review by the Superior Court in accordance with law. 19 Section 310. Commission reports and recommendations. 20 The commission shall carry on a continuous study of the 21 operation and administration of casino control laws which may be 22 in effect in other jurisdictions, literature on this subject 23 which may from time to time become available, Federal laws which 24 may affect the operation of casino gaming in this State, and the 25 reaction of Pennsylvania citizens to existing and potential 26 features of casino gaming under this act. It shall be 27 responsible for ascertaining any defects in this act or in the 28 rules and regulations issued thereunder, formulating 29 recommendations for changes in this act to prevent abuses 30 thereof, guarding against the use of this act as a cloak for the 19790S0318B0322 - 36 -
1 carrying on of illegal gambling or other criminal activities, 2 and insuring that this act and the rules and regulations shall 3 be in such form and be so administered as to serve the true 4 purposes of this act. The commission shall make to the Governor 5 and the General Assembly an annual report of all revenues, 6 expenses and disbursements, and shall include therein such 7 recommendations for changes in this act as the commission deems 8 necessary or desirable. The commission shall report immediately 9 to the Governor and the General Assembly any matters which in 10 its judgment require immediate changes in the laws of this 11 Commonwealth in order to prevent abuses and evasions of this act 12 or of rules and regulations promulgated hereunder, or to rectify 13 undesirable conditions in connection with the operation and 14 regulation of casino gaming. 15 Section 311. Meetings; quorum. 16 (a) Meetings of the commission will be held at the 17 discretion of the chairman at such times and places as he may 18 deem necessary and convenient, or at the call of three members 19 of the commission. 20 (b) The commission shall in all respects comply with the 21 provisions of the act of July 19, 1974 (P.L.486, No.175), 22 referred to as the Public Agency Open Meeting Law. 23 (c) A majority of the full commission shall determine any 24 action of the commission, except that no casino license may be 25 issued without the approval of four members. In the event that a 26 vacancy has existed on the commission for more than 60 days, a 27 majority of the full commission may act with respect to any 28 matter, including the issuance of a casino license. 29 Section 312. Minutes and records. 30 (a) The commission shall cause to be made and kept a 19790S0318B0322 - 37 -
1 verbatim record of all proceedings held at public meetings of 2 the commission, which record shall be open to public inspection. 3 A true copy of the minutes of every meeting of the commission 4 and of any regulations finally adopted by the commission shall 5 be forthwith delivered, by and under the certification of the 6 executive secretary, to the Governor, the Clerk of the Senate, 7 and the Clerk of the House of Representatives. 8 (b) The commission shall keep and maintain a list of all 9 applicants for licenses under this act together with a record of 10 all actions taken with respect to such applicants, which file 11 and record shall be open to public inspection; provided, 12 however, that the foregoing information regarding any applicant 13 whose license has been denied, revoked, or not renewed shall be 14 removed from such list after five years from the date of such 15 action. 16 (c) The commission shall maintain such other files and 17 records as may be deemed desirable. 18 (d) Except as provided in subsection (h), all information 19 and data required by the commission to be furnished hereunder, 20 or which may otherwise be obtained, relative to the internal 21 controls specified in this act or to the earnings or revenue of 22 any applicant or licensee shall be considered to be confidential 23 and shall not be revealed in whole or in part except in the 24 course of the necessary administration of this act, or upon the 25 lawful order of a court of competent jurisdiction, or, with the 26 approval of the Attorney General, to a duly authorized law 27 enforcement agency. 28 (e) All information and data pertaining to an applicant's 29 criminal record, family, and background furnished to or obtained 30 by the commission from any source shall be considered 19790S0318B0322 - 38 -
1 confidential and may be withheld in whole or in part, except 2 that any information shall be released upon the lawful order of 3 a court of competent jurisdiction or, with the approval of the 4 Attorney General, to a duly authorized law enforcement agency. 5 (f) Notice of the contents of any information or data 6 released, except to a duly authorized law enforcement agency 7 pursuant to subsections (d) or (e), may be given to any 8 applicant or licensee in a manner prescribed by the rules and 9 regulations adopted by the commission. 10 (g) Files, records, reports and other information in the 11 possession of the Commonwealth's bureaus or agencies pertaining 12 to licensees shall be made available to the commission and the 13 bureau as may be necessary to the effective administration of 14 this act. 15 (h) The following information to be reported periodically to 16 the commission shall not be considered confidential and shall be 17 made available for public inspection: 18 (1) A licensee's operating revenues and expenses from 19 all authorized games as herein defined. 20 (2) The dollar amounts of patron checks initially 21 accepted by a licensee, the dollar amount of patron checks 22 deposited to the licensee's bank account, the dollar amount 23 of such checks initially dishonored by the bank and returned 24 to the licensee "as uncollected," and the dollar amount 25 ultimately uncollected after all reasonable efforts. 26 (3) The amount of gross revenue tax actually paid and 27 the amount of investment, if any, required and allowed, 28 pursuant to the provisions of this act. 29 (4) A list of the premises and the nature of 30 improvements, costs thereof and the payees for all such 19790S0318B0322 - 39 -
1 improvements, which were the subject of an investment 2 required and allowed pursuant to the provisions of this act. 3 (5) The amount, if any, of tax in lieu of full local 4 real property tax paid pursuant to the provisions of this act 5 and the amount of profits, if any, recaptured pursuant to the 6 provisions of this act. 7 (6) A list of the premises, nature of improvements and 8 costs thereof which constitute the cumulative investments by 9 which a licensee has recaptured profits pursuant to the 10 provisions of this act. 11 (7) All information and data submitted to the commission 12 relating to the licensee's annual revenues and expenditures, 13 including annual audits. 14 Nothing in this subsection shall be construed to limit access 15 by the public to those forms and documents required to be filed 16 pursuant to the provisions of this act. 17 Section 313. Powers not enumerated. 18 The commission may exercise any proper power or authority 19 necessary to perform the duties assigned to it by law, and no 20 specific enumeration of powers in this act shall be read to 21 limit the authority of the commission to administer this act. 22 CHAPTER 4 23 POWERS AND DUTIES OF THE BUREAU OF GAMING ENFORCEMENT 24 Section 401. General duties and powers. 25 (a) The Bureau of Gaming Enforcement shall promptly and in 26 reasonable order investigate all applications, enforce the 27 provisions of this act and any regulations promulgated 28 hereunder, and prosecute before the commission all proceedings 29 for violations of this act or any regulations promulgated 30 hereunder. The bureau shall provide the commission with all 19790S0318B0322 - 40 -
1 information necessary for all action under Chapter 5 of this act 2 and for all proceedings involving enforcement of the regulations 3 of this act or any regulations promulgated hereunder. 4 (b) The bureau shall: 5 (1) investigate the qualifications of each applicant 6 before any license, certificate or permit is issued pursuant 7 to the provisions of this act; 8 (2) investigate the circumstances surrounding any act or 9 transaction for which commission approval is required; 10 (3) investigate violations of this act and regulations 11 promulgated hereunder; 12 (4) initiate, prosecute and defend such proceedings 13 before the commission, or appeals therefrom, as the bureau 14 may deem appropriate; 15 (5) provide assistance upon request by the commission in 16 the consideration and promulgation of rules and regulations; 17 (6) conduct continuing reviews of casino operations 18 through on-site observation and other reasonable means to 19 assure compliance with this act and regulations promulgated 20 hereunder; 21 (7) conduct audits of casino operations, including 22 reviews of accounting, administrative and financial records, 23 and management control systems, procedures and records 24 utilized by a casino licensee; and 25 (8) be entitled to request information, materials and 26 any other data from any licensee or registrant, or applicant 27 for a license or registration under this act. 28 Section 402. Prosecution. 29 The bureau shall prosecute all criminal violations of this 30 act except those it may refer to the Attorney General. The 19790S0318B0322 - 41 -
1 bureau and its employees and agents shall have such other law 2 enforcement powers as may be delegated to it by the Attorney 3 General to effectuate the purposes of this act. 4 Section 403. Cooperation by licensee or registrant. 5 Each licensee or registrant, or applicant for a license or 6 registration under this act shall cooperate with the bureau in 7 the performance of its duties. 8 Section 404. Inspection, seizure and warrants. 9 (a) The bureau and its employees and agents, upon approval 10 of the director, shall have the authority, without notice and 11 without warrant: 12 (1) to inspect and examine all premises wherein casino 13 gaming is conducted; or gaming devices or equipment are 14 manufactured, sold, distributed, or serviced; or wherein any 15 records of such activities are prepared or maintained; 16 (2) to inspect all equipment and supplies, in, about, 17 upon or around such premises; 18 (3) to seize summarily and remove from such premises and 19 impound any such equipment or supplies for the purposes of 20 examination and inspection; 21 (4) to inspect, examine and audit all books, records, 22 and documents pertaining to a casino licensee's operation; 23 (5) to seize, impound or assume physical control of any 24 book, record, ledger, game, device, cash box and its 25 contents, counting room or its equipment, or casino 26 operations; and 27 (6) to inspect the person and personal effects present 28 in a casino facility licensed under this act, of any holder 29 of a license issued pursuant to this act while that person is 30 present in a licensed casino facility. 19790S0318B0322 - 42 -
1 (b) The provisions of subsection (a) shall in no way be 2 deemed to limit warrantless inspections except in accordance 3 with constitutional requirements. 4 (c) To effectuate further the purposes of this act, the 5 bureau and its employees and agents may obtain administrative 6 warrants for the inspection and seizure of any property 7 possessed, controlled, bailed or otherwise held by any 8 applicant, licensee, registrant, intermediary company, or 9 holding company. 10 (d) Issuance and execution of warrants for administrative 11 inspection shall be in accordance with the following: 12 (1) Any district justice having jurisdiction in the 13 magisterial district where the inspection or seizure is to be 14 conducted may, upon proper oath or affirmation showing 15 probable cause, issue warrants for the purpose of conducting 16 administrative inspections authorized by this act or 17 regulations thereunder and seizures of property appropriate 18 to such inspections. For the purposes of this section, 19 "probable cause" means a valid public interest in the 20 effective enforcement of the act or regulations sufficient to 21 justify administrative inspection of the area, premises, 22 building or conveyance in the circumstances specified in the 23 application for the warrant. 24 (2) A warrant shall issue only upon an affidavit of a 25 person duly designated and having knowledge of the facts 26 alleged, sworn to before the district justice and 27 establishing the grounds for issuing the warrant. If the 28 district justice is satisfied that grounds for the 29 application exist or that there is probable cause to believe 30 they exist, he shall issue a warrant identifying the area, 19790S0318B0322 - 43 -
1 premises, building, or conveyance to be inspected; the 2 purpose of such inspection; and, where appropriate, the type 3 of property to be inspected, if any. The warrant shall 4 identify the item or types of property to be seized, if any. 5 The warrant shall be directed to a person authorized to 6 execute it. The warrant shall state the grounds for its 7 issuance and the name of the person or persons whose 8 affidavit has been taken in support thereof. It shall command 9 the person to whom it is directed to inspect the area, 10 premises, building, or conveyance identified for the purpose 11 specified, and where appropriate, shall direct the seizure of 12 the property specified. The warrant shall direct that it be 13 served during normal business hours of the licensee. It shall 14 designate the district justice to whom it shall be returned. 15 (3) A warrant issued pursuant to this section must be 16 executed and returned within ten days of its date. If 17 property is seized pursuant to a warrant, the person 18 executing the warrant shall give to the person from whom or 19 from whose premises the property was taken a copy of the 20 warrant and a receipt for the property taken or shall leave 21 the copy and receipt at the place from which the property was 22 taken. The return of the warrant shall be made promptly and 23 shall be accompanied by a written inventory of any property 24 taken. The inventory shall be made in the presence of the 25 person executing the warrant and of the person from whose 26 possession or premises the property was taken, if they are 27 present, or in the presence of at least one credible person 28 other than the person executing the warrant. The district 29 justice, upon request, shall deliver a copy of the inventory 30 to the person from whom or from whose premises the property 19790S0318B0322 - 44 -
1 was taken and to the applicant for the warrant. 2 (4) The district justice who has issued a warrant under 3 this section shall attach to the warrant a copy of the return 4 and all papers filed in connection therewith and shall cause 5 them to be filed with the appropriate court of common pleas. 6 (e) The bureau is authorized to make administrative 7 inspections to check for compliance by any applicant, licensee, 8 registrant, intermediary company or holding company with the 9 provisions of this act or regulations promulgated thereunder, 10 and to investigate any violations thereof. 11 (f) This section shall not be construed to prevent entries 12 and administrative inspections, including seizures of property, 13 without a warrant: 14 (1) with the consent of the owner, operator or agent in 15 charge of the controlled premises; 16 (2) in situations presenting imminent danger to health 17 or safety; 18 (3) in situations involving inspection of conveyances 19 where there is reasonable cause to believe that the mobility 20 of the conveyance makes it impracticable to obtain a warrant 21 or in any other exceptional or emergency circumstance where 22 time or opportunity to apply for a warrant is lacking; 23 (4) in accordance with the provisions of this act; or 24 (5) in all other situations where a warrant is not 25 constitutionally required. 26 CHAPTER 5 27 LICENSING 28 Section 501. General provisions. 29 (a) It shall be the affirmative responsibility of each 30 applicant and licensee to establish by clear and convincing 19790S0318B0322 - 45 -
1 evidence his individual qualifications, and for a casino license 2 the qualifications of each person who is required to be 3 qualified under this act as well as the qualifications of the 4 facility in which the casino is to be located. 5 (b) Any applicant, licensee or any other person who must be 6 qualified pursuant to this act shall provide all information 7 required by this act and satisfy all requests for information 8 pertaining to qualification and in the form specified by the 9 commission. All applicants and licensees shall waive liability 10 as to the Commonwealth, and its instrumentalities and agents, 11 for any damages resulting from lawful or unintentional 12 disclosure or publication in any manner of any material or 13 information acquired during inquiries, investigations or 14 hearings. 15 (c) All applicants, licensees, registrants, intermediary 16 companies, and holding companies shall consent to inspections, 17 searches and seizures and the supplying of handwriting exemplars 18 as authorized by this act and regulations promulgated hereunder. 19 (d) All applicants, licensees, registrants, and any other 20 person who shall be qualified pursuant to this act shall have 21 the continuing duty to provide any assistance or information 22 required by the commission or division, and to cooperate in any 23 inquiry or investigation conducted by the bureau and any 24 inquiry, investigation, or hearing conducted by the commission. 25 If, upon issuance of a formal request to answer or produce 26 information, evidence or testimony, any applicant, licensee, 27 registrant, or any other person who shall be qualified pursuant 28 to this act refuses to comply, the application, license, 29 registration or qualification of such person may be denied or 30 revoked by the commission. 19790S0318B0322 - 46 -
1 (e) No applicant or licensee shall give or provide, offer to 2 give or provide, directly or indirectly, any compensation or 3 reward or any percentage or share of the money or property 4 played or received through gaming activities, except as 5 authorized by this act, in consideration for obtaining any 6 license, authorization, permission or privilege to participate 7 in any way in gaming operations. 8 (f) Each applicant or person who must be qualified under 9 this act shall be photographed and fingerprinted for 10 identification and investigation purposes in accordance with 11 procedures established by the commission. 12 Section 502. Statement of compliance. 13 (a) The commission may issue a statement of compliance to an 14 applicant for any license under this act at any time the 15 commission is satisfied that one or more particular eligibility 16 criteria have been satisfied by an applicant. 17 (b) Such statement shall specify the eligibility criterion 18 satisfied, the date of such satisfaction and a reservation to 19 the commission to revoke the statement of compliance at any time 20 based upon a change of circumstances affecting such compliance. 21 (c) A statement of compliance certifying satisfaction of all 22 of the requirements of this act with respect to a specific 23 casino hotel proposal submitted by an eligible applicant may be 24 accompanied by a written commitment from the commission that a 25 casino license shall be reserved for a period not to exceed 18 26 months and shall be issued to such eligible applicant with 27 respect to such proposal provided that such applicant: 28 (1) complies in all respects with the provisions of this 29 act; 30 (2) qualifies for a casino license within a period not 19790S0318B0322 - 47 -
1 to exceed 18 months of the date of such commitment; and 2 (3) complies with such other conditions as the 3 commission shall impose. 4 The commission may revoke such reservation at any time it finds 5 that the applicant is disqualified from receiving or holding a 6 casino license or has failed to comply with any conditions 7 imposed by the commission. Such reservation shall be 8 automatically revoked if the applicant does not qualify for a 9 casino license within the period of such commitment. 10 Section 503. Casino license; applicant eligibility. 11 (a) No casino shall operate unless all necessary licenses 12 and approvals therefor have been obtained in accordance with 13 law. 14 (b) Any person shall be eligible to apply for a casino 15 license if he agrees to comply in all respects with this act and 16 the regulations promulgated hereunder and if he: 17 (1) owns 100% of an approved hotel as herein defined; 18 (2) leases 100% of an approved hotel in accordance with 19 the provisions of this act; 20 (3) owns or has a contract to purchase or construct a 21 hotel, or leases or has an agreement to lease in accordance 22 with the provisions of this act 100% of a hotel, which, in 23 the judgment of the commission, can become an approved hotel 24 within 18 months; or 25 (4) has a written agreement with a casino licensee or 26 with an eligible applicant for a casino license, for the 27 complete management of a casino in accordance with the 28 provisions of this act, and owns 100% of or controls any 29 approved hotel, including the approved hotel which is the 30 subject of the management agreement. For purposes of this 19790S0318B0322 - 48 -
1 subsection, control of an approved hotel shall mean the 2 ownership of at least 10% of all outstanding equity 3 securities of a casino licensee or of an eligible applicant 4 for a casino license, and the sole and unrestricted power to 5 direct the operations of such casino licensee or eligible 6 applicant. 7 (c) No casino license shall be issued to any person leasing 8 a hotel pursuant to the provisions of this act unless a separate 9 casino license has first been issued to the owner of the casino 10 hotel facility which is the subject of such lease. 11 (d) No corporation shall be eligible to apply for a casino 12 license unless the corporation shall: 13 (1) be incorporated in the Commonwealth of Pennsylvania, 14 although such corporation may be a wholly or partially owned 15 subsidiary of a corporation which is chartered in another 16 state of the United States; 17 (2) maintain an office of the corporation in the 18 premises licensed or to be licensed; 19 (3) comply with all the requirements of the laws of the 20 Commonwealth of Pennsylvania pertaining to corporations; 21 (4) maintain a ledger in the principal office of the 22 corporation in the Commonwealth which shall at all times 23 reflect the current ownership of every class of security 24 issued by the corporation and shall be available for 25 inspection by the commission or the bureau and authorized 26 agents of the commission and the bureau at all reasonable 27 times without notice; 28 (5) maintain all operating accounts required by the 29 commission in a bank in the Commonwealth; 30 (6) include among the purposes stated in its articles of 19790S0318B0322 - 49 -
1 incorporation the conduct of casino gaming; 2 (7) if it is not a publicly traded corporation, file 3 with the commission such adopted corporate charter or bylaws 4 provisions as may be necessary to establish the right of the 5 commission to approve future transfers of corporate 6 securities, shares, and other interests in the applicant 7 corporation and in any holding company, intermediary company, 8 or subsidiary thereof; and, if it is a publicly traded 9 corporation, said corporation shall provide in its corporate 10 charter or bylaws that any securities of such corporation are 11 held subject to the condition that if a holder thereof is 12 found to be disqualified by the commission pursuant to the 13 provisions of this act, such holder shall dispose of his 14 security interest in the corporation; provided, however, that 15 nothing herein shall be deemed to require that any security 16 of such corporation bear any legend to this effect; and 17 (8) if it is not a publicly traded corporation, 18 established to the satisfaction of the commission that 19 appropriate charter or bylaws provisions create the absolute 20 right of such corporations and companies to repurchase at the 21 market price or the purchase price, whichever is the lesser, 22 any security, share or other interest in the corporation in 23 the event that the commission disapproves a transfer in 24 accordance with the provisions of this act. 25 (e) No person shall be issued or be the holder of more than 26 three casino licenses. For the purpose of this subsection a 27 person shall be considered the holder of a casino license if 28 such license is issued to such person or if such license is held 29 by any holding, intermediary or subsidiary company thereof, or 30 by any officer, director, casino key employee or principal 19790S0318B0322 - 50 -
1 employee of such person, or of any holding, intermediary or 2 subsidiary company thereof. 3 Section 504. Approved hotel. 4 An approved hotel for purposes of this act shall be a hotel 5 providing facilities in accordance with this section. Nothing in 6 this section shall be construed to limit the authority of the 7 commission to determine the suitability of facilities as 8 provided in this act, and nothing in this section shall be 9 construed to require a casino to be larger than the minimum size 10 or smaller than the maximum size herein provided. An approved 11 hotel shall, in accordance with the following table: 12 (1) contain the minimum number of sleeping units as 13 hereinbefore defined; 14 (2) contain the minimum amount of meeting and exhibition 15 space, consisting of indoor public space available and of the 16 sort regularly used for conventions, exhibits, meetings, 17 banquets and similar functions, but not including space 18 regularly used as restaurants, lobbies, lounges, bars, show 19 theaters, sports facilities, casinos, or parking areas; 20 (3) contain the minimum amount of indoor space used for 21 dining, entertainment, and sports facilities, including 22 restaurants, bars, lounges, show theaters, shops, dance 23 halls, and swimming facilities but excluding lobbies, 24 casinos, parking areas and tennis facilities. For purposes of 25 this subsection, only the actual swimming pool and a 25-foot 26 area on all sides thereof shall be eligible for inclusion in 27 the allowable indoor sports space; and 28 (4) contain a casino room as hereinbefore defined, in 29 accordance with the relative size of room, meeting and 30 exhibition, and indoor dining, entertainment and sports space 19790S0318B0322 - 51 -
1 as provided in the following chart, but, except as 2 hereinafter provided, in no event may a casino room exceed 3 the maximum square footage stated: 4 Meeting Dining, entertainment 5 space and indoor sports Casino space 6 No. of rooms Sq. Ft. Sq. Ft. Sq. Ft. 7 Minimum Minimum Maximum 8 100 2,000 4,000 4,000 9 150 2,500 5,000 5,000 10 200 3,000 6,000 6,000 11 250 3,500 7,000 7,000 12 300 4,000 8,000 8,000 13 350 4,500 9,000 9,000 14 400 5,000 10,000 10,000 15 If a licensed facility shall provide more meeting space and 16 dining, entertainment, and indoor sports space than is required 17 by subsection (d), the maximum allowable casino space may be 18 increased by a figure representing one-half of the amount of 19 such excess meeting space and excess dining and kitchen support 20 facilities, entertainment, and indoor sports space; provided, 21 however, that at least 25% of the total of such excess space 22 shall be either meeting space or dining and kitchen support 23 facilities, entertainment, and indoor sports space; and provided 24 further, however, that the total of the increased allowable 25 casino space shall not exceed a figure representing the original 26 maximum casino size. 27 Section 505. Casino license; applicant requirements. 28 Any applicant for a casino license must produce information, 29 documentation and assurances concerning the following 30 qualification criteria: 19790S0318B0322 - 52 -
1 (1) Each applicant shall produce such information, 2 documentation and assurances concerning financial background 3 and resources as may be required to establish by clear and 4 convincing evidence the financial stability, integrity and 5 responsibility of the applicant, including but not limited to 6 bank references, business and personal income and 7 disbursement schedules, tax returns and other reports filed 8 with governmental agencies, and business and personal 9 accounting and check records and ledgers. In addition, each 10 applicant shall, in writing, authorize the examination of all 11 bank accounts and records as may be deemed necessary by the 12 commission or the division. 13 (2) Each applicant shall produce such information, 14 assurances as may be necessary to establish by clear and 15 convincing evidence the integrity and reputation of all 16 financial backers, investors, mortgagees, bond holders, and 17 holders of indentures, notes or other evidences of 18 indebtedness, either in effect or proposed, which bears any 19 relation to the casino proposal submitted by the applicant or 20 applicants. The reputation and integrity of financial sources 21 shall be judged upon the same standards as the applicant. In 22 addition, the applicant shall produce whatever information, 23 documentation or assurance may be required to establish by 24 clear and convincing evidence the adequacy of financial 25 resources both as to the completion of the casino proposal 26 and the operation of the casino. 27 (3) Each applicant shall produce such information, 28 documentation and assurances of good character as may be 29 required to establish by clear and convincing evidence the 30 applicant's good reputation for honesty and integrity. Such 19790S0318B0322 - 53 -
1 information shall include, without limitation, information 2 pertaining to family, habits, character, criminal and arrest 3 record, business activities, financial affairs, and business, 4 professional and personal associates, covering at least the 5 ten-year period immediately preceding the filing of the 6 application. Each applicant shall notify the commission of 7 any civil judgments obtained against any such applicant 8 pertaining to antitrust or security regulation laws of the 9 Federal Government, of this Commonwealth or of any other 10 state, jurisdiction, province or country. In addition, each 11 applicant shall produce letters of reference from law 12 enforcement agencies having jurisdiction in the applicant's 13 place of residence and principal place of business, which 14 letters of reference shall indicate that such law enforcement 15 agencies do not have any pertinent information concerning the 16 applicant, or if such law enforcement agency does have 17 information pertaining to the applicant, shall specify what 18 that information is. If the applicant has conducted gaming 19 operations in a jurisdiction which permits such activity, the 20 applicant shall produce letters of reference from the gaming 21 or casino enforcement or control agency which shall specify 22 the experiences of such agency with the applicant, his 23 associates, and his gaming operation; provided, however, that 24 if no such letters are received within 60 days of request 25 therefor, the applicant may submit a statement under oath 26 that he is or was during the period such activities were 27 conducted in good standing with such gaming or casino 28 enforcement or control agency. 29 (4) Each applicant shall produce such information, 30 documentation and assurances as may be required to establish 19790S0318B0322 - 54 -
1 by clear and convincing evidence that the applicant has 2 sufficient business ability and casino experience as to 3 establish the likelihood of creation and maintenance of a 4 successful, efficient casino operation. The applicant shall 5 produce the names of all proposed casino key employees as 6 they become known and a description of their respective or 7 proposed responsibilities, and a full description of security 8 systems and management controls proposed for the casino and 9 related facilities. 10 (5) Each applicant shall produce such information, 11 documentation and assurances to establish to the satisfaction 12 of the commission the suitability of the casino and related 13 facilities and its proposed location, and that the proposal 14 will not adversely affect casino operations or overall 15 environmental conditions. A market impact study which 16 analyzes the adequacy of the patron market and the effect of 17 the proposal on such market and on the existing casino 18 facilities licensed under this act shall be submitted by each 19 applicant. An analysis of the effect of the proposal on the 20 overall environment, including, without limitation, economic, 21 social, demographic and competitive conditions shall also be 22 submitted by each applicant. 23 Section 506. Additional requirements. 24 (a) In addition to other information required by this act, a 25 corporation applying for a casino license shall provide the 26 following information: 27 (1) the organization, financial structure and nature of 28 all businesses operated by the corporation and its holding, 29 intermediary and subsidiary companies, including names and 30 personal employment and criminal histories of all officers, 19790S0318B0322 - 55 -
1 directors and principal employees of all such corporations 2 and companies; 3 (2) the rights and privileges acquired by the holders of 4 different classes of authorized securities of all such 5 corporations and companies, including the names, addresses 6 and amounts held by all holders of such securities; 7 (3) the terms upon which securities have been or are to 8 be offered; 9 (4) the terms and conditions of all outstanding loans, 10 mortgages, trust deeds, pledges or any other indebtedness or 11 security devices utilized by the corporation; 12 (5) the extent of the equity security holding in the 13 corporation of all officers, directors and underwriters, and 14 their remuneration in the form of salary, wages, fees or 15 otherwise; 16 (6) names of persons other than directors and officers 17 whose compensation exceeds $25,000 per annum, and amounts 18 thereof; 19 (7) a description of all bonus and profit sharing 20 arrangements; 21 (8) copies of all management and service contracts; and 22 (9) a listing of stock options existing or to be 23 created. 24 (b) If a corporation applying for a casino license is, or if 25 a corporation holding a casino license is to become, a 26 subsidiary, each holding company and each intermediary company 27 with respect thereto must, as a condition of acquiring or 28 retaining such license, as the case may be: 29 (1) qualify to do business in the Commonwealth of 30 Pennsylvania; and 19790S0318B0322 - 56 -
1 (2) if it is a corporation, register with the commission 2 and furnish the commission with all the information required 3 of a corporate licensee as specified in subsection (a); or 4 (3) if it is not a corporation, register with the 5 commission and furnish the commission with such information 6 as the commission may prescribe. The commission may, in its 7 discretion, make such investigations concerning the officers, 8 directors, underwriters, security holders, partners, 9 principals, trustees or persons owning or beneficially 10 holding any interest in any holding company or intermediary 11 company as it deems necessary, either at the time of initial 12 registration or at any time thereafter. 13 (c) Any noncorporate applicant for a casino license shall 14 provide the information required in subsection (a) in such form 15 as may be required by the commission or the division. No such 16 applicant shall be eligible to hold a casino license unless each 17 person who directly or indirectly holds any beneficial interest 18 or ownership in the applicant, or who in the opinion of the 19 commission has the ability to control the applicant, or whom the 20 commission may consider appropriate for approval or 21 qualification, would, but for residence, individually be 22 qualified for approval as a casino key employee pursuant to the 23 provisions of this act. 24 Section 507. Casino license; disqualification criteria. 25 The commission shall deny a casino license to any applicant 26 who is disqualified on the basis of any of the following 27 criteria: 28 (1) Failure of the applicant to prove by clear and 29 convincing evidence that the applicant is qualified in 30 accordance with the provisions of this act. 19790S0318B0322 - 57 -
1 (2) Failure of the applicant to provide information, 2 documentation and assurances required by the act or requested 3 by the commission, or failure of the applicant to reveal any 4 fact material to qualification, or the supplying of 5 information which is untrue or misleading as to a material 6 fact pertaining to the qualification criteria. 7 (3) The conviction of the applicant or of any person 8 required to be qualified under this act as a condition of any 9 offense in any jurisdiction which would be under Pennsylvania 10 law at the time of application a capital offense, a felony, a 11 misdemeanor involving moral turpitude or any other offense 12 which indicates that licensure of the applicant would be 13 inimical to the policy of this act and to casino operations. 14 (4) Current prosecution or pending charges in any 15 jurisdiction of the applicant or of any person who is 16 required to be qualified under this act as a condition of a 17 casino license, for any of the offenses enumerated in 18 subsection (c); provided, however, that at the request of the 19 applicant or the person charged, the commission shall defer 20 decision upon such application during the pendency of such 21 charge. 22 (5) The pursuit by the applicant or any person who is 23 required to be qualified under this act as a condition of a 24 casino license of economic gain in an occupational manner or 25 context which is in violation of the criminal or civil public 26 policies of this Commonwealth, if such pursuit creates a 27 reasonable belief that the participation of such person in 28 casino operations would be inimical to the policies of this 29 act or to legalized gaming in this Commonwealth. For purposes 30 of this section, occupational manner or context shall be 19790S0318B0322 - 58 -
1 defined as the systematic planning, administration, 2 management, or execution of an activity for financial gain. 3 (6) The identification of the applicant or any person 4 who is required to be qualified under this act as a condition 5 of a casino license as a career offender or a member of a 6 career offender cartel or an associate of a career offender 7 or career offender cartel in such a manner which creates a 8 reasonable belief that the association is of such a nature as 9 to be inimical to the policy of this act and to gaming 10 operations. For purposes of this section, career offender 11 shall be defined as any person whose behavior is pursued in 12 an occupational manner or context for the purpose of economic 13 gain, utilizing such methods as are deemed criminal 14 violations of the public policy of this Commonwealth. A 15 career offender cartel shall be defined as any group of 16 persons who operate together as career offenders. 17 (7) The commission by the applicant or any person who is 18 required to be qualified under this act as a condition of a 19 casino license of any act or acts which would constitute any 20 offense under subsection (c), even if such conduct has not or 21 may not be prosecuted under the criminal laws of this 22 Commonwealth. 23 (8) Contumacious defiance by the applicant or any person 24 who is required to be qualified under this act of any 25 legislative investigatory body or other official 26 investigatory body of this Commonwealth or of the United 27 States when such body is engaged in the investigation of 28 crimes relating to gaming, official corruption, or organized 29 crime activity. 30 Section 508. Investigation of applicants; order approving or 19790S0318B0322 - 59 -
1 denying license. 2 (a) Upon the filing of an application and such supplemental 3 information as the commission may require, the commission shall 4 request the bureau to conduct such investigation into the 5 qualification of the applicant, and the commission shall conduct 6 such hearings concerning the qualification of the applicant in 7 accordance with its regulations as may be necessary to determine 8 qualifications for casino license. 9 (b) After such investigation, the commission may either deny 10 the application or grant a casino license to an applicant whom 11 it determines to be qualified to hold such license. 12 (c) The commission shall have the authority to deny any 13 application pursuant to the provisions of this act. When an 14 application is denied, the commission shall prepare and file an 15 order denying such application with the general reasons 16 therefor, and if requested by the applicant, shall further 17 prepare and file a statement of the reasons for the denial, 18 including the specific findings of facts. 19 (d) After an application is submitted to the commission, 20 final action of the commission shall be taken within 90 days 21 after completion of all hearings and investigations and the 22 receipt of all information required by the commission. 23 (e) If satisfied that an applicant is qualified to receive a 24 casino license, and upon tender of all license fees and taxes as 25 required by law and regulations of the commission, and such 26 bonds as the commission may require for the faithful performance 27 of all requirements imposed by law or regulations, the 28 commission shall issue a casino license for the term of one 29 year. 30 (f) The commission shall fix the amount of the bond or bonds 19790S0318B0322 - 60 -
1 to be required under this section in such amounts as it may deem 2 appropriate, by rules of uniform application. The bond so 3 furnished may be applied by the commission to the payment of any 4 unpaid liability of the licensee under this act. The bond shall 5 be furnished in cash or negotiable securities, by a surety bond 6 guaranteed by a satisfactory guarantor, or by an irrevocable 7 letter of credit issued by a banking institution of the 8 Commonwealth acceptable to the commission. If furnished in cash 9 or negotiable securities, the principal shall be placed without 10 restriction at the disposal of the commission, but any income 11 shall inure to the benefit of the licensee. 12 (g) No more than one casino license may be issued with 13 respect to any approved hotel, except that in the case of any 14 lease agreement or management contract approved in accordance 15 with the provisions of this act, each party to such agreement or 16 contract may be issued a casino license. 17 Section 509. Renewal of casino licenses. 18 (a) Subject to the power of the commission to deny, revoke, 19 or suspend licenses, any casino license in force shall be 20 renewed by the commission for the next succeeding license period 21 upon proper application for renewal and payment of license fees 22 and taxes as required by law and the regulations of the 23 commission. The commission shall act upon any such application 24 no later than 30 days prior to the date of expiration of the 25 current license. 26 (b) Application for renewal shall be filed with the 27 commission no later than 90 days prior to the expiration of the 28 current license, and all license fees and taxes as required by 29 law shall be paid to the commission on or before the date of 30 expiration of the current license. 19790S0318B0322 - 61 -
1 (c) Upon renewal of any license the commission shall issue 2 an appropriate renewal certificate or validating device or 3 sticker which shall be attached to each casino license. 4 Section 510. Licensing of casino key employees. 5 (a) No person may be employed as a casino key employee 6 unless he is the holder of a valid casino key employee license 7 issued by the commission. 8 (b) Each applicant must, prior to the issuance of any casino 9 key employee license, produce information, documentation and 10 assurances concerning the following qualification criteria: 11 (1) Each applicant for a casino key employee license 12 shall produce such information, documentation and assurances 13 as may be required to establish by clear and convincing 14 evidence the financial stability, integrity and 15 responsibility of the applicant, including but not limited to 16 bank references, business and personal income and 17 disbursement schedules, tax returns and other reports filed 18 with governmental agencies, and business and personal 19 accounting and check records and ledgers. In addition, each 20 applicant shall, in writing, authorize the examination of all 21 bank accounts and records as may be deemed necessary by the 22 commission or the division. 23 (2) Each applicant for a casino key employee license 24 shall produce such information, documentation and assurances 25 as may be required to establish by clear and convincing 26 evidence the applicant's reputation for good character, 27 honesty and integrity. Such information shall include, 28 without limitation, data pertaining to family, habits, 29 character, criminal and arrest record, business activities, 30 financial affairs, and business, professional and personal 19790S0318B0322 - 62 -
1 associates, covering at least the ten-year period immediately 2 preceding the filing of the application. Each applicant shall 3 notify the commission of any civil judgments obtained against 4 such applicant pertaining to antitrust or security regulation 5 laws of the Federal Government, of this Commonwealth or of 6 any state, jurisdiction, province or country. In addition, 7 each applicant shall produce letters of reference from law 8 enforcement agencies having jurisdiction in the applicant's 9 place of residence and principal place of business, which 10 letters of reference shall indicate that such law enforcement 11 agencies do not have any pertinent information concerning the 12 applicant, or if such law enforcement agency does have 13 information pertaining to the applicant, shall specify what 14 that information is. If the applicant has been associated 15 with gaming or casino operations in any capacity, position or 16 employment in a jurisdiction which permits such activity, the 17 applicant shall produce letters of reference from the gaming 18 or casino enforcement or control agency which shall specify 19 the experiences of such agency with the applicant, his 20 associates and his participation in the gaming operations of 21 that jurisdiction; provided, however, that if no such letters 22 are received within 60 days of request therefor, the 23 applicant may submit a statement under oath that he is or was 24 during the period such activities were conducted in good 25 standing with such gaming or casino enforcement or control 26 agency. 27 (3) Each applicant shall produce such information, 28 documentation and assurances as may be required to establish 29 by clear and convincing evidence that the applicant has 30 sufficient business ability and casino experience as to 19790S0318B0322 - 63 -
1 establish the reasonable likelihood of success and efficiency 2 in the particular position involved. 3 (4) Each applicant shall be a resident of the 4 Commonwealth of Pennsylvania prior to the issuance of a 5 casino key employee license. 6 (c) The commission shall endorse upon any license issued 7 hereunder the particular positions as defined by this act or by 8 regulation which the licensee is qualified to hold. 9 (d) The commission shall deny a casino key employee license 10 to any applicant who is disqualified on the basis of the 11 criteria contained in this chapter. 12 Section 511. Licensing of casino employees. 13 (a) No person may commence employment as a casino employee 14 unless he is the holder of a valid casino employee license 15 issued by the commission. 16 (b) Any applicant for a casino employee license must, prior 17 to the issuance of any such license, produce sufficient 18 information, documentation and assurances to meet the 19 qualification criteria, including Pennsylvania residency, 20 contained in section 510(b); except that the standards for 21 business ability and casino experience may be satisfied by a 22 showing of casino job experience and knowledge of the provisions 23 of this act and regulations pertaining to the particular 24 position involved, or by successful completion of a course of 25 study at a licensed school in an approved curriculum. 26 (c) The commission shall endorse upon any license issued 27 hereunder the particular positions as defined by regulation 28 which the licensee is qualified to hold. 29 (d) The commission shall deny a casino employee license to 30 any applicant who is disqualified on the basis of the criteria 19790S0318B0322 - 64 -
1 contained in this chapter. 2 (e) For purposes of this section, casino security employees 3 shall be considered casino employees and must, in addition to 4 any requirements under other laws, be licensed in accordance 5 with the provisions of this act. 6 Section 512. Casino hotel employee licenses. 7 (a) No person may commence employment as a casino hotel 8 employee unless he is the holder of a valid casino hotel 9 employee license issued by the chairman. 10 (b) Any applicant for a casino hotel employee license must, 11 prior to the issuance of any such license, produce sufficient 12 information, documentation and assurances to meet the 13 qualification criteria, including Pennsylvania residency, 14 contained in section 510(b)(1), (b)(2) and (b)(4). No casino 15 hotel employee license shall be issued to any person 16 disqualified on the basis of the criteria contained in this 17 chapter. 18 (c) Notwithstanding the provisions of subsection (b), no 19 applicant shall be denied a casino hotel employee license on the 20 basis of a conviction of any of the offenses enumerated in this 21 act as disqualification criteria, provided that the applicant 22 has demonstrated his rehabilitation or can produce a certificate 23 of rehabilitation, or that the offense for which the applicant 24 has been convicted is not reasonably related to the duties for 25 which the applicant will be employed in the casino hotel. 26 (d) The commission may waive any disqualification criterion 27 for a casino hotel employee consistent with the public policy of 28 this act and upon a finding that the interests of justice so 29 require. 30 (e) A temporary license of five days duration may be issued 19790S0318B0322 - 65 -
1 by the chairman if in his judgment the issuance of a permanent 2 license will be restricted by necessary investigations and said 3 temporary licensing of the applicant is necessary for the 4 continuing operations of the hotel. 5 Section 513. Licensing and registration of casino service 6 industries. 7 (a) All casino service industries offering goods or services 8 on a regular basis which directly relate to casino or gaming 9 activity, including gaming equipment manufacturers, suppliers 10 and repairers, schools teaching gaming and either playing or 11 dealing techniques, and casino security services, shall be 12 licensed in accordance with the provisions of this act prior to 13 conducting any business whatsoever with a casino licensee, its 14 employees or agents, and in the case of a school, prior to 15 enrollment of any students or offering of any courses to the 16 public whether for compensation or not. 17 (b) Each casino service industry in subsection (a), as well 18 as its owners, management and supervisory personnel and other 19 principal employees must qualify under the standards, except 20 residency, established for qualification of a casino key 21 employee under this act. In addition, if the business or 22 enterprise is a school teaching gaming and either playing or 23 dealing techniques, each employee of such school must qualify 24 under the standards established for qualification of a casino 25 employee under this act; provided, however, that nothing in this 26 subsection shall be deemed to require, in the case of a public 27 school district or a public institution of higher education, the 28 licensure or qualification of any individuals except those 29 instructors and other principal employees responsible for the 30 teaching of playing or dealing techniques. 19790S0318B0322 - 66 -
1 (c) All casino service industries not included in subsection 2 (a) shall be licensed in accordance with rules of the commission 3 prior to commencement or continuation of any business with a 4 casino licensee or its agents. Such casino service industries, 5 whether or not directly related to gaming operations, shall 6 include suppliers of alcoholic beverages, food and nonalcoholic 7 beverages; garbage handlers; vending machine providers; linen 8 suppliers; maintenance companies; shopkeepers located within the 9 approved hotel; and limousine services contracting with casino 10 licensees. The commission may exempt any person or field of 11 commerce from the licensing requirements of this subsection if 12 it finds that such person or field of commerce is regulated by a 13 public agency and that licensure is not necessary to protect the 14 public interest or to accomplish the policies established by 15 this act. 16 (d) Licensure pursuant to subsection (c) of any casino 17 service industry may be denied to any applicant disqualified in 18 accordance with the criteria contained in this chapter. 19 Section 514. Registration of labor organizations. 20 (a) Each labor organization, union or affiliate seeking to 21 represent employees licensed under this act and employed by a 22 casino hotel or a casino licensee shall register with the 23 commission annually, and shall disclose such information to the 24 commission as the commission may require, including the names of 25 all affiliated organizations, pension and welfare systems and 26 all officers and agents of such organizations and systems; 27 provided, however, that no labor organization, union, or 28 affiliate shall be required to furnish such information to the 29 extent such information is included in a report filed by any 30 labor organization, union, or affiliate with the Secretary of 19790S0318B0322 - 67 -
1 Labor pursuant to 29 U.S.C. §§ 431 et seq. (relating to 2 reporting by labor organizations, officers and employees of 3 labor organizations, and employers) or 1001 et seq. (relating to 4 protection of employee benefit rights) if a copy of such report, 5 or of the portion thereof containing such information, is 6 furnished to the commission pursuant to the aforesaid Federal 7 provisions. The commission may in its discretion exempt any 8 labor organization, union, or affiliate from the registration 9 requirements of this subsection where the commission finds that 10 such organization, union or affiliate is not the certified 11 bargaining representative of any employee licensed under this 12 act, is not involved actively, directly or substantially in the 13 control or direction of the representation of any such employee, 14 and is not seeking to do so. 15 (b) No labor organization, union or affiliate registered or 16 required to be registered pursuant to this section and 17 representing or seeking to represent employees licensed under 18 this act may receive any dues from any employee licensed under 19 this act and employed by a casino licensee or its agent, or 20 administer any pension or welfare funds, if any officer, agent, 21 or principal employee of the labor organization, union or 22 affiliate is disqualified in accordance with the criteria 23 contained in this chapter. The commission may for the purposes 24 of this subsection waive any disqualification criterion 25 consistent with the public policy of this act and upon a finding 26 that the interests of justice so require. 27 (c) Neither a labor organization, union or affiliate nor its 28 officers and agents not otherwise individually licensed under 29 this act and employed by a casino licensee may hold any 30 financial interest whatsoever in the casino hotel or casino 19790S0318B0322 - 68 -
1 licensee whose employees they represent. 2 Section 515. Approval and denial of registrations and licenses 3 other than casino licenses. 4 (a) Upon the filing of an application for any license or 5 registration required by this act other than a casino license, 6 and after submission of such supplemental information as the 7 commission may require, the commission shall request the bureau 8 to conduct such investigation into the qualification of the 9 applicant, and the commission shall conduct such hearings 10 concerning the qualification of the applicant in accordance with 11 its regulations as may be necessary to determine qualification 12 for such license or registration. 13 (b) After such investigation, the commission may either deny 14 the application or grant a license to or accept the registration 15 of an applicant whom it determines to be qualified to hold such 16 license or registration. Notwithstanding the above, the chairman 17 may grant a casino hotel employee license upon application 18 therefor; if said application is denied, the applicant may 19 appeal to the commission in the normal course. 20 (c) The commission shall have the authority to deny any 21 application pursuant to the provisions of this act. When an 22 application is denied, the commission shall prepare and file its 23 order denying such application with the general reasons 24 therefor, and if requested by the applicant, shall further 25 prepare and file a statement of the reasons for the denial, 26 including the specific findings of facts. 27 (d) When the commission grants an application, the 28 commission may limit or place such restrictions thereupon as it 29 may deem necessary in the public interest. Licenses shall be 30 granted and registrations approved for a term of one year. 19790S0318B0322 - 69 -
1 (e) After an application is submitted to the commission, 2 final action of the commission shall be taken within 90 days 3 after completion of all hearings and investigations and the 4 receipt of all information required by the commission. 5 Section 516. Renewal of licenses and registrations. 6 Subject to the power of the commission to deny, revoke or 7 suspend any license or registration, any license other than a 8 casino license or any registration may be renewed upon proper 9 application for renewal no later than 90 days prior to the 10 expiration of the current license or registration, and the 11 payment of fees as provided by law on or before the date of 12 expiration of the current license or registration. The 13 commission shall act upon such application for renewal no later 14 than 30 days prior to the date of expiration of the current 15 license or registration. 16 CHAPTER 6 17 CONDITIONS OF OPERATION 18 Section 601. Operation certificate. 19 (a) Notwithstanding the issuance of a license therefor, no 20 casino may be opened or remain open to the public, and no gaming 21 activity, except for test purposes, may be conducted therein, 22 unless and until a valid operation certificate has been issued 23 to the casino licensee by the commission. Such certificate shall 24 be issued by the commission upon a finding that a casino 25 complies in all respects with the requirements of this act and 26 regulations promulgated hereunder, that the casino licensee has 27 implemented necessary management controls and security 28 precautions, that casino personnel are properly trained and 29 licensed for their respective responsibilities, and that the 30 casino is prepared in all respects to receive the public. 19790S0318B0322 - 70 -
1 (b) The operation certificate shall include a statement of 2 compliance with subsection (a) and an itemized list by category 3 and number of the authorized games permitted in the particular 4 casino establishment. 5 (c) A casino licensee shall notify the commission 30 days in 6 advance of any proposed change in the number of authorized games 7 to be played in a particular casino, and shall request the 8 issuance of an operation certificate which permits such changes 9 to occur. The commission shall issue a revised operation 10 certificate unless it finds that the planned change in 11 authorized games does not conform to the requirements of this 12 act or regulations promulgated hereunder, or that there has been 13 a change of circumstances in the casino or with respect to the 14 casino licensee materially affecting compliance with subsection 15 (a). 16 (d) An operation certificate shall remain in force and 17 effect unless altered in accordance with subsection (c), or 18 revoked, suspended, limited or otherwise altered by the 19 commission in accordance with this act. 20 (e) It shall be an express condition of continued operation 21 under this act that a casino licensee shall maintain all books, 22 records, and documents pertaining to the licensee's operations 23 on the licensed premises immediately available for inspection 24 during all hours of operation. All such books, records, and 25 documents shall be maintained for a period of not less than 26 seven years. 27 Section 602. Hours of operation. 28 (a) No casino licensed pursuant to this act shall operate 29 between the hours of 6 a.m. and 10 a.m. on Saturdays, Sundays 30 and State and Federal holidays, or between the hours of 4 a.m. 19790S0318B0322 - 71 -
1 and 10 a.m. on all other days. 2 (b) A casino licensee shall file with the commission a 3 schedule of hours prior to the issuance of an initial operation 4 certificate. If the casino licensee proposes any change in 5 scheduled hours, such change may not be effected until such 6 licensee files a notice of the new schedule of hours with the 7 commission. Such filing must be made 30 days prior to the 8 effective date of the proposed change in hours. 9 (c) Nothing herein shall be construed to limit a casino 10 licensee in opening its casino later than, or closing its casino 11 earlier than, the times stated in its schedule of operating 12 hours; provided, however, that any such alterations in its hours 13 shall comply with the provisions of subsection (a) and with 14 regulations of the commission pertaining to such alterations. 15 Section 603. Casino facility requirements. 16 (a) Each casino licensee shall arrange the facilities of its 17 casino in such a manner as to promote maximum comfort for the 18 patrons and optimum security for the casino operation, and shall 19 comply in all respects with regulations of the commission 20 pertaining thereto. 21 (b) Each casino licensee shall: 22 (1) Install a closed circuit television system according 23 to specifications approved by the commission, and provide 24 access on the licensed premises to the system or its signal 25 by the commission or the division, in accordance with 26 regulations pertaining thereto. 27 (2) Provide exterior public entrances to a casino only 28 through an enclosed lobby or receiving foyer of not less than 29 400 square feet; provided, however, that nothing herein shall 30 limit the number of such entrances to a casino. 19790S0318B0322 - 72 -
1 (3) Establish a single room of at least 15,000 square 2 feet as its casino, and provide that visibility between any 3 two areas in the casino, whether or not contiguous, may not 4 be obstructed by partitions of any kind which cover more than 5 50% of the structural opening; provided, however, that multi- 6 level casinos otherwise complying with this subsection shall 7 be permitted. 8 (4) Not permit the interior of the casino to be visible 9 from outside the casino hotel facility. 10 (5) Not be entitled to have considered any meeting space 11 and restaurant, entertainment, and sports space which has 12 direct public access only through the casino as counting 13 toward the minimum ancillary space requirements of section 14 504. 15 Section 604. Internal controls. 16 (a) Each casino licensee shall submit to the commission a 17 description of its system of internal procedures and 18 administrative and accounting controls. Such submission shall be 19 made at least 90 days before gaming operations are to commence 20 or before changes in previously submitted control plans are to 21 become effective, unless otherwise directed by the commission. 22 Each such submission shall contain both narrative and 23 diagrammatic representations of the internal control system to 24 be utilized by the casino, including, but not limited to: 25 (1) Accounting control, including the standardization of 26 forms and definition of terms to be utilized in the gaming 27 operations. 28 (2) Procedures, forms, and, where appropriate, formulas 29 covering the calculation of hold percentages, revenue drop, 30 expense and overhead schedules, complimentary services, 19790S0318B0322 - 73 -
1 junkets, cash equivalent transactions, salary structure and 2 personnel practices. 3 (3) Job descriptions and the system of personnel and 4 chain-of-command, establishing a diversity of responsibility 5 among employees engaged in casino operations and identifying 6 primary and secondary supervisory positions for areas of 7 responsibility, which areas shall not be so extensive as to 8 be impractical for an individual to monitor. 9 (4) Procedures within the cashier's cage for the 10 receipt, storage and disbursal of chips and cash; the cashing 11 of checks; the redemption of chips; the pay-off of jackpots; 12 and the recording of transactions pertaining to gaming 13 operations. 14 (5) Procedures for the collection and security of moneys 15 at the gaming tables. 16 (6) Procedures for the transfer and recordation of chips 17 between the gaming tables and the cashier's cage. 18 (7) Procedures for the transfer of moneys from the 19 gaming tables to the counting process. 20 (8) Procedures and security for the counting and 21 recordation of revenue. 22 (9) Procedures for the security, storage and recordation 23 of chips utilized in the gaming operation. 24 (10) Procedures for the transfer of moneys or chips from 25 and to the slot machines. 26 (11) Procedures and standards for the opening and 27 security of slot machines. 28 (12) Procedures for the payment and recordation of slot 29 machine jackpots. 30 (13) Procedures for the cashing and recordation of 19790S0318B0322 - 74 -
1 checks exchanged by casino patrons. 2 (14) Procedures governing the utilization of the private 3 security force within the casino. 4 (15) Procedures and security standards for the handling 5 and storage of gaming apparatus including cards, dice, 6 machines, wheels and all other gaming equipment. 7 (16) Procedures and rules governing the conduct of 8 particular games and the responsibility of casino personnel 9 in respect thereto. 10 (b) The commission shall review each submission required by 11 subsection (a) hereof, and shall determine whether it conforms 12 to the requirements of this act and to the regulations 13 promulgated thereunder and whether the system submitted provides 14 adequate and effective controls for the operations of the 15 particular casino submitting it. If the commission finds any 16 insufficiencies, it shall specify same in writing to the casino 17 licensee, who shall make appropriate alterations. When the 18 commission determines a submission to be adequate in all 19 respects, it shall notify the casino licensee of same. No casino 20 licensee shall commence gaming operations, or alter in fact its 21 internal controls, unless and until such system of controls is 22 approved by the commission. 23 Section 605. Games and gaming equipment. 24 (a) This act shall not be construed to permit any gaming 25 except the conduct of authorized games in a casino room in 26 accordance with this act and the regulations promulgated 27 hereunder. 28 (b) Gaming equipment shall not be possessed, maintained or 29 exhibited by any person on the premises of a casino hotel 30 complex except in the casino room and in secure areas used for 19790S0318B0322 - 75 -
1 the inspection, repair or storage of such equipment and 2 specifically designated for that purpose by the casino licensee 3 with the approval of the commission. No gaming equipment shall 4 be possessed, maintained, exhibited, brought into or removed 5 from a casino room by any person unless such equipment is 6 necessary to the conduct of an authorized game, has permanently 7 affixed, imprinted, impressed or engraved thereon an 8 identification number or symbol authorized by the commission, is 9 under the exclusive control of a casino licensee or his 10 employees, and is brought into or removed from the casino room 11 at times authorized for that purpose by the commission or at 12 other times when prior notice has been given to and written 13 approval granted by an authorized agent of the commission. 14 (c) Each casino hotel shall contain a count room and such 15 other secure facilities as may be required by the commission for 16 the counting and storage of cash, coin, tokens and checks 17 received in the conduct of gaming and for the inspection, 18 counting and storage of dice, cards, chips and other 19 representatives of value. All drop boxes and other devices 20 wherein cash, coins, or tokens are deposited at the gaming 21 tables or in slot machines, and all areas wherein such boxes and 22 devices are kept while in use, shall be equipped with two 23 locking devices, one key to which shall be under the exclusive 24 control of the commission and the other under the exclusive 25 control of the casino licensee, and said drop boxes and other 26 devices shall not be brought into or removed from the casino 27 room, or locked or unlocked, except at such times, in such 28 places, and according to such procedures as the commission may 29 require. 30 (d) All chips used in gaming at all casinos shall be of such 19790S0318B0322 - 76 -
1 size and uniform color by denomination as the commission shall 2 require by regulation. 3 (e) All gaming shall be conducted according to rules 4 promulgated by the commission. All wagers and pay-offs of 5 winning wagers at table games shall be made according to rules 6 promulgated by the commission, which shall establish such 7 minimum wagers and other limitations as may be necessary to 8 assure the vitality of casino operations and fair odds to and 9 maximum participation by casino patrons; provided, however, that 10 a licensee may establish a higher minimum wager with the prior 11 approval of the commission. Each slot machine shall have a 12 minimum payout of 83%. 13 (f) Each casino licensee shall make available in printed 14 form to any casino patron upon request the complete text of the 15 rules of the commission regarding games and the conduct of 16 gaming, pay-offs of winning wagers, an approximation of the odds 17 of winning for each wager, and such other advice to the player 18 as the commission shall require. Each casino licensee shall 19 prominently post within the casino room according to regulations 20 of the commission such information about gaming rules, pay-offs 21 of winning wagers, the odds of winning for each wager, and such 22 other advice to the player as the commission shall require. 23 (g) Each gaming table shall be equipped with a sign 24 indicating the permissible minimum and maximum wagers pertaining 25 thereto. It shall be unlawful to conduct gaming activity at any 26 table in any manner inconsistent with the information stated 27 upon the signs required by this subsection. 28 (h) No slot machine shall be used to conduct gaming unless 29 it is identical in all electrical, mechanical and other aspects 30 to a model thereof which has been specifically tested by the 19790S0318B0322 - 77 -
1 division and licensed for use by the commission. The commission 2 shall, by regulation, establish such technical standards for 3 licensure, including mechanical and electrical reliability, 4 security against tampering, the comprehensibility of wagering, 5 and noise and light levels, as it may deem necessary to protect 6 the player from fraud or deception and to insure the integrity 7 of gaming. In no event shall slot machines, including walkways 8 between them, occupy more than 30% of the first 50,000 square 9 feet of floor space of a casino, or more than 25% of any 10 additional floor space of a casino larger than 50,000 square 11 feet. The commission shall, by regulation, determine the 12 permissible density of particular licensed slot machines or 13 combinations thereof, based upon their size and light and noise 14 levels, so as to create and maintain a gracious playing 15 environment in the casino and to avoid deception or frequent 16 distraction to players at gaming tables. The denominations of 17 such machines shall be set by the licensee, subject to the prior 18 approval of the commission. 19 (i) Each casino shall be arranged in such fashion as to 20 allow floor space for each gaming table, including the space 21 occupied by the table, in accordance with the following: 22 Baccarat--300 square feet. 23 Blackjack--100 square feet. 24 Craps--200 square feet. 25 Roulette--150 square feet. 26 Big Six Wheel--150 square feet. 27 (j) Each casino shall be arranged in such fashion as to 28 assure that gaming tables shall at all times be present: 29 (1) At least one baccarat table for every 5,000 square 30 feet of casino space or part thereof. 19790S0318B0322 - 78 -
1 (2) At least one craps table for every 1,000 square feet 2 of casino space or part thereof. 3 (3) At least one roulette table for every 1,000 square 4 feet of casino space or part thereof. 5 (4) At least four blackjack tables for every 1,000 6 square feet of casino space or part thereof. 7 (5) No more than one Big Six Wheel and table for every 8 1,000 square feet of casino space or part thereof. 9 (k) It shall be unlawful for any person to exchange or 10 redeem chips for anything whatsoever, except currency, 11 negotiable personal checks, negotiable counter checks or other 12 chips. A casino licensee shall, upon the request of any person, 13 redeem that licensee's gaming chips surrendered by that person 14 in any amount over $25 with a check drawn upon the licensee's 15 account at any banking institution in this Commonwealth and made 16 payable to that person. 17 (l) It shall be unlawful for any casino licensee or his 18 agents or employees to employ, contract with, or use any shill 19 or barker to induce any person to enter a casino or play at any 20 game or for any purpose whatsoever. 21 (m) It shall be unlawful for a dealer in any authorized game 22 in which cards are dealt to deal cards by hand or other than 23 from a device specifically designed for that purpose. 24 (n) It shall be unlawful for any casino key employee, other 25 than a junket representative, or any casino employee, other than 26 a bartender, waiter, waitress, or other casino employee who in 27 the judgment of the commission is not directly involved with the 28 conduct of gaming operations, to wager at any game in any casino 29 in this Commonwealth. 30 (o) It shall be unlawful for any casino key employee or 19790S0318B0322 - 79 -
1 boxman, floorman, or any other casino employee who shall serve 2 in a supervisory position to solicit or accept, and for any 3 other casino employee to solicit, any tip or gratuity from any 4 player or patron at the casino where he is employed. 5 (p) A dealer may accept tips or gratuities from a patron at 6 the table at which such dealer is conducting play, subject to 7 the provisions of this subsection. All such tips or gratuities 8 shall be immediately deposited in a lock box reserved for that 9 purpose accounted for, and placed in a pool for distribution pro 10 rata among the dealers on a weekly basis, with the distribution 11 based upon the number of hours each dealer has worked. 12 Section 606. Credit. 13 (a) Except as otherwise provided in this section, no casino 14 licensee or any person licensed under this act, and no person 15 acting on behalf of or under any arrangement with a casino 16 licensee or other person licensed under this act, shall: 17 (1) Cash any check, make any loan, or otherwise provide 18 or allow to any person any credit or advance of anything of 19 value or which represents value to enable any person to take 20 part in gaming activity as a player; or 21 (2) Release or discharge any debt, either in whole or in 22 part, or make any loan which represents any losses incurred 23 by any player in gaming activity without maintaining a 24 written record thereof in accordance with the rules of the 25 commission. 26 (b) No casino licensee or any person licensed under this 27 act, and no person acting on behalf of or under any arrangement 28 with a casino licensee or other person licensed under this act, 29 may accept a check, other than a recognized traveler's check or 30 other cash equivalent, from any person to enable such person to 19790S0318B0322 - 80 -
1 take part in gaming activity as a player, or may give cash or 2 cash equivalents in exchange for such check unless: 3 (1) The check is made payable to the casino licensee. 4 (2) The check is dated, but not postdated. 5 (3) The check is presented to the cashier or his 6 representative and is exchanged only for a credit slip or 7 slips which total an amount equal to the amount for which the 8 check is drawn, which slip or slips may be presented for 9 chips at a gaming table. 10 (4) The regulations concerning check cashing procedures 11 are observed by the casino licensee and its employees and 12 agents. 13 Nothing in this subsection shall be deemed to preclude the 14 establishment of an account by any person with a casino licensee 15 by a deposit of cash or recognized traveler's check or other 16 cash equivalent, or to preclude the withdrawal, either in whole 17 or in part, of any amount contained in such account. 18 (c) When a casino licensee or other person licensed under 19 this act, or any person acting on behalf of or under any 20 arrangement with a casino licensee or other person licensed 21 under this act, cashes a check in conformity with the 22 requirements of subsection (b), the casino licensee shall cause 23 the deposit of such check in a bank for collection or payment 24 within seven banking days of the date of the transaction for a 25 check in an amount less than $1,000; 14 banking days of the date 26 of the transaction for a check of at least $1,000 but less than 27 $2,500; or 90 banking days of the date of the transaction for a 28 check of $2,500 or more. Notwithstanding the foregoing, the 29 drawer of the check may redeem the check by exchanging cash or 30 chips in an amount equal to the amount for which the check is 19790S0318B0322 - 81 -
1 drawn; or he may redeem the check in part by exchanging cash or 2 chips and another check which meets the requirements of 3 subsection (b) for the difference between the original check and 4 the cash or chips tendered; or he may issue one check which 5 meets the requirements of subsection (b) in an amount sufficient 6 to redeem two or more checks drawn to the order of the casino 7 licensee. If there has been a partial redemption or a 8 consolidation in conformity with the provisions of this 9 subsection, the newly issued check shall be delivered to a bank 10 for collection or payment within the period herein specified. No 11 casino licensee or any person licensed under this act, and no 12 person acting on behalf of or under any arrangement with a 13 casino licensee or other person licensed under this act shall 14 accept any check or series of checks in redemption or 15 consolidation of another check or checks in accordance with this 16 subsection for the purpose of avoiding or delaying the deposit 17 of a check in a bank for collection or payment within the time 18 period prescribed by this subsection. 19 (d) No casino licensee or any other person licensed under 20 this act, or any other person acting on behalf of or under any 21 arrangement with a casino licensee or other person licensed 22 under this act, shall transfer, convey, or give, with or without 23 consideration, a check cashed in conformity with the 24 requirements of this section to any person other than: 25 (1) The drawer of the check upon redemption or 26 consolidation in accordance with subsection (c). 27 (2) A bank for collection or payment of the check. 28 (3) A purchaser of the casino license as approved by the 29 commission. 30 The limitation on transferability of checks imposed herein shall 19790S0318B0322 - 82 -
1 apply to checks returned by any bank to the casino licensee 2 without full and final payment. 3 (e) No person other than one licensed as a casino key 4 employee or as a casino employee may engage in efforts to 5 collect upon checks that have been returned by banks without 6 full and final payment, except that an attorney-at-law 7 representing a casino licensee may bring action for such 8 collection. 9 (f) Notwithstanding the provisions of any law to the 10 contrary, checks cashed in conformity with the requirements of 11 this act shall be valid instruments, enforceable at law in the 12 courts of this Commonwealth. Any check cashed, transferred, 13 conveyed or given in violation of this act shall be invalid and 14 unenforceable. 15 Section 607. Junkets; complimentary services. 16 (a) No junkets may be organized or permitted except in 17 accordance with the provisions of this act. No person may act as 18 a junket representative except in accordance with this section. 19 For purposes of this section, the term "junket representative" 20 shall mean any person who is responsible for or directly engaged 21 in the creation, organization, or operation of a junket, 22 regardless of whether or not such junket is engaged in or 23 organized with the Commonwealth. 24 (b) A junket representative shall be licensed as a casino 25 key employee in accordance with the provisions of this act; 26 provided, however, that said licensee need not be a resident of 27 this Commonwealth. No casino licensee may employe or otherwise 28 engage a junket representative who is not so licensed. 29 (c) A casino licensee shall be responsible for the conduct 30 of any junket representative associated with it and for the 19790S0318B0322 - 83 -
1 terms and conditions of any junket engaged in on its premises, 2 regardless of the employment status of any junket representative 3 associated therewith. 4 (d) Each casino licensee shall either: 5 (1) Submit to the commission, in accordance with its 6 rules, a report in advance of any junket which shall include 7 the names of the participants, the terms of the junket, the 8 origin and dates of the junket, and such other information as 9 may be required by the commission, including, without 10 limitation, acknowledgments by the participants that they 11 understand the terms of the particular junket. 12 (2) Submit to the commission, in accordance with its 13 rules, proposals for junkets, which proposals may be approved 14 by the commission for continued use upon the condition that 15 no material aspect of any proposal with be changed except as 16 to participants and that quarterly reports regarding such 17 junkets shall be submitted to the commission, including such 18 information as it may required. 19 (e) A casino licensee shall be responsible for any violation 20 or deviation from the terms of a junket. Notwithstanding any 21 other provisions of this act, the commission may, after hearings 22 in accordance with this act, order restitution to junket 23 participants, assess penalties for such violations or 24 deviations, prohibit future junkets by the casino licensee or 25 junket representatives, and order such further relief as it 26 deems appropriate. 27 (f) Each casino licensee shall maintain a regulated 28 complimentary service account and shall submit a quarterly 29 report to the commission based upon such account and covering 30 all complimentary services offered or engaged in by the licensee 19790S0318B0322 - 84 -
1 during the immediately preceding quarter. Such reports shall 2 include identification of the regulated complimentary services 3 and their respective costs, the number of persons by category of 4 service who received same, and such other information as the 5 commission may require. 6 Section 608. Alcoholic beverages on casino hotel facilities. 7 (a) Notwithstanding any law to the contrary, the authority 8 to grant any license for, or to permit or prohibit the presence 9 of, alcoholic beverages in, on, or about any premises licensed 10 as part of a casino hotel shall exclusively be vested in the 11 commission. 12 (b) Unless otherwise stated, and except where inconsistent 13 with the purpose or intent of this act or the common 14 understanding of usage thereof, definitions contained in the 15 "Liquor Code," as amended, shall apply to this section. 16 (c) Notwithstanding any provision of the "Liquor Code," the 17 rules, regulations and bulletins promulgated by the Pennsylvania 18 Liquor Control Board, or any provision promulgated by any local 19 authority, including the authority to issue, renew, transfer, 20 revoke or suspend any casino hotel alcoholic beverage license or 21 any portion, location, privilege or condition thereof; to fine 22 or penalize any casino hotel alcoholic beverage licensee; to 23 enforce all statutes, laws, rulings, or regulations relating to 24 such license; and to collect license fees and establish 25 application standards therefor, shall be, consistent with this 26 act, exclusively vested in the commission or the bureau. 27 (d) Except as otherwise provided in this section, the 28 provisions of the "Liquor Code," and the rules, regulations and 29 bulletins promulgated by the Pennsylvania Liquor Control Board 30 shall apply to any casino hotel and casino hotel alcoholic 19790S0318B0322 - 85 -
1 beverage licensee licensed under this act. 2 (e) Notwithstanding any provision to the contrary, the 3 commission may promulgate any regulations and special rulings 4 and findings as may be necessary for the proper enforcement, 5 regulation, and control of alcoholic beverages in casino hotels 6 when the commission finds that the uniqueness of casino 7 operations and the public interest require that such 8 regulations, rulings and findings are appropriate. Regulations 9 of the commission may include but are not limited to: 10 designation and duties of enforcement personnel; all forms 11 necessary or convenient in the administration of this section; 12 inspections, investigations, searches, seizures; licensing and 13 disciplinary standards; requirements and standards for any 14 hearings or disciplinary or other proceedings that may be 15 required from time to time; the assessment of fines or penalties 16 for violations; hours of sale; sale in original containers; 17 sales on credit; out-of-door sales; limitations of sales; gifts 18 and promotional materials; locations or places for sale; control 19 of signs and other displays; identification of licensees and 20 their employees; employment of aliens and minors; storage, 21 transportation and sanitary requirements; records to be kept by 22 the casino hotel alcoholic beverage licensees and availability 23 thereof; practices unduly designed to increase consumption of 24 alcoholic beverages; and such other matters whatsoever as are or 25 may become necessary and consistent with the administration of 26 this act. 27 (f) (1) It shall be unlawful for any casino licensee, or 28 any of its lessees, agents or employees to expose for sale, 29 solicit or promote the sale of, possess with intent to sell, 30 sell, give, dispense, or otherwise transfer or dispose of 19790S0318B0322 - 86 -
1 alcoholic beverages in, on or about any portion of the 2 premises of a casino hotel, unless said person possesses an 3 appropriate casino hotel alcoholic beverage license. 4 (2) It shall be unlawful for any person issued a casino 5 hotel alcoholic beverage license to expose, possess, sell, 6 give, dispense, transfer, or otherwise dispose of alcoholic 7 beverages, other than within the terms and conditions of the 8 casino hotel alcoholic beverage license issued, the 9 provisions of the "Liquor Code," the rules and regulations 10 promulgated by the Pennsylvania Liquor Control Board, and, 11 when applicable, the regulations promulgated pursuant to this 12 act. 13 (g) All casino hotel alcoholic beverage licenses shall be 14 classified as follows: 15 Class I: Casino License.--The holder of this license 16 shall be entitled, subject to applicable laws, rules and 17 regulations, to sell any alcoholic beverage by the glass or 18 other open receptacle, but not in an original container, for 19 on-premises consumption within a casino; provided, however, 20 that no food or alcoholic beverage, other than nonalcoholic 21 beverages or garnishments used in the preparation of 22 alcoholic beverages for consumption by the glass, shall be 23 sold, given or be available for consumption; offered, 24 delivered or otherwise brought to a patron; or consumed at a 25 gaming table unless so requested by the patron. 26 Class II: Cabaret; Entertainment Room License.--The 27 holder of this license shall be entitled, subject to 28 applicable laws, rules and regulations, to sell any alcoholic 29 beverage by the glass or other open receptacle for on- 30 premises consumption within an enclosed room not in a casino; 19790S0318B0322 - 87 -
1 provided, however, that the Class II licensed room shall 2 regularly and principally be used for the purpose of 3 providing live cabaret, show, revue, or performing arts 4 entertainment available to the public, with or without the 5 availability of food. 6 Class III: Restaurant; Banquet Room License.--The holder 7 of this license shall be entitled, subject to applicable 8 laws, rules and regulations, to sell any alcoholic beverage 9 by the glass or other open receptacle for on-premises 10 consumption within an enclosed room or a series of enclosed 11 connected rooms, with or without an adjacent outdoor dining 12 area, not in a casino; provided, however, that the Class III 13 licensed area shall regularly and principally be used for the 14 purpose of providing meals to the public and has adequate 15 kitchen and dining area equipped for the preparing, cooking 16 and serving of meals for consumption therein; or that the 17 room or rooms shall regularly and principally be used for the 18 purpose of banquets or conventions into which food may be 19 brought or catered. For the purpose of this section, "meals 20 for consumption" shall be defined as offering of any food 21 other than sandwiches, salads, crackers, chips, nuts or 22 similar snacks; and "rooms regularly and principally used for 23 banquets or conventions" shall be defined as rooms in which 24 any food other than sandwiches, salads, chips, nuts or 25 similar snacks is offered for consumption. 26 Class IV: Pub Area License.--The holder of this license 27 shall be entitled, subject to applicable laws, rules and 28 regulations, to sell any alcoholic beverage by the glass or 29 other open receptacle for on-premises consumption within a 30 room not in a casino, or from one fixed location outside a 19790S0318B0322 - 88 -
1 building or structure containing a casino but on a casino 2 hotel premises; provided, however, that the regular and 3 principal purpose of such facility shall not be for the 4 consumption of meals by customers or for banquets or 5 conventions. 6 Class V: Package License.--The holder of this license 7 shall be entitled, subject to applicable laws, rules and 8 regulations, to sell any alcoholic beverage in original 9 containers for consumption outside the Class V licensed area 10 from one enclosed room not in a casino; provided, however, 11 that no food shall be made available for consumption in a 12 Class V room and no direct access to or from a casino may 13 exist in a Class V room. 14 Class VI: Room Service License.--The holder of this 15 license shall be entitled, subject to applicable laws, rules 16 and regulations, to sell any alcoholic beverage from one 17 fixed location within an enclosed room not in a casino; 18 provided, however, that the Class VI licensed room has no 19 direct access to or from a casino and any sale of alcoholic 20 beverages is delivered only to a room and to a registered 21 quest of the casino hotel and not in or on any area, room or 22 location licensed under Class I, II, III, IV or V. 23 Class VII: Storage License.--The holder of any casino 24 hotel alcoholic beverage license shall be entitled, subject 25 to applicable laws, rules and regulations, to possess or to 26 store alcoholic beverages intended but not actually exposed 27 for sale in an area, room or location so licensed. The holder 28 of a storage license shall be entitled, subject to applicable 29 laws, rules and regulations, to store any alcoholic beverage 30 intended for sale at a fixed enclosed location on a casino 19790S0318B0322 - 89 -
1 hotel premises, not in a casino, and not otherwise licensed 2 under Class I, II, III, IV, V or VI; and to transfer or 3 deliver such alcoholic beverages only to a licensed location 4 for which such licensee is licensed; provided, however, that 5 no access to or from a Class VII licensed location shall be 6 permitted except during the normal course of business by 7 employees or agents of the Class VII licensee, or by licensed 8 employees or agents of wholesalers or distributors licensed 9 pursuant to the "Liquor Code" and any applicable rules and 10 regulations. 11 (h) (1) No Class I casino hotel alcoholic beverage license 12 shall issue to any applicant who does not hold a casino 13 license issued pursuant to this act. 14 (2) No Class II, III, IV, V, VI or VII casino hotel 15 alcoholic beverage license shall issue to any applicant who 16 would not qualify under the standards for licensure of a 17 casino employee as defined under this act, except that such 18 applicant need not be an employee of the casino licensee. 19 (3) No Class VII casino hotel alcoholic beverage license 20 shall issue to any applicant who does not hold a Class I, II, 21 III, IV, V or VI casino hotel alcoholic beverage license. 22 (i) The commission may revoke, suspend, refuse to renew or 23 refuse to transfer any casino hotel alcoholic beverage license, 24 or fine or penalize any casino hotel alcoholic beverage licensee 25 for violations of any provision of the "Liquor Code," the rules 26 and regulations promulgated by the Pennsylvania Liquor Control 27 Board, and the regulations promulgated by the commission. 28 (j) Jurisdiction over all alcoholic beverage licenses 29 previously issued with respect to the casino hotel facility is 30 hereby vested in the commission, which in its discretion may, by 19790S0318B0322 - 90 -
1 regulation, provide for the conversion thereof into casino hotel 2 alcoholic beverage licenses as provided in this section. 3 Section 609. Casino licensee; leases and contracts. 4 (a) It shall be unlawful for any person to lend, let, lease 5 or otherwise provide any thing, or furnish any service, 6 including service in managing a casino or in maintaining any 7 equipment for any gambling game, including slot machines, for 8 any interest or any percentage or share of the money or property 9 gambled at or derived from such casino, equipment, or service, 10 or for any interest, however defined, in the revenues, profits 11 or earnings of the casino other than pursuant to the terms of a 12 written agreement providing: 13 (1) For casino employee profit sharing. 14 (2) For casino key employee profit sharing. 15 (3) For the leasing of 100% of the entire casino hotel 16 facility for a term exceeding 30 years. 17 (4) For the complete management of the casino. 18 Such agreements shall not be effective unless approved by the 19 commission, except that receipts of percentage charges between a 20 corporate licensee and another entity which is a holding company 21 or intermediary company with respect to such licensee shall be 22 permitted. Under no circumstances shall any such agreement be 23 approved unless all parties thereto are themselves holders of 24 licenses issued pursuant to the provisions of this act, and in 25 the case of leases and management contracts, each party thereto 26 holds or is eligible to apply for a casino license. Receipts, 27 rentals, or charges for real property, personal property, or 28 services shall not lose their character as payments of a fixed 29 sum because of contract, lease, or license provisions for 30 adjustments in charges, rentals, or fees on account of changes 19790S0318B0322 - 91 -
1 in taxes or assessments, cost-of-living index escalations, 2 expansion or improvement of facilities, or changes in services 3 supplied. In the case of leases and management contracts 4 permitted under this subsection, each party thereto shall be 5 individually and severally liable for all acts, omissions, and 6 violations of this act by the other party thereto, regardless of 7 actual knowledge of such act, omission, or violation and 8 notwithstanding any provision of such lease or contract to the 9 contrary. The commission shall adopt such regulations as it may 10 deem necessary to further define or restrict the terms of such 11 agreements. No casino licensee shall be permitted to enter into 12 contracts for the management of a total of more than three 13 casinos. 14 (b) Each casino licensee shall be required to present to the 15 commission any written or unwritten agreement regarding the 16 realty of, or any business or person doing business with or on 17 the premises of, its casino hotel facility. Such agreement shall 18 be reviewed by the commission on the basis of the reasonableness 19 of its terms, including the terms of compensation, and of the 20 qualifications of the person involved in the agreement with such 21 casino licensee, which qualifications shall be reviewed 22 according to the standards enumerated in this act. If the 23 commission does not approve such an agreement or association, 24 the commission may require its termination. 25 Every agreement with a casino hotel shall be deemed to 26 include a provision for its termination without liabiltiy on the 27 part of the licensee, if the commission shall disapprove of the 28 business or of any person associated therewith, by reason of a 29 finding that said business or person is unsuitable to be 30 associated with a casino enterprise in accordance with the 19790S0318B0322 - 92 -
1 regulations promulgated under this act. Failure expressly to 2 include such a condition in the agreement shall not constitute a 3 defense in any action brought to terminate the agreement. If the 4 agreement is not presented to the commission in accordance with 5 commission regulations, or the disapproved agreement or 6 association is not terminated, the commission may pursue any 7 remedy or combination of remedies provided in this act. 8 (c) Nothing in this act shall be deemed to permit the 9 transfer of any license, or any interest in any license, or any 10 certificate of compliance or any commitment or reservation. 11 Section 610. Disposition of securities by corporate licensee. 12 (a) The sale, assignment, transfer, pledge or other 13 disposition of any security issued by a corporation which holds 14 a casino license is conditional and shall be ineffective if 15 disapproved by the commission. 16 (b) Every security issued by a corporation which holds a 17 casino license shall bear, on both sides of the certificate 18 evidencing such security, a statement of the restrictions 19 imposed by this section, except that in the case of a publicly 20 traded corporation incorporated prior to the effective date of 21 this act, a statement of restriction shall be necessary only 22 insofar as certificates are issued by such corporation after the 23 effective date of this act. 24 (c) The Department of State shall not accept for filing any 25 articles of incorporation of any corporation which includes as a 26 stated purpose the conduct of casino gaming, or any amendment 27 which adds such purpose to articles of incorporation already 28 filed, unless such articles or amendments have been approved by 29 the commission and a copy of such approval is annexed thereto 30 upon presentation for filing with the Department of State. 19790S0318B0322 - 93 -
1 (d) If at any time the commission finds that an individual 2 owner or holder of any security of a corporate licensee or of a 3 holding or intermediary company with respect thereto is not 4 qualified under this act, and if as a result the corporate 5 licensee is no longer qualified to continue as a casino licensee 6 in this Commonwealth, the commission shall, pursuant to the 7 provisions of this act, propose any necessary action to protect 8 the public interest, including the suspension or revocation of 9 the casino license of the corporation; provided, however, that 10 if the holding or intermediary company is a publicly traded 11 corporation and the commission finds disqualified any holder of 12 any security thereof who is required to be qualified under this 13 act, and the commission also finds that: 14 (1) The holding or intermediary company has complied 15 with the provisions of this act. 16 (2) The holding or intermediary company has made a good 17 faith effort, including the prosecution of all legal 18 remedies, to comply with any order of the commission 19 requiring the divestiture of the security interest held by 20 the disqualified holder. 21 (3) Such disqualified holder does not have the ability 22 to control the corporate licensee or any holding or 23 intermediary company with respect thereto, or to elect one or 24 more members of the board of directors of such corporation or 25 company, the commission shall not take action against the 26 casino licensee or the holding or intermediary company with 27 respect to the continued ownership of the security interest 28 by the disqualified holder. For purposes of this act, a 29 security holder shall be presumed to have the ability to 30 control a publicly traded corporation, or to elect one or 19790S0318B0322 - 94 -
1 more members of its board of directors, if such holder owns 2 or beneficially holds 5% or more of the securities of such 3 corporation, unless such presumption of control or ability to 4 elect is rebutted by clear and convincing evidence. 5 (e) Commencing on the date the commission serves notice upon 6 a corporation of the determination of disqualification under 7 subsection (d), it shall be unlawful for the named individual: 8 (1) To receive any dividends or interest upon any such 9 securities. 10 (2) To exercise, directly or through any trustee or 11 nominee, any right conferred by such securities. 12 (3) To receive any remuneration in any form from the 13 corporate licensee for services rendered or otherwise. 14 (f) After a nonpublic corporation has been issued a casino 15 license pursuant to the provisions of this act, but prior to the 16 issuance or transfer of any security to any person required to 17 be but not yet qualified in accordance with the provisions of 18 this act, such corporation shall file a report of its proposed 19 action with the commission, and shall request the approval of 20 the commission for the transaction. If the commission shall deny 21 the request, the corporation shall not issue or transfer such 22 security. After a public corporation has been issued a casino 23 license, such corporation shall file a report quarterly with the 24 commission, which report shall list all owners and holders of 25 any security issued by such corporate casino licensee. 26 (g) Each corporation which has been issued a casino license 27 pursuant to the provisions of this act shall file a report of 28 any change of its corporate officers or members of its board of 29 directors with the commission. No officer or director shall be 30 entitled to exercise any powers of the office to which he was so 19790S0318B0322 - 95 -
1 elected or appointed until qualified by the commission in 2 accordance with the provisions of this act. 3 Section 611. Work permits. 4 (a) A casino licensee shall not appoint or employ any person 5 not possessing a current and valid license permitting such 6 appointment or employment. Prior to the effective date of such 7 appointment or employment, the casino licensee shall apply for a 8 work permit for such employee, which shall be granted by the 9 commission if the employee is the holder of a current and valid 10 license. The casino licensee shall return such work permit to 11 the commission within five days of the termination or cessation 12 of such appointment or employment for any cause whatsoever. Each 13 work permit shall be renewed annually in accordance with rules 14 and regulations promulgated by the commission. 15 (b) A casino licensee shall, within 24 hours of receipt of 16 written notice thereof, terminate the appointment or employment 17 of any person whose license has been revoked or has expired. A 18 casino licensee shall comply in all respects with any order of 19 the commission imposing limitations or restrictions upon the 20 terms of employment or appointment in the course of any 21 investigation or hearing. 22 CHAPTER 7 23 HEARINGS 24 Section 701. Commencement. 25 (a) Any proceeding against a licensee shall be brought on by 26 written complaint, which shall include a statement setting forth 27 in ordinary and concise language the charges and the acts or 28 omissions supporting such charges. 29 (b) Upon filing of the complaint, the commission shall serve 30 a copy upon the licensee either personally or by certified mail 19790S0318B0322 - 96 -
1 to his address on file with the commission. 2 (c) Within 15 days after service upon him of the complaint, 3 the licensee may file with the commission a notice of defense, 4 in which he may: 5 (1) Request a hearing. 6 (2) Admit the accusation in whole or in part. 7 (3) Present new matters or explanations by way of 8 defense. 9 (4) State any legal objections to the complaint. Within 10 the time specified, the licensee may file one or more notices 11 of defense upon any or all of the above grounds. 12 (d) The licensee shall be entitled to a hearing on the 13 merits if he files the required notice of defense within the 14 time allowed by subsection (c), and any such notice shall be 15 deemed a specific denial of all parts of the complaint not 16 expressly admitted. Failure to file a notice of defense within 17 such time shall constitute a waiver of the licensee's rights to 18 a hearing, but the commission, in its discretion, may 19 nevertheless order a hearing. All affirmative defenses must be 20 specifically stated, and unless objection is taken as provided 21 in subsection (c)(4), all objections to the form of complaint 22 shall be deemed waived. 23 (e) The commission shall determine the time and place of the 24 hearing as soon as is reasonably practical after receiving the 25 licensee's notice of defense. The commission shall deliver or 26 send by certified mail a notice to all parties at least ten days 27 prior to the hearing. Unless the licensee consents, the hearing 28 shall not be held prior to the expiration time within which the 29 licensee is entitled to file the notice of defense. 30 (f) Prior to a hearing before the commission, and during a 19790S0318B0322 - 97 -
1 hearing upon reasonable cause shown, the commission shall issue 2 subpoenas and subpoenas duces tecum at the request of a licensee 3 or the bureau. 4 Section 702. Conduct of hearings; rules of evidence; punishment 5 of contempts; decisions; rehearing. 6 (a) At all hearings of the commission pursuant to this 7 article: 8 (1) At least one member of the commission shall be 9 present and shall exercise all powers relating to the conduct 10 of the hearing. 11 (2) The proceedings at the hearing shall be recorded or 12 transcribed. 13 (3) Oral evidence shall be taken only upon oath or 14 affirmation administered by the commission. 15 (4) Each party to a hearing shall have the right to call 16 and examine witnesses; to introduce exhibits relevant to the 17 issues of the case, including the transcript of testimony at 18 any investigative hearing conducted by or on behalf of the 19 commission; to cross-examine opposing witnesses in any 20 matters relevant to the issue of the case; to impeach any 21 witness, regardless of which party called him to testify; and 22 to offer rebuttal evidence. 23 (5) If the licensee shall not testify in his own behalf, 24 he may be called and examined as if under cross-examination. 25 (6) The hearing need not be conducted according to rules 26 relating to the admissibility of evidence in courts of law. 27 Any relevant evidence may be admitted and shall be sufficient 28 in itself to support a finding if it is the sort of evidence 29 upon which responsible persons are accustomed to rely in the 30 conduct of serious affairs, regardless of the existence of 19790S0318B0322 - 98 -
1 any common law or statutory rule which might make improper 2 the admission of such evidence over objection in a civil 3 action. 4 (7) The parties or their counsel may by written 5 stipulation agree that certain specified evidence may be 6 admitted, although such evidence may be otherwise subject to 7 objection. 8 (b) The commission may take official notice of any generally 9 accepted information or technical or scientific matter in the 10 field of gaming, and of any other fact which may be judicially 11 noticed by the courts of this Commonwealth. The parties shall be 12 informed of any information, matters or facts so noticed and 13 shall be given a reasonable opportunity, on request, to refute 14 such information, matters or facts by evidence or by written or 15 oral presentation of authorities, the manner of such refutation 16 to be determined by the commission. The commission may in its 17 discretion, before rendering its decision, permit the filing of 18 amended or supplemental pleadings and shall notify all parties 19 thereof and provide a reasonable opportunity for objections 20 thereto. 21 (c) If any person in proceedings before the commission 22 disobeys or resists any lawful order, refuses to respond to a 23 subpoena or refuses to take the oath or affirmation as a witness 24 or thereafter refuses to be examined, or is guilty of misconduct 25 at the hearing or so near the place thereof as to obstruct the 26 proceeding, the person may be punished for contempt in 27 accordance with law if the commission certifies the facts 28 underlying the contumacious behavior to the Commonwealth Court. 29 Thereafter, the courts shall have jurisdiction in the matter, 30 and the same proceeding shall be had, the same penalties may be 19790S0318B0322 - 99 -
1 imposed, and the person charged may purge himself of the 2 contempt in the same way as in the case of a person who has 3 committed contempt in the trial of a civil action before the 4 court of common pleas. 5 (d) Failure of a licensee to file a notice of defense or to 6 request or appear at the hearing shall constitute an admission 7 of all matters and facts contained in the complaint filed with 8 respect to such respondent. In such cases the commission may 9 take action based upon such admission or upon any other 10 evidence, without any further notice whatever to the licensee. 11 In such cases the commission shall prepare and file a record 12 containing the evidence upon which the action was based. 13 (e) After the hearing in a contested matter, and upon review 14 of the transcript, the commission shall render a written 15 decision on the merits, which shall contain findings of fact, 16 determination of the issues presented, and specifications of the 17 penalty or penalties to be imposed, if any; and shall thereafter 18 make and enter its written order in accordance with such 19 decision. Copies of the decision and order shall be served on 20 the parties personally or sent to them by certified mail. The 21 decision shall become and remain effective upon such service and 22 until the commission shall otherwise order. 23 (f) The commission may, upon motion therefor made within ten 24 days after service of the decision and order, order a rehearing 25 before the commission upon such terms and conditions as it may 26 deem just and proper. Such motion shall be granted only upon a 27 showing that there is additional evidence which is material and 28 necessary, and which would be reasonably likely to change the 29 decision of the commission, and that sufficient reason existed 30 for failure to present such evidence at the hearing of the 19790S0318B0322 - 100 -
1 commission. The motion shall be supported by an affidavit of the 2 moving party or his counsel showing with particularity the 3 materiality and necessity of the additional evidence and the 4 reason why it was not introduced at the hearing. Upon rehearing, 5 rebuttal evidence to the additional evidence shall be admitted. 6 After rehearing, the commission may notify its decision and 7 order as the additional evidence may warrant. 8 Section 703. Emergency orders. 9 Notwithstanding any provisions of this article, the 10 commission may issue an emergency order for the suspension, 11 limitation or conditioning of any operation certificate or any 12 license, other than a casino license, or may issue an emergency 13 order requiring the licensed casino to keep an individual from 14 the premises of such licensed casino or not to pay such 15 individual any remuneration for services or any profits, income 16 or accruals on his investment in such casino, in the following 17 manner: 18 (1) An emergency order shall be issued only when the 19 commission finds that: 20 (i) There has been charged a violation of any of the 21 criminal laws of this Commonwealth by a licensee. 22 (ii) Such action is necessary to prevent a violation 23 of any such provision. 24 (iii) Such action is necessary immediately for the 25 preservation of the public peace, health, safety, morals, 26 good order and general welfare or to preserve the public 27 policies declared by this act. 28 (2) An emergency order shall set forth the grounds upon 29 which it is issued, including the statement of facts 30 constituting the alleged emergency necessitating such action. 19790S0318B0322 - 101 -
1 (3) The emergency order shall be effective immediately 2 upon issuance and service upon the licensee or resident agent 3 of the licensee. The emergency order may suspend, limit, 4 condition or take other action in relation to the approval of 5 one or more individuals who were required to be approved in 6 any operation, without necessarily affecting any other 7 individuals or the licensed casino establishment. The 8 emergency order shall remain effective until further order of 9 the commission or final disposition of the case. 10 (4) Within five days after issuance of an emergency 11 order, the commission shall cause a complaint to be filed and 12 served upon the person or entity involved in accordance with 13 the provisions of this act. 14 (5) Thereafter, the person or entity against whom the 15 emergency order has been issued and served shall be entitled 16 to a hearing before the commission in accordance with the 17 provisions of this act. 18 Section 704. Judicial review. 19 (a) The bureau or any person aggrieved by a final decision 20 or order of the commission made after hearing or rehearing by 21 the commission, whether or not a petition for hearing was filed, 22 may obtain judicial review thereof by appeal to the Commonwealth 23 Court in accordance with law. 24 (b) Filing of an appeal shall not stay enforcement of the 25 decision or order of the commission unless the stay is obtained 26 from the court upon application in accordance with law or from 27 the commission upon such terms and conditions as it deems 28 proper. 29 (c) The reviewing court may affirm the decision and order of 30 the commission, may remand the case for further proceedings, or 19790S0318B0322 - 102 -
1 may reverse the decision if the substantive rights of the 2 petitioner have been prejudiced because the decision is: 3 (1) In violation of constitutional provisions. 4 (2) In excess of the statutory authority and 5 jurisdiction of the commission. 6 (3) Arbitrary or capricious or otherwise not in 7 accordance with law. 8 (d) In order to protect the public interest and the 9 regulatory authority of the commission, any action by the 10 commission taken pursuant to the provisions of this act shall 11 not be subject to the injunctive authority of the Commonwealth 12 Court prior to the exhaustion of the administrative procedures 13 herein specified, unless it shall appear evident to the court, 14 by clear and convincing evidence, that a manifest denial of 15 justice would be effectuated by the refusal to enjoin the 16 contemplated action of the commission. 17 CHAPTER 8 18 SANCTIONS 19 Section 801. Penalties for willful evasion of payment of 20 license fees, other acts and omissions. 21 Any person who willfully fails to report, pay or truthfully 22 account for and pay over any license fee or tax imposed by the 23 provisions of this act, or willfully attempts in any manner to 24 evade or defeat any such license fee, tax, or payment thereof is 25 guilty of a misdemeanor and subject to not more than three years 26 imprisonment or a fine of $25,000 or both, and in the case of a 27 person other than a natural person, to a fine of not more than 28 $100,000, and shall in addition be liable for a penalty of three 29 times the amount of the license fee evaded and not paid, 30 collected or paid over, which penalty shall be assessed by the 19790S0318B0322 - 103 -
1 commission and collected in accordance with the provisions of 2 this act. 3 Section 802. Unlicensed casino gambling games unlawful; 4 penalties. 5 (a) Any person who permits any gambling game, slot machine 6 or device to be conducted, operated, dealt or carried on in any 7 casino by a person other than a person licensed for such 8 purposes pursuant to this act is guilty of a misdemeanor and 9 subject to a term of imprisonment of not more than three years 10 or a fine of $25,000 or both, and in the case of a person other 11 than a natural person, to a fine of not more than $100,000. 12 (b) Any licensee who places games or slot machines into play 13 or displays such games or slot machines in a casino without 14 authority of the commission to do so is guilty of a misdemeanor 15 and subject to not more than three years imprisonment or a fine 16 of $25,000 or both, and in the case of a person other than a 17 natural person, to a fine of not more than $100,000. 18 (c) Any person who operates, carries on or exposes for play 19 any gambling game, gaming device or slot machine after his 20 license has expired and prior to the actual renewal thereof is 21 guilty of a misdemeanor and subject to not more than three years 22 imprisonment or a fine of $25,000 or both, and in the case of a 23 person other than a natural person, to a fine of not more than 24 $100,000. 25 Section 803. Swindling and cheating; penalties. 26 Any person who by any trick or slight of hand performance, or 27 by a fraud or fraudulent scheme, cards, dice or device, wins for 28 himself or for another, money or property or a representative of 29 either in connection with casino gaming is guilty of a 30 misdemeanor and subject to not more than three years 19790S0318B0322 - 104 -
1 imprisonment or a fine of $25,000 or both, and in the case of a 2 person other than a natural person to a fine of not more than 3 $100,000. 4 Section 804. Unlawful use of bogus chips, marked cards, dice, 5 cheating devices, unlawful coins; penalty. 6 (a) It shall be unlawful for any person playing any licensed 7 gambling game: 8 (1) Knowingly to use bogus or counterfeit chips, or 9 knowingly to substitute and use in any such game cards or 10 dice that have been marked, loaded or tampered with. 11 (2) Knowingly to use or possess any cheating device with 12 intent to cheat or defraud. 13 (b) It shall be unlawful for any person, playing or using 14 any slot machine in a licensed casino: 15 (1) Knowingly to use other than a lawful coin or legal 16 tender of the United States of America, or to use coin not of 17 the same denomination as the coin intended to be used in such 18 slot machine, except that in the playing of any slot machine 19 it shall be lawful for any person to use tokens or similar 20 objects therein which are approved by the commission. 21 (2) To use any cheating or thieving device, including 22 but not limited to tools, drills, wires, coins or tokens 23 attached to strings or wires, or electronic or magnetic 24 devices, to facilitate the alignment of any winning 25 combination or removing from any slot machine any money or 26 other contents thereof. 27 (c) It shall be unlawful for any person knowingly to possess 28 or use while on the premises of a licensed casino, any cheating 29 or thieving device, including but not limited to tools, wires, 30 drills, coins attached to strings or wires or electronic or 19790S0318B0322 - 105 -
1 magnetic devices to facilitate removing from any slot machine 2 any money or contents thereof, except that a duly authorized 3 employee of a licensed casino may possess and use any of the 4 foregoing only in furtherance of his employment in the casino. 5 (d) It shall be unlawful for any person knowingly to possess 6 or use while on the premises of any licensed casino any key or 7 device designed for the purpose of or suitable for opening or 8 entering any slot machine or drop box, except that a duly 9 authorized employee of a licensed casino or of the commission 10 may possess and use any of the foregoing only in furtherance of 11 his employment. 12 (e) Any person who violates this section is guilty of a 13 misdemeanor and shall be subject to not more than three years 14 imprisonment or a fine of $25,000 or both, and in the case of a 15 person other than a natural person, to a fine of not more than 16 $100,000. 17 Section 805. Cheating games and devices in a licensed casino; 18 penalty. 19 (a) It shall be unlawful: 20 (1) Knowingly to conduct, carry on, operate, deal or 21 allow to be conducted, carried on, operated or dealt any 22 cheating or thieving game or device. 23 (2) Knowingly to deal, conduct, carry on, operate or 24 expose for play any game or games played with cards, dice or 25 any mechanical device, or any combination of games or 26 devices, which have in any manner been marked or tampered 27 with, or placed in a condition, or operated in a manner, the 28 result of which tends to deceive the public or tends to alter 29 the normal random selection of characteristics or the normal 30 chance of the game which could determine or alter the result 19790S0318B0322 - 106 -
1 of the game. 2 (b) It shall be unlawful knowingly to use or possess any 3 marked cards, loaded dice, plugged or tampered with machines or 4 devices. 5 (c) Any person who violates this section is guilty of a 6 misdemeanor and subject to not more than three years 7 imprisonment or a fine of $25,000 or both, and in the case of a 8 person other than a natural person, to a fine of not more than 9 $100,000. 10 Section 806. Unlawful possession of device, equipment or 11 other material illegally manufactured, 12 distributed, sold or serviced. 13 Any person who possesses any device, equipment or material 14 which he knows has been manufactured, distributed, sold, 15 tampered with or serviced in violation of the provisions of this 16 act is guilty of a misdemeanor and subject to not more than 17 three years imprisonment or a fine of $25,000 or both, and in 18 the case of a person other than a natural person, to a fine of 19 not more than $100,000. 20 Section 807. Employment without license and work permit; 21 penalty. 22 (a) Any person who, without obtaining the requisite license 23 as provided in this act, works or is employed in a position 24 whose duties would require licensing under the provisions of 25 this act is guilty of a misdemeanor and subject to not more than 26 three years imprisonment or a fine of $10,000 or both, and in 27 the case of a person other than a natural person, to a fine of 28 not more than $50,000. 29 (b) Any person who employs or continues to employ an 30 individual not duly licensed under the provisions of this act in 19790S0318B0322 - 107 -
1 a position whose duties require a license under the provisions 2 of this act is guilty of a misdemeanor and subject to not more 3 than three years imprisonment or a fine of $10,000 or both, and 4 in the case of a person other than a natural person, to a fine 5 of not more than $50,000. 6 (c) Any person who employs an individual without obtaining a 7 work permit or does not return such permit as required by this 8 act, is guilty of a misdemeanor and subject to a fine of not 9 more than $10,000, and in the case of a person other than a 10 natural person, to a fine of not more than $50,000. 11 (d) Any person violating the provisions of this act relating 12 to collection of checks shall be guilty of a misdemeanor, and 13 shall be subject to imprisonment for not more than seven years 14 or a fine of not more than $25,000, or both. Any licensee 15 permitting or allowing such a violation shall also be punishable 16 under this subsection, in addition to any other sanctions the 17 commission may impose. 18 Section 808. Unlawful entry by person whose name has been 19 placed on list; penalty. 20 Any person whose name is on the list of persons promulgated 21 by the commission pursuant to the provisions of this act who 22 knowingly enters the premises of a licensed casino is guilty of 23 a misdemeanor of the third degree. 24 Section 809. Gaming by minors prohibited; penalties; defenses. 25 (a) No person under the age of 18 years shall enter a 26 licensed casino except by way of passage to another room. 27 (b) Any licensee or employee of a casino who allows a minor 28 under the age of 18 to remain in a casino commits a summary 29 offense; except that the establishment of all of the following 30 facts by a person allowing any such minor to remain shall 19790S0318B0322 - 108 -
1 constitute a defense to any prosecution therefor: 2 (1) That the minor falsely represented in writing that 3 he or she was 18 years of age or over. 4 (2) That the appearance of the minor was such than an 5 ordinary prudent person would believe him or her to be 18 6 years of age or over. 7 (3) That the admission was made in good faith, relying 8 upon such written representation and appearance, and in the 9 reasonable belief that the minor was actually 18 years of age 10 or over. 11 Section 810. Prohibited political contributions; penalty. 12 Any person who makes or causes to be made a political 13 contribution prohibited by the provisions of this act, or files 14 or causes to be filed any report of political contributions 15 which misstates or omits any material fact with respect to such 16 contribution is guilty of a misdemeanor and subject to not more 17 than three years imprisonment or a fine of $100,000 or both, and 18 in the case of a person other than a natural person, to a fine 19 of not more than $250,000. 20 Section 811. Authority of gaming licensee and agents to detain 21 or question persons suspected of cheating; 22 immunity from liability; posted notice required. 23 (a) Any licensee or its officers, employees or agents may 24 question any individual in the casino reasonably suspected of 25 violating any of the provisions of sections 802 through 806. No 26 licensee or its officers, employees or agents shall be 27 criminally or civilly liable by reason of any such questioning. 28 (b) Any licensee or its officers, employees or agents who 29 shall have probable cause for believing there has been a 30 violation of sections 802 through 806 in the casino by any 19790S0318B0322 - 109 -
1 person may take such person into custody and detain him in the 2 establishment in a reasonable manner for a reasonable length of 3 time, for the purpose of notifying law enforcement or commission 4 authorities. Such taking into custody and detention shall not 5 render such licensee or its officers, employees or agents 6 criminally or civilly liable for false arrest, false 7 imprisonment, slander or unlawful detention, unless such taking 8 into custody or detention is unreasonable under all of the 9 circumstances. 10 (c) No licensee or his officers, employees or agents shall 11 be entitled to any immunity from civil or criminal liability 12 provided in this section unless there is displayed in a 13 conspicuous manner in the casino a notice in bold face type 14 clearly legible and in substantially this form: 15 "Any gaming licensee or officer, employee or agent thereof 16 who has probable cause for believing that any person is 17 violating any of the provisions of the "Commonwealth Casino 18 Control Act" prohibiting cheating or swindling in gaming may 19 detain such person in the establishment for the purpose of 20 notifying a police officer or Commonwealth Casino Control 21 Commission authorities." 22 Section 812. Other offenses; general penalty. 23 Any person who violates any provision of this act the penalty 24 for which is not specifically fixed in this act is guilty of a 25 disorderly persons offense. 26 Section 813. Continuing offenses. 27 (a) A violation of any of the provisions of this act shall 28 be deemed to be a separate offense on each day during which it 29 occurs. 30 (b) Any person who aids, abets, counsels, commands, induces, 19790S0318B0322 - 110 -
1 procures or causes another to violate a provision of this act is 2 punishable as a principal and subject to all sanctions and 3 penalties, both civil and criminal, provided by this act. 4 Section 814. Exemption from gambling statutes. 5 The provisions of 18 Pa.C.S. § 5513 (relating to gambling 6 devices, gambling, etc.) and § 5514 (relating to pool selling 7 and bookmaking) shall not apply to any person who, as a licensee 8 operating pursuant to the provisions of this act, or as a player 9 in any game authorized pursuant to the provisions of this act, 10 engages in gaming as authorized herein. 11 Section 815. Racketeer; influenced and corrupt organizations; 12 definitions. 13 For purposes of this section and sections 816 through 819: 14 (a) "Racketeering activity." 15 (1) Any act or threat involving murder, kidnapping, 16 gambling, arson, robbery, bribery, extortion, or dealing in 17 narcotic or other dangerous drugs, which is chargeable under 18 the laws of this Commonwealth and punishable by imprisonment 19 for more than one year. 20 (2) Any act which is indictable under any of the 21 following provisions of Title 18, United States Code: section 22 201 (relating to bribery of public officials and witnesses), 23 section 224 (relating to bribery in sporting contests), 24 sections 471 through 509 (relating to counterfeiting and 25 forgery), section 659 (relating to interstate or foreign 26 shipments by carrier; State prosecutions) if the act 27 indictable under section 659 is felonious, section 664 28 (relating to theft or embezzlement from employee benefit 29 plan), sections 891 through 894 of Chapter 42 (relating to 30 extortionate credit transactions), section 1084 (relating to 19790S0318B0322 - 111 -
1 the transmission of wagering information), section 1341 2 (relating to mail fraud), section 1343 (relating to wire 3 fraud), section 1503 (relating to obstruction of justice), 4 section 1510 (relating to obstruction of criminal 5 investigations), section 1511 (relating to the obstruction of 6 State or local law enforcement), section 1951 (relating to 7 interference with commerce, robbery, or extortion), section 8 1952 (relating to racketeering), section 1953 (relating to 9 interstate transportation of wagering paraphernalia), section 10 1954 (relating to unlawful fund payments), section 1955 11 (relating to the prohibition of illegal gambling businesses), 12 sections 2314 and 2315 (relating to interstate transportation 13 of stolen property), sections 2421 through 2424 (relating to 14 white slave traffic). 15 (3) Any act which is indictable under Title 29, United 16 States Code, section 186 (relating to restrictions on 17 payments and loans to labor organizations) or section 501(c) 18 (relating to embezzlement from union funds). 19 (4) Any offense involving bankruptcy fraud, fraud in the 20 sale of securities, or the felonious manufacture, 21 importation, receiving, concealment, buying, selling, or 22 otherwise dealing in narcotic or other dangerous drugs, 23 punishable under any law of the United States. 24 (b) "Person." Any individual or entity holding or capable 25 of holding a legal or beneficial interest in property. 26 (c) "Enterprise." Any individual, partnership, corporation, 27 association, or other legal entity, and any union or group of 28 individuals associated in fact although not a legal entity. 29 (d) "Pattern of racketeering activity." Requires at least 30 two acts of racketeering activity, one of which occurred after 19790S0318B0322 - 112 -
1 the effective date of this act and the last of which occurred 2 within ten years (excluding any period of imprisonment) after 3 the commission of a prior act of racketeering activity. 4 (e) "Unlawful debt." A debt: 5 (1) Which was incurred or contracted in gambling 6 activity which was in violation of the law of the United 7 States, a state or political subdivision thereof. 8 (2) Which is unenforceable under Commonwealth or Federal 9 law in whole or in part as to principal or interest because 10 of the laws relating to usury. 11 (3) Which was incurred in connection with the business 12 of gambling in violation of the law of the United States, a 13 state or political subdivision thereof. 14 (4) Which was incurred in connection with the business 15 of lending money or a thing of value at a rate usurious under 16 Commonwealth or Federal law, where the usurious rate is at 17 least twice the enforceable rate. 18 (f) "Documentary material." Any book, paper, document, 19 record, recording, or other material. 20 Section 816. Prohibited activities. 21 (a) It shall be unlawful for any person who has received any 22 income derived, directly or indirectly, from pattern of 23 racketeering activity or through collection of an unlawful debt 24 in which such person has participated as a principal to use or 25 invest, directly or indirectly, any part of such income, or the 26 proceeds of such income, in acquisition of any interest in, or 27 the establishment or operation of, any enterprise which is 28 engaged in or the activities of which affect casino gaming 29 operations or ancillary industries which do business with any 30 casino licensee. A purchase of securities on the open market for 19790S0318B0322 - 113 -
1 purposes of investment, and without the intention of controlling 2 or participating in the control of the issuer or of assisting 3 another to do so, shall not be unlawful under this subsection, 4 provided that the sum total of the securities of the issuer held 5 by the purchaser, the members of his family, and his or their 6 accomplices in any pattern of racketeering activity or in the 7 collection of an unlawful debt does not amount in the aggregate 8 to 1% of the outstanding securities of any one class, or does 9 not, either in law or in fact, empower the holders thereof to 10 elect one or more directors of the issuer. 11 (b) It shall be unlawful for any person through a pattern of 12 racketeering activity or through collection of an unlawful debt 13 to acquire or maintain, directly or indirectly, any interest in 14 or control of any enterprise which is engaged in, or the 15 activities of which affect, casino gaming operations or 16 ancillary industries which do business with any casino licensee. 17 (c) It shall be unlawful for any person employed by or 18 associated with any enterprise engaged in, or the activities of 19 which affect, casino gaming operations or ancillary industries 20 which do business with any casino licensee, to conduct or 21 participate, directly or indirectly, in the conduct of such 22 enterprise's affairs through a pattern of racketeering activity 23 or collection of unlawful debt. 24 (d) It shall be unlawful for any person to conspire to 25 violate any of the provisions of subsections (a), (b) or (c). 26 (e) Any person who violates any provision of this section 27 shall be fined not more than $50,000 or imprisoned not more than 28 20 years or both and shall forfeit to the Commonwealth: 29 (1) Any interest he has acquired or maintained in 30 violation of this section. 19790S0318B0322 - 114 -
1 (2) Any interest in, security of, claim against, or 2 property or contractual right of any kind affording a source 3 of influence over any enterprise which he has established, 4 operated, controlled, conducted, or participated in the 5 conduct of, in violation of this section. 6 (f) In any action brought by the Attorney General under this 7 section, the Commonwealth Court shall have jurisdiction to enter 8 such restraining orders or prohibitions, or to take such other 9 actions, including but not limited to, the acceptance of 10 satisfactory performance bonds, in connection with any property 11 or other interest subject to forfeiture under this section, as 12 it shall deem proper. 13 (g) Upon conviction of a person under this section, the 14 court shall authorize the Attorney General to seize all property 15 or other interest declared forfeited under this section upon 16 such terms and conditions as the court shall deem proper. If a 17 property right or other interest is not exercisable or 18 transferable for value by the Commonwealth, it shall expire and 19 shall not revert to the convicted person. 20 Section 817. Civil remedies. 21 (a) The Commonwealth Court shall have jurisdiction to 22 prevent and restrain violations of section 816 by issuing 23 appropriate orders, including, but not limited to, ordering any 24 person to divest himself of any interest, direct or indirect, in 25 any enterprise; imposing reasonable restrictions on the future 26 activities or investments of any person, including, but not 27 limited to, prohibiting any person from engaging in the same 28 type of endeavor as the enterprise engaged in, the activities of 29 which affect casino gaming operations or ancillary industries 30 which do business with any casino licensee; or ordering 19790S0318B0322 - 115 -
1 dissolution or reorganization of any enterprise, making due 2 provision for the rights of innocent persons. 3 (b) The Attorney General may institute proceedings in 4 Commonwealth Court for violations of section 816. In any action 5 brought under this section, the court shall proceed as soon as 6 practicable to the hearing and determination thereof. Pending 7 final determination thereof, the court may at any time enter 8 such restraining orders or prohibitions, or take such other 9 actions, including the acceptance of satisfactory performance 10 bonds, as it shall deem proper. 11 (c) Any person injured in his business or property by reason 12 of a violation of section 816 may sue therefor in any 13 appropriate court and shall recover threefold any damages he 14 sustains and the cost of the suit, including a reasonable 15 attorney's fee. 16 (d) A final judgment or decree rendered in favor of the 17 Commonwealth in any criminal proceeding brought under this act 18 shall estop the defendant from denying the essential allegations 19 of the criminal offense in any subsequent civil proceeding 20 brought by the Attorney General. 21 Section 818. Civil investigative demand. 22 (a) Whenever the Attorney General has reason to believe that 23 any person or enterprise may be in possession, custody, or 24 control of any documentary materials relevant to an 25 investigation under this act, he may, prior to the institution 26 of a civil or criminal proceeding thereon, issue in writing, and 27 cause to be served upon such person, a civil investigative 28 demand requiring such person to produce such material for 29 examination. 30 (b) Each such demand shall: 19790S0318B0322 - 116 -
1 (1) State the nature of the conduct constituting the 2 alleged violation which is under investigation and the 3 provision of law applicable thereto. 4 (2) Describe the class or classes of documentary 5 material to be produced thereunder with such specificity and 6 certainty as to permit such material to be fairly identified. 7 (3) Prescribe a return date which will provide a 8 reasonable period of time within which the material so 9 demanded may be assembled and made available for inspection 10 and copying or reproduction. 11 (4) Identify the custodian to whom such material shall 12 be made available. 13 (c) No such demand shall: 14 (1) Contain any requirement which would be held to be 15 unreasonable if contained in a subpoena duces tecum issued in 16 aid of a grand jury investigation. 17 (2) Require the production of any documentary evidence 18 which would be otherwise privileged from disclosure if 19 demanded by a subpoena duces tecum issued in aid of a grand 20 jury investigation. 21 (d) Service of any such demand or any petition filed under 22 this section may be made upon a person by: 23 (1) Delivering a duly executed copy thereof to any 24 partner, executive officer, managing agent, or general agent 25 thereof, or to any agent thereof authorized by appointment or 26 by law to receive service of process on behalf of such 27 person, or upon any individual person. 28 (2) Delivering a duly executed copy thereof to the 29 principal office or place of business of the person to be 30 served. 19790S0318B0322 - 117 -
1 (3) Depositing such copy in the United States mail, by 2 registered or certified mail duly addressed to such person at 3 its principal office or place of business. 4 (e) A verified return by the individual serving any demand 5 or petition setting forth the manner of such service shall be 6 prima facie proof of such service. In the case of service by 7 registered or certified mail, such return shall be accompanied 8 by the return post office receipt of delivery of such demand. 9 (f) Any person upon whom any demand issued under this 10 section has been duly served shall make such material available 11 for inspection and copying or reproduction to the Attorney 12 General at the principal place of business of such person, or at 13 such other place as the Attorney General and such person 14 thereafter may agree and prescribe in writing, on the return 15 date specified in such demand or on such later date as the 16 Attorney General may prescribe in writing. Upon written 17 agreement between such person and the Attorney General, copies 18 may be substituted for all or any part of such original 19 materials. The Attorney General may cause the preparation of 20 such copies of documentary material as may be required for 21 official use by the Attorney General. While in the possession of 22 the Attorney General, no material so produced shall be available 23 for examination, without the consent of the person who produced 24 such material, by any individual other than the Attorney General 25 or his duly appointed representatives. Under such reasonable 26 terms and conditions as the Attorney General shall prescribe, 27 documentary material while in his possession shall be available 28 for examination by the person who produced such material or any 29 duly authorized representatives of such person. 30 (g) Upon completion of the review and investigation for 19790S0318B0322 - 118 -
1 which any documentary material was produced under this action, 2 and any case or proceeding arising from such investigation, the 3 Attorney General shall return to the person who produced such 4 material all such material other than copies thereof made by the 5 Attorney General pursuant to this section which has not passed 6 into the control of any court or grand jury through the 7 introduction thereof into the record of such case or proceeding. 8 (h) When any documentary material has been produced by any 9 person under this section for use in any racketeering 10 investigation, and no such case or proceeding arising therefrom 11 has been instituted within a reasonable time after completion of 12 the examination and analysis of all evidence assembled in the 13 course of such investigation, such person shall be entitled, 14 upon written demand made upon the Attorney General, to the 15 return of all documentary material other than copies thereof 16 made pursuant to this section so produced by such person. 17 (i) Whenever any person fails to comply with any civil 18 investigative demand duly served upon him under this section or 19 whenever satisfactory copying or reproduction of any such 20 material cannot be done and such person refuses to surrender 21 such material, the Attorney General may file in the Commonwealth 22 Court a petition for an order of such court for the enforcement 23 of this section. 24 (j) The provisions of this section shall not apply to any 25 situation covered by the provisions of this act relating to 26 searches by division employees and agents, and shall in no way 27 limit the bureau's authority under such provisions. 28 Section 819. Supplemental sanctions. 29 In addition to any penalty, fine or term of imprisonment 30 authorized by law, the commission shall, after appropriate 19790S0318B0322 - 119 -
1 hearings and factual determinations, have the authority to 2 impose the following sanctions upon any person licensed pursuant 3 to this act: 4 (1) revoke the license of any person for the conviction 5 of any criminal offense under this act or for the commission 6 of any other offense or violation of this act which would 7 disqualify such person from holding his license; 8 (2) revoke the license of any person for willfully and 9 knowingly violating an order of the commission directed to 10 such person; 11 (3) suspend the license of any person pending hearing 12 and determination, in any case in which license revocation 13 could result; 14 (4) suspend the operation certificate of any casino for 15 violation of any provisions of this act or regulations 16 promulgated hereunder related to the casino operation, 17 including games, internal and accountancy controls and 18 security; 19 (5) assess such civil penalties as may be necessary to 20 punish misconduct and to deter future violations, which 21 penalties may not exceed $10,000 in the case of any 22 individual licensee, except that in the case of a casino 23 licensee the penalty may not exceed $50,000; 24 (6) order restitution of any moneys or property 25 unlawfully obtained or retained by a licensee; 26 (7) enter a cease and desist order which specifies the 27 conduct which is to be discontinued, altered or implemented 28 by the licensee; 29 (8) issue letters of reprimand or censure, which letters 30 shall be made a permanent part of the file of each licensee 19790S0318B0322 - 120 -
1 so sanctioned; or 2 (9) impose any or all of the foregoing sanctions in 3 combination with each other. 4 Section 820. Imposition of sanctions; standards. 5 In considering appropriate sanctions in a particular case, 6 the commission shall consider: 7 (1) the risk to the public and to the integrity of 8 gaming operations created by the conduct of the licensee; 9 (2) the seriousness of the conduct of the licensee, and 10 whether the conduct was purposeful and with knowledge that it 11 was in contravention of the provisions of this act or 12 regulations promulgated hereunder; 13 (3) any justification or excuse for such conduct by the 14 licensee; 15 (4) the prior history of the particular licensee 16 involved with respect to gaming activity; 17 (5) the corrective action taken by the licensee to 18 prevent future misconduct of a like nature from occurring; 19 (6) in the case of a monetary penalty, the amount of the 20 penalty in relation to the severity of the misconduct and the 21 financial means of the licensee. The commission may impose 22 any schedule or terms of payment of such penalty as it may 23 deem appropriate; and 24 (7) it shall be no defense to a disciplinary action 25 before the commission that an applicant, licensee, 26 registrant, intermediary company, or holding company 27 inadvertently, unintentionally, or unknowingly violated a 28 provision of this act. Such factors shall only go the degree 29 of the penalty to be imposed by the commission, and not to a 30 finding of a violation itself. 19790S0318B0322 - 121 -
1 CHAPTER 9 2 MISCELLANEOUS PROVISIONS 3 Section 901. Declaration of Commonwealth's exemption from 4 operation of provisions of 15 U.S.C. § 1172. 5 Pursuant to 15 U.S.C. § 1172, the Commonwealth of 6 Pennsylvania, acting by and through the duly elected and 7 qualified members of its General Assembly, does hereby, in 8 accordance with and in compliance with the provisions of such 9 section, declare and proclaim that it is exempt from the 10 provisions of section 2 of said act of Congress. 11 Section 902. Legal shipments of gaming devices into 12 Pennsylvania. 13 All shipments into this Commonwealth of gaming devices, 14 including slot machines, the registering, recording and labeling 15 of which has been duly had by the manufacturer or dealer thereof 16 in accordance with 15 U.S.C. § 1173 and 1174, shall be deemed 17 legal shipments thereof into this Commonwealth. 18 Section 903. Severability and preemption. 19 (a) If any clause, sentence, subparagraph, paragraph, 20 subsection, section, chapter or other portion of this act or the 21 application thereof to any person or circumstances shall be held 22 to be invalid, such holding shall not affect, impair or 23 invalidate the remainder of this act or the application of such 24 portion held invalid to any other person or circumstances, but 25 shall be confined in its operation to the clause, sentence, 26 paragraph, subparagraph, paragraph, subsection, section, chapter 27 or other portion thereof directly involved in such holding or to 28 the person or circumstance therein involved. 29 (b) If any provision of this act is inconsistent with, in 30 conflict with, or contrary to any other provision of law, such 19790S0318B0322 - 122 -
1 provision of this act shall prevail over such other provision 2 and such other provision shall be deemed to be amended, 3 superseded or repealed to the extent of such inconsistency or 4 conflict. Notwithstanding the provisions of any other law to the 5 contrary, no local government unit of this Commonwealth may 6 enact or enforce any ordinance or resolution conflicting with 7 any provision of this act or with any policy of this 8 Commonwealth expressed or implied herein, whether by exclusion 9 or inclusion. The commission shall have exclusive jurisdiction 10 over all matters delegated to it or within the scope of its 11 powers under the provisions of this act. 12 Section 904. Equal employment opportunity; requirements of 13 license. 14 (a) Each applicant at the time of submitting architectural 15 plans or site plans to the commission for approval of proposed 16 construction, renovation or reconstruction of any structure or 17 facility to be used as an approved hotel or casino shall 18 accompany same with a written guaranty that all contracts and 19 subcontracts to be awarded in connection therewith shall contain 20 appropriate provisions by which contractors and subcontractors 21 or their assignees agree to afford an equal employment 22 opportunity to all prospective employees and to all actual 23 employees to be employed by the contractor or subcontractor in 24 accordance with an affirmative action program approved by the 25 commission and consonant with the provisions of the act of 26 October 27, 1955 (P.L.744, No.222), as amended, known as the 27 "Pennsylvania Human Relations Act." 28 (b) No license shall be issued by the commission to any 29 applicant, including a casino service industry as defined in 30 this act, who has not agreed to afford an equal employment 19790S0318B0322 - 123 -
1 opportunity to all prospective employees in accordance with an 2 affirmative-action program approved by the commission and 3 consonant with the provisions of the "Pennsylvania Human 4 Relations Act." 5 (c) Each applicant shall formulate for commission approval 6 and abide by an affirmative-action program of equal opportunity 7 whereby the applicant guarantees to provide equal employment 8 opportunity to rehabilitated offenders eligible for employment 9 under this act and members of minority groups qualified for 10 licensure in all employment categories, including the 11 handicapped, in accordance with the provisions of the 12 "Pennsylvania Human Relations Act," except in the case of the 13 mentally handicapped, if it can be clearly shown that such 14 handicap would prevent such person from performing a particular 15 job. 16 (d) Any license issued by the commission in violation of 17 this section shall be null and void. 18 Section 905. Equal employment opportunity; enforcement by the 19 commission. 20 The commission, in addition to and without limitation of 21 other powers which it may have by law, shall have the following 22 powers: 23 (1) to investigate and determine the percentage of 24 population of minority groups in the Commonwealth or in areas 25 thereof from which the work force for the licensee is or may 26 be drawn; 27 (2) to establish and promulgate such percentages as 28 guidelines in determining the adequacy of affirmative-action 29 programs submitted for approval pursuant to the provisions of 30 section 904; 19790S0318B0322 - 124 -
1 (3) to impose such sanctions as may be necessary to 2 accomplish the objectives of section 904; 3 (4) to refer to the Pennsylvania Human Relations 4 Commission circumstances which may constitute violation of 5 the "Pennsylvania Human Relations Act"; 6 (5) to enforce in a court of law the provisions of 7 section 904 or to join in or assist any enforcement 8 proceeding initiated by any aggrieved person; and 9 (6) to require the designation by a licensee of an equal 10 employment officer to enforce the provisions of section 904 11 and this section and the regulations promulgated hereunder. 12 Section 906. Facilities for the handicapped. 13 All hotels and other facilities of a casino licensee, which 14 are public accommodations and are subject to the regulatory 15 powers of the commission under this act, shall be constructed or 16 renovated to conform with the provisions of the act of September 17 1, 1965 (P.L.459, No.235), as amended, relating to standards and 18 specifications to make certain buildings accessible to the 19 physically handicapped and regulations issued by the Department 20 of Labor and Industry. 21 Section 907. Early settlement dates and certain transfers of 22 gaming property prohibited. 23 When any person contracts to sell or lease any property or 24 interest in property, real or personal, under circumstances 25 which require the approval or licensing of the purchaser or 26 lessee by the commission, the contract shall not specify a 27 settlement or closing date for the transaction which is earlier 28 than the ninety-first day after the date of submission of the 29 completed application for such approval or licensing. Any 30 provision of such a contract which specifies an earlier 19790S0318B0322 - 125 -
1 settlement or closing date is void for all purposes, but such 2 invalidity shall not affect the validity of any other provision 3 of the contract. 4 Section 908. Prohibited political contributions. 5 No applicant for or holder of a casino license, nor any 6 holding, intermediary or subsidiary company thereof, nor any 7 officer, director, casino key employee or principal employee of 8 an applicant for or holder of a casino license or of any 9 holding, intermediary or subsidiary company thereof nor any 10 person or agent on behalf of any such applicant, holder, company 11 or person, shall directly or indirectly, pay or contribute any 12 money or thing of value to any candidate for nomination or 13 election to any public office in this Commonwealth, or to any 14 committee of any political party in this Commonwealth, or to any 15 group, committee or association organized in support of any such 16 candidate or political party. 17 CHAPTER 10 18 FEES AND TAXES 19 Section 1001. Casino license fees. 20 (a) The commission shall, by regulation, establish annual 21 fees for the issuance or renewal of casino licenses. The 22 issuance fee shall be based upon the cost of investigation and 23 consideration of the license application and shall be not less 24 than $200,000. The renewal fee shall be based upon the cost of 25 maintaining control and regulatory activities contemplated by 26 this act and shall be not less than $100,000 annually. 27 (b) The Attorney General shall certify to the commission 28 actual and prospective costs of the investigative and 29 enforcement functions of the bureau, which costs shall be the 30 basis, together with the operating expenses of the commission, 19790S0318B0322 - 126 -
1 for the establishment of annual license issuance and renewal 2 fees. 3 (c) A nonrefundable deposit of at least $100,000 shall be 4 required to be posted with each application for a casino license 5 and shall be applied to the initial license fee if the 6 application is approved. 7 Section 1002. License fee on slot machines. 8 (a) In addition to any other tax or fee imposed by this act, 9 there is also hereby imposed an annual license fee of $200 upon 10 every slot machine which is subject to the occupational tax on 11 coin-operated devices under the provisions of the Federal 12 Internal Revenue Code of 1954 and the amendments thereof and 13 supplements thereto. 14 (b) License fees imposed under the provisions of this 15 section shall be imposed as of the first day of July of each 16 year, with regard to all slot machines in use on that date, and 17 on a pro rata basis thereafter during the year with regard to 18 all slot machines placed in use after July 1. 19 Section 1003. License fees for other than casino licenses. 20 The commission shall, by regulation, establish annual fees 21 for the issuance and renewal of licenses other than casino 22 licenses, which fees shall be payable by the licensee. 23 Section 1004. Work permit fee. 24 The commission shall, by regulation, establish annual fees 25 for the issuance and renewal of work permits for the various 26 classes of employees, which fees shall be payable by the 27 employer licensee. 28 Section 1005. Casino Control Fund. 29 (a) There is hereby created and established in the 30 Commonwealth Treasury a separate special account to be known as 19790S0318B0322 - 127 -
1 the "Commonwealth Casino Control Fund," into which shall be 2 deposited all license fee revenues imposed by this chapter. 3 (b) Moneys in the Commonwealth Casino Control Fund shall be 4 appropriated exclusively for the operating expenses of the 5 commission and the bureau. 6 Section 1006. Tax on gross revenues. 7 (a) There is hereby imposed an annual tax on gross revenues 8 as hereinbefore defined in the amount of 8% of such gross 9 revenues. 10 (b) Commencing with the third annual tax return of a 11 licensee and based upon a determination that in said return or 12 any annual return thereafter the gross revenue of a licensee in 13 the calendar year upon which the tax is based exceeds the 14 cumulative investments in this Commonwealth of said licensee as 15 of that year, such licensee shall make investments in an amount 16 not less than 2% of the gross revenue for said calendar year 17 within a period of five years from the end of said calendar 18 year. Investments required as a result of any of the five annual 19 tax returns commencing with the third annual tax return shall be 20 made in the municipality in which the licensed premises are 21 located. Not less than 50% of investments required as a result 22 of any annual tax return subsequent to the seventh such return 23 shall be made in any other municipality of this Commonwealth. 24 All investments and cumulative investments made pursuant to 25 this chapter shall be subject to a determination by the 26 commission as to the eligibility of such investments. In 27 determining eligibility, the commission shall consider the 28 public interest, including the social and economic benefits to 29 be derived from such investments for the people of this 30 Commonwealth. 19790S0318B0322 - 128 -
1 (c) For the purposes of this chapter, "investments" means 2 equity investments in land and real property on which 3 improvements are made and in real property improvements. For the 4 purposes of this chapter, "cumulative investments" means 5 investments in and debt financing of the licensed premises, plus 6 other investments in and debt financing of land and real 7 property on which improvements are made and real property 8 improvements; provided, however, that the investments and debt 9 financing not associated with the licensed premises have been 10 made subsequent to July 6, 1976. Real property and real property 11 improvements sold or otherwise disposed of by the licensee shall 12 not be included for the purposes of determining cumulative 13 investments. 14 (d) For the purposes of satisfying the amount of investments 15 in any given year and of determining cumulative investments as 16 of any given year, pursuant to subsection (b), actual monetary 17 contributions shall be included if the commission determines 18 that such contributions directly relate to the improvement, 19 furtherance, and promotion of the tourist industry in this 20 Commonwealth through the planning, acquisition, construction, 21 improvement, maintenance, and operation of recreational and 22 entertainment facilities for the public, including, without 23 limitation, a performing arts center. 24 (e) In the event that the investments required in subsection 25 (b) are not made within the time set forth therein, there shall 26 be imposed an investment alternative tax in an amount equivalent 27 to 2% of gross revenue, which tax shall be added to the tax 28 determined under subsection (a) and shall be due and payable in 29 accordance with this section. For purposes of determining 30 whether the investment alternative tax shall be paid, the State 19790S0318B0322 - 129 -
1 Treasurer shall certify, under such rules and regulations as he 2 shall promulgate consistent with the provisions of this chapter, 3 the amount of cumulative investments made by each licensee. In 4 the event of the sale or other disposition of the licensed 5 premises, any investment obligation imposed by subsection (b), 6 which is not satisfied shall be immediately deemed due and 7 payable as investment alternative tax, and said amount shall 8 constitute a lien upon the licensed premises until paid, 9 together with interest at the rate of 6% per annum. 10 (f) The commission shall promulgate rules and regulations 11 consistent with the provisions of this chapter as to the 12 eligibility of the investments and cumulative investments 13 required by this chapter. 14 Section 1007. Commonwealth Casino Revenue Fund. 15 (a) There is hereby created and established in the 16 Commonwealth Treasury a separate special account to be known as 17 the "Commonwealth Casino Revenue Fund," into which shall be 18 deposited all revenues from the tax imposed by section 1006. 19 (b) The commission shall require at least monthly deposits 20 by the licensee of the tax at such times, under such conditions, 21 and in such depositories as shall be prescribed by the State 22 Treasurer. The deposits shall be deposited to the credit of the 23 Commonwealth Casino Revenue Fund. The commission may require a 24 monthly report and reconciliation statement, to be filed with it 25 on or before the tenth day of each month, with respect to gross 26 revenues and deposits received and made, respectively, during 27 the preceding month. 28 (c) Moneys in the Commonwealth Casino Revenue Fund shall be 29 appropriated, exclusively for reductions in property taxes, 30 rentals, telephone, gas, electric, and municipal utilities 19790S0318B0322 - 130 -
1 charges of eligible senior citizens and disabled residents of 2 the Commonwealth as shall be provided by law. 3 Section 1008. Payment of taxes. 4 The tax imposed under section 1006 hereof shall be due and 5 payable annually on or before March 15 and shall be based upon 6 gross revenues derived during the previous calendar year. A 7 licensee shall file its first return and shall report gross 8 revenues from the time it commenced operations and ending on the 9 last day of said calendar year. Such report shall be filed with 10 the commission on or before the following March 15. 11 Section 1009. Determination of tax liability. 12 If a return or deposit required by section 1007 is not filed 13 or paid, or if a return or deposit when filed or paid is 14 incorrect or insufficient in the opinion of the State Treasurer, 15 the amount of tax due or deposit shall be determined by the 16 State Treasurer from such information as may be available. 17 Notice of such determination shall be given to the licensee 18 liable for the payment of the tax or deposit. Such determination 19 shall finally and irrevocably fix the tax unless the person 20 against whom it is assessed, within 30 days after receiving 21 notice of such determination, shall apply to the State Treasurer 22 for a hearing, or unless the State Treasurer on his own motion 23 shall redetermine the same. After such hearing the State 24 Treasurer shall give notice of his determination to the person 25 against whom the tax is assessed. 26 Section 1010. Penalties. 27 (a) Any licensee who shall fail to file his return when due 28 or to pay any tax or deposit when the same becomes due, as 29 herein provided, shall be subject to such penalties and interest 30 as are provided for in section 403 of the act of March 4, 1971 19790S0318B0322 - 131 -
1 (P.L.6, No.2), as amended, known as the "Tax Reform Code of 2 1971." If the State Treasurer determines that the failure to 3 comply with any provision of this chapter was excusable under 4 the circumstances, he may remit such part or all of the penalty 5 as shall be appropriate under such circumstances. 6 (b) Any person failing to file a return, failing to pay the 7 tax or deposit, or filing or causing to be filed, or making or 8 causing to be made, or giving or causing to be given any return, 9 certificate, affidavit, representation, information, testimony 10 or statement required or authorized by this act, or rules or 11 regulations adopted hereunder which is willfully false, or 12 failing to keep any records required by this act or rules and 13 regulations adopted hereunder, shall, in addition to any other 14 penalties herein or elsewhere prescribed, be guilty of a 15 misdemeanor and subject to not more than three years 16 imprisonment or a fine of $100,000 or both. 17 (c) The certificate of the State Treasurer to the effect 18 that a tax or deposit has not been paid, that a return has not 19 been filed, that information has not been supplied, or that 20 inaccurate information has been supplied pursuant to the 21 provisions of this act or rules or regulations adopted 22 hereunder, shall be presumptive evidence thereof. 23 (d) If any part of any underpayment of tax required to be 24 shown on a return is due to fraud, there shall be added to the 25 tax an amount equal to 50% of the underpayment. 26 Section 1011. Forms. 27 In addition to the other powers granted by this act, the 28 commission is hereby authorized and empowered to promulgate and 29 distribute all forms and returns necessary to the implementation 30 of this act. 19790S0318B0322 - 132 -
1 CHAPTER 11 2 APPROPRIATIONS AND EFFECTIVE DATE 3 Section 1101. Appropriations. 4 (a) There is hereby appropriated the sum of $800,000 or as 5 much thereof as may be necessary for initial expenses of the 6 commission. 7 (b) There is hereby appropriated the sum of $3,300,000 or as 8 much thereof as may be necessary to the Department of Justice 9 for the operating expenses of the bureau and other agencies 10 directly related to the enforcement of this act. 11 (c) The sums hereinabove appropriated shall be repaid to the 12 General Fund from the first proceeds received in the 13 Commonwealth Casino Control Fund during the first six years of 14 its operation. 15 Section 1102. Effective date. 16 This act shall take effect immediately. K30L28WMB/19790S0318B0322 - 133 -