See other bills
under the
same topic
PRINTER'S NO. 2225
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1656
Session of
2017
INTRODUCED BY FARRY, NEILSON, BIZZARRO, MEHAFFIE, DAVIS,
GALLOWAY, TAYLOR, SIMMONS AND IRVIN, JULY 11, 2017
REFERRED TO COMMITTEE ON GAMING OVERSIGHT, JULY 11, 2017
AN ACT
Amending Title 4 (Amusements) of the Pennsylvania Consolidated
Statutes,
in general provisions, further providing for definitions;
in Pennsylvania Gaming Control Board, further providing
for general and specific powers and providing for hybrid and
skill-based devices;
in licensees, further providing for Category 3 slot
machine license, for slot machine testing and certification
standards, for license renewals and for multiple slot machine
license prohibition;
in table games, further providing for table game device
and associated equipment testing and certification standards;
providing for Category 4 locations, for airport gaming
and for sports wagering;
in revenues, further providing for gross terminal revenue
deductions, for establishment of State Gaming Fund and net
slot machine revenue distribution and providing for gaming
tax normalization;
in administration and enforcement, further providing for
liens and suits for taxes and for prohibited acts and
penalties and providing for casino liquor license;
in miscellaneous provisions, further providing for
repayments to State Gaming Fund;
in keno, providing for general provisions, for
authorization of lottery game, for operation and for revenue;
and
making related repeals.
The General Assembly of the Commonwealth of Pennsylvania
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
hereby enacts as follows:
Section 1. The definitions of "commission" or "commissions,"
"licensed facility" and "slot machine" in section 1103 of Title
4 of the Pennsylvania Consolidated Statutes are amended and the
section is amended by adding definitions to read:
§ 1103. Definitions.
The following words and phrases when used in this part shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
"Airport authority." The governing body of a municipal
authority incorporated under 53 Pa.C.S. Ch. 56 (relating to
municipal authorities) to oversee the operations of an
international airport in a county or the governing body of a
city of the first class that regulates or owns an international
airport.
"Airport gaming area." A location within an international
airport that is beyond the point where passengers pass through
security and which is approved by the board for the placement of
slot machines.
* * *
["Commission" or "commissions."] "Commission." The State
Horse Racing Commission [or the State Harness Racing Commission,
or both as the context may require] established under 3 Pa.C.S.
§ 9311 (relating to State Horse Racing Commission).
* * *
"Eligible passenger." An individual 21 years of age or older
who has cleared security checkpoints with a valid airline
boarding pass for travel from the airport to another destination
by airplane.
20170HB1656PN2225 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
* * *
"Hybrid device." A device that an individual provides
consideration to play in exchange for the opportunity to win
cash, cash equivalents, free games, credits or any other unit
that can be redeemed for cash, and in which a combination of the
skill of the player and elements of chance determines the
outcome of the game featured on the device. The term does not
include a video gaming terminal.
* * *
"Licensed facility." The physical land-based location at
which a licensed gaming entity is authorized to place and
operate slot machines and, if authorized by the Pennsylvania
Gaming Control Board under Chapter 13A (relating to table
games), to conduct table games. The term includes any:
(1) area of a licensed racetrack at which a slot machine
licensee was previously authorized pursuant to section
1207(17) (relating to regulatory authority of board) to
operate slot machines prior to the effective date of this
paragraph;
(2) board-approved interim facility or temporary
facility; [and]
(3) area of a hotel which the Pennsylvania Gaming
Control Board determines is suitable to conduct table
games[.];
(4) an airport gaming area; and
(5) a board-approved Category 4 location.
* * *
"Pari-mutuel wagering." A form of wagering, including
manual, electronic, computerized and other forms of wagering as
approved by the commission, on the outcome of a horse racing
20170HB1656PN2225 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
event in which all wagers are pooled and held by a licensed
racing entity or secondary pari-mutuel organization for
distribution of the total amount, minus the deductions
authorized by law, to holders of winning tickets.
* * *
"Qualified airport." A publicly owned commercial service
airport that is designated by the Federal Government as an
international airport.
* * *
"Skill." The knowledge, adroitness, acumen, dexterity or
other mental or physical skill of an individual.
"Skill-based device." A device on which an individual
provides consideration to play in exchange for the opportunity
to win cash, cash equivalents, free games, credits or any other
unit that can be redeemed for cash, and in which the skill of
the player, rather than the elements of chance, is the
predominant factor in affecting the outcome of the game featured
on the device. The term does not include a video gaming
terminal.
"Slot machine."
(1) Any mechanical, electrical or computerized
contrivance, terminal, machine or other device approved by
the Pennsylvania Gaming Control Board which, upon insertion
of a coin, bill, ticket, token or similar object therein or
upon payment of any consideration whatsoever, including the
use of any electronic payment system except a credit card or
debit card, unless otherwise authorized under this title, is
available to play or operate, the play or operation of which,
whether by reason of skill or application of the element of
chance or both, may deliver or entitle the person or persons
20170HB1656PN2225 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
playing or operating the contrivance, terminal, machine or
other device to receive cash, billets, tickets, tokens or
electronic credits to be exchanged for cash or to receive
merchandise or anything of value whatsoever, whether the
payoff is made automatically from the machine or manually. A
slot machine:
[(1)] (i) May utilize spinning reels or video
displays or both.
[(2)] (ii) May or may not dispense coins, tickets or
tokens to winning patrons.
[(3)] (iii) May use an electronic credit system for
receiving wagers and making payouts.
(2) The term shall include associated equipment
necessary to conduct the operation of the contrivance,
terminal, machine or other device.
(3) The term shall include hybrid devices and skill-
based devices.
* * *
"Video gaming terminal." An electronic video game machine
that, upon insertion of cash, electronic cards or vouchers, or
any combination of cash, electronic cards or vouchers, is
available to play or simulate the play of a video game,
including, but not limited to, video poker, line up, blackjack,
bingo, keno, slow machine or other type of game utilizing a
video display and microprocessors in which, by skill or by
chance, the player may receive free games or credits that can be
redeemed for cash.
Section 2. Section 1202(a)(1) of Title 4 is amended and
subsection (b) is amended by adding paragraphs to read:
§ 1202. General and specific powers.
20170HB1656PN2225 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(a) General powers.--
(1) The board shall have general and sole regulatory
authority over the conduct of gaming or related activities as
described in this part. The board shall ensure the integrity
of the acquisition and operation of slot machines, including
hybrid devices and skill-based devices, table games, table
game devices and associated equipment and shall have sole
regulatory authority over every aspect of the authorization,
operation and play of slot machines [and table games.],
including hybrid devices and skill-based devices, table
games, airport gaming, sports wagering and related devices
and equipment.
* * *
(b) Specific powers.--The board shall have the specific
power and duty:
* * *
(12.2) At its discretion, to issue, approve, renew,
revoke, suspend, condition or deny issuance or renewal of a
certification to conduct gaming at an airport.
(12.3) At its discretion, to issue, approve, renew,
revoke, suspend, condition or deny issuance of a permit to
conduct gaming at a Category 4 location.
* * *
(16.1) To impose administrative, civil or other
penalties or sanctions against a person that offers for play
or conducts hybrid or skill-based devices without
authorization from the board as required under this part.
* * *
Section 3. Title 4 is amended by adding a section to read:
§ 1210.1. Hybrid and skill-based devices.
20170HB1656PN2225 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(a) Authorization.--The board shall:
(1) Authorize the placement of hybrid and skill-based
devices in licensed facilities, including Category 4
locations.
(2) Establish standards to test and approve the
operation of hybrid and skill-based devices.
(3) Adopt temporary regulations as necessary to
implement the oversight of hybrid and skill-based devices,
which shall expire no later than two years following
publication. The board may promulgate temporary regulations
which shall not be subject to the following:
(i) Sections 201, 202, 203, 204 and 205 of the act
of July 31, 1968 (P.L.769, No.240), referred to as the
Commonwealth Documents Law.
(ii) The act of June 25, 1982 (P.L.633, No.181),
known as the Regulatory Review Act.
(iii) Sections 204(b) and 301(10) of the act of
October 15, 1980 (P.L.950, No.164), known as the
Commonwealth Attorneys Act.
(4) The board's authority to adopt temporary regulations
under paragraph (3) shall expire two years after the
effective date of this subsection. Regulations adopted after
this period shall be promulgated as provided by law.
(b) Complement.--Hybrid and skill-based devices placed and
made available for play in a licensed facility shall be included
within a slot machine licensee's complement of slot machines
under sections 1210 (relating to number of slot machines) and
1305 (relating to Category 3 slot machine license).
(c) Tax.--
(1) Gross terminal revenue from hybrid and skill-based
20170HB1656PN2225 - 7 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
devices placed at a licensed facility other than a Category 4
location or airport gaming area shall be subject to the taxes
and assessments established under sections 1403 (relating to
establishment of State Gaming Fund and net slot machine
revenue distribution), 1405 (relating to Pennsylvania Race
Horse Development Fund) and 1407 (relating to Pennsylvania
Gaming Economic Development and Tourism Fund).
(2) Gross terminal revenue from hybrid and skill-based
devices placed at a Category 4 location shall be subject to
the tax and assessment imposed under section 13C07 (relating
to Category 4 location taxes).
(3) Gross terminal revenue from hybrid and skill-based
devices placed in an airport gaming area shall be subject to
the tax imposed under section 13D06 (relating to tax).
(d) Prohibited acts.--
(1) A person that does not possess a slot machine
license may not offer, make available for play or conduct
hybrid or skill-based devices within this Commonwealth.
(2) A person may not accept any form of consideration
from a person in this Commonwealth in exchange for or in
conjunction with the play of a hybrid or skill-based device.
(3) A person that violates this subsection commits a
misdemeanor of the third degree. A violation of this
subsection may be enforced under section 1517(c), (c.1) and
(d) (relating to investigations and enforcement).
(4) The Office of Enforcement Counsel may enforce
violations of this subsection.
(5) Upon the finding of a violation of paragraph (1) or
(2), the board may impose an administrative penalty of not
less than $10,000 for each violation. Each day on which an
20170HB1656PN2225 - 8 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
unauthorized hybrid or skill-based device is offered for play
by a person and each unauthorized wager accepted by a person
shall constitute a separate violation.
(6) In addition to the administrative penalty
established under paragraph (5), the board may also order the
disgorgement of all funds received by a person through the
unauthorized conduct under paragraphs (1) and (2). Disgorged
funds shall be forfeited to the Commonwealth and deposited
into the Compulsive and Problem Gambling Treatment Fund under
section 1509(b) (relating to compulsive and problem gambling
program).
Section 4. Section 1305(a)(1) of Title 4 is amended and the
subsection is amended by adding a paragraph to read:
§ 1305. Category 3 slot machine license.
(a) Eligibility.--
(1) A person may be eligible to apply for a Category 3
slot machine license if the applicant, its affiliate,
intermediary, subsidiary or holding company has not applied
for or been approved or issued a Category 1 or Category 2
slot machine license and the person is seeking to locate a
Category 3 licensed facility in a well-established resort
hotel having no fewer than 275 guest rooms under common
ownership and having substantial year-round recreational
guest amenities. The applicant for a Category 3 license shall
be the owner or be a wholly owned subsidiary of the owner of
the well-established resort hotel. [A] Except as provided
under paragraph (1.2), a Category 3 license may only be
granted upon the express condition that an individual may not
enter a gaming area of the licensed facility if the
individual is not any of the following:
20170HB1656PN2225 - 9 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(i) A registered overnight guest of the well-
established resort hotel.
(ii) A patron of one or more of the amenities
provided by the well-established resort hotel.
(iii) An authorized employee of the slot machine
licensee, of a gaming service provider, of the board or
of any regulatory, emergency response or law enforcement
agency while engaged in the performance of the employee's
duties.
(iv) An individual holding a valid membership
approved in accordance with paragraph (1.1) or a guest of
such individual.
* * *
(1.2) The conditions under paragraph (1) shall not apply
to a Category 3 licensee if the Category 3 slot machine
licensee makes a payment to the Commonwealth for deposit in
the General Fund as follows:
(i) For a Category 3 licensed facility located in a
first class, second class, second class A or third class
county, $5,000,000.
(ii) For a Category 3 licensed facility located in a
fourth class, fifth class, sixth class, seventh class or
eighth class county, $2,500,000.
* * *
Section 5. Section 1320(a) of Title 4 is amended and the
section is amended by adding a subsection to read:
§ 1320. Slot machine testing and certification standards.
(a) Use of other state standards.--[Until such time as the
board establishes an independent testing and certification
facility pursuant to subsection (b), the] The board may
20170HB1656PN2225 - 10 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
determine, at its discretion, whether the slot machine testing
and certification standards of another jurisdiction within the
United States in which an applicant for a manufacturer license
is licensed are comprehensive and thorough and provide similar
adequate safeguards as those required by this part. If the board
makes that determination, it may permit a manufacturer through a
licensed supplier as provided in section 1317 (relating to
supplier [and manufacturer] licenses [application]) to deploy
those slot machines which have met the slot machine testing and
certification standards in such other jurisdictions without
undergoing the full testing and certification process by a
board-established independent facility. In the event slot
machines of an applicant for a manufacturer license are licensed
in such other jurisdiction, the board may determine to use an
abbreviated process requiring only that information determined
by the board to be necessary to consider the issuance of a slot
machine certification to such an applicant. [Alternatively, the
board in its discretion may also rely upon the certification of
a slot machine that has met the testing and certification
standards of a board-approved private testing and certification
facility until such time as the board establishes an independent
testing and certification facility pursuant to subsection (b).
Nothing in this section shall be construed to waive any fees
associated with obtaining a license through the normal
application process.]
* * *
(b.1) Use of private testing and certification facilities.--
Notwithstanding any other provisions of this part, if a slot
machine is tested and certified by a private testing and
certification facility registered with the board, the board
20170HB1656PN2225 - 11 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
shall use an abbreviated certification process requiring only
that information determined by the board to be necessary to
consider the issuance of a slot machine certification under this
section. Within one year of the effective date of this
subsection, the board shall promulgate regulations that:
(1) Provide for the registration of private testing and
certification facilities. A person seeking registration under
this subsection shall be subject to section 1202(b)(9)
(relating to general and specific powers).
(2) Specify the form and content of the application for
registration.
(3) Establish and collect an application fee for persons
seeking registration. The application fee shall include the
costs of all background investigations as determined
necessary and appropriate by the bureau.
(4) Establish uniform procedures and standards which
private testing and certification facilities must comply with
during the testing and certification of slot machines.
(5) Utilize information provided by private testing and
certification facilities for the abbreviated certification of
slot machines.
(6) Establish an abbreviated certification process that
may be used by registered private testing and certification
facilities to test and certify slot machines.
(7) Establish fees that must be paid by licensed
manufacturers.
(8) Require slot machines submitted for abbreviated
certification to be approved or denied by the board within 30
days from the date of submission to the board. If the board
fails to act within the 30-day period, the abbreviated
20170HB1656PN2225 - 12 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
certification shall be deemed conditionally approved.
(9) Provide procedures and standards for the suspension
and revocation of the registration of a private testing and
certification facility and the reinstatement of a suspended
or revoked registration, as determined appropriate by the
board.
* * *
Section 6. Sections 1326(a) and 1330 of Title 4 are amended
to read:
§ 1326. License renewals.
(a) Renewal.--All permits [and licenses], licenses,
registrations and certificates issued under this part unless
otherwise provided shall be subject to renewal every [three]
five years. Nothing in this subsection shall relieve a licensee
of the affirmative duty to notify the board of any changes
relating to the status of its [license] permit, license,
registration and certificate or to any other information
contained in the application materials on file with the board.
The application for renewal shall be submitted at least 60 days
prior to the expiration of the permit [or license], license,
registration and certificate and shall include an update of the
information contained in the initial and any prior renewal
applications and the payment of any renewal fee required by this
part. Unless otherwise specifically provided in this part, the
amount of any renewal fee shall be calculated by the board to
reflect the longer renewal period. A permit or license for which
a completed renewal application and fee, if required, has been
received by the board will continue in effect unless and until
the board sends written notification to the holder of the permit
or license that the board has denied the renewal of such permit
20170HB1656PN2225 - 13 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
or license.
* * *
§ 1330. [Multiple slot machine license prohibition.
No slot machine licensee, its affiliate, intermediary,
subsidiary or holding company may possess an ownership or
financial interest that is greater than 33.3% of another slot
machine licensee or person eligible to apply for a Category 1
license, its affiliate, intermediary, subsidiary or holding
company. The board shall approve the terms and conditions of any
divestiture under this section. Under no circumstances shall any
such divestiture be approved by the board if the compensation
for the divested interest in a person eligible to apply for a
Category 1 license exceeds the greater of the original cost of
the interest, the book value of the interest or an independently
assessed value of the interest one month prior to the effective
date of this part and, in the case of a person eligible to apply
for a Category 1 license, unless the person acquiring the
divested interest is required to continue conducting live racing
at the location where live racing is currently being conducted
in accordance with section 1303 (relating to additional Category
1 slot machine license requirements) and be approved for a
Category 1 slot machine license. No such slot machine license
applicant shall be issued a slot machine license until the
applicant has completely divested its ownership or financial
interest that is in excess of 33.3% in another slot machine
licensee or person eligible to apply for a Category 1 license,
its affiliate, intermediary, subsidiary or holding company.]
(Reserved).
Section 7. Section 13A41 of Title 4 is amended by adding a
subsection to read:
20170HB1656PN2225 - 14 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
§ 13A41. Table game device and associated equipment testing and
certification standards.
* * *
(c) Use of private testing and certification facilities.--
Notwithstanding any provision of this part, if a table game
device or associated equipment is tested and certified by a
private testing and certification facility registered with the
board, the board shall use an abbreviated certification process
requiring only that information determined by the board to be
necessary to consider the issuance of a table game device or
associated equipment certification under this section. Within
one year of the effective date of this subsection, the board
shall promulgate regulations that:
(1) Provide for the registration of private testing and
certification facilities. Persons seeking registration under
this subsection shall be subject to section 1202(b)(9)
(relating to general and specific powers).
(2) Specify the form and content of the application for
registration.
(3) Establish and collect an application fee for persons
seeking registration. The application fee shall include the
costs of all background investigations as determined
necessary and appropriate by the board.
(4) Establish uniform procedures and standards which
private testing and certification facilities must comply with
during the testing and certification of table game devices
and associated equipment.
(5) Utilize information provided by private testing and
certification facilities for the abbreviated certification of
table game devices and associated equipment.
20170HB1656PN2225 - 15 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(6) Establish an abbreviated certification process that
may be used by registered private testing and certification
facilities to test and certify table game devices and
associated equipment.
(7) Establish fees that must be paid by a licensed
manufacturer.
(8) Require table game devices and associated equipment
submitted for abbreviated certification to be approved or
denied by the board within 30 days from the date of
submission to the board. If the board fails to act within the
30-day period, the abbreviated certification shall be deemed
conditionally approved.
(9) Provide procedures and standards for the suspension
and revocation of the registration of a private testing and
certification facility and the reinstatement of a suspended
or revoked registration.
Section 8. Title 4 is amended by adding chapters to read:
CHAPTER 13C
CATEGORY 4 LOCATIONS
Sec.
13C01. Category 4 slot machine permit.
13C02. Review of application.
13C03. Award of permit.
13C04. Category 4 locations.
13C05. Conduct of gaming at Category 4 locations.
13C06. Permit fees.
13C07. Category 4 location taxes.
13C08. Local share assessment.
13C09. Temporary Category 4 regulations.
13C10. Additional Category 4 locations.
20170HB1656PN2225 - 16 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
§ 13C01. Category 4 slot machine permit.
(a) Board.--The board is authorized to issue Category 4
permits to eligible slot machine licensees for the conduct of
gaming at Category 4 locations. The board shall provide for the
establishment and regulation of Category 4 locations.
Authorization shall be contingent upon the slot machine
licensee's agreement to ensure that slot machine operations will
be conducted in accordance with this part and any other
conditions established by the board. The board shall:
(1) Promulgate temporary regulations under section 13C10
(relating to additional Category 4 locations) to implement
the establishment, operation and oversight of Category 4
locations.
(2) Review each permit application for suitability and
compliance with this chapter.
(3) Ensure connection of slot machines at Category 4
locations to the central control computer.
(4) Begin accepting applications within 90 days
following the effective date of this section.
(b) Eligibility.--In order to be eligible to receive a
Category 4 permit, the applicant must:
(1) hold a Category 1 or Category 2 slot machine license
in good standing; or
(2) hold a Category 3 slot machine license in good
standing and have paid the fee under section 1305(a)(1.2)
(relating to Category 3 slot machine license).
(c) Joint venture.--Nothing under this chapter shall
preclude an eligible applicant from participating in the
operation of a Category 4 location as a joint venture with
another eligible applicant in relation to one or more of the
20170HB1656PN2225 - 17 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
other eligible applicant's authorized Category 4 locations.
(d) Application.--An eligible slot machine licensee may seek
a Category 4 permit by filing a petition with the board which
shall include the following:
(1) The name, business address and contact information
of the applicant.
(2) The name, business address, job title and a
photograph of each principal and key employee of the
applicant who will be involved in the conduct of gaming at
the Category 4 location and who is not currently licensed by
the board.
(3) A brief description of the economic benefits
expected to be realized by the Commonwealth, its
municipalities and its residents if a Category 4 permit is
authorized at the applicant's location.
(4) The details of financing that will be available to
establish the new location and commence the conduct of
gaming, including any construction, expansion or modification
of a new or existing building or structure to conduct gaming.
(5) The applicant's business experience and ability to
create and maintain a successful Category 4 location.
(6) Proposed internal and external security and
surveillance measures that will be in place within the
Category 4 location.
(7) The number of slot machines to be placed at the
Category 4 location.
(8) The adequacy of parking at the facility.
(9) The services, such as food and beverage service,
that will be available at the Category 4 location.
(10) The estimated number of full-time and part-time
20170HB1656PN2225 - 18 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
employment positions that will be created at the Category 4
location if a permit is granted and an updated hiring plan
under section 1510(a) (relating to labor hiring preferences)
which outlines the applicant's plan to promote the
representation of diverse groups and Commonwealth residents
in the employment positions.
(11) Detailed site plans identifying the proposed gaming
area within the Category 4 location for gaming activities.
(12) The precise location of the proposed facility
described in accordance with the requirements of section
13C04(c) (relating to Category 4 locations).
(13) Whether the proposed facility will be operated by a
single licensed gaming entity or as a joint venture among
multiple licensed gaming entities. If a joint venture is
planned, a copy of the operating agreement shall be included
with the petition.
(14) Any other information required by the board.
(e) Additional authority.--Subject to inspection by the
commission, a Category 1 slot machine licensee that obtains a
Category 4 permit under this chapter may conduct pari-mutuel
wagering within a Category 4 licensed facility.
§ 13C02. Review of application.
(a) Review.--The board shall consider the following in the
board's review of a petition under this chapter:
(1) The applicant's suitability.
(2) Whether an applicant possesses the requisite
experience, financial capability and skill to perform the
functions necessary to establish and operate a Category 4
location consistent with this chapter and requirements of the
board.
20170HB1656PN2225 - 19 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(3) The adequacy of the physical specifications of the
facility and the adequacy of security, staffing, parking and
other issues related to the physical location of the Category
4 location.
(4) Whether the issuance of the permit will create jobs
and economic development.
(5) Verification of whether the Category 4 location
complies with the distance limitations under section 13C04(c)
(relating to Category 4 locations).
(b) Suitability.--An applicant eligible to receive a permit
under section 13C01(b) (relating to Category 4 slot machine
permit) shall be considered suitable to be issued a Category 4
permit.
(c) Multiple applications within distance limitation.--If
multiple Category 4 locations are applied for within the
distance limitation under section 13C04(c)(2) and the location
dispute is not resolved by the rejection of one or more
applications under section 13C04(c)(2), the board shall grant
the application which will:
(1) provide the highest quality facility;
(2) generate the most tax venue; and
(3) produce the greatest economic benefits for the
Commonwealth.
§ 13C03. Award of permit.
(a) Board.--The board shall approve or deny a permit within
60 days of receipt of the application.
(b) Limitation.--The cumulative number of slot machines
approved by the board for placement and operation at Category 4
locations combined with the slot machines authorized at all
licensed facilities in this Commonwealth may not exceed the
20170HB1656PN2225 - 20 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
cumulative number of slot machines authorized under sections
1201 (relating to Pennsylvania Gaming Control Board established)
and 1305 (relating to Category 3 slot machine license).
(c) Conditions.--Upon awarding a Category 4 permit, the
board shall amend the slot machine licensee's statement of
conditions pertaining to the requirements of this chapter.
(d) Term of permit.--A Category 4 permit shall be renewed
every five years. The initial renewal permit shall coincide with
the renewal of the permit holder's slot machine license which
immediately follows the permit's initial five-year term.
(e) Permit.--A Category 4 permit shall be in effect unless:
(1) the permit is suspended or revoked by the board
consistent with the requirements of this part;
(2) the slot machine license held by the permittee is
suspended, revoked or not renewed by the board;
(3) the permit holder relinquishes or does not seek
renewal of the permit; or
(4) the permit is not renewed for the failure of the
permittee to abide by this chapter, this part or any
condition in the slot machine licensee's statement of
conditions.
(f) Key employees and occupation permits.--Nothing in this
chapter shall be construed to require an individual who holds a
principal license, a key employee license, a gaming employee
license or an occupation permit under Chapter 13 (relating to
licensees) to obtain a separate license or permit to be employed
in a Category 4 location under this chapter.
(g) Confidentiality.--Information submitted to the board
under this chapter shall be considered confidential by the board
if the information would be confidential under section 1206(f)
20170HB1656PN2225 - 21 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(relating to board minutes and records).
§ 13C04. Category 4 locations.
(a) Authorized number of locations.--
(1) Each eligible Category 1 and Category 2 slot machine
licensee may obtain two Category 4 permits.
(2) Each eligible Category 3 slot machine licensee may
obtain one Category 4 permit.
(b) Transfer of permits.--
(1) An eligible slot machine licensee that does not
apply for an authorized permit under subsection (a) may
transfer its right to apply for the permit to another
eligible slot machine licensee upon board approval of the
terms and conditions of the transaction.
(2) If an authorized permit has not been applied for or
transferred within 18 months after the effective date of this
paragraph, the board may accept applications from eligible
applicants for the permit. If a greater number of
applications is received than the number of available
authorized permits, the board may grant the applications
which satisfy the requirements of this chapter and which
will:
(i) provide the highest quality facility;
(ii) generate the most tax revenue; and
(iii) produce the greatest economic benefits for the
Commonwealth.
(3) An eligible Category 3 slot machine licensee may
only obtain a Category 4 permit under paragraphs (1) or (2)
if the permit obtained was authorized for another Category 3
slot machine licensee.
(c) Distance restrictions.--
20170HB1656PN2225 - 22 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(1) A Category 4 location may not be located within 25
linear miles of another licensed gaming entity's licensed
facility which is not a Category 4 location or an airport
gaming area. A licensed gaming entity may site a Category 4
location within 25 linear miles of the licensed gaming
entity's own licensed facility, except if the 25 linear mile
protective areas around two or more licensed gaming entities
overlap, a Category 4 location may not be approved for
placement in the overlapping area.
(2) A Category 4 location may not be located within 10
linear miles of another Category 4 location. If an
application is filed for a Category 4 permit and the proposed
location is within 10 linear miles of a location proposed in
a pending application, the board shall notify the applicant
of the applicant's defective location and the identity of the
licensed gaming entity and the proposed location in the
pending application and, after a 30-day cure period, reject
the application if a location is not identified that is
compliant with this paragraph.
(d) Casino liquor license.--A Category 4 location may
operate under a casino liquor license obtained under section
1521.1 (relating to casino liquor license) and held by the
Category 1, Category 2 or Category 3 slot machine licensee that
holds the Category 4 permit.
(e) Pennsylvania State Police.--The Pennsylvania State
Police may not have permanent onsite personnel or an office
within a Category 4 location.
§ 13C05. Conduct of gaming at Category 4 locations.
(a) Number of machines.--A Category 4 permit holder may
place no less than 100 slot machines and no more than 500 slot
20170HB1656PN2225 - 23 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
machines in a Category 4 location. Hybrid and skill-based
devices may be offered for play at a Category 4 location subject
to the 500 slot machine maximum.
(b) Petition for additional machines.--A permittee may
petition the board to increase the number of slot machines in a
Category 4 location if the initial permit authorized less than
500 slot machines. The petition shall:
(1) State the requested increase in the number of
authorized slot machines.
(2) Include a detailed site plan identifying where the
additional slot machines will be placed within the facility.
(3) Include payment in an amount that equals the
difference between the fee paid upon issuance of the permit
and the fee applicable to the requested higher number of
machines under section 13C06 (relating to p ermit fees) .
(c) Commencement of gaming operations.--A permit holder may
not conduct gaming at a Category 4 location until the board
determines that:
(1) The permittee is in compliance with the requirements
of this chapter.
(2) The permittee's employees, where applicable, are
licensed, permitted or otherwise authorized by the board to
perform their respective duties.
(3) The permittee has implemented necessary internal and
management controls, security arrangements and surveillance
systems for the conduct of gaming at the location.
(4) The permittee is prepared in all respects to offer
gaming to the public at the Category 4 location.
(5) The permittee has paid the fee required under
section 13C06.
20170HB1656PN2225 - 24 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
§ 13C06. Permit fees.
Each slot machine licensee that obtains a Category 4 permit
must remit a fee to the board for each permit received based on
the number of slot machines sought to be placed in the Category
4 location as follows:
(1) 100-200 machines - $2,000,000.
(2) 200-300 machines - $3,000,000.
(3) 300-400 machines - $4,000,000.
(4) 400-500 machines - $5,000,000.
§ 13C07. Category 4 location taxes.
(a) Imposition.-- Each Category 4 permittee shall pay a daily
tax and assessment of the Category 4 permittee's daily gross
terminal revenue from the operation of slot machines, including
hybrid and skill-based devices, at a Category 4 location.
(b) Deposits and distributions.--The rate and allocation of
the tax and assessment imposed and collected under subsection
(a) shall be as follows:
(1) Twenty-five million dollars, which shall be
deposited in the Property Tax Relief Fund for property tax or
rent rebate under Chapter 13 of the act of June 27, 2006 (1st
Sp.Sess., P.L.1873, No.1), known as the Taxpayer Relief Act.
(2) Following the deposit under paragraph (1), the
remaining taxes and assessments shall be allocated as
follows:
(i) Forty-eight percent, which shall be deposited in
the General Fund.
(ii) Five percent, which shall constitute a local
share assessment and be distributed by the department on
a quarterly basis in accordance with section 13C08
(relating to local share assessment).
20170HB1656PN2225 - 25 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(iii) Two percent, which shall constitute an
assessment to be deposited in the Pennsylvania Race Horse
Development Fund.
(c) Collection.--The tax and assessments imposed under
subsection (a) shall be payable to the department on a weekly
basis and shall be based on gross terminal revenue derived from
the operation of slot machines at the Category 4 location during
the previous week. All money owed to the Commonwealth under this
section, or to a county or municipality under section 13C08,
shall be held in trust for the Commonwealth, county or
municipality by the permit holder until the money is paid to the
department. Unless otherwise agreed to by the board, a permittee
shall establish a separate bank account into which gross
terminal revenue from a Category 4 location shall be deposited
and maintained until the money is paid or transferred.
§ 13C08. Local share assessment.
(a) Distributions.--The department shall make quarterly
distributions from the local share assessment under section
13C07(b)(2)(ii) (relating to Category 4 location taxes) among
the counties and municipalities hosting a Category 4 location as
follows:
(1) Two percent of the local share assessment shall be
distributed to the county hosting a Category 4 location.
(2) Two percent of the local share assessment shall be
distributed to the municipality hosting the Category 4
location.
(3) One percent of the local share assessment shall be
distributed to the host county for the purpose of making
grants to civic and charitable organizations, including club
licensees, that are located within the host county in
20170HB1656PN2225 - 26 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
accordance with subsection (b).
(b) Grant program.--The county hosting the Category 4
location shall accept grant applications from eligible
organizations under subsection (a)(3) in time intervals to be
determined by the county, but at least annually. Grants shall be
awarded under subsection (a)(3) as follows:
(1) Grants may be awarded in amounts determined solely
at the discretion of the county.
(2) Priority shall be given to club licensees that are
affiliated with a veterans' organization or a police, fire,
ambulance, rescue or similar public safety organization.
(3) Grants may be used by recipients for:
(i) a public interest purpose sponsored by the
grantee; or
(ii) capital improvements and equipment purchases
related to a facility owned or leased by the grantee. The
term "equipment" shall not include a gaming device or
related material.
(c) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Club licensee." As defined in section 103 the act of
December 19, 1988 (P.L.1262, No.156), known as the Local Option
Small Games of Chance Act.
§ 13C09. Temporary Category 4 regulations.
(a) Promulgation.--In order to facilitate the prompt
implementation of this chapter, regulations promulgated by the
board shall be deemed temporary regulations which shall expire
not later than two years following the publication of the
temporary regulation. The board may promulgate temporary
20170HB1656PN2225 - 27 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
regulations which shall not be subject to:
(1) Sections 201, 202, 203, 204 and 205 of the act of
July 31, 1968 (P.L.769, No.240), referred to as the
Commonwealth Documents Law.
(2) The act of act of June 25, 1982 (P.L.633, No.181),
known as the Regulatory Review Act.
(3) Section 204(b) and 301(10) of the act of October 15,
1980 (P.L.950, No.164), known as the Commonwealth Attorneys
Act.
(b) Expiration.--The board's authority to adopt temporary
regulations under subsection (a) shall expire two years after
the effective date of this section. Regulations adopted after
this period shall be promulgated as provided by law.
§ 13C10. Additional Category 4 locations.
(a) Review.--By November 30, 2019, the board shall review
the operation of all Category 4 permits granted under this
chapter. The review shall include:
(1) The integrity of gaming operated pursuant to a
Category 4 permit.
(2) The patronage and public response to Category 4
locations.
(3) The number of jobs created by the establishment of
Category 4 locations.
(4) The amount of revenue generated for the
Commonwealth, host counties, host municipalities and other
local share assessment recipients.
(5) Economic development and related economic benefits
associated with the establishment and operation of Category 4
locations.
(b) Submission.--The review shall be submitted to the
20170HB1656PN2225 - 28 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Community, Economic and Recreational Development Committee of
the Senate and the Gaming Oversight Committee of the House of
Representatives by December 15, 2019.
(c) Additional permits.--Beginning January 1, 2020, each
Category 1 and Category 2 slot machine licensee that holds a
Category 4 permit may petition the board to obtain one
additional Category 4 permit.
(d) Transfer of permits.--
(1) A Category 1 or Category 2 slot machine licensee
that does not petition the board for an additional permit
under subsection (c) may transfer its right to apply for the
additional Category 4 location to another Category 1 or
Category 2 licensee upon board approval of the terms and
conditions of the transaction.
(2) If an authorized additional permit has not been
petitioned for, applied for or transferred by January 1,
2021, the board may accept applications from eligible
applicants for the permit. If a greater number of
applications is received than the number of available
authorized additional permits, the board may grant the
applications which satisfy the requirements of this chapter
and will:
(i) provide the highest quality facility;
(ii) generate the most revenue; and
(iii) produce the greatest economic benefit for the
Commonwealth.
CHAPTER 13D
AIRPORT GAMING
Sec.
13D01. Authorization of airport gaming.
20170HB1656PN2225 - 29 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
13D02. Certificate holders.
13D03. Application for airport gaming certificate.
13D04. Issuance of certificate.
13D05. Fees.
13D06. Tax.
§ 13D01. Authorization of airport gaming.
Notwithstanding any law to the contrary, an eligible Category
1 slot machine licensee or Category 2 slot machine licensee may
apply to the board for a certificate authorizing the placement
of slot machines in airport gaming areas within qualified
airports.
§ 13D02. Certificate holders.
(a) Eligibility.--Category 1 and Category 2 slot machine
licensees whose licenses are in good standing shall be eligible
to apply for an airport gaming certificate.
(b) Nondiscretionary selection.--
(1) Category 1 and Category 2 slot machine licensees
located in a county in which a qualified airport is located
or a county contiguous to the county in which a qualified
airport is located shall be entitled to apply for and, if
granted, obtain an airport gaming certificate for the
qualified airport.
(2) If more than one eligible slot machine licensee
under paragraph (1) desires to conduct gaming at the
qualified airport, the eligible slot machine licensees shall
enter into a joint operating agreement setting forth the
terms, cost, revenue sharing and conditions under which the
licensees will, as certificate holders, conduct airport
gaming.
(c) Discretionary selection.--If a qualified airport is not
20170HB1656PN2225 - 30 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
located in the same county or a contiguous county in which an
eligible slot machine licensee is located, an eligible slot
machine licensee may apply to the board for the authority to
operate airport gaming in the qualified airport. Two or more
eligible slot machine licensees may enter into a joint operating
agreement for the conduct of gaming at the qualified airport.
§ 13D03. Application for airport gaming certificate.
(a) Application.--Eligible slot machine licensees must apply
to the board in a form and manner as the board requires to
secure an airport gaming certificate for the designated
airports. The application shall include:
(1) The name, business address and contact information
of the slot machine licensee and, if applicable, the person
responsible to manage the operation of gaming under paragraph
(2).
(2) The manner in which the slot machine licensee will
manage, operate and control the conduct of gaming at a
designated airport in the airport gaming area.
(3) A site plan of the specific area within the airport
where slot machines will be located and gaming will be
conducted and the security that will be provided.
(4) The proposed number of slot machines that will be
placed in the airport gaming area and a description of the
equipment that will be installed and services that will be
provided within the airport gaming area.
(5) Evidence of a lease, license agreement or other
authorization from or agreement with the airport authority to
conduct operations in the airport gaming area.
(6) A copy of the joint operating agreement to be
entered into by the eligible certificate holders, if
20170HB1656PN2225 - 31 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
applicable.
(b) Confidentiality.--Information submitted to the board
under this chapter shall be considered confidential by the board
if the information is confidential under section 1206(f)
(relating to board minutes and records).
§ 13D04. Issuance of certificate.
(a) Findings.--The board shall:
(1) Ensure that the airport gaming area has the
appropriate physical space and security to conduct gaming
under this section.
(2) Determine the number of slot machines that are
appropriate for placement and operation at the designated
airports.
(b) Approval.--After making the findings under subsection
(a), the board may approve an application submitted under
section 13D03 (relating to application for airport gaming
certificate) and grant a certificate to the eligible slot
machine licensee to conduct gaming at the designated airport as
provided under this chapter upon payment of all required fees.
§ 13D05. Fees.
(a) Fee schedule.--A one-time, nonrefundable fee shall be
paid to the board in relation to the conduct of gaming at a
qualified airport based on the number of slot machines sought to
be placed in the airport gaming area as follows:
(1) less than 100 machines - $10,000 per machine.
(2) 100-200 machines - $2,000,000.
(3) 200-300 machines - $3,000,000.
(4) 300-400 machines - $4,000,000.
(5) 400-500 machines - $5,000,000.
(b) Payment.--If more than one slot machine licensee is
20170HB1656PN2225 - 32 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
issued an airport gaming certificate in relation to a qualified
airport, a single fee shall be paid by the airport gaming
certificate holders approved for the airport, as set forth in
the joint operating agreement entered into by the airport gaming
certificate holders and submitted to the board under section
13D03 (relating to application for airport gaming certificate).
(c) Additional machines.--The board may authorize additional
slot machines for an airport gaming area upon a written request
for additional slot machines and receipt of payment in an amount
that equals the difference between the fee paid upon issuance of
the certificate and the fee applicable under subsection (b) to
the requested higher number of machines.
(d) Deposit.--All fees paid under subsection (a) shall be
deposited into the General Fund.
(e) Renewal.--A renewal fee shall not apply to or be imposed
on an airport gaming certificate.
§ 13D06. Tax.
(a) Imposition.--A daily tax of 55% shall apply to the daily
gross terminal revenue from slot machines operated in an airport
gaming area.
(b) Collection.--The department shall determine the manner
in which airport gaming certificate holders will remit the tax
imposed under subsection (a). All money owed to the Commonwealth
under this section shall be held in trust for the Commonwealth
under this section by the airport gaming certificate holders
until the money is paid to the department. Unless otherwise
permitted by the department, a separate bank account shall be
established by the certificate holders into which gross terminal
revenue from slot machines shall be deposited and maintained
until the gross terminal revenue is paid to the department.
20170HB1656PN2225 - 33 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(c) Distribution.--The department shall transfer 15% of the
tax revenues collected under this section to the qualified
airport. Following the transfer, the remainder of the tax
revenues shall be deposited in the General Fund.
CHAPTER 13E
SPORTS WAGERING
Subchapter
A. General Provisions
B. Sports Wagering Authorized
C. Conduct of Sports Wagering
D. Sports Wagering Taxes and Fees
E. Miscellaneous Provisions
SUBCHAPTER A
GENERAL PROVISIONS
Sec.
13E01. Definitions.
13E02. Regulatory authority.
13E03. Temporary sports wagering regulations.
13E04. Unauthorized sports wagering.
§ 13E01. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Certificate holder." A person that has been awarded a
sports wagering certificate by the board.
"Gross sports wagering revenue."
(1) The total of cash or cash equivalents received from
sports wagering minus the total of:
(i) Cash or cash equivalents paid to players as a
result of sports wagering.
20170HB1656PN2225 - 34 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(ii) Cash or cash equivalents paid to purchase
annuities to fund prizes payable to players over a period
of time as a result of sports wagering.
(iii) The actual cost paid by the certificate holder
for any personal property distributed to a player as a
result of sports wagering. This paragraph shall not
include travel expenses, food, refreshments, lodging or
services.
(2) The term does not include:
(i) Counterfeit cash or chips.
(ii) Coins or currency of other countries received
as a result of sports wagering, except to the extent that
the coins or currency are readily convertible to cash.
(iii) Cash taken in a fraudulent act perpetrated
against a certificate holder for which the certificate
holder is not reimbursed.
"Sporting events." A professional or collegiate sports or
athletic event, or motor race event.
"Sports wagering." The business of accepting wagers on
sporting events or on the individual performance statistics of
athletes in a sporting event or combination of sporting events
by any system or method of wagering, including, but not limited
to, exchange wagering, parlays, over-under, moneyline, pools and
straight bets. The term does not include:
(1) Lottery games of the Pennsylvania State Lottery as
authorized under the act of August 26, 1971 (P.L.351, No.91),
known as the State Lottery Law.
(2) Bingo as authorized under the act of July 10, 1981
(P.L.214, No.67), known as the Bingo Law.
(3) Pari-mutuel betting on the outcome of thoroughbred
20170HB1656PN2225 - 35 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
or harness horse racing as authorized under 3 Pa.C.S. Ch. 93
(relating to race horse industry reform).
(4) Small games of chance as authorized under the act of
December 19, 1988 (P.L.1262, No.156), known as the Local
Option Small Games of Chance Act.
(5) Slot machine gaming and progressive slot machine
gaming as defined and authorized under this part.
"Sports wagering certificate." A certificate awarded by the
board under this chapter that authorizes a slot machine licensee
to conduct sports wagering in accordance with this chapter.
"Sports wagering device." The term includes a mechanical,
electrical or electronic machine or other device, apparatus,
equipment or supplies approved by the board and used to conduct
sports wagering.
§ 13E02. Regulatory authority.
The board shall promulgate regulations:
(1) Establishing standards and procedures for sports
wagering. The standards and procedures shall provide for the
conduct and implementation of sports wagering within licensed
facilities, including new sports wagering or variations or
composites of approved sports wagering, provided the board
determines that the new sports wagering or any variations or
composites or other approved sports wagering are suitable for
use after a test or experimental period under the terms and
conditions as the board may deem appropriate.
(2) Establishing standards and rules to govern the
conduct of sports wagering and the system of wagering,
including the manner in which wagers are received and payouts
are remitted and point spreads, lines and odds are
determined.
20170HB1656PN2225 - 36 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(3) Establishing the method for calculating gross sports
wagering revenue and standards for the daily counting and
recording of cash and cash equivalents received in the
conduct of sports wagering and ensuring that internal
controls are followed regarding the maintenance of financial
books and records and the conduct of audits. The board shall
consult with the department in establishing the regulations
under this paragraph.
(4) Establishing notice requirements pertaining to
minimum and maximum wagers on sports wagering.
(5) Establishing compulsive and problem gambling
standards pertaining to sports wagering consistent with this
part.
(6) Establishing standards prohibiting persons under 21
years of age from participating in sports wagering.
(7) Providing information pertaining to sports wagering
in the board's annual report required under section 1211(a.1)
(relating to reports of board).
(8) Requiring each certificate holder to:
(i) Provide written information about sports
wagering rules, payouts or winning wagers and other
information as the board may require.
(ii) Provide specifications approved by the board
under section 1207(11) (relating to regulatory authority
of board) to integrate and update the licensed facility's
surveillance system to cover all areas where sports
wagering is conducted. The specifications shall include
provisions providing the board and other persons
authorized by the board with onsite access to the
surveillance system.
20170HB1656PN2225 - 37 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(iii) Designate one or more locations within the
licensed facility of the certificate holder to conduct
sports wagering.
(iv) Ensure that visibility in the licensed facility
of the certificate holder is not obstructed in any way
that could interfere with the ability of the certificate
holder, the board and other persons authorized under this
part or by the board to oversee the surveillance of the
conduct of sports wagering.
(v) Integrate the licensed facility's count room to
ensure maximum security of the counting and storage of
cash and cash equivalents.
(vi) Equip each designated location within the
licensed facility providing sports wagering with a sign
indicating the permissible sports wagering minimum and
maximum wagers.
(vii) Ensure that no person under 21 years of age
participates in sports wagering.
§ 13E03. Temporary sports wagering regulations.
(a) Promulgation.--In order to facilitate the prompt
implementation of this chapter, regulations promulgated by the
board shall be deemed temporary regulations which shall expire
not later than two years following the publication of the
temporary regulations. The board may promulgate temporary
regulations not subject to:
(1) Sections 201, 202, 203, 204 and 205 of the act of
July 31, 1968 (P.L.769, No.240), referred to as the
Commonwealth Documents Law.
(2) The act of June 25, 1982 (P.L.633, No.181), known as
the Regulatory Review Act.
20170HB1656PN2225 - 38 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(3) Sections 204(b) and 301(10) of the act of October
15, 1980 (P.L.950, No.164), known as the Commonwealth
Attorneys Act.
(b) Expiration.--Except for temporary regulations governing
the rules of new sports wagering approved by the board, the
board's authority to adopt temporary regulations under
subsection (a) shall expire two years after the effective date
of this section. Regulations adopted after this period shall be
promulgated as provided by law.
§ 13E04. Unauthorized sports wagering.
(a) Offense defined.--
(1) It shall be unlawful for a person to willfully and
knowingly operate, carry on, offer or expose for play sports
wagering or to accept a bet or wager associated with sports
wagering from a person physically located in this
Commonwealth at the time of play that is not within the scope
of a valid and current sports wagering certificate issued by
the board under this chapter or by another state, territory
or possession of the United States with which the
Commonwealth has a sports wagering agreement.
(2) It shall be unlawful for a person to willfully and
knowingly provide services with respect to sports wagering or
a bet or wager specified in paragraph (1).
(b) Grading of offense.--A person who violates subsection
(a) commits a misdemeanor of the first degree. For a second or
subsequent violation of subsection (a), a person commits a
felony of the second degree.
(c) Penalties.--
(1) For a first violation of subsection (a), a person
shall be sentenced to pay a fine of:
20170HB1656PN2225 - 39 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(i) not less than $75,000 nor more than $150,000, if
the person is an individual;
(ii) not less than $150,000 nor more than $300,000,
if the person is a licensed manufacturer or supplier; or
(iii) not less than $300,000 nor more than $600,000,
if the person is a licensed gaming entity.
(2) For a second or subsequent violation of subsection
(a), a person shall be sentenced to pay a fine of:
(i) not less than $150,000 nor more than $300,000,
if the person is an individual;
(ii) not less than $300,000 nor more than $600,000,
if the person is a licensed manufacturer or supplier; or
(iii) not less than $600,000 nor more than
$1,200,000, if the person is a licensed gaming entity.
(d) Forfeiture.--If a person engages in sports wagering from
a location in which the activity is unauthorized, the person
shall forfeit all entitlement to winnings and the money
associated with forfeited winnings shall be deposited into the
Compulsive and Problem Gambling Treatment Fund established under
section 1509(b) (relating to compulsive and problem gambling
program).
(e) Tax liability.--
(1) An unlicensed person who offers sports wagering to
persons in this Commonwealth shall be liable for all taxes
required under this chapter in the same manner and amounts as
if the person were a licensee.
(2) Timely payment of the taxes may not constitute a
defense to a prosecution or other proceeding in connection
with unauthorized sports wagering, except for a prosecution
or proceeding alleging failure to make a payment.
20170HB1656PN2225 - 40 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
SUBCHAPTER B
SPORTS WAGERING AUTHORIZED
Sec.
13E11. Authorization to conduct sports wagering.
13E12. Petition requirements.
13E13. Standard for review of petitions.
13E14. Award of certificate.
13E15. Sports wagering certificate.
13E16. Sports wagering by suppliers and manufacturers.
§ 13E11. Authorization to conduct sports wagering.
(a) Persons who may be authorized.--
(1) (i) The board may authorize a slot machine licensee
to conduct sports wagering and to operate a system of
wagering associated with the conduct of sports wagering
at the slot machine licensee's licensed facility, a
temporary facility authorized under section 13E21(a.1)
(relating to authorized locations for operation) or an
area authorized under section 13E21(b).
(ii) Authorization shall be contingent upon the slot
machine licensee's agreement to ensure that sports
wagering will be conducted in accordance with this part
and other conditions established by the board.
(iii) Nothing in this part may be construed to
create a separate license governing the conduct of sports
wagering by slot machine licensees within this
Commonwealth.
(2) (i) Except as provided in this part, individuals
wagering on sporting events through authorized sports
wagering shall be physically located within this
Commonwealth or within a state or jurisdiction in which
20170HB1656PN2225 - 41 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
the board has entered into a sports wagering agreement.
(ii) No individual under 21 years of age may make a
wager or bet on sporting events through authorized sports
wagering or have access to the designated area of the
licensed facility authorized to host sports wagering.
(b) Federal authorization.--
(1) The Secretary of State shall, when Federal law is
enacted or a Federal court decision is filed that affirms the
authority of a state to regulate sports wagering, publish a
notice in the Pennsylvania Bulletin certifying the enactment
or filing of the decision.
(2) The board may not authorize the conduct of sports
wagering in this Commonwealth until the notice is published
as prescribed under paragraph (1).
§ 13E12. Petition requirements.
(a) General rule.--Unless otherwise prohibited under section
13A13 (relating to prohibitions), a slot machine licensee may
seek approval to conduct sports wagering by filing a petition
with the board.
(b) Petition contents.--A petition seeking authorization to
conduct sports wagering shall include the following:
(1) The name, business address and contact information
of the petitioner.
(2) The name and business address, job title and a
photograph of each principal and key employee of the
petitioner who will be involved in the conduct of sports
wagering and who is not currently licensed by the board, if
known.
(3) A brief description of the economic benefits
expected to be realized by the Commonwealth, its
20170HB1656PN2225 - 42 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
municipalities and its residents if sports wagering is
authorized at the petitioner's licensed facility.
(4) The details of financing obtained or that will be
obtained to fund an expansion or modification of the licensed
facility to accommodate sports wagering and to otherwise fund
the cost of commencing sports wagering.
(5) Information and documentation concerning financial
background and resources, as the board may require, to
establish by clear and convincing evidence the financial
stability, integrity and responsibility of the petitioner.
(6) Information and documentation, as the board may
require, to establish by clear and convincing evidence that
the petitioner has sufficient business ability and experience
to create and maintain a successful sports wagering
operation. In making this determination, the board may
consider the performance of the petitioner's slot machine and
table game operation, including financial information,
employment data and capital investment.
(7) Information and documentation, as the board may
require, to establish by clear and convincing evidence that
the petitioner has or will have the financial ability to pay
the authorization fee under section 13E61 (relating to sports
wagering authorization fee).
(8) Detailed site plans identifying the petitioner's
proposed sports wagering area within the licensed facility.
(9) Other information as the board may require.
(c) Confidentiality.--Information submitted to the board
under subsection (b)(4), (5), (6), (7) and (8) may be considered
confidential by the board if the information is confidential
under section 1206(f) (relating to board minutes and records).
20170HB1656PN2225 - 43 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
§ 13E13. Standard for review of petitions.
(a) General rule.--The board shall approve a petition if the
petitioner establishes, by clear and convincing evidence, all of
the following:
(1) The petitioner's slot machine license is in good
standing with the board.
(2) The conduct of sports wagering at the petitioner's
licensed facility will have a positive economic impact on the
Commonwealth, its municipalities and residents through
increased revenues and employment opportunities.
(3) The petitioner possesses an adequate amount of money
or has secured adequate financing to:
(i) Fund any necessary expansion or modification of
the petitioner's licensed facility to accommodate the
conduct of sports wagering.
(ii) Pay the authorization fee in accordance with
section 13E61 (relating to sports wagering authorization
fee).
(iii) Commence sports wagering operations at the
petitioner's licensed facility.
(4) The petitioner has the financial stability,
integrity and responsibility to conduct sports wagering.
(5) The petitioner has sufficient business ability and
experience to create and maintain a successful sports
wagering operation.
(6) The petitioner's proposed internal and external
security and proposed surveillance measures within the area
of the licensed facility where the petitioner seeks to
conduct sports wagering are adequate.
(7) The petitioner has satisfied the petition
20170HB1656PN2225 - 44 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
application requirements and provided other information
required under section 13E12(b) (relating to petition
requirements).
(b) Timing of approval.--The board shall approve or deny a
petition within 90 days following receipt of the petition.
§ 13E14. Award of certificate.
(a) General rule.--Upon approval of a petition, the board
shall award a sports wagering certificate to the petitioner. The
award of a sports wagering certificate prior to the payment in
full of the authorization fee required under section 13E61
(relating to sports wagering authorization fee) shall not
relieve the petitioner from complying with the provisions of
section 13E61.
(b) Statement of conditions.--Upon awarding a sports
wagering operation certificate, the board shall amend the slot
machine licensee's statement of conditions pertaining to the
requirements of this chapter.
(c) Term of sports wagering certificate.--Subject to the
power of the board to deny, revoke or suspend a sports wagering
certificate issued in accordance with the requirements of this
section, a sports wagering certificate shall be renewed every
five years and shall be subject to the requirements under
section 1326 (relating to license renewals).
§ 13E15. Sports wagering certificate.
The following shall apply:
(1) A sports wagering certificate shall be in effect
unless:
(i) suspended or revoked by the board consistent
with the requirements of this part;
(ii) the slot machine license held by the
20170HB1656PN2225 - 45 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
certificate holder is suspended, revoked or not renewed
by the board consistent with the requirements of this
part; or
(iii) the certificate holder relinquishes or does
not seek renewal of the certificate holder's slot machine
license.
(2) A certificate holder that fails to abide by this
chapter or any condition contained in the slot machine
licensee's statement of conditions governing the conduct of
sports wagering shall be subject to board-imposed
administrative sanctions or other penalties authorized under
this part.
§ 13E16. Sports wagering by suppliers and manufacturers.
(a) Suppliers.--A person that sells, leases, offers or
otherwise provides, distributes or services a sports wagering
device or associated equipment for use or operation in this
Commonwealth for sports wagering purposes shall be licensed by
the board under section 1317 (relating to supplier licenses) and
shall be subject to application and licensure fees and fines as
prescribed under section 1208 (relating to collection of fees
and fines), as determined by the board.
(b) Manufacturers.--A person who manufacturers, builds,
rebuilds, fabricates, assembles, produces, programs, designs or
otherwise makes modifications to a sports wagering device or
associated equipment for use or operation in this Commonwealth
for sports wagering purposes shall be licensed by the board
under section 1317.1 (relating to manufacturer licenses) and
shall be subject to application and licensure fees and fines as
prescribed under section 1208, as determined by the board.
SUBCHAPTER C
20170HB1656PN2225 - 46 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
CONDUCT OF SPORTS WAGERING
Sec.
13E21. Authorized locations for operation.
13E22. Commencement of sports wagering operations.
13E23. Condition of continued operation.
13E24. Key employees and occupation permits.
13E25. Application of Clean Indoor Air Act.
13E25.1. Application of Liquor Code.
§ 13E21. Authorized locations for operation.
(a) Restriction.--A certificate holder may only be permitted
to conduct sports wagering at the licensed facility, a temporary
facility authorized under subsection (a.1) or an area authorized
under subsection (b).
(a.1) Temporary facilities.--The board may permit a
certificate holder to conduct sports wagering at a temporary
facility that is physically connected to, attached to or
adjacent to a licensed facility for a period not to exceed 24
months.
(b) Powers and duties of board.--
(1) Upon request made by a certificate holder, the board
may determine the suitability of a Category 1 licensed gaming
entity that is also a licensed racing entity authorized to
conduct pari-mutuel wagering at nonprimary locations under 3
Pa.C.S. Ch. 93 (relating to race horse industry reform), to
conduct sports wagering at nonprimary locations.
(2) No certificate holder may be approved to conduct
sports wagering in a nonprimary location unless the areas are
equipped with adequate security and surveillance equipment to
ensure the integrity of the conduct of sports wagering.
(3) An authorization granted under this subsection may
20170HB1656PN2225 - 47 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
not:
(i) Impose criteria or requirements regarding the
contents or structure of a nonprimary location that are
unrelated to the conduct of sports wagering.
(ii) Authorize the placement or operation of slot
machines or table games in a nonprimary location.
§ 13E22. Commencement of sports wagering operations.
No certificate holder may operate or offer sports wagering
until the board determines that:
(1) The certificate holder is in compliance with the
requirements of this part.
(2) The certificate holder is prepared in all respects
to offer sports wagering play to the public at the licensed
facility.
(3) The certificate holder has implemented necessary
internal and management controls and security arrangements
and surveillance systems for the conduct of sports wagering.
(4) The certificate holder is in compliance with or has
complied with section 13A61 (relating to table game
authorization fee).
(5) Other conditions as the board may require to
implement the conduct of sports wagering.
§ 13E23. Condition of continued operation.
As a condition of continued operation, a certificate holder
shall agree to maintain all books, records and documents
pertaining to sports wagering in a manner and location within
this Commonwealth as approved by the board. The books, records
and documents related to sports wagering shall:
(1) Be segregated by separate accounts within the
certificate holder's books, records and documents, except for
20170HB1656PN2225 - 48 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
books, records or documents that are common to slot machine,
table game and sports wagering operations.
(2) Be immediately available for inspection upon request
of the board, the bureau, the department, the Pennsylvania
State Police or the Attorney General, or agents thereof,
during all hours of operation of the certificate holder in
accordance with regulations promulgated by the board.
(3) Be maintained for a period as the board, by
regulation, may require.
§ 13E24. Key employees and occupation permits.
Nothing in this part may be construed to require an
individual who holds a principal license, a key employee license
or gaming employee license under Chapter 13 (relating to
licensees) to obtain a separate license or permit to be employed
in a certificate holder's sports wagering operation authorized
under this chapter.
§ 13E25. Application of Clean Indoor Air Act.
For the purpose of section 3(b)(11) of the act of June 13,
2008 (P.L.182, No.27), known as the Clean Indoor Air Act, the
term "gaming floor" shall include the areas of a facility where
the certificate holder is authorized to conduct sports wagering,
except areas off the gaming floor where contests or tournaments
are conducted unless smoking is otherwise permitted in those
areas.
§ 13E25.1. Application of Liquor Code.
The provisions of section 493(24)(ii) of the act of April 12,
1951 (P.L.90, No.21), known as the Liquor Code, shall apply to
sports wagering.
SUBCHAPTER D
SPORTS WAGERING TAXES AND FEES
20170HB1656PN2225 - 49 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Sec.
13E61. Sports wagering authorization fee.
13E62. Sports wagering tax.
13E63. Local share assessment.
13E64. Compulsive and problem gambling.
§ 13E61. Sports wagering authorization fee.
(a) Amount.--Each slot machine licensee that is issued a
sports wagering certificate to conduct sports wagering under
section 13E11 (relating to authorization to conduct sports
wagering) shall pay a one-time nonrefundable authorization fee
of $5,000,000.
(b) Payment of fee.--The slot machine licensee under
subsection (a) shall remit the fee to the board within 60 days
of the approval of a petition to conduct sports wagering. The
board may allow the fee to be paid in installments, provided all
installments are paid within the 60-day period. In that event,
the board and the slot machine licensee shall enter into a
written agreement setting forth the terms of payment. Sports
wagering may not be conducted until the fee under subsection (a)
is paid in full.
(c) Renewal fee.--Notwithstanding any other provision of
this chapter, a slot machine licensee that is issued a sports
wagering certificate shall pay a renewal fee in the amount of
$250,000 upon the renewal of its sports wagering certificate in
accordance with sections 1326 (relating to license renewals) and
13E14(c) (relating to award of certificate).
(d) Failure to pay by deadline.--If a petitioner or
certificate holder fails to pay the required authorization fee
in full within the 60-day period, the board shall impose a
penalty and may grant the petitioner or certificate holder up to
20170HB1656PN2225 - 50 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
a six-month extension to pay the authorization fee or any
remaining portion of the authorization fee and the penalty.
(e) Suspension of certificate.--The board shall suspend the
sports wagering certificate if the certificate holder fails to
pay the total authorization fee and the penalty prior to the
expiration of an extension period granted under subsection (c).
The suspension shall remain in effect until final payment is
made.
(f) Deposit of fees.--Notwithstanding section 1208 (relating
to collection of fees and fines), all sports wagering
authorization fees or penalties, sports wagering device and
associated equipment manufacturer and supplier license fees,
sports wagering device or associated equipment manufacturer and
supplier renewal fees and fees for licenses issued under Chapter
16 (relating to junkets) shall be deposited in the General Fund.
§ 13E62. Sports wagering tax.
(a) Imposition.--Each certificate holder shall report to the
department and pay from the certificate holder's daily gross
sports wagering revenue, on a form and in the manner prescribed
by the department, a tax of 16% of the certificate holder's
daily gross sports wagering revenue.
(b) Deposits and distributions.--
(1) The tax imposed under subsection (a) shall be
payable to the department on a weekly basis and shall be
based upon gross sports wagering revenue derived during the
previous week.
(2) All money owed to the Commonwealth under this
section shall be held in trust for the Commonwealth by the
certificate holder until the money is paid to the department.
Unless otherwise agreed to by the board, a certificate holder
20170HB1656PN2225 - 51 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
shall establish a separate bank account into which gross
sports wagering revenue shall be deposited and maintained
until such time as the money is paid to the department under
this section or paid into the fund under section 13E63(a)
(relating to local share assessment).
(3) The tax imposed under subsection (a) shall be
deposited into the General Fund.
§ 13E63. Local share assessment.
(a) Required payment.--In addition to the tax imposed under
section 13E62 (relating to sports wagering tax), each
certificate holder shall pay on a weekly basis and on a form and
in a manner prescribed by the department a local share
assessment. All money owed under this section shall be held in
trust by the certificate holder for the host county and host
municipality until the money is paid to the department.
(b) Distributions.--Except as provided under subsection
(b.1), the department shall make quarterly distributions from
the local share assessments paid into the department to
counties, including home rule counties, and to municipalities,
including home rule municipalities, hosting a licensed facility
authorized to conduct sports wagering in the following manner:
(1) Fifty percent of the local share assessment under
this chapter shall be distributed to the county hosting the
licensed facility.
(2) Fifty percent of the local share assessment under
this chapter shall be distributed to the municipality hosting
the licensed facility.
(b.1) Nonprimary locations.--For sports wagering conducted
at nonprimary locations, the local share assessment imposed
under subsection (a) shall be distributed equally to the county
20170HB1656PN2225 - 52 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
and the municipality hosting the nonprimary location at which
sports wagering is conducted.
(c) Definitions.--As used in this section, "local share
assessment" means 2% of a certificate holder's daily gross
sports wagering revenue.
§ 13E64. Compulsive and problem gambling.
The following shall apply:
(1) Each year, from the tax imposed in section 13E62
(relating to sports wagering tax), $2,000,000 or an amount
equal to .002 multiplied by the total gross sports wagering
revenue of all active and operating sports wagering
certificate holders, whichever is greater, shall be
transferred into the Compulsive and Problem Gambling
Treatment Fund established under section 1509 (relating to
compulsive and problem gambling program).
(2) Each year, from the tax imposed under section 13E62,
$2,000,000 or an amount equal to .002 multiplied by the total
gross sports wagering revenue of all active and operating
sports wagering certificate holders, whichever is greater,
shall be transferred to the Department of Health to be used
for drug and alcohol addiction treatment services, including
treatment for drug and alcohol addiction related to
compulsive and problem gambling, as set forth in section
1509.1 (relating to drug and alcohol treatment).
SUBCHAPTER E
MISCELLANEOUS PROVISIONS
Sec.
13E71. Criminal activity.
§ 13E71. Criminal activity.
Sports wagering conducted by a certificate holder in
20170HB1656PN2225 - 53 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
accordance with this chapter shall not constitute a criminal
activity under 18 Pa.C.S. § 5514 (relating to pool selling and
bookmaking).
Section 9. Section 1402(b) of Title 4 is amended and the
section is amended by adding a subsection to read:
§ 1402. Gross terminal revenue deductions.
* * *
(b) [(Reserved).] Limitation.--Upon payment of the fee
established under subsection (c), the deductions from each
account under subsection (a) for a fiscal year and the
regulatory assessment on a slot machine licensee to recover the
costs and expenses under subsection (a) for a fiscal year shall
not exceed 1.5% of the total gross terminal revenue and gross
table game revenue generated by the slot machine licensee for
the previous fiscal year. The assessment may not be applied to
promotional play.
(c) One-time fee.--In order to invoke the cap established in
subsection (b), a slot machine licensee shall pay a one-time fee
equal to 1% of the gross terminal revenue and gross table game
revenue generated by the licensee in calendar year 2016. The fee
shall be deposited into the General Fund.
Section 10. Section 1403(b) and (c) of Title 4 are reenacted
and amended to read:
§ 1403. Establishment of State Gaming Fund and net slot machine
revenue distribution.
* * *
(b) Slot machine tax.--The department shall determine and
each slot machine licensee shall pay a daily tax of 34% from its
daily gross terminal revenue from the slot machines in operation
at its facility and a local share assessment as provided in
20170HB1656PN2225 - 54 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
subsection (c). All funds owed to the Commonwealth, a county or
a municipality under this section shall be held in trust by the
licensed gaming entity for the Commonwealth, the county and the
municipality until the funds are paid or transferred to the
fund. Unless otherwise agreed to by the board, a licensed gaming
entity shall establish a separate bank account to maintain gross
terminal revenue until such time as the funds are paid or
transferred under this section. Moneys in the fund are hereby
appropriated to the department on a continuing basis for the
purposes set forth in subsection (c).
(c) Transfers and distributions.--The department shall:
(1) Transfer the slot machine tax and assessment imposed
in subsection (b) to the fund.
(2) From the local share assessment established in
subsection (b), make quarterly distributions among the
counties hosting a licensed facility in accordance with the
following schedule:
(i) If the licensed facility is a Category 1
licensed facility that is located at a harness racetrack
and the county, including a home rule county, in which
the licensed facility is located is:
(A) A county of the first class: 4% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
Notwithstanding any other provision to the contrary,
funds from licensed gaming entities located within a
county of the first class shall not be distributed
outside of a county of the first class.
(B) A county of the second class: 2% of the
gross terminal revenue to the county hosting the
20170HB1656PN2225 - 55 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
licensed facility from each such licensed facility.
(C) A county of the second class A: 1% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
An additional 1% of the gross terminal revenue to the
county hosting the licensed facility from each such
licensed facility for the purpose of municipal grants
within the county in which the licensee is located.
(D) (I) A county of the third class: Except as
provided in subclause (II), 2% of the gross
terminal revenue from each such licensed facility
shall be deposited into a restricted receipts
account to be established in the Commonwealth
Financing Authority to be used exclusively for
grants for projects in the public interest to
municipalities within the county where the
licensed facility is located.
(I.1) Priority shall be given to multiyear
projects approved or awarded by the Department of
Community and Economic Development under
subclause (I) on or before the effective date of
this subclause.
(I.2) In addition to municipalities that are
eligible to receive grant funding under subclause
(I), a county redevelopment authority within the
county shall also be eligible to receive grant
funding to be used exclusively for economic
development projects or infrastructure. A county
redevelopment authority shall not be eligible to
receive more than 10% of the total grant funds
20170HB1656PN2225 - 56 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
awarded.
(I.3) Notwithstanding the act of February 9,
1999 (P.L.1, No.1), known as the Capital
Facilities Debt Enabling Act, grants made under
subclause (I) may be utilized as local matching
funds for other grants or loans from the
Commonwealth.
(II) If a licensed facility is located in
one of two counties of the third class where a
city of the third class is located in both
counties of the third class, the county in which
the licensed facility is located shall receive
1.2% of the gross terminal revenue to be
distributed as follows: 20% to the host city,
30% to the host county and 50% to the host county
for the purpose of making municipal grants within
the county, with priority given to municipalities
contiguous to the host city. The county of the
third class, which includes a city of the third
class that is located in two counties of the
third class and is not the host county for the
licensed facility, shall receive .8% of the gross
terminal revenue to be distributed as follows:
60% to a nonhost city of the third class located
solely in the nonhost county in which the host
city of the third class is also located or 60% to
the nonhost city of the third class located both
in the host and nonhost counties of the third
class, 35% to the nonhost county and 5% to the
nonhost county for the purpose of making
20170HB1656PN2225 - 57 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
municipal grants within the county.
(E) A county of the fourth class: 2% of the
gross terminal revenue from each such licensed
facility shall be distributed as follows:
(I) The department shall make distributions
directly to each municipality within the county,
except the host municipality, by using a formula
equal to the sum of $25,000 plus $10 per resident
of the municipality using the most recent
population figures provided by the Department of
Community and Economic Development, provided,
however, that the amount so distributed to any
municipality shall not exceed 50% of its total
budget for fiscal year 2009 or 2013, whichever is
greater, adjusted for inflation in subsequent
fiscal years by an amount not to exceed an annual
cost-of-living adjustment calculated by applying
any upward percentage change in the Consumer
Price Index immediately prior to the date the
adjustment is due to take effect. Distributions
to a municipality in accordance with this
subclause shall be deposited into a special fund
which shall be established by the municipality.
The governing body of the municipality shall have
the right to draw upon the special fund for any
lawful purpose provided that the municipality
identifies the fund as the source of the
expenditure. Each municipality shall annually
submit a report to the Department of Community
and Economic Development detailing the amount and
20170HB1656PN2225 - 58 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
purpose of each expenditure made from the special
fund during the prior fiscal year.
(II) Any funds not distributed under
subclause (I) shall be deposited into a
restricted receipts account established in the
Department of Community and Economic Development
to be used exclusively for grants to the county,
to economic development authorities or
redevelopment authorities within the county for
grants for economic development projects,
infrastructure projects, job training, community
improvement projects, other projects in the
public interest, and necessary and reasonable
administrative costs. Notwithstanding the
provisions of the [act of February 9, 1999
(P.L.1, No.1), known as the] Capital Facilities
Debt Enabling Act, grants made under this clause
may be utilized as local matching funds for other
grants or loans from the Commonwealth.
(F) Counties of the fifth through eighth
classes:
(I) Except as set forth in subclause (II),
2% of the gross terminal revenue from each such
licensed facility shall be deposited into a
restricted account established in the Department
of Community and Economic Development to be used
exclusively for grants to the county.
(II) If the licensed facility is located in
a second class township in a county of the fifth
class, 2% of the gross terminal revenue from the
20170HB1656PN2225 - 59 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
licensed facility shall be distributed as
follows:
(a) 1% shall be deposited into a
restricted receipts account to be established
in the Commonwealth Financing Authority to be
used exclusively for grants for projects in
the public interest to municipalities within
the county where the licensed facility is
located.
(b) 1% shall be distributed to the county
for projects in the public interest in the
county.
(G) Any county not specifically enumerated in
clauses (A) through (F), 2% of the gross terminal
revenue to the county hosting the licensed facility
from each such licensed facility.
(ii) If the licensed facility is a Category 1
licensed facility and is located at a thoroughbred
racetrack and the county in which the licensed facility
is located is:
(A) A county of the first class: 4% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
Notwithstanding any other provision to the contrary,
funds from licensed gaming entities located within
the county of the first class shall not be
distributed outside of a county of the first class.
(B) A county of the second class: 2% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
20170HB1656PN2225 - 60 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(C) A county of the second class A: 1% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
An additional 1% of the gross terminal revenue to the
county hosting the licensed facility from each such
licensed facility for the purpose of municipal grants
within the county in which the licensee is located.
(D) The following shall apply:
(I) A county of the third class: 1% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed
facility. An additional 1% of the gross terminal
revenue minus the amount contained in clauses
(D.1) and (D.2) to the county hosting the
licensed facility from each such licensed
facility for the purpose of municipal grants
within the county in which the licensee is
located.
(II) Notwithstanding the provisions of the
Capital Facilities Debt Enabling Act, grants made
under this clause may be utilized as local
matching funds for other grants or loans from the
Commonwealth.
(III) For a county of the third class, which
is also a home rule county, b eginning January 1,
2018, municipal grants authorized under this
clause shall not be awarded through a county
economic development or redevelopment authority
and shall only be awarded by the county, which is
also a home rule county, through an official
20170HB1656PN2225 - 61 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
action of the county council and the county
executive governing the county of the third class
which is also a home rule county.
(D.1) Five hundred thousand dollars of the gross
terminal revenue to a city of the third class with a
population of not less than 80,000 located within a
county of the third class that is also a home rule
county to be used exclusively for police, fire and
other emergency services or infrastructure projects.
Notwithstanding the provisions of the Capital
Facilities Debt Enabling Act, funds distributed under
this clause may be utilized as local matching funds
for other grants or loans from the Commonwealth.
(D.2) One million five hundred thousand dollars
of the gross terminal revenue annually to a land bank
jurisdiction established by a county of the third
class which is also a home rule county. Until a land
bank jurisdiction is established by a county of the
third class which is also a home rule county after
the effective date of this subclause, $1,500,000 to
the county redevelopment authority.
(E) A county of the fourth class: 2% of the
gross terminal revenue from each such licensed
facility shall be deposited into a restricted account
established in the Department of Community and
Economic Development to be used exclusively for
grants to the county, to economic development
authorities or redevelopment authorities within the
county for grants for economic development projects,
community improvement projects, job training, other
20170HB1656PN2225 - 62 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
projects in the public interest and reasonable
administrative costs. Notwithstanding the Capital
Facilities Debt Enabling Act, grants made under this
clause may be utilized as local matching funds for
other grants or loans from the Commonwealth.
(F) Counties of the fifth through eighth
classes: 2% of the gross terminal revenue from each
such licensed facility shall be deposited into a
restricted account established in the Department of
Community and Economic Development to be used
exclusively for grants to the county.
(G) Any county not specifically enumerated in
clauses (A) through (F), 2% of the gross terminal
revenue to the county hosting the licensed facility
from each such licensed facility.
(iii) If the facility is a Category 2 licensed
facility and if the county in which the licensed facility
is located is:
(A) A county of the first class: 4% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
Notwithstanding any other provision to the contrary,
funds from licensed gaming entities located within a
county of the first class shall not be distributed
outside of a county of the first class. [The first
$5,000,000] Fifty percent or $5,000,000, whichever is
greater, of the total amount distributed annually to
the county of the first class shall be distributed to
the Philadelphia School District.
(B) A county of the second class: 2% of the
20170HB1656PN2225 - 63 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
(C) A county of the second class A: 1% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
An additional 1% of the gross terminal revenue to the
county hosting the licensed facility from each such
licensed facility for the purpose of municipal grants
within the county in which the licensee is located.
(D) A county of the third class: 1% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
An additional 1% of the gross terminal revenue to the
county hosting the licensed facility from each such
licensed facility for the purpose of municipal grants
within the county in which the licensee is located.
(D.1) If a licensed facility is located in one
of two counties of the third class where a city of
the third class is located in both counties of the
third class, the county in which the licensed
facility is located shall receive 1.2% of the gross
terminal revenue to be distributed as follows: 20%
to the host city, 30% to the host county and 50%,
which shall be deposited into a restricted receipts
account to be established in the Commonwealth
Financing Authority to be used exclusively for
economic development projects, community improvement
projects and other projects in the public interest
within the county, to the host county [for the
purpose of making municipal grants within the
20170HB1656PN2225 - 64 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
county], with priority given to municipalities
contiguous to the host city. The county of the third
class, which includes a city of the third class that
is located in two counties of the third class and is
not the host county for the licensed facility, shall
receive .8% of the gross terminal revenue to be
distributed as follows: 60% to a nonhost city of the
third class located solely in the nonhost county in
which the host city of the third class is also
located or 60% to the nonhost city of the third class
located both in the host and nonhost counties of the
third class, 35% to the nonhost county and 5%, which
shall be deposited into a restricted receipts account
to be established in the Commonwealth Financing
Authority to be used exclusively for economic
development projects, community improvement projects
and other projects in the public interest within the
county, to the nonhost county for the purpose of
making municipal grants within the county.
(E) A county of the fourth class: 2% of the
gross terminal revenue from each such licensed
facility shall be deposited into a restricted account
established in the Department of Community and
Economic Development to be used exclusively for
grants to the county, to economic development
authorities or redevelopment authorities within the
county for grants for economic development projects,
community improvement projects, job training, other
projects in the public interest and reasonable
administrative costs. Notwithstanding the Capital
20170HB1656PN2225 - 65 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Facilities Debt Enabling Act, grants made under this
clause may be utilized as local matching funds for
other grants or loans from the Commonwealth.
(F) Counties of the fifth class: 2% of the
gross terminal revenue from each such licensed
facility shall be deposited and distributed as
follows:
(I) One percent to be distributed as
follows:
(a) Beginning in 2010, the sum of
$2,400,000 annually for a period of 20 years
to the county for purposes of funding debt
service related to the construction of a
community college campus located within the
county.
(b) Any funds not distributed under
subclause (a) shall be deposited into a
restricted receipts account to be established
in the Commonwealth Financing Authority to be
used exclusively for grants within the county
for economic development projects, road
projects located within a 20-mile radius of
the licensed facility and located within the
county, community improvement projects and
other projects in the public interest within
the county. The amount under this subclause
includes reasonable administrative costs.
(II) One percent shall be deposited into a
restricted receipts account to be established in
the Commonwealth Financing Authority to be used
20170HB1656PN2225 - 66 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
exclusively for grants within contiguous counties
for economic development projects, community
improvement projects and other projects in the
public interest within contiguous counties. The
amount under this subclause includes reasonable
administrative costs. A contiguous county that
hosts a Category 1 licensed facility shall be
ineligible to receive grants under this
subclause.
(II.1) Priority shall be given to multiyear
projects approved or awarded by the Department of
Community and Economic Development under
subclause (I)(b) or (II) on or before the
effective date of this subclause.
(III) Fifty percent of any revenue required
to be transferred under paragraph (3)(v) shall be
deposited into the restricted receipts account
established under subclause (I)(b), and 50% shall
be deposited into the restricted receipts account
established under subclause (II). Notwithstanding
the Capital Facilities Debt Enabling Act, grants
made under this clause may be utilized as local
matching funds for other grants or loans from the
Commonwealth.
(G) Any county not specifically enumerated in
clauses (A) through (F), 2% of the gross terminal
revenue to the county hosting the licensed facility
from each such licensed facility.
(iv) The following apply:
(A) Except as provided in clause (B) or (C), if
20170HB1656PN2225 - 67 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
the facility is a Category 3 licensed facility, 2% of
the gross terminal revenue from the licensed facility
shall be deposited into a restricted receipts account
established in the Department of Community and
Economic Development to be used exclusively for
grants to the county, to economic development
authorities or redevelopment authorities within the
county for grants for economic development projects,
community improvement projects and other projects in
the public interest.
(B) If the facility is a Category 3 licensed
facility located in a county of the second class A,
2% of the gross terminal revenue [from the licensed
facility shall be deposited into a restricted
receipts account to be established in the
Commonwealth Financing Authority to be used
exclusively for grants or guarantees for projects in
the host county that qualify under 64 Pa.C.S. §§ 1551
(relating to Business in Our Sites Program), 1556
(relating to Tax Increment Financing Guarantee
Program) and 1558 (relating to Water Supply and
Wastewater Infrastructure Program).] to the county
hosting the licensed facility from the licensed
facility shall be deposited as follows:
(I) Seventy-five percent shall be deposited
for the purpose of supporting the maintenance and
refurbishment of the parks and heritage sites
throughout the county in which the licensed
facility is located.
(II) Twelve and one-half percent shall be
20170HB1656PN2225 - 68 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
deposited for the purpose of supporting a child
advocacy center located within the county in
which the licensed facility is located.
(III) Twelve and one-half percent shall be
deposited for the purpose of supporting an
organization providing comprehensive support
services to victims of domestic violence,
including legal and medical aid, shelters,
transitional housing and counseling, located
within the county in which the licensed facility
is located.
(C) If the facility is a Category 3 licensed
facility located in a county of the fifth class that
is contiguous to a county of the seventh class, 2% of
the gross terminal revenue from the licensed facility
shall be deposited into a restricted receipts account
to be established in the Commonwealth Financing
Authority to be used exclusively for grants within
the county for economic development projects,
infrastructure projects, community improvement
projects and other projects in the public interest
within the county and for infrastructure projects
within a 20-mile radius of the licensed facility in a
contiguous county of the seventh class.
(v) Unless otherwise specified, for the purposes of
this paragraph money designated for municipal grants
within a county, other than a county of the first class,
in which a licensed facility is located shall be used to
fund grants to the municipality in which the licensed
facility is located, to the county in which the licensed
20170HB1656PN2225 - 69 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
facility is located and to the municipalities which are
contiguous to the municipality in which the licensed
facility is located and which are located within the
county in which the licensed facility is located. Grants
shall be administered by the county through its economic
development or redevelopment authority in which the
licensed facility is located. Grants shall be used to
fund the costs of human services, infrastructure
improvements, facilities, emergency services, health and
public safety expenses associated with licensed facility
operations. If at the end of a fiscal year uncommitted
funds exist, the county shall pay to the economic
development or redevelopment authority of the county in
which the licensed facility is located the uncommitted
funds.
(vi) If the licensed facility is located in more
than one county, the amount available shall be
distributed on a pro rata basis determined by the
percentage of acreage located in each county to the total
acreage of all counties occupied by the licensed
facility.
(vii) The distributions provided in this paragraph
shall be based upon county classifications in effect on
the effective date of this section. Any reclassification
of counties as a result of a Federal decennial census or
of a State statute shall not apply to this subparagraph.
(viii) If any provision of this paragraph is found
to be unenforceable for any reason, the distribution
provided for in the unenforceable provision shall be made
to the county in which the licensed facility is located
20170HB1656PN2225 - 70 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
for the purposes of grants to municipalities in that
county, including municipal grants as specified in
subparagraph (v).
(ix) Nothing in this paragraph shall prevent any of
the above counties which directly receive a distribution
under this section from entering into intergovernmental
cooperative agreements with other jurisdictions for
sharing this money.
(3) From the local share assessment established in
subsection (b), make quarterly distributions among the
municipalities, including home rule municipalities, hosting a
licensed facility in accordance with the following schedule:
(i) To a city of the second class hosting a licensed
facility, other than a Category 3 licensed facility, [2%
of the gross terminal revenue or] $10,000,000 annually[,
whichever is greater,] shall be paid by each licensed
gaming entity operating a facility located in that city.
[In the event that the revenues generated by the 2% do
not meet the $10,000,000 minimum specified in this
subparagraph, the] The department shall collect the
[remainder of the minimum amount of] $10,000,000 from
each licensed gaming entity operating a facility in the
city in equal installments paid quarterly and deposit
[that amount] those amounts in the city treasury.
(ii) To a city of the second class A hosting a
licensed facility, other than a Category 3 licensed
facility, [2% of the gross terminal revenue or]
$10,000,000 annually[, whichever is greater,] shall be
paid by each licensed entity operating a licensed
facility located in that city, subject, however, to the
20170HB1656PN2225 - 71 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
budgetary limitation in this subparagraph. The amount
allocated to the designated municipalities shall not
exceed 50% of their total budget for fiscal year 2003-
2004, adjusted for inflation in subsequent years by an
amount not to exceed an annual cost-of-living adjustment
calculated by applying the percentage change in the
Consumer Price Index immediately prior to the date the
adjustment is due to take effect. Any remaining moneys
shall be collected by the department from each licensed
gaming entity and distributed in accordance with
paragraph (2) based upon the classification of county
where the licensed facility is located. [In the event
that the revenues generated by the 2% do not meet the
$10,000,000 minimum specified in this subparagraph, the]
The department shall collect the [remainder of the
minimum amount of] $10,000,000 from each licensed gaming
entity operating a facility in the city, pay any balance
due to the city in equal installments paid quarterly and
transfer any remainder in accordance with paragraph (2).
(iii) To a city of the third class hosting a
licensed facility, other than a Category 3 licensed
facility, [2% of the gross terminal revenue or]
$10,000,000 annually[, whichever is greater,] shall be
paid by each licensed gaming entity operating a licensed
facility located in that city, subject, however, to the
budgetary limitation in this subparagraph. In the event
that the city has a written agreement with a licensed
gaming entity executed prior to the effective date of
this part, the amount paid under the agreement to the
city shall be applied and credited to the [difference
20170HB1656PN2225 - 72 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
between 2% of the gross terminal revenue and the]
$10,000,000 owed under this subparagraph [if the 2% of
the gross terminal revenue is less than $10,000,000. If
2% of the gross terminal revenue is greater than the
$10,000,000 required to be paid under this subparagraph,
the credit shall not apply]. The amount of gross terminal
revenue required to be paid pursuant to the agreement
shall be deemed to be gross terminal revenue for purposes
of this subparagraph. The amount allocated to the
designated municipalities shall not exceed 50% of their
total budget for fiscal year 2003-2004, adjusted for
inflation in subsequent years by an amount not to exceed
an annual cost-of-living adjustment calculated by
applying the percentage change in the Consumer Price
Index immediately prior to the date the adjustment is due
to take effect. Any remaining moneys shall be collected
by the department from each licensed gaming entity and
distributed in accordance with paragraph (2) based upon
the classification of county where the licensed facility
is located. [In the event that the revenues generated by
the 2% do not meet the $10,000,000 minimum specified in
this subparagraph, the] The department shall collect the
[remainder of the minimum amount of] $10,000,000 from
each licensed gaming entity operating a facility in equal
installments paid quarterly, pay any balance due to the
city of the third class and transfer any remainder in
accordance with paragraph (2).
(iii.1) If a licensed facility is located in a city
of the third class and the city is located in more than
one county of the third class, [2% of the gross terminal
20170HB1656PN2225 - 73 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
revenue or] $10,000,000 annually[, whichever is greater,]
shall be distributed as follows: 80% to the host city
and 20% to the city of the third class located solely in
a nonhost county in which the host city of the third
class is also located. If a licensed facility is located
in a city of the third class and that city is located
solely in a host county of the third class in which a
nonhost city of the third class is also located, [2% of
gross terminal revenue or] $10,000,000 annually[,
whichever is greater,] shall be distributed as follows:
80% to the host city and 20% to a city of the third class
located both in a nonhost county of the third class and
in a host county of the third class in which the host
city of the third class is located.
(iv) To a township of the first class hosting a
licensed facility, other than a Category 3 licensed
facility, [2% of the gross terminal revenue or]
$10,000,000 annually[, whichever is greater,] shall be
paid by each licensed gaming entity operating a licensed
facility located in the township subject, however, to the
budgetary limitation in this subparagraph. The amount
allocated to the designated municipalities shall not
exceed 50% of their total budget for fiscal year 2003-
2004, adjusted for inflation in subsequent years by an
amount not to exceed an annual cost-of-living adjustment
calculated by applying the percentage change in the
Consumer Price Index immediately prior to the date the
adjustment is due to take effect. Any remaining money
shall be collected by the department from each licensed
gaming entity and distributed in accordance with
20170HB1656PN2225 - 74 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
paragraph (2) based upon the classification of county
where the licensed facility is located. [In the event
that the revenues generated by the 2% do not meet the
$10,000,000 minimum specified in this subparagraph, the]
The department shall collect the [remainder of the
minimum amount of] $10,000,000 from each licensed gaming
entity operating a licensed facility in the township in
equal installments paid quarterly, pay any balance due to
the township and transfer any remainder in accordance
with paragraph (2).
(v) To a township of the second class hosting a
licensed facility:
(A) [2% of the gross terminal revenue or]
$10,000,000 annually[, whichever is greater,] shall
be paid by each licensed gaming entity operating a
licensed facility, other than a Category 3 licensed
facility or a licensed facility owning land adjacent
to the licensed facility located in more than one
township of the second class, to the township of the
second class hosting the licensed facility, subject,
however, to the budgetary limitation in this
subparagraph. The amount allocated to the designated
municipalities shall not exceed 50% of their total
budget for fiscal year 2003-2004, adjusted for
inflation in subsequent years by an amount not to
exceed an annual cost-of-living adjustment calculated
by applying the percentage change in the Consumer
Price Index immediately prior to the date the
adjustment is due to take effect. Any remaining money
shall be collected by the department from each
20170HB1656PN2225 - 75 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
licensed gaming entity and distributed in accordance
with paragraph (2) based upon the classification of
county where the licensed facility is located. [If
revenues generated by the 2% do not meet the
$10,000,000 minimum specified in this subparagraph,
the] The department shall collect the [remainder of
the minimum amount of] $10,000,000 from each licensed
gaming entity operating a licensed facility in the
township in equal installments paid quarterly, pay
any balance due to the township and transfer any
remainder in accordance with paragraph (2).
(B) [2% of the gross terminal revenue or]
$10,000,000 annually[, whichever is greater,] less
the amount paid under clause (C), shall be paid by
each licensed gaming entity operating a licensed
facility and owning land adjacent to the licensed
facility located in more than one township of the
second class, other than a Category 3 licensed
facility, to the township of the second class hosting
the licensed facility, subject, however, to the
budgetary limitation in this subparagraph. The amount
allocated to the designated municipalities may not
exceed 50% of their total budget for the fiscal year
2003-2004, adjusted for inflation in subsequent years
by an amount not to exceed an annual cost-of-living
adjustment calculated by applying the percentage
change in the Consumer Price Index immediately prior
to the date the adjustment is due to take effect. Any
remaining money shall be collected by the department
from each licensed gaming entity and distributed in
20170HB1656PN2225 - 76 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
accordance with paragraph (2) based upon the
classification of the county where the licensed
facility is located. The county commissioners of a
county of the third class in which the licensed
facility is located shall appoint an advisory
committee for the purpose of advising the county as
to the need for municipal grants for health, safety,
transportation and other projects in the public
interest to be comprised of two individuals from the
host municipality, two from contiguous municipalities
within the county of the third class and one from the
host county. [In the event that the revenues
generated by the 2% do not meet the $10,000,000
minimum specified in this subparagraph, the] The
department shall collect the [remainder of the
minimum amount of] $10,000,000 from each licensed
gaming entity operating a licensed facility in the
township in equal installments paid quarterly, pay
any balance due to the township and transfer any
remainder in accordance with paragraph (2).
(C) $160,000 annually shall be paid by each
licensed gaming entity operating a licensed facility
and owning land adjacent to the licensed facility
located in more than one township of the second
class, other than a Category 3 licensed facility, to
the township of the second class that is located in a
county of the fifth class in which the adjacent land
is located, including racetracks, grazing fields or
any other adjoining real property.
(vi) To a borough hosting a licensed facility, other
20170HB1656PN2225 - 77 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
than a Category 3 licensed facility, [2% of the gross
terminal revenue or] $10,000,000 annually[, whichever is
greater,] shall be paid by each licensed gaming entity
operating a licensed facility located in that borough,
subject, however, to the budgetary limitation in this
subparagraph. The amount allocated to the designated
municipalities shall not exceed 50% of their total budget
for fiscal year 2003-2004, adjusted for inflation in
subsequent years by an amount not to exceed an annual
cost-of-living adjustment calculated by applying the
percentage change in the Consumer Price Index immediately
prior to the date the adjustment is due to take effect.
Any remaining money shall be collected by the department
from each licensed gaming entity and distributed in
accordance with paragraph (2) based upon the
classification of county where the licensed facility is
located. [In the event that the revenues generated by the
2% do not meet the $10,000,000 minimum specified in this
subparagraph, the] The department shall collect the
[remainder of the minimum amount of] $10,000,000 from
each licensed gaming entity operating a licensed facility
in the borough in equal installments paid quarterly, pay
any balance due to the borough and transfer any remainder
in accordance with paragraph (2).
(vii) To an incorporated town hosting a licensed
facility, other than a Category 3 licensed facility, [2%
of the gross terminal revenue or] $10,000,000 annually[,
whichever is greater,] shall be paid by each licensed
entity operating a licensed facility located in the town,
subject, however, to the budgetary limitation in this
20170HB1656PN2225 - 78 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
subparagraph. The amount allocated to the designated
municipalities shall not exceed 50% of their total budget
for fiscal year 2003-2004, adjusted for inflation in
subsequent years by an amount not to exceed an annual
cost-of-living adjustment calculated by applying the
percentage change in the Consumer Price Index immediately
prior to the date the adjustment is due to take effect.
Any remaining money shall be collected by the department
from each licensed gaming entity and distributed in
accordance with paragraph (2) based upon the
classification of county where the licensed facility is
located. [In the event that the revenues generated by the
2% do not meet the $10,000,000 minimum specified in this
subparagraph, the] The department shall collect the
[remainder of the minimum amount of] $10,000,000 from
each licensed gaming entity operating a licensed facility
in the incorporated town in equal installments paid
quarterly, pay any balance due to the town and transfer
any remainder in accordance with paragraph (2).
(viii) The following apply:
(A) Except as provided in clause (B) or (C), to
a municipality of any class hosting a Category 3
facility, 2% of the gross terminal revenue from the
Category 3 licensed facility located in the
municipality, subject, however, to the budgetary
limitation in this clause. The amount allocated to
the designated municipalities shall not exceed 50% of
their total budget for fiscal year 2009, adjusted for
inflation in subsequent years by an amount not to
exceed an annual cost-of-living adjustment calculated
20170HB1656PN2225 - 79 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
by applying the percentage change in the Consumer
Price Index immediately prior to the date the
adjustment is due to take effect. Any remaining money
shall be collected by the department from each
licensed gaming entity and distributed in accordance
with paragraph (2) based upon the classification of
county where the licensed facility is located.
(B) If the municipality hosting a Category 3
licensed facility is a borough located in a county of
the third class and the borough is contiguous to a
city of the third class, 1% of gross terminal revenue
shall be distributed to the host borough and 1% of
gross terminal revenue shall be distributed to the
city of the third class that is contiguous to the
host borough, subject, however, to the budgetary
limitation in this clause. The amount allocated to
each designated municipality shall not exceed 50% of
its total budget for fiscal year 2009, adjusted for
inflation in subsequent years by an amount not to
exceed an annual cost-of-living adjustment calculated
by applying the percentage increase, if any, in the
Consumer Price Index immediately prior to the date
the adjustment is due to take effect. Any remaining
money shall be collected by the department from each
licensed gaming entity and distributed in accordance
with paragraph (2) based upon the classification of
county where the licensed facility is located.
(C) If the municipality hosting a Category 3
licensed facility is a township of the second class
in a county of the fifth class which is contiguous to
20170HB1656PN2225 - 80 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
a county of the seventh class, 2% of the gross
terminal revenue from the Category 3 licensed
facility located in the municipality shall be
distributed to the municipality, subject, however, to
the budgetary limitation in this clause. The amount
allocated to the designated municipalities shall not
exceed the lesser of $1,000,000 or 50% of their total
budget for fiscal year 2009, adjusted for inflation
in subsequent years by an amount not to exceed an
annual cost-of-living adjustment calculated by
applying the percentage change in the Consumer Price
Index immediately prior to the date the adjustment is
due to take effect. Any remaining money shall be
collected by the department from each licensed gaming
entity and distributed in equal amounts to each
municipality contiguous to the host municipality.
However, the amount to be allocated to any contiguous
municipality shall not exceed the lesser of
$1,000,000 or 50% of the municipality's total budget
for fiscal year 2009, adjusted for inflation in
subsequent years by an amount not to exceed an annual
cost-of-living adjustment calculated by applying the
percentage change in the Consumer Price Index
immediately prior to the date the adjustment is due
to take effect. Any money remaining following
distribution to contiguous municipalities shall be
collected by the department and distributed in
accordance with paragraph (2) based upon the
classification of county where the licensed facility
is located.
20170HB1656PN2225 - 81 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(ix) Any municipality not specifically enumerated in
subparagraphs (i) through (viii), [2%] $10,000,000
annually of the gross terminal revenue shall be paid to
the municipality hosting the licensed facility from each
such licensed facility.
(x) If the licensed facility is located in more than
one municipality, the amount available shall be
distributed on a pro rata basis determined by the
percentage of acreage located in each municipality to the
total acreage of all municipalities occupied by the
licensed facility.
(xi) If the licensed facility is located at a resort
which is also an incorporated municipality, such
municipality shall not be eligible to receive any
distribution under this paragraph. The distribution it
would have otherwise been entitled to under this
paragraph shall instead be distributed in accordance with
paragraph (2) based upon the county where the licensed
facility is located.
(xii) The distributions provided in this paragraph
shall be based upon municipal classifications in effect
on the effective date of this section. For the purposes
of this paragraph, any reclassification of municipalities
as a result of a Federal decennial census or of a State
statute shall not apply to this paragraph.
(xiii) If any provision of this paragraph is found
to be unenforceable for any reason, the distribution
provided for in such unenforceable provision shall be
made to the municipality in which the licensed facility
is located.
20170HB1656PN2225 - 82 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(xiv) Nothing in this paragraph shall prevent any of
the above municipalities from entering into
intergovernmental cooperative agreements with other
jurisdictions for sharing this money.
(xv) Notwithstanding any other law, agreement or
provision in this part to the contrary, all revenues
provided, directed or earmarked under this section to or
for the benefit of a city of the second class in which an
intergovernmental cooperation authority has been
established and is in existence pursuant to the act of
February 12, 2004 (P.L.73, No.11), known as the
Intergovernmental Cooperation Authority Act for Cities of
the Second Class, shall be directed to and under the
exclusive control of such intergovernmental cooperation
authority to be used:
(A) to reduce the debt of the second class city;
(B) to increase the level of funding of the
municipal pension funds of the second class city; or
(C) for any other purposes as determined to be
in the best interest of the second class city by such
intergovernmental cooperation authority. Such
revenues shall not be directed to or under the
control of such city of the second class or any
coordinator appointed pursuant to the act of July 10,
1987 (P.L.246, No.47), known as the Municipalities
Financial Recovery Act, for such city of the second
class.
* * *
Section 11. Title 4 is amended by adding a section to read:
§ 1410. Gaming tax normalization.
20170HB1656PN2225 - 83 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(a) Requirement.--Notwithstanding any other provision of
law, from the effective date of this section, in the event that
any form of gaming is authorized in this Commonwealth, whether
in this part or any other law, which is subject to a tax rate
that is lower than the effective tax rate applicable to gross
terminal revenue or gross table game revenue under this part,
then the effective tax applicable to gross terminal revenue and
gross table game revenue, as applicable, shall be reduced
proportionately to equal a lower effective tax rate.
(b) Tax rates.--Prior to and on the effective date of this
subsection, the effective tax rate applicable to gross terminal
revenue is 59%, the effective tax rate applicable to gross table
game revenue from table games with a live dealer is 17.5% and
the effective tax rate applicable to gross table game revenue
from fully automated table games is 51.5%.
Section 12. Sections 1502 and 1518(a)(14) and (b)(1) and (2)
of Title 4 are amended to read:
§ 1502. Liens and suits for taxes.
(a) Tax procedures.--The provisions of this part shall be
subject to the provisions of sections 242 and 243 of the act of
March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of
1971.
(b) Compromise and settlement.--Notwithstanding any other
provision of law, the Board of Appeals or the Board of Finance
and Revenue may issue an order reflecting a compromise which is
accepted by the department for a petition arising under this
part if the compromise meets the criteria under section 2707(b)
of the act of March 4, 1971 (P.L.6, No.2), known as the Tax
Reform Code of 1971.
§ 1518. Prohibited acts; penalties.
20170HB1656PN2225 - 84 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(a) Criminal offenses.--
* * *
(14) [(Reserved).] It shall be unlawful for a person
other than a slot machine licensee to place or offer for play
a hybrid or skill-based device in any other facility, place
of business or other location.
* * *
(b) Criminal penalties and fines.--
(1) The following apply:
(i) A person that commits a first offense in
violation of 18 Pa.C.S. § 4902, 4903 or 4904 in
connection with providing information or making any
statement, whether written or oral, to the board, the
bureau, the department, the Pennsylvania State Police,
the Office of Attorney General or a district attorney as
required by this part commits an offense to be graded in
accordance with the applicable section violated. A person
that is convicted of a second or subsequent violation of
18 Pa.C.S. § 4902, 4903 or 4904 in connection with
providing information or making any statement, whether
written or oral, to the board, the bureau, the
department, the Pennsylvania State Police, the Office of
Attorney General or a district attorney as required by
this part commits a felony of the second degree.
(ii) A person that violates subsection (a)(2)
through (12), (14) or (17) commits a misdemeanor of the
first degree. A person that is convicted of a second or
subsequent violation of subsection (a)(2) through (12),
(14) or (17) commits a felony of the second degree.
(iii) In addition to violations under this part, a
20170HB1656PN2225 - 85 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
person that violates subsection (a)(14) commits a
violation of 18 Pa.C.S. § 5513(b) (relating to gambling
devices, gambling, etc.).
(iv) A person that violates subsection (a)(14) for a
second or subsequent time shall have the person's liquor
license suspended for a minimum of 60 days.
(2) The following apply:
(i) For a first violation of subsection (a)(1)
through (12) or (17), a person shall be sentenced to pay
a fine of:
(A) not less than $75,000 nor more than $150,000
if the person is an individual;
(B) not less than $300,000 nor more than
$600,000 if the person is a licensed gaming entity;
or
(C) not less than $150,000 nor more than
$300,000 if the person is a licensed manufacturer or
supplier.
(i.1) For a violation of subsection (a)(14), a
person shall be sentenced to pay a fine of:
(A) not less than $10,000 nor more than $25,000
if the person is an individual; or
(B) not less than $75,000 nor more than $100,000
if the person is not an individual.
(ii) For a second or subsequent violation of
subsection (a)(1) through (12) or (17), a person shall be
sentenced to pay a fine of:
(A) not less than $150,000 nor more than
$300,000 if the person is an individual;
(B) not less than $600,000 nor more than
20170HB1656PN2225 - 86 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
$1,200,000 if the person is a licensed gaming entity;
or
(C) not less than $300,000 nor more than
$600,000 if the person is a licensed manufacturer or
supplier.
* * *
Section 13. Title 4 is amended by adding a section to read:
§ 1521.1. Casino liquor license.
(a) Conversion.--
(1) This subsection applies to all of the following:
(i) A slot machine licensee that sells liquor or
malt or brewed beverages under section 1521(b) or (c)
(relating to liquor licenses at licensed facilities).
(ii) A licensee that:
(A) holds a restaurant license or an eating
place retail dispenser license issued by the
Pennsylvania Liquor Control Board; and
(B) sells liquor or malt or brewed beverages
within or adjacent to the licensed facility.
(2) Notwithstanding any other provision of law, a
licensee identified in paragraph (1) may convert the license
to a casino liquor license upon payment of the fees specified
under subsection (b).
(b) Fees.--In order to obtain a casino liquor license, the
following fees apply:
(1) A slot machine licensee must pay an initial license
conversion fee of $1,000,000 for a casino liquor license.
(2) A restaurant or eating place retail dispenser
licensee that does not hold a slot machine license but
operates within or adjacent to a licensed facility must pay
20170HB1656PN2225 - 87 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
an initial fee of $10,000.
(c) Renewal.--
(1) For the first five years after the initial
conversion of the casino liquor license to a slot machine
licensee, the following apply:
(i) The casino liquor license shall not be subject
to a renewal fee.
(ii) The casino liquor license held by the slot
machine licensee shall automatically renew, without
action of the Pennsylvania Liquor Control Board.
(2) After the first five annual renewals, the following
apply:
(i) A casino liquor license held by a slot machine
licensee shall be subject to an annual renewal fee of
$50,000.
(ii) Upon payment of the annual renewal fee, the
casino liquor license shall be deemed renewed without
further action of the Pennsylvania Liquor Control Board.
If the annual renewal fee is not timely paid, the casino
liquor license shall be suspended until the annual
renewal fee is paid.
(3) A casino liquor license held by a person that is not
a slot machine licensee shall be subject to an annual renewal
fee of $1,000. Upon payment of the annual renewal fee, the
casino liquor license shall be deemed renewed without further
action of the Pennsylvania Liquor Control Board. If the
annual renewal fee is not timely paid, the casino liquor
license shall be suspended until the annual renewal fee is
paid.
(4) All fees collected or received under this subsection
20170HB1656PN2225 - 88 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
shall be paid into the State Treasury through the Department
of Revenue for deposit into the General Fund.
(d) Disposition.--The following shall apply to disposition
of restaurant liquor or eating place retail dispenser licenses:
(1) An applicant under this section that currently holds
a restaurant liquor or eating place retail dispenser license
may continue to utilize the license until the casino liquor
license is issued by the Pennsylvania Liquor Control Board.
Upon issuance of a casino liquor license, except as set forth
in paragraph (2), the applicant shall surrender the
restaurant liquor license or eating place retail dispenser
license to the Pennsylvania Liquor Control Board.
(2) An applicant under this section that currently holds
a restaurant liquor or eating place retail dispenser license
which is subject to the quota restrictions under section
461(a) of the act of April 12, 1951 (P.L.90, No.21), known as
the Liquor Code, may continue to utilize that license until
the casino liquor license is issued by the Pennsylvania
Liquor Control Board. Notwithstanding paragraph (1), upon
issuance of a casino liquor license, the applicant may sell
the restaurant liquor or eating place retail dispenser
license.
(e) Hours.--Notwithstanding any other provision of law, a
holder of a casino liquor license may sell or serve liquor or
malt or brewed beverages 24 hours a day, seven days a week.
(f) Nontransferable.--A casino liquor license shall be
nontransferable. Nothing in this subsection shall preclude a
transfer of ownership of a casino liquor license to another
eligible person to be used at the same location.
(g) Actions against license.--Notwithstanding any other
20170HB1656PN2225 - 89 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
provision of law, a casino liquor license may not be suspended
or revoked unless the action is approved by the board and the
Pennsylvania Liquor Control Board:
(1) after notice and hearing before the board and the
Pennsylvania Liquor Control Board; and
(2) upon a finding by the board and the Pennsylvania
Liquor Control Board that the licensee's conduct was
intentional and egregious.
(h) Issuance.--The Pennsylvania Liquor Control Board shall
issue a casino liquor license consistent with subsection (a) to
a new applicant even if the previous license had:
(1) been suspended or revoked consistent with this
section;
(2) not been renewed by the licensee; or
(3) expired at the request of the licensee.
(i) Additional requirements.--In addition to other
restrictions and privileges, a casino liquor license shall be
subject to the following:
(1) Sales may be made at any time the facility is open
to the public.
(2) For a casino liquor license held by a slot machine
licensee, liquor or malt or brewed beverages may be sold,
furnished or given for consumption or transported at a
licensed facility, on the licensed premises and anywhere on
the property of the slot machine licensee if the liquor or
malt or brewed beverage remains within the property of the
slot machine licensee.
(3) Sales of liquor or malt or brewed beverages for
consumption off the property of the slot machine licensee are
prohibited.
20170HB1656PN2225 - 90 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(4) In addition to the ability to give liquor or malt or
brewed beverages under section 13A29.1 (relating to
application of Liquor Code) and section 493(24)(ii) of the
Liquor Code, the holder of a casino liquor license, who is
also a slot machine licensee, may give liquor or malt or
brewed beverages free of charge to:
(i) a person attending an invitation-only event held
anywhere on the property of the slot machine licensee;
and
(ii) a person engaged in gaming play authorized by
this part.
(j) Exemption.--Licenses issued under this section may not
be subject to:
(1) Sections 402 and 404 of the Liquor Code.
(2) The restrictions on discount pricing practices under
sections 406(g) and 442(g) of the Liquor Code.
(3) Section 461 of the Liquor Code.
(4) Section 470 of the Liquor Code.
(5) Section 493(10) of the Liquor Code, except as
section 493(10) relates to lewd, immoral or improper
entertainment.
(6) The prohibition against minors frequenting described
under section 493(14) of the Liquor Code.
(7) Section 493(16) of the Liquor Code.
(8) The cost and total display area limitations of
section 493(20)(i) of the Liquor Code.
(9) The restrictions on events, tournaments or contests
in 40 Pa. Code § 5.32 (relating to restrictions/exceptions)
or a successor regulation.
(10) The restrictions on the awarding of trophies,
20170HB1656PN2225 - 91 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
prizes or premiums under 40 Pa. Code § 5.32 or a successor
regulation.
(k) Multiple licenses.--
(1) Except as provided under paragraph (2), more than
one casino liquor license issued by the board may be in
effect at a licensed facility and the licensed entity's
Category 4 permitted facilities at any one time.
(2) No more than one casino liquor license shall be in
effect at a specific location within the premises of a
licensed facility at the same time.
Section 14. Section 1901.1 of Title 4 is amended to read:
§ 1901.1. Repayments to State Gaming Fund.
(a) Assessment deferral.--The board shall defer assessing
slot machine licensees for payments to the State Gaming Fund for
any loans made to the State Gaming Fund until such time as all
slot machine licenses have been issued and all licensed gaming
entities have commenced the operation of slot machines. The
board shall adopt a repayment schedule that assesses to each
slot machine licensee costs for the repayment of any such loans
in an amount that is proportional to each slot machine
licensee's gross terminal revenue.
(b) Accelerated repayment.--Notwithstanding subsection (a),
the board shall certify to each slot machine licensee the
balance owed on loans made to the State Gaming Fund within 60
days of the effective date of this subsection. The board shall
calculate the balances consistent with the board's
Administrative Order on loan repayment schedules issued July 11,
2011. Each slot machine licensee shall remit the amount
necessary to pay the slot machine licensee's respective loan
balance within 60 days of receipt of the payoff notice from the
20170HB1656PN2225 - 92 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
board. Subsequent to remittance of the payoff amount, a slot
machine licensee may contest the board's proper calculation of
the slot machine licensee's balance under the Administrative
Order by filing a petition with the board.
(c) Moratorium.--Upon payment of the accelerated loan
balances under subsection (b), the General Assembly may not
enact legislation authorizing the placement or operation of
video gaming terminals in this Commonwealth for a period of 10
years from the effective date of this subsection.
(d) Return of loan payments.--If video gaming terminals are
authorized in this Commonwealth within 10 years of the effective
date of this subsection, each slot machine licensee shall be
refunded its accelerated loan balance repayment. The
Commonwealth, through the department, shall enter into a
contract with each slot machine licensee explicitly setting
forth the terms of subsection (c) and this subsection.
Section 15. Title 4 is amended by adding a part to read:
PART III
KENO
Chapter
51. General Provisions
52. Authorization of Lottery Game
53. Operation
54. Revenue
CHAPTER 51
GENERAL PROVISIONS
Sec.
5101. Scope of part.
5102. Definitions.
§ 5101. Scope of part.
20170HB1656PN2225 - 93 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
This part applies to various types of gambling which
generates significant revenue for the Commonwealth. The
inclusions of games the operation of which directly impact the
operation of other types of gaming in the Commonwealth makes the
inclusion of lotteries with other forms of gaming an effective
way to observe the interaction of all types of gambling.
§ 5102. Definitions.
Subject to additional definitions contained in subsequent
provisions of this part which are applicable to specific
provisions of this part, the following words and phrases when
used in this part shall have the meanings given to them in this
section unless the context clearly indicates otherwise:
"Authorized establishment." A licensed establishment or a
licensed lottery sales agent's place of business authorized
under this chapter to operate keno.
"Department." The Department of Revenue of the Commonwealth.
"Division." The Division of the State Lottery.
"Licensed establishment." A restaurant, bar, tavern, hotel,
golf course or club which has a valid liquor or malt or brewed
beverage license under Article IV of the act of April 12, 1951
(P.L.90, No.21), known as the Liquor Code.
CHAPTER 52
AUTHORIZATION OF LOTTERY GAME
Sec.
5201 . Authorization.
§ 5201 . Authorization.
(a) Authorization.--The game of keno is authorized to be
operated in this Commonwealth.
(b) Lottery Law.--The game and its implementation shall be
conducted consistent with the act of August 26, 1971 (P.L.351,
20170HB1656PN2225 - 94 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
No.91), known as the State Lottery Law.
CHAPTER 53
OPERATION
Sec.
5301 . Operation.
§ 5301 . Operation.
(a) Oversight.--The department shall implement and operate
keno in accordance with this chapter and the act of August 26,
1971 (P.L.351, No.91), known as the State Lottery Law.
(b) Requirements.--Keno shall be conducted in accordance
with the following:
(1) A keno game may not be interactive.
(2) The frequency of a keno game may not exceed 15
drawings per hour.
(3) No more than 3 video display monitors showing a
single keno game are permitted in an authorized
establishment.
(4) Each keno game shall be connected to the division's
central control computer.
(5) Each keno game may only be installed in an
authorized establishment. A list of authorized establishments
and sites shall be published annually in the Pennsylvania
Bulletin.
(6) The department and the division shall mutually agree
upon the number of authorized establishments where keno games
will be initially installed. The number may not exceed 4,000
authorized establishments.
(c) Regulations.--The department may promulgate regulations
to implement this part to do all of the following:
(1) Determine whether retailer and vendor commissions
20170HB1656PN2225 - 95 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
which apply to a lottery game apply to keno.
(2) Provide for commissions for sales by an authorized
establishment at a higher percentage than permitted for a
lottery sales agent. A percentage under this paragraph may
not exceed 15% .
CHAPTER 54
REVENUE
Sec.
5401. Deposits and distributions.
§ 5401. Deposits and distributions.
(a) Deposits.--Revenue generated by the operation of keno
games under this part shall be deposited into the State Lottery
Fund.
(b) Distributions.--Prizes shall be distributed in
accordance with the act of August 26, 1971 (P.L.351, No.91),
known as the State Lottery Law.
Section 16. Repeals are as follows:
(1) The General Assembly declares that the repeal in
paragraph (2) is necessary to implement the addition of 4
Pa.C.S. § 1521.1.
(2) Section 416 of the act of April 12, 1951 (P.L.90,
No.21), known as the Liquor Code, is repealed.
(3) The General Assembly declares that the repeal in
paragraph (4) is necessary to implement the addition of 4
Pa.C.S. § 1502(b).
(4) Section 2707(c)(5) of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, is
repealed.
Section 17. This act shall take effect in 60 days.
20170HB1656PN2225 - 96 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29