PRINTER'S NO. 2303
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1718
Session of
2017
INTRODUCED BY NEILSON AND DAVIS, AUGUST 16, 2017
REFERRED TO COMMITTEE ON GAMING OVERSIGHT, AUGUST 16, 2017
AN ACT
Amending Title 4 (Amusements) of the Pennsylvania Consolidated
Statutes, in licensees, providing for slot machines at
nonprimary or ancillary locations.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 4 of the Pennsylvania Consolidated Statutes
is amended by adding a section to read:
§ 1311.3. Slot machines at nonprimary or ancillary locations.
(a) Authorization.--Notwithstanding any other provision of
law, the following licensed gaming entities may apply to the
board for a license to establish nonprimary locations or
ancillary facilities in which to operate slot machines:
(1) a licensed racing entity as defined in 3 Pa.C.S. §
9301 (relating to definitions) that is a licensed gaming
entity and has nonprimary locations approved under 3 Pa.C.S.
§ 9331 (relating to pari-mutuel wagering at nonprimary
locations); or
(2) a slot machine licensee that is licensed as a
Category 2 facility under section 1304 (relating to Category
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2 slot machine license).
(b) Number.--
(1) Each licensed corporation under subsection (a)(1)
may operate up to two nonprimary locations for each licensed
racing entity approved under 3 Pa.C.S. § 9331 and licensed by
the board under this chapter. Notwithstanding any
restrictions on the creation of new or additional nonprimary
locations under 3 Pa.C.S. § 9331, each Category 1 slot
machine licensee may close, open or transfer nonprimary
locations in order to establish up to four nonprimary
locations at which slot machines may be placed.
(2) Each Category 2 slot machine licensee may operate up
to two ancillary facilities at locations licensed by the
board under this chapter.
(3) Notwithstanding any other provision of law, a
licensed corporation that has established nonprimary
locations prior to the effective date of this section shall
not be prohibited from closing current nonprimary locations
or from opening new or relocated locations in order to
conduct slot machine wagering in accordance with this
section.
(4) A licensed corporation that operated and closed a
nonprimary location prior to the effective date of this
section must operate at least one of the nonprimary locations
authorized under paragraph (1) in the same county as the one
or more of the original nonprimary locations were located.
The provisions of this paragraph shall not apply to a
nonprimary location that is within 10 linear air miles of a
licensed gaming entity within a city of the first class or
within 20 linear air miles of any other licensed gaming
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entity.
(c) Requirements.--Each nonprimary location or ancillary
facility may, upon remittance of the fee under this subsection,
place and operate no more than 250 slot machines of the
nonprimary location or ancillary facility's total complement of
slot machines under section 1210 (relating to number of slot
machines) in each authorized nonprimary location or ancillary
facility if all of the following apply:
(1) The nonprimary location or ancillary facility is
licensed by the board.
(2) Except as provided under this chapter, the
nonprimary location or ancillary facility is not within 10
linear air miles of a licensed gaming entity located within a
city of the first class or within 20 linear air miles of any
other licensed gaming entity. A nonprimary location or
ancillary facility may be located at a distance that is less
than the distances provided under this paragraph if the
licensed corporation that owns the nonprimary location or the
licensed gaming entity enters into an agreement with another
licensed gaming entity and the agreement is filed with the
commission and the board.
(3) The licensed corporation that owns the nonprimary
location or licensed Category 2 gaming facility has paid a
fee to the board of $5,000,000 for each nonprimary location
or ancillary facility where the licensed corporation or
ancillary facility will place and operate slot machines.
(d) Application.--An application for a license to operate
slot machines at nonprimary locations or ancillary facilities
must be submitted on a form and in a manner as required by the
board. The application must contain the following:
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(1) The proposed location of the nonprimary location or
ancillary facility.
(2) The number of and justification for slot machines
requested at the location.
(3) The names, addresses, pictures and other information
required by the board relating to all principals, key
employees and other personnel who will require a license or
permit from the board. Employees who hold a license from the
commission shall be granted a nongaming, gaming or key
employee license, permit or registration as deemed
appropriate by the board.
(4) The ability to inspect and approve the physical
plant of the nonprimary location or ancillary facility to
ensure the physical plant's adequacy to serve patrons.
(e) Onsite personnel.--The board or the Pennsylvania State
Police shall not have onsite personnel or offices at a
nonprimary location or ancillary facility.
(f) Taxes.--
(1) A nonprimary location or ancillary facility shall
pay a tax of 54% of the nonprimary location's or ancillary
facility's daily gross terminal revenue from the operation of
slot machines.
(2) The taxes collected under this subsection shall be
distributed as follows:
(i) Ninety-two percent of the tax shall be deposited
by the department in the General Fund.
(ii) Eight percent shall constitute a local share
assessment and shall be distributed by the department on
a quarterly basis as follows:
(A) Four percent to the county in which the
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nonprimary location or ancillary facility is located.
(B) Four percent to the municipality in which
the nonprimary location or ancillary facility is
located.
(3) All money owed to the Commonwealth, a county or a
municipality under this section shall be held in trust by the
licensed corporation or licensed gaming entity for the
Commonwealth, county or municipality until all funds are
distributed by the department in accordance with this
subsection.
(g) Enforcement.--The board shall regulate all aspects of
the placement and operation of slot machines in a nonprimary
location or ancillary facility.
Section 2. This act shall take effect in 60 days.
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