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06/08/2024 06:08 AM
Pennsylvania House of Representatives
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?SPick=20230&chamber=H&cosponId=42602
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House of Representatives
Session of 2023 - 2024 Regular Session

MEMORANDUM

Posted: April 30, 2024 12:03 PM
From: Representative Robert E. Merski
To: All House members
Subject: Updating Pennsylvania's Slot Machine Regulations
 
Under 4 Pa.C.S., Category 1 and Category 2 casinos are required to maintain no less than 1,500 slot machines in operation at all times. With changes to Pennsylvania’s gaming landscape and increased competition from both in-state and out-of-state entities, the rigid requirement of maintaining a minimum number of slot machines is outdated.
 
Since 2021, the Gaming Control Board has approved the elimination of numerous slot machines from Pennsylvania casinos, indicating a shift in the industry's dynamics. Those reductions include:
      -  Harrah’s was granted a reduction of 563 slot machines in 2021 and an additional 145 machines in 2023.
      -  Rivers was granted a reduction of 97 slot machines in 2022.
      -  Wind Creek was granted a reduction of 655 slot machines in 2022.
      -  Mohegan was granted a reduction of 120 slot machines in 2023.

With my proposed legislation, casinos would no longer be bound by a minimum slot machine count. Instead, they would have the flexibility to adjust their slot machine inventory based on market demand and operational needs. Any reduction exceeding two percent of a casino’s total slot machine count, however, would require approval from the Gaming Control Board.
 
Casinos seeking to reduce their slot machine count would need to present a compelling case to the Gaming Control Board, demonstrating that such a reduction would not adversely impact revenue, taxes, casino employees, local governments, or the Commonwealth. This regulatory oversight ensures that any changes made to the slot machine inventory are done responsibly and with careful consideration of their potential effects.
               
By eliminating the minimum slot machine requirement, this legislation will empower Pennsylvania casinos to optimize their gaming floors without compromising revenue or taxes. It will provide them with the flexibility needed to adapt to changing market conditions and ensure their long-term viability.

Please join me by cosponsoring this important legislation to modernize Pennsylvania's gaming regulations and promote a more competitive and sustainable casino industry.