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FOR IMMEDIATE RELEASE |
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State
Rep. Dante Santoni |
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Gaming committee holds first public hearing on video lottery terminals
HARRISBURG, April 23 – The House Gaming Oversight Committee today held a public hearing on the prospect of video lottery terminals at bars, restaurants and private social clubs licensed by the Liquor Control Board, according to committee chairman, Rep. Dante Santoni, D-Berks.
Video lottery includes video poker, video keno and other games that allow a person to wager on the outcome of a video game. Santoni introduced the bill (H.B. 1317) that would authorize the terminals and use the state's share of revenue from them to help state-system and community college students pay their tuition.
The committee heard from officials from the Department of Education, Reading Area Community College, State System of Higher Education, Pennsylvania Gaming Control Board and the Pennsylvania Department of Revenue. They also took testimony from James Pappas, executive director of the Council on Compulsive Gambling in Pennsylvania, and from representatives from the Louisiana gaming industry.
According to Education Department Deputy Secretary Kathleen Shaw, one in 10 young adults reports he or she will not attend college mostly because of the cost. Those who drop out of college report the cost was the most significant factor in their decision. She also said a recent survey of Pennsylvania college graduates had 72 percent of students reporting feeling overburdened by their education debt and 55 percent having a difficult time paying back student loans.
Reading Community College President Anna Weitz discussed a recent report from the National Center for Public Policy and Higher Education. The report said, in part, that students and families in the lowest and lower-middle income groups on average must devote up to 44 percent of their annual income to pay for a community college education, even after receiving financial aid. At Pennsylvania's 14 community colleges, 47.5 percent of full-time students and 65 percent of part-time students receive no financial aid. In addition, 12,640 students were dropped for non-payment for the fall 2009 semester.
"Clearly, there is need to step up our efforts to help students obtain a higher education in Pennsylvania," Santoni said. "Pennsylvania, like many other states, is facing a massive budget deficit, and there will be little room in the General Fund to help working families afford increasingly out-of-reach tuition costs at our public colleges. My bill attempts to provide this needed resource for students."
Under the bill, all students would pay at least $1,000 per year toward the cost of tuition. Students and families who do not qualify for grants through the Pennsylvania Higher Education Assistance Agency but who earn less than $100,000 a year would receive a grant equal to half the cost of tuition. Santoni said that translates to a $2,700 discount for State System of Higher Education universities. The average discount at community colleges would be about $500 for students who pay local tuition and around $1,000 for students who pay out-of-area tuition.
Revenue Secretary Stephen Stetler said that when fully implemented, video lottery terminals would generate an estimated $550 million annually for the program. The estimates are based on 35,000 active video lottery terminals, with a daily net profit of $85 per machine. Profits would be distributed as follows: 50 percent to the Tuition Relief Fund; 25 percent to licensees; and the remaining 25 percent to cover the costs of administration by the Department of Revenue, the Liquor Control Board and the Pennsylvania State Police. Prizes would be limited to $600 per play.
"Illegal gaming devices are already active and people who stop in to have a few drinks at their local bar or service club are using them," Santoni said. "Sixty-two percent of Pennsylvanians polled support this concept, and it makes sense to replace this illegal business with a legal and regulated operation that ensures the honesty of the machine for the player and provides a needed resource for young people seeking a higher education."
There are 11,000 bars and restaurants and 3,000 private social clubs with liquor licenses in the state. Each establishment would be allowed to install up to five video lottery machines.
Santoni said the committee plans to hold three more hearings on the issue. The next hearing will be held in Westmoreland County on Thursday, May 7. Testimony from today's hearing can be found on Santoni's Web site, www.pahouse.com/Santoni, in the House Gaming Oversight Committee News and Information section.
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