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FOR IMMEDIATE RELEASE |
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State
Rep. Dante Santoni |
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Gaming committee sends video lottery terminal bill to House
HARRISBURG, July 17 – The House Gaming Oversight Committee today approved legislation that would legalize video lottery terminals at bars, restaurants and private social clubs licensed by the Liquor Control Board and use the state's share of the revenue to help Pennsylvanians pay for higher education, according to committee chairman, Rep. Dante Santoni, D-Berks.
Video lottery includes video poker 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 profits from them to help state-system and community college students pay their tuition. The bill also would provide some funding to students who attend state-related universities, like Temple and Penn State, if certain revenue thresholds are met.
"I hope that by moving this bill, we can help move state budget discussions and the important issue of higher education forward," Santoni said.
Santoni said that when fully implemented, video lottery terminals would generate an estimated $1.2 billion annually for the state's economy, 50 percent of which, or around $550 million, would be used for the tuition program. Forty-five percent would be shared between vendors and retailers, with retailers receiving at least 22.5 percent. The remaining 5 percent would go to cover administrative costs and put into the state’s General Fund.
"Illegal gaming devices are already active and people who stop in to their local bar or service club are using them," Santoni said. "Sixty-two percent of Pennsylvanians polled support having these games available, 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 some 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. Revenue estimates are based on 8,800 licensed establishments averaging four terminals per location.
The committee held four public hearings on the issue in April and May, taking testimony from a broad range of stakeholders, including officials with the state Education and Revenue departments, Pennsylvania State Police and Pennsylvania Gaming Control Board; representatives from universities, community colleges and the gaming industry; business owners and their associations; parents and students; and organizations that manage compulsive gambling programs.
The bill now goes to the full House for consideration.