Lawmaker offers riverboat gambling measure
HARRISBURG – A riverboat casino could be coming to a river in Western Pennsylvania next year, if a proposal unveiled on Wednesday by a local lawmaker passes. House Democratic Whip Mike Veon, D-Beaver Falls, unveiled a proposal Wednesday to allow 15 floating casinos along the waterways of Washington, Westmoreland and Beaver counties, among others.
However, the casinos would not be allowed in Fayette County. The bill limits the casinos to certain counties and Fayette County wasn’t included in the measure.
With the state government facing severe budget woes, legislators and gubernatorial candidates are considering legalizing casino gambling in Pennsylvania – and Veon thinks riverboat gambling is the best risk.
His plan would create about 36,000 jobs and generate more than $503 million a year, he estimated. The revenues would go to fund prescription assistance, property tax reduction and grants to volunteer fire companies.
“Pennsylvania already has a lottery, legalized bingo, small games of chance, harness racing, thoroughbred racing and off-track wagering,” said Veon, who represents the 14th Legislative District. “Gaming is here in Pennsylvania, and all around us, too. We need to start capitalizing on an industry that could help us grow instead of ignoring it and falling behind.”
Lawmakers in 1997 seriously considered legalizing casino games, including riverboat gambling. Veon said there might be enough support this time around to make it a reality. His plan would need to be approved by a majority of lawmakers in the House and Senate and by the governor.
Gov. Mark Schweiker has said that any new gambling would have to be approved by Pennsylvanians in a voter referendum. But his term expires in January. And gubernatorial candidate Ed Rendell, a Democrat whom Veon endorsed for governor last week, supports riverboat gambling. Rendell, however, has not yet seen or taken a position on Veon’s proposal, his spokesman Dan Fee said on Wednesday.
Veon’s proposal could face significant opposition from other lawmakers, anti-gambling groups and racetracks. Racetracks, which currently offer betting on horses, could lose patrons – and money – to the casino boats.
“If we had a vote tomorrow, I think that [this] would have a 50-50 chance of passing,” Veon said.
Thirty-nine states have some form of casino gaming. Bordering states, like New York, New Jersey, Delaware and West Virginia, are taking advantage of Pennsylvania’s inaction on the issue, siphoning billions of tourist dollars from state residents, Veon said.
Pennsylvania gaming customers spend a minimum of $1.5 billion per year on slots and gaming tables in Atlantic City alone, according to Pennsylvanians for Economic Growth and Gaming Entertainment.
Under Veon’s plan, a five-member Riverboat Gaming Commission appointed by the governor for three-year terms would be created to oversee riverboat gambling.
Fifteen licenses, at a cost of $250,000 apiece, would be distributed statewide in the following manner: four in Philadelphia; three in Allegheny County; three among Bucks, Montgomery, and Delaware counties, with no more than two in any one county; two among Lancaster, Chester, York, Westmoreland, Erie, Luzerne, Lehigh, Berks, Northampton and Dauphin counties; two among Beaver, Schuylkill Cumberland, Lackawanna, Washington, Cambria and Butler counties; and one in Harrisburg.
The state would assess a 15 percent tax on gross receipts of the riverboats. The revenues could be used to ease taxpayer’s burden.
This year, the state is facing a revenue shortfall around $1 billion and state lawmakers are searching for ways to trim spending. Rather than cut programs or raise taxes, Veon said the state should look for new ways to increase revenues.
Many lawmakers support putting slot machines at racetracks. But Veon said riverboats would generate more revenues and provide “more entertainment value.”
“I’m not prepared to vote for slots at the racetrack without having riverboats being a part of that package,” Veon said. “I believe we will only get one opportunity to adopt gaming. We need to do all or nothing.”
Veon said he would introduce a bill on the matter by Friday. Once passed, it would be about a year before the boats were in operation, he said. The 15 boats would produce as many as 36,000 jobs, with each boat averaging about 2,400 workers, Veon estimated. The gaming could also lead to development along the state’s waterways where the riverboats locate, Veon said.
Riverboat casino construction alone could top $2.5 billion, according to the PEGE.