Special interest groups spend big in gambling debate
HARRISBURG – Two out-of-state businessmen who had never previously been involved in Pennsylvania politics each contributed $55,000 last year to a political action committee administered by Gov. Ed Rendell’s closest advisor. The reason behind their $110,000 donation to the Philadelphia Future PAC only became apparent on Dec. 27 when their company, Centaur Inc. of Indiana, applied for a license to build a $40 million harness racetrack in Beaver County, near Pittsburgh.
Rendell wants to legalize casino slot machines at horse tracks, a move that would net owners tens of millions annually. The General Assembly could vote on the issue as early as this week.
The political contributions made by Centaur executives R.J. Ratcliff and Robert O’Malley exemplify how much money special interest groups are willing to spend to influence state lawmakers on the issue of gambling expansion. They also illustrate how difficult it can be to track contributions made by gambling interests.
Some gambling companies, such as Penn National Gaming Inc. have set up PACs bearing their names. But others may mask their donations by funneling money to lawmakers through secondary sources, such as law and lobbying firms.
To make matters worse, Pennsylvania’s campaign finance laws are weak or not enforced.
While most states have banned political contributions exceeding $50,000, Pennsylvania allows unlimited donations.
State law requires PACs to list the occupation and employer of anyone donating more than $250. But often lawmakers fail to report this information. In the case of the Philadelphia Future PAC’s campaign finance report, Ratcliff and O’Malley’s occupation and employer were listed as “to be provided.”
Consequently, it is “very difficult to track” who’s buying influence and how much, said Matthew J. Brouillette, president of the Commonwealth Foundation. “Without [better] disclosure laws, it’s really impossible to find out how much money is being dumped in.”
Barry Kauffman, executive director for Common Cause of Pennsylvania, agreed.
“There are indications that both campaign finance money and lobbying expenses are running pretty freely,” he said. Kauffman blames lack of oversight: “We’re in the bottom fifth for campaign financing laws.”
Government watchdog groups estimate that special interests have invested millions of dollars in their effort to legalize gambling in Pennsylvania.
“We know it’s extensive,” Brouillette said. “Even some of the gambling companies that wouldn’t benefit from the current proposals are hiring lobbyists.”
Philadelphia Future PAC, which lists longtime Rendell advisor David Cohen as its treasurer, sent much of its money – about $300,000 – to Rendell last year, according to campaign finance reports. Locally, a $2,500 donation was made to state Sen. Tommy Tomlinson, a Bensalem Republican who’s leading the effort in the Senate to legalize slot machines.
Penn National, which owns casinos in three states and two racetracks in Pennsylvania, donated about $100,000 to candidates last year. Rendell received $10,000 while Republican gubernatorial candidate Mike Fisher netted $26,000. The PAC also contributed smaller amounts to several Republican lawmakers from Bucks and Montgomery counties, including former Gov. Mark Schweiker, Sen. Joe Conti, Sen. Tomlinson and Reps. Gene DiGirolamo, Kate Harper, Roy Cornell and Robert Godshall.
Some lawmakers worry that the gambling lobby may become too powerful a force in Pennsylvania politics, if it hasn’t already.
“They have a lot of influence and the ability to move legislation,” said Rep. Paul Clymer, a Perkasie Republican who is leading anti-gambling efforts in the General Assembly. “Look at what they’ve accomplished so far. The issue started out as a few hundred slot machines for each of the state’s four racetracks to help them stay competitive with racetracks in [neighboring states]. We have everything now [being considered], except the kitchen sink: Keno, riverboat casinos, Indian casinos…”
Even a pro-gambling legislator, whose campaign has accepted thousands of dollars from gambling interests, is now concerned by how much influence the money may be buying. Sen. Vince Fumo, a Philadelphia Democrat, plans to propose legislation either banning or severely limiting donations from gambling interests.
“The state would be licensing a very small number of people [to operate slot machines], creating an artificial monopoly,” said Fumo spokesman Gary Tuma. “Those people are going to have vast amounts of money from gambling coming into their possession and that could create potential conflicts.”