PAMMAs Video Gaming Amendment Fails In House Gov Wolf Seen As Favoring Pennsylvanias Casinos

HARRISBURG, PA -- An 18-month-old lobbying effort to legalize operator-run video gaming terminals in the Keystone State's bars, taverns and clubs was defeated in the Pennsylvania House of Representatives on June 22.

The Pennsylvania Amusement and Music Machine Association led the campaign for VGTs. Its VGT amendment was lumped into a broad revenue bill, which also had online gambling and the other proposed gaming reforms, forcing a vote on the bill with VGTs and then another without VGTs. The amendment that included VGT expansion at bars and other adult venues failed in a 116-79 vote. The House then briefly adjourned, and, on return, passed the amendment legalizing online gambling.

"We felt we had the votes lined up in the House, but at the last minute the governor came out strongly against it, which was a surprise, and the difference between winning and losing," said PAMMA's John Milliron. "However, the issue by no means is dead. The proposal showed remarkable strength, unseen before, among members of the House and Senate. There's hardcore support that has definitely grown from past years."

According to a source close to state lawmakers, the VGT amendment was making significant headway among legislators, particularly in the House, prior to the governor's intervention. Gov. Tom Wolf -- speaking to the legislators the morning of the vote -- virtually guaranteed a loss for the VGT amendment that could have helped the state fill its budgetary shortfall and provided revenue to hundreds of small businesses in the state.

Widely viewed as a way to close the state's growing budget gap, VGTs could have brought between $350 million and $400 million to Pennsylvania's treasury over 24 months, according to estimates. That would have gone a long way to eliminating the estimated $1.1 billion budget shortfall that the state Senate is now working to fill.

At issue is the perception that VGTs present direct competition to the state's powerful casino industry. Because a number of amendments in the revenue bill support the casino industry, it suggests that the governor and some lawmakers favor casinos. These amendments provide for Internet gaming, fantasy sports betting and 20 additional OTB parlors with hundreds of additional games each.

The bill is now in the Senate and is expected to pass in some form. Interestingly, the Internet gaming provision in the bill will allow Pennsylvania tavern and club patrons to gamble on smartphones and other portable devices, striking another blow to operators, location owners and other small businesses.