PRINTER'S NO. 1491
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1142
Session of
2024
INTRODUCED BY FARRY, FONTANA, PENNYCUICK, DILLON, SANTARSIERO,
MILLER AND LAUGHLIN, APRIL 5, 2024
REFERRED TO COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT,
APRIL 5, 2024
AN ACT
1 Amending Titles 4 (Amusements), 18 (Crimes and Offenses) and 35
2 (Health and Safety) of the Pennsylvania Consolidated
3 Statutes, in revenues, further providing for establishment of
4 State Gaming Fund and net slot machine revenue distribution;
5 adding provisions relating to local gaming terminals by
6 providing for general provisions, for application and
7 licensure, for operation, for enforcement and for revenue;
8 imposing the local gaming terminal tax; establishing the
9 Local Gaming Fund; providing for ethics; in riot, disorderly
10 conduct and related offenses, further providing for the
11 offense of gambling devices, gambling, etc.; in Commonwealth
12 services, establishing the Pennsylvania Emergency Management
13 Programs Fund; prescribing penalties; and making
14 appropriations.
15 The General Assembly of the Commonwealth of Pennsylvania
16 hereby enacts as follows:
17 Section 1. Section 1403(b) of Title 4 of the Pennsylvania
18 Consolidated Statutes is amended to read:
19 § 1403. Establishment of State Gaming Fund and net slot machine
20 revenue distribution.
21 * * *
22 (b) Slot machine tax.--The department shall determine and
23 each slot machine licensee, other than a Category 4 slot machine
 1 licensee, shall pay a daily tax of [34%] 32% from its daily
2 gross terminal revenue from the slot machines in operation at
3 its facility and a local share assessment as provided in
4 subsection (c). All funds owed to the Commonwealth, a county or
5 a municipality under this section shall be held in trust by the
6 licensed gaming entity for the Commonwealth, the county and the
7 municipality until the funds are paid or transferred to the
8 fund. Unless otherwise agreed to by the board, a licensed gaming
9 entity shall establish a separate bank account to maintain gross
10 terminal revenue until such time as the funds are paid or
11 transferred under this section. Moneys in the fund are hereby
12 appropriated to the department on a continuing basis for the
13 purposes set forth in subsection (c).
14 * * *
15 Section 2. Title 4 is amended by adding a part to read:
16 PART IV
17 LOCAL GAMING TERMINALS
18 Chapter
19 51. General Provisions
20 53. Administration
21 55. Application and Licensure
22 57. Operation
23 59. Enforcement
24 61. Revenues
25 63. Ethics
26 65. Miscellaneous Provisions
27 CHAPTER 51
28 GENERAL PROVISIONS
29 Sec.
30 5101. Scope of part.
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 1 5102. Legislative intent.
2 5103. Definitions.
3 § 5101. Scope of part.
4 This part relates to local gaming terminals.
5 § 5102. Legislative intent.
6 The General Assembly recognizes the following public policy
7 purposes and declares that the following objectives of the
8 Commonwealth are to be served by this part:
9 (1) It is the intent of the General Assembly to occupy
10 the field of gaming in Pennsylvania and to prohibit all forms
11 of gaming, wagering and gambling in this Commonwealth that
12 have not been expressly authorized by statute.
13 (2) The authorization of local gaming in this part is
14 intended to provide a significant source of new revenue to
15 the Commonwealth and to licensed clubs, fraternal
16 organizations and small businesses and to provide for new
17 employment opportunities by creating skilled jobs for
18 individuals related to the conduct of local gaming at
19 licensed facilities in this Commonwealth, as well as
20 supporting property tax relief, economic development
21 opportunities and other similar initiatives.
22 § 5103. Definitions.
23 The following words and phrases when used in this part shall
24 have the meanings given to them in this section unless the
25 context clearly indicates otherwise:
26 "Affiliate," "affiliate of" or "person affiliated with." A
27 person that directly or indirectly, through one or more
28 intermediaries, controls, is controlled by or is under common
29 control with a specified person.
30 "Applicant." A person that, on the person's own behalf or on
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 1 behalf of another, applies for permission to engage in an act or
2 activity that is regulated under the provisions of this part.
3 "Associated equipment." Equipment or a mechanical,
4 electromechanical or electronic contrivance, component or
5 machine used in connection with local gaming terminals or
6 redemption terminals, including replacement parts, hardware and
7 software.
8 "Background investigation." A security, criminal, credit and
9 suitability investigation of a person as provided for in this
10 part that includes the status of taxes owed to the United
11 States, the Commonwealth and a political subdivision of the
12 Commonwealth.
13 "Board." The Pennsylvania Gaming Control Board established
14 under section 1201 (relating to Pennsylvania Gaming Control
15 Board established).
16 "Bureau." The Bureau of Investigations and Enforcement of
17 the board.
18 "Cash." United States currency and coin, including cash
19 equivalent.
20 "Cash equivalent." A ticket, token, chip, gift card,
21 voucher, billet, electronic credit, prepaid debit card or other
22 similar instrument or representation of more than nominal value
23 that the board deems a cash equivalent in accordance with this
24 part.
25 "Central control computer." A central site computer
26 controlled by the department and accessible by the board to
27 which all local gaming terminals communicate for the purpose of
28 auditing capacity, real-time information retrieval of the
29 details of any financial event that occurs in the operation of a
30 local gaming terminal or redemption terminal, including, but not
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 1 limited to, coin in, coin out, ticket in, ticket out, jackpots,
2 local gaming terminal and redemption terminal door openings and
3 power failure and remote local gaming terminal or redemption
4 terminal activation and disabling of local gaming terminals or
5 redemption terminals.
6 "Cheat." Any of the following:
7 (1) To defraud or steal from a player, terminal operator
8 licensee, establishment licensee or the Commonwealth while
9 operating or playing a local gaming terminal, including
10 causing, aiding, abetting or conspiring with another person
11 to do so.
12 (2) To alter or causing, aiding, abetting or conspiring
13 with another person to alter the elements of chance, method
14 of selection or criteria that determine:
15 (i) The result of a local gaming terminal game.
16 (ii) The amount or frequency of payment in a local
17 gaming terminal game.
18 (iii) The value of a wagering instrument.
19 (iv) The value of a wagering credit.
20 (3) The term does not include altering a local gaming
21 terminal or associated equipment for maintenance or repair
22 with the approval of a terminal operator licensee and the
23 board.
24 "Cheating or thieving device." A device:
25 (1) used or possessed with the intent to be used to
26 cheat during the operation or play of a local gaming
27 terminal; or
28 (2) used to alter a local gaming terminal without the
29 terminal operator licensee's and the board's approval.
30 "Coin-operated amusement game." A machine that requires the
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 1 insertion of a coin, currency or token to play or activate a
2 game the outcome of which is predominantly and primarily
3 determined by the skill of the player and does not pay, award or
4 offer a prize in the form of cash or merchandise. The term does
5 not include a slot machine, hybrid slot machine, video gaming
6 terminal or local gaming terminal.
7 "Compensation." Anything of value, money or a financial
8 benefit conferred on or received by a person in return for
9 services rendered or to be rendered whether by the person or
10 another.
11 "Complimentary service." A lodging, service or item provided
12 to an individual at no cost or at a reduced cost that is not
13 generally available to the public under similar circumstances. A
14 group rate, including a convention and government rate, shall be
15 deemed to be generally available to the public.
16 "Conduct of local gaming." The licensed placement, operation
17 and play of local gaming terminals under this part, as
18 authorized and approved by the board.
19 "Controlling interest." Any of the following:
20 (1) For a publicly traded domestic or foreign
21 corporation, the term means a person has a controlling
22 interest in a legal entity, applicant or licensee if the
23 person's sole voting rights under State law or corporate
24 articles or bylaws entitle the person to elect or appoint one
25 or more of the members of the board of directors or other
26 governing board or the person holds an ownership or
27 beneficial holding of 5% or more of the securities of the
28 publicly traded corporation, partnership, limited liability
29 company or other form of publicly traded legal entity, unless
30 this presumption of control or ability to elect is rebutted
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 1 by clear and convincing evidence.
2 (2) For a privately held domestic or foreign
3 corporation, partnership, limited liability company or other
4 form of privately held legal entity, the term means the
5 holding of a security in the legal entity, unless this
6 presumption of control is rebutted by clear and convincing
7 evidence.
8 "Conviction." A finding of guilt or a plea of guilty or nolo
9 contendere, whether or not a judgment of sentence has been
10 imposed as determined by the law of the jurisdiction in which
11 the prosecution was held. The term does not include a conviction
12 that has been expunged or overturned or for which an individual
13 has been pardoned or had an order of Accelerated Rehabilitative
14 Disposition entered.
15 "Corporation." The term includes a publicly traded
16 corporation.
17 "Department." The Department of Revenue of the Commonwealth.
18 "Eligible establishment." An establishment that meets the
19 eligibility criteria specified in section 5513(f) (relating to
20 local gaming establishment licenses).
21 "Establishment license." A local gaming establishment
22 license.
23 "Establishment licensee." A local gaming establishment
24 licensee.
25 "Executive-level public employee." The term includes the
26 following:
27 (1) A deputy secretary of the Commonwealth and a member
28 of the Governor's Office executive staff.
29 (2) An employee of the executive branch:
30 (i) whose duties substantially involve licensing or
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 1 enforcement under this part, who has discretionary power
2 that may affect or influence the outcome of a
3 Commonwealth agency's action or decision or who is
4 involved in the development of regulations or policies
5 relating to a licensed entity; or
6 (ii) with law enforcement authority.
7 (3) An employee of a county or municipality with:
8 (i) discretionary powers that may affect or
9 influence the outcome of the county's or municipality's
10 action or decision related to this part or who is
11 involved in the development of law, regulation or policy
12 relating to matters regulated under this part; or
13 (ii) law enforcement authority.
14 (4) An employee of a department, agency, board,
15 commission, authority or other governmental body not included
16 in paragraph (1), (2) or (3) with:
17 (i) discretionary power that may affect or influence
18 the outcome of the governmental body's action or decision
19 related to this part or who is involved in the
20 development of regulation or policy relating to matters
21 regulated under this part; or
22 (ii) law enforcement authority.
23 "Financial backer." An investor, mortgagee, bondholder,
24 noteholder or other sources of equity or capital provided to an
25 applicant or licensed entity.
26 "Fund." The Local Gaming Fund established in section 6104
27 (relating to Local Gaming Fund).
28 "Gaming area." The area of an establishment licensee's
29 premises where local gaming terminals and redemption terminals
30 are installed for operation and play.
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 1 "Gaming employee." Either of the following:
2 (1) An employee of a terminal operator licensee or
3 manufacturer licensee who is not a key employee and who the
4 board determines is involved in the conduct of local gaming.
5 (2) An employee of an establishment licensee whom the
6 establishment licensee designates as the gaming manager in
7 accordance with this part.
8 "Gaming manager." An individual employed by an establishment
9 licensee and primarily responsible for the management of local
10 gaming at the licensed premises as required by this part. A
11 gaming manager may not be licensed as an employee of more than
12 one licensed eligible establishment.
13 "Gaming service provider." A person not required to be
14 licensed as a terminal operator, manufacturer, supplier or
15 establishment licensee and provides goods or services to a
16 terminal operator licensee that the board determines directly
17 relates to the operation and security of a local gaming terminal
18 or redemption terminal. The term shall not include a person that
19 supplies goods or services that, at the discretion of the board,
20 does not impact the integrity of local gaming, local gaming
21 terminals or the connection of local gaming terminals to the
22 central control computer system, including:
23 (1) Seating to accompany local gaming terminals.
24 (2) Structural or cosmetic renovations, improvements or
25 other alterations to a local gaming area.
26 "Gross terminal revenue." The total of cash or cash
27 equivalents received by a local gaming terminal minus the total
28 of cash or cash equivalents paid out to players as a result of
29 playing a local gaming terminal. The term does not include
30 counterfeit cash or cash taken in a fraudulent act perpetrated
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 1 against a terminal operator licensee for which the terminal
2 operator licensee is not reimbursed.
3 "Holding company." A person, other than an individual,
4 which, directly or indirectly, owns or has the power or right to
5 control or to vote a significant part of the outstanding voting
6 securities of a corporation or other form of business
7 organization. A holding company indirectly has, holds or owns
8 such power, right or security if it does so through an interest
9 in a subsidiary or successive subsidiaries.
10 "Incentive." Consideration, including a promotion or prize,
11 provided to a player or potential player as an enticement to
12 play a local gaming terminal.
13 "Inducement."
14 (1) Any of the following:
15 (i) Consideration paid directly or indirectly, from
16 a manufacturer, supplier, terminal operator, procurement
17 agent, employee or another person on behalf of an
18 applicant or a licensee under this part to an eligible
19 establishment, establishment licensee, establishment
20 licensee owner or an employee of the establishment
21 licensee, directly or indirectly as an enticement to
22 enter into a terminal placement agreement with the
23 terminal operator and solicit or maintain the
24 establishment licensee or establishment licensee owner's
25 business.
26 (ii) Cash, incentive, marketing and advertising
27 cost, gift, food, beverage, loan, prepayment of gross
28 terminal revenue and other contribution or payment that
29 offsets an establishment licensee's operational costs or
30 as otherwise determined by the board.
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 1 (2) The term does not include the cost paid by a
2 terminal operator applicant or terminal operator licensee
3 related to making local gaming terminals operate at the