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Video Gaming Terminals Might Ruin Pennsylvania Gaming Bill

Cliff S, Aug 11, 2017 12:01 UTC

Video gaming terminals or VGTs might derail Pennsylvania’s online gambling bill yet. Though the Pennsylvania Senate have declared VGTs a dead letter, members of the Pennsylvania House continue to support the legislation.

If the two sides cannot agree on a compromise, there is a chance the omnibus gambling legislation might be pared down to a limited part of a September spending bill — or be eliminated from the spending package altogether. While most experts believe the lawmakers will add some kind of gaming revenues, the situation remains in flux.

Lawmakers Mustio and McIlhinney Write VGT Op-Eds

In recent days, members of the Pennsylvania State Legislature have written opinion articles in major newspapers in the state. State Representative Mark Mustio of Alleghany County openly supported video gaming terminals in his article, while State Senator McIlheney opposed VGTs.

Most sources suggested that lawmakers had dropped the idea for VGTs weeks ago, so it was a bit of a surprise to see Mark Mustio resurrect the plan. Because Mustio’s opinion might have the backing of House Speaker Mike Turzai, it could signal an impasse in the coming negotiations.

McIlhenney’s op-ed argued for the position held by Governor Tom Wolf and Senate Majority Leader Jake Corman. Though Representative Mustio’s opinion piece focuses on Governor Tom Wolf, McIlhinney’s article shows the real divide at the moment is between the Republican-controlled House and the Republican-controlled Senate. Though Wolf and Turzai are considerable rivals, that has been the story throughout a summer of negotiations.

Mark Mustio Supports Video Gaming Terminals

State Rep. Mark Mustio wrote an opinion piece recently in which he blamed Gov. Tom Wolf for overlooking several hundred million dollars in yearly tax revenues from Video Gaming Terminals (VGTs). The Republican representative pointed out that the state already has “thousands of illegal VGTs” in the state currently.

Rep. Mustio wrote in the Delco Times, “Amidst trying to fill a huge void in revenue, our governor and some in the General Assembly have blatantly overlooked arguably the most common-sense option for such revenue, to the tune of an estimated $300 to $400 million annually for Pennsylvania. “

“I’m talking about the legalization of Video Gaming Terminals (VGTs) in liquor licensed locations.”

VGTs Would Bring Revenues to 67 Counties

The GOP state representative from Moon Township said that VGTs exist as a widespread unregulated gaming market in Pennsylvania. In Mustio’s reasoning, regulated VGTs would bring revenues to all 67 Pennsylvanian counties, while providing funds for problem gambling resources for residents with compulsive gambling problems.

In his guest column, Mark Mustio said he is standing beside small business owners who reside in Pennsylvania, while Tom Wolf is siding with Las Vegas casino owners. It is an obvious reference to Las Vegas Sands Corps, which owns the Pennsylvania casino with the largest revenues each year, Bethlehem Sands Resort and Casino. Las Vegas Sands also provided $1 million for “Pennsylvanians For Responsible Government”, which ran ads against the VGT legislation.

Mustio said in his article, “Why would our governor and some legislators coldly turn their backs on the hardworking small business owners who have elected them into office? Consider the million-dollar ad campaigns being run by Las Vegas casinos. Casinos don’t want to share an inch of the playing field with small businesses and are, in fact, lobbying hard to silence them completely.”

Sen. Chuck McIlhinney Opposes VGTs

State Sen. Chuck McIlhinney, a Republican from Plumstead Township, discussed his opposition to video gaming terminals in an August 1 opinion piece in The Intelligencer. McIlhinney wrote that 3,000 more gaming machines in Bucks County would not be good for its residents. He also noted that VGTs would undermine the profitability of nearby Parx Casino.

Chuck McInhinney wrote, “Quite simply, I remain steadfast in my opposition to VGTs, because I agree with the people I represent that this is simply the wrong option for our community and our state. Bucks County does not need up to 3,000 of these machines scattered throughout our communities, with little to no concern for where they are located.”

The state senator, who previously served in the Pennsylvania House of Representatives from 1998 to 2006, challenged Speaker Turzai’s conservative credentials. McIlhinney said, “In fact, I, too, am perplexed by self-described conservative leaders like Speaker of the House Turzai promoting this avalanche of gambling machines into every nook and cranny of our communities. That is why I will continue to oppose shortsighted budget gimmicks and work toward compromise-based, long-term solutions.”

Video Gaming Terminals Might Ruin Pennsylvania Gaming

Both sides in the ongoing dispute claim to be upholding conservative principles. The two sides appear far apart in their proposed methods for closing the budget deficit. The fact that VGT legislation is back in the equation only complicates the issues more.

While there is tempered optimimism that online poker, online casinos, and daily fantasy sports soon will be legal in Pennsylvania, nothing is assured. What obversers should expect is to see a contentious and drawn-out negotiation this fall, when the Pennsylvania gathers to hammer out a final spending package — and hopefully a omnibus gambling bill.

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