Governor predicts approval of slots

Vicki Smith

Friday, Nov. 14, 2003 | 9:13 a.m.

CHESTER, W.Va. -- Pennsylvania Gov. Ed Rendell said Wednesday he believes his state will pass a bill to allow slot machines at racetracks by the end of the year.

During a visit to Mountaineer Race Track & Gaming Resort in neighboring West Virginia, Rendell said he's not sure what that bill will ultimately look like. It may limit the machines to racetracks, or it may allow them in off-track settings as well.

Rendell said he would sign either version, as long as the conditions for non-track venues were "extremely limited" to prevent further proliferation.

Such legislation also should provide some sort of compensation or consideration for track operators, who have struggled to keep the horse racing industry alive in Pennsylvania, Rendell said.

"It's my belief we will have a bill," he said. "And I believe it will happen before the end of the year."

As he prepared to address hundreds of gambling industry players and public officials attending a racetrack casino convention at Mountaineer, Rendell encountered two Pennsylvanians who recognized him.

One wanted to know when their home state would get slots.

"I told him, 'Hopefully by Christmas. Hopefully, it'll be a present for the people of Pennsylvania,' " Rendell said.

On Tuesday an aide to a Pennsylvania state senator said he believes slot machine legislation has only a 50-50 chance of passing this year.

Christopher Craig, legal counsel to Pennsylvania state Sen. Vincent J. Fumo, D-Philadelphia, warned that a small number of legislators might block any bill that does not allow slots in non-track settings.

Fumo helped craft a bill that passed the Pennsylvania Senate in June and now lies stalled in the House.

"Quite simply, either everyone benefits from the bill or no one will benefit," Craig told the conventioneers.

Pennsylvania lawmakers have hammered out key issues, agreeing to a tax structure that lets the tracks keep a 46 percent cut.

Rendell said he wants the bill passed so he can grant property tax relief with the projected $1 billion in revenue.

Nearly 2 million Pennsylvanians spent $4.7 billion on out-of-state wagering and related costs such as hotel stays last year, he said. About $2.8 billion of that went to Atlantic City.

"It makes no sense," Rendell said. "It makes no sense for all that wagering to take place and for the state of Pennsylvania to get none of the benefits."

Rendell campaigned partly on the slot machine legislation, even greeting busloads of gamblers as they prepared to depart for Atlantic City.

Many senior citizens who face a "fairly drab" daily existence lit up when they hit the casino floor, he said.

"It's the excitement. It's the color. It's the gaiety. It's the adventure of pulling the lever and seeing what comes out," he said.

Most lose less than they would spend on a dinner at a fancy Philadelphia restaurant, he said.

"The media always focuses on the down sides, and there are down sides, but there are a lot of upsides, too," Rendell said.

Gambling creates jobs and benefits for the unemployed, and tax revenue for states that need it. While it's not a panacea, he said, "Is it a good adjunct to an economy? Absolutely."

Gambling is not inherently evil, he said. Nor is opposition on moral grounds realistic.

"As long as there are men or women on this planet, there will be gaming. It's just something we enjoy doing," he said. "It's just the nature of what we do."

Some gamblers become addicted, but those people would find some other outlet if racetrack casinos weren't available, Rendell said. "Just look at what happens every day on E-Trade."