Op-Ed: Senator Mike Stack
New Table Games Act a Bad Gamble
The new table games law is a bad gamble for Pennsylvania. It was pushed through following the governor’s threat that he would lay off state workers if a bill wasn’t signed by the first week of January. The political process should not operate that way.
There are too many holes in the legislation, especially when it comes to special interests. There is still no measure in the bill prohibiting lobbyists and licensed gaming entity representatives from having a financial interest in a casino.
Allowing lobbyists and their immediate family to have a financial interest can lead to corruption and it is inconsistent with the lobbying disclosure law, which is intended to prevent contingency basis lobbying. Under the law, lobbyists cannot receive pay or bonuses contingent upon legislative or administrative action. Why should lobbyists have the ability to exploit a loophole to enrich themselves and their families at the expense of taxpayers?
In Philadelphia, there should be no extension for Foxwoods. Foxwoods developers had plenty of time to come up with a feasible plan. It’s time for them to play their cards or fold. If Foxwoods developers continue to stall, their license should be revoked and issued to another group.
Another problem is the financial benefit to taxpayers. The table games tax rate is too low. As our economy recovers, we will likely still have a tight spending plan in the year or years ahead. More gaming revenues should go back to the state to fund the many important programs and services that Pennsylvanians need, and to provide tax relief to citizens.
Additionally, Philadelphia taxpayers were dealt a losing hand by the Street Administration who negotiated a payment in lieu of taxes agreement with both Sugarhouse and Foxwoods casinos. These agreements are a bad deal for taxpayers. The city could lose nearly $60 million over 10 years if the properties had been assessed under the current tax system.
Taxpayers should also receive financial benefits from the riparian land that Sugarhouse Casino will use to operate their casino. The state deserves its share of funds when the casinos use riparian rights. The Commonwealth of Pennsylvania holds riparian rights in a trust for citizens. If a casino is operating on riparian land, the state is entitled to make sure that the facility is operating under the best interest of the Commonwealth, and provide monetary benefits to the taxpayers.
In addition to the financial benefits that taxpayers will receive, I am also concerned with how the table games revenue will be spent by local governments. This information should be posted on a publicly accessible Web site. This would ensure accountability and transparency.
The publicly accessible Web site will also help local neighborhoods. The table games bill directed no money to offset the impact the two casinos will have on local neighborhoods and their quality of life. Citizens would use the Web site to ensure that the funding goes to neighborhoods near the casino and to other important services.
This legislation was originally written as a gaming reform bill. However, the table games aspect has overshadowed the need for solid changes in our gaming industry.
While the new act has many good reforms, it could and should go farther.
I plan to set the ethics bar higher for this act by introducing measures that would create additional reforms.
State Sen. Mike Stack (D) represents the 5th Senate District in Philadelphia.
The new table games law is a bad gamble for Pennsylvania. It was pushed through following the governor’s threat that he would lay off state workers if a bill wasn’t signed by the first week of January. The political process should not operate that way.
There are too many holes in the legislation, especially when it comes to special interests. There is still no measure in the bill prohibiting lobbyists and licensed gaming entity representatives from having a financial interest in a casino.
Allowing lobbyists and their immediate family to have a financial interest can lead to corruption and it is inconsistent with the lobbying disclosure law, which is intended to prevent contingency basis lobbying. Under the law, lobbyists cannot receive pay or bonuses contingent upon legislative or administrative action. Why should lobbyists have the ability to exploit a loophole to enrich themselves and their families at the expense of taxpayers?
In Philadelphia, there should be no extension for Foxwoods. Foxwoods developers had plenty of time to come up with a feasible plan. It’s time for them to play their cards or fold. If Foxwoods developers continue to stall, their license should be revoked and issued to another group.
Another problem is the financial benefit to taxpayers. The table games tax rate is too low. As our economy recovers, we will likely still have a tight spending plan in the year or years ahead. More gaming revenues should go back to the state to fund the many important programs and services that Pennsylvanians need, and to provide tax relief to citizens.
Additionally, Philadelphia taxpayers were dealt a losing hand by the Street Administration who negotiated a payment in lieu of taxes agreement with both Sugarhouse and Foxwoods casinos. These agreements are a bad deal for taxpayers. The city could lose nearly $60 million over 10 years if the properties had been assessed under the current tax system.
Taxpayers should also receive financial benefits from the riparian land that Sugarhouse Casino will use to operate their casino. The state deserves its share of funds when the casinos use riparian rights. The Commonwealth of Pennsylvania holds riparian rights in a trust for citizens. If a casino is operating on riparian land, the state is entitled to make sure that the facility is operating under the best interest of the Commonwealth, and provide monetary benefits to the taxpayers.
In addition to the financial benefits that taxpayers will receive, I am also concerned with how the table games revenue will be spent by local governments. This information should be posted on a publicly accessible Web site. This would ensure accountability and transparency.
The publicly accessible Web site will also help local neighborhoods. The table games bill directed no money to offset the impact the two casinos will have on local neighborhoods and their quality of life. Citizens would use the Web site to ensure that the funding goes to neighborhoods near the casino and to other important services.
This legislation was originally written as a gaming reform bill. However, the table games aspect has overshadowed the need for solid changes in our gaming industry.
While the new act has many good reforms, it could and should go farther.
I plan to set the ethics bar higher for this act by introducing measures that would create additional reforms.
State Sen. Mike Stack (D) represents the 5th Senate District in Philadelphia.
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