PA Gaming and Control Board and Dept. of Drug & Alcohol Programs: gaming, internet gaming and related issues and Title 4 (Amusements) legislation (i.e., SB 700 and SB 900)

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Senate Community, Economic and Recreational Development Committee

Wednesday, June 17, 2015

9 – 11 a.m.

East Wing, Hearing Room 8E-B

Subject Matter: PA Gaming Control Board (PGCB) and Department of Drug and Alcohol Programs (DDAP) – Gaming, Internet gaming and related issues (i.e., bingo; fantasy sports; liquor; small games of chance, including tavern gaming; etc.) some of which may be addressed in Title 4 (Amusements) legislation [i.e., SB 700 (Ward), SB 900 (Ward-Tomlinson-Vogel-Scarnati), etc.]

SB700 – Summary

SB900 – Summary

Agenda

[9:00 A.M.] – Introductory Remarks – Senator Ward, Chair & Senator Wiley, Democratic Chair

[9:05 A.M.] – Pennsylvania Gaming Control Board (PGCB) and Department of Drug and Alcohol Programs (DDAP): | Bios

  • [9:05 A.M.] – Kevin F. O’Toole, Executive Director (PGCB) – Legislative Enhancements and Reforms
    • What legislative enhancements and reforms does the PGCB support in relation to the PA gaming industry to maintain its viability and to promote responsible growth?
    • What legislative provisions are necessary with regard to Internet gaming to ensure the PGCB can adequately regulate PA Internet gaming?
    • How long would it take the PGCB to get Internet gaming up and running in PA and is existing technology adequate to effectively regulate wager based Internet gaming, while preventing underage, self-excluded and excluded individuals and ensuring Internet gaming is not a conduit for crime and money laundering?
  • [9:35 A.M.] Douglas [Doug] Sherman, Chief Counsel, Office of Chief Counsel (PGCB) and Cyrus Pitre, Chief Enforcement Counsel, Office of Enforcement Counsel, Bureau of Investigations and Enforcement (PGCB) – Federal Law and Online Social Gaming vs. Wager Based Internet Gaming | Testimony
    • Can you provide an overview of the relevant federal statutes: Wire Act, 18 U.S.C. § 1084 (2006), Unlawful Internet Gambling Enforcement Act (UIGEA), 31 U.S.C. §§ 5361-5367 (2006), etc.?
    • Can you explain the difference between online social gaming and wager based Internet gaming?
    • Should PGCB have some regulatory authority with regard to online social games offered by PA casinos and/or their affiliates?
  • [10:00 A.M.] – Kevin C. Kile, Director, Office of Racetrack Gaming (PGCB) – Status of Horse Racing & Internet Gaming
    • What is the status of horse racing at PA Racinos (Cat. 1) and the potential impact of wager based Internet gaming?
    • Can you discuss existing online pari-mutuel betting?
    • Can you describe the function and role of the PGCB in regards to PA Racinos (Cat. 1) and racetrack operations?
    • What else might you suggest can be done to enhance horse racing in Pennsylvania and the PA gaming industry as a whole?
  • [10:15 A.M.] – Michael Cruz, Chief Technology Officer, Bureau of Gaming Laboratory Operations & Office of Information Technology (PGCB) – Testing and Certification Standards
    • Are there efficiencies and expertise that can be achieved by utilizing outside testing facilities and/or the testing and certification standards of another jurisdiction, while still achieving the effective regulation (and perhaps even enhancing it) with regard to slot machines, table game devices and Internet gaming computer hardware (i.e., servers), software and related equipment?
    • Is there anything in the Gaming Act that currently precludes the PGCB from utilizing testing and certification standards with regard to slot machines and/or table games of another jurisdiction or private testing facility?
    • Would Internet gaming testing and certification standards be unique or different from those currently utilized and would the PGCB need additional resources?
    • Relevant sections of the Pennsylvania Race Horse Development and Gaming Act (Gaming Act):
      • 4 Pa.C.S. § 1320 (Slot machine testing and certification standards)
      • 4 Pa.C.S. § 13A41 (Table game device and associated equipment testing and certification standards)
  • 10:30 A.M. – {Panel} Potential enhancements and funding needs in relation to wager based Internet gaming and Compulsive and Problem Gambling
    • Elizabeth [Liz] M. Lanza, Director, Office of Compulsive and Problem Gambling (PGCB) – Attachment 1 | Attachment 2
    • Ken Martz, Special Assistant to the Secretary (DDAP) – Bio
      • Does the PGCB/DDAP feel it can adequately protect Pennsylvanian’s who have an issue with Compulsive and Problem Gambling if PA decides to authorize wager based iGaming?
      • Would additional resources be warranted and should those resources be directed to DDAP or the Department of Health?
      • Relevant sections of the Gaming Act:
        • 4 Pa.C.S. § 1102 (13) (Increase awareness and develop/implement effective strategies for prevention, assessment and treatment of compulsive and problem gambling) and (14) (Ensure the provision of adequate resources to identify, assess and treat both compulsive and problem gambling and drug and alcohol addiction.
        • 4 Pa.C.S. § 1408 (Transfers from State Gaming Fund)
          • (a) (Transfer for compulsive and problem gambling treatment) – $2 million or .2% of gross terminal revenue (whichever is greater)
          • (b) (Transfer for drug and alcohol addiction treatment services, including that related to compulsive and problem gambling) – $3 million.
        • 4 Pa.C.S. § 1509 (Compulsive and problem gambling program)
        • 4 Pa.C.S. § 1509.1 (Drug and alcohol treatment)
        • 4 Pa.C.S. § 1516 (List of persons self-excluded from gaming activities)
    • [10:40 A.M.] – Pennsylvania Equine Coalition – Todd Mostoller, Executive Director, Pennsylvania Horsemen’s Benevolent and Protective Association (SB 352 and SB 900) – Attachment 1 | Attachment 2
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