Pennsylvania Gaming Control Board
Encyclopedia
The Pennsylvania Gaming Control Board is a governmental agency of the Commonwealth of Pennsylvania
, founded in 2004 as the state licensing and regulatory agency responsible for overseeing slot machine
s and casino
gambling in the state.
The first completely new agency created in Pennsylvania in over 30 years, the PGCB administers the Pennsylvania Race Horse Development and Gaming Act, also known as "Act 71", and its regulations to assure public trust and confidence in the credibility and integrity of casinos in Pennsylvania. The Board also acts to fulfill "the objectives of limited gaming in the Commonwealth to deliver a significant source of revenue, assist the horse racing industry, provide broad economic opportunities and enhance tourism."
The PGCB does not oversee games of chance in the Commonwealth such as the Pennsylvania Lottery
or other permitted games of chance at clubs and non-profit organizations.
. By statute, the State Treasurer, Secretary of Revenue, and Secretary of Agriculture are non-voting ex-officio members.
office, the center was established in September 2008. Each month, Pennsylvania casinos and slot-machine operators give the Board a list of the "payouts" on each of their machines: how often and how much they pay per average play. Board employees at the center test various models of slot machine to measure their payouts. This information is not passed on to the public.
The PGCB also set up an Office of Compulsive and Problem Gambling devoted to "understanding and alleviating the devastating effects of pathological gambling." Under PGCB’s regulations, gambling facilities in the state must submit and have approved a compulsive-and-problem-gambling plan before starting gambling operations. These plans must include items such as employee training when dealing with compulsive gamblers, self-exclusion plans and how to handle people who want to be on Pennsylvania’s self-exclusion list, the responsibility of patrons with respect to responsible gambling, the availability of printed material and signage throughout the casino, and procedures to prevent intoxicated and underage gambling.
- the local governments that host a facility
- the horse racing industry
- economic development and tourism efforts, and
- a State Gaming Fund which primarily provides revenues to school districts which, in turn, utilize toward the lowering of local property taxes.
In addition, the PGCB bills applicants for investigative costs associated with securing any type of license and manufacturers of slot machines and related goods who seek approval of equipment to be utilized in casinos.
The Gaming Act also requires a role in gaming oversight by the State Police, Department of Revenue and Attorney General, whose costs are also reimbursed from slot machine revenues.
s, five licenses may be issued to stand-alone casinos, and two licenses may be issued to existing hotel resort
s. In 2017, the board will be authorized to award a third resort license. All casinos can have up to 5,000 machines, except the resort licensees, which can have up to 600. The Act also mandated that two of the five stand-alone casinos be located in Philadelphia
, one in Pittsburgh
, and the remaining two at-large. As of May 2010, 13 of the licenses have been awarded. One license for a racino has not been awarded. In addition, casinos in Pennsylvania began operating table games in July 2010.
facilities. The board previously voted to grant these locations temporary licenses on September 27, 2006. The licensed facilities are:
Because of the limited number of slot machines in Pennsylvania, the revenue per machine is much higher than it is in Nevada ($120 per day), where 171 thousand machines are in locations with unrestricted locations. In addition, Nevada has about 3000 locations with restricted licenses (15 slot machines or less).
Under the table games legislation, a third resort casino license will be created in 2017.
The revenue from slot machines is taxed at 55%.
The revenue from table games is taxed at 16%.
Pennsylvania
The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...
, founded in 2004 as the state licensing and regulatory agency responsible for overseeing slot machine
Slot machine
A slot machine , informally fruit machine , the slots , poker machine or "pokies" or simply slot is a casino gambling machine with three or more reels which spin when a button is pushed...
s and casino
Casino
In modern English, a casino is a facility which houses and accommodates certain types of gambling activities. Casinos are most commonly built near or combined with hotels, restaurants, retail shopping, cruise ships or other tourist attractions...
gambling in the state.
The first completely new agency created in Pennsylvania in over 30 years, the PGCB administers the Pennsylvania Race Horse Development and Gaming Act, also known as "Act 71", and its regulations to assure public trust and confidence in the credibility and integrity of casinos in Pennsylvania. The Board also acts to fulfill "the objectives of limited gaming in the Commonwealth to deliver a significant source of revenue, assist the horse racing industry, provide broad economic opportunities and enhance tourism."
The PGCB does not oversee games of chance in the Commonwealth such as the Pennsylvania Lottery
Pennsylvania Lottery
The Pennsylvania Lottery is operated by the Commonwealth of Pennsylvania. The lottery was created by the Pennsylvania General Assembly on August 26, 1971; two months later, Henry Kaplan was appointed as its first executive director...
or other permitted games of chance at clubs and non-profit organizations.
Composition
The board consists of seven voting members, three of which are appointed by the Governor of Pennsylvania and four of which are appointed by the leadership of the Pennsylvania General AssemblyPennsylvania General Assembly
The Pennsylvania General Assembly is the state legislature of the U.S. state of Pennsylvania. The legislature convenes in the State Capitol building in Harrisburg. In colonial times , the legislature was known as the Pennsylvania Provincial Assembly. Since the Constitution of 1776, written by...
. By statute, the State Treasurer, Secretary of Revenue, and Secretary of Agriculture are non-voting ex-officio members.
Duties
Among other duties, the Board operates a slot-machine testing center. Located above the Board's HarrisburgHarrisburg, Pennsylvania
Harrisburg is the capital of Pennsylvania. As of the 2010 census, the city had a population of 49,528, making it the ninth largest city in Pennsylvania...
office, the center was established in September 2008. Each month, Pennsylvania casinos and slot-machine operators give the Board a list of the "payouts" on each of their machines: how often and how much they pay per average play. Board employees at the center test various models of slot machine to measure their payouts. This information is not passed on to the public.
The PGCB also set up an Office of Compulsive and Problem Gambling devoted to "understanding and alleviating the devastating effects of pathological gambling." Under PGCB’s regulations, gambling facilities in the state must submit and have approved a compulsive-and-problem-gambling plan before starting gambling operations. These plans must include items such as employee training when dealing with compulsive gamblers, self-exclusion plans and how to handle people who want to be on Pennsylvania’s self-exclusion list, the responsibility of patrons with respect to responsible gambling, the availability of printed material and signage throughout the casino, and procedures to prevent intoxicated and underage gambling.
Funding and support
The PCGB's funding is from several sources, none directly from taxpayers. The largest funding mechanism is from slot machine revenues, but only after deduction of appropriate taxes that are transferred to a number of recipients:- the local governments that host a facility
- the horse racing industry
- economic development and tourism efforts, and
- a State Gaming Fund which primarily provides revenues to school districts which, in turn, utilize toward the lowering of local property taxes.
In addition, the PGCB bills applicants for investigative costs associated with securing any type of license and manufacturers of slot machines and related goods who seek approval of equipment to be utilized in casinos.
The Gaming Act also requires a role in gaming oversight by the State Police, Department of Revenue and Attorney General, whose costs are also reimbursed from slot machine revenues.
Casino licenses
The board is authorized to issue up to 14 licenses for slot machine operations only. Seven licenses may be issued to existing horse race tracks, or racinoRacino
A racino is a combined race track and casino. In some cases, the gambling is limited to slot machines, but many locations are beginning to include table games such as blackjack, poker, and roulette....
s, five licenses may be issued to stand-alone casinos, and two licenses may be issued to existing hotel resort
Resort
A resort is a place used for relaxation or recreation, attracting visitors for holidays or vacations. Resorts are places, towns or sometimes commercial establishment operated by a single company....
s. In 2017, the board will be authorized to award a third resort license. All casinos can have up to 5,000 machines, except the resort licensees, which can have up to 600. The Act also mandated that two of the five stand-alone casinos be located in Philadelphia
Philadelphia, Pennsylvania
Philadelphia is the largest city in the Commonwealth of Pennsylvania and the county seat of Philadelphia County, with which it is coterminous. The city is located in the Northeastern United States along the Delaware and Schuylkill rivers. It is the fifth-most-populous city in the United States,...
, one in Pittsburgh
Pittsburgh, Pennsylvania
Pittsburgh is the second-largest city in the US Commonwealth of Pennsylvania and the county seat of Allegheny County. Regionally, it anchors the largest urban area of Appalachia and the Ohio River Valley, and nationally, it is the 22nd-largest urban area in the United States...
, and the remaining two at-large. As of May 2010, 13 of the licenses have been awarded. One license for a racino has not been awarded. In addition, casinos in Pennsylvania began operating table games in July 2010.
Racinos
On December 20, 2006, the board voted to grant six permanent casino licenses for existing horse racingHorse racing
Horse racing is an equestrian sport that has a long history. Archaeological records indicate that horse racing occurred in ancient Babylon, Syria, and Egypt. Both chariot and mounted horse racing were events in the ancient Greek Olympics by 648 BC...
facilities. The board previously voted to grant these locations temporary licenses on September 27, 2006. The licensed facilities are:
- Harrah's ChesterHarrah's ChesterHarrah's Chester: Casino and Racetrack is a racino on the Chester, Pennsylvania waterfront.The track's first harness racing season opened on September 10, 2006. Wagering is available on live horse races from April 23 to November 23 on Sunday, Wednesday, Thursday, and some Fridays; or via simulcast...
Casino and Racetrack in ChesterChester, PennsylvaniaChester is a city in Delaware County, Pennsylvania, United States, with a population of 33,972 at the 2010 census. Chester is situated on the Delaware River, between the cities of Philadelphia and Wilmington, Delaware.- History :...
(Philadelphia area) - Mohegan Sun at Pocono DownsPocono DownsMohegan Sun at Pocono Downs is a racino in Plains Township, Pennsylvania. The casino features 2,500 slots, live blackjack, roulette, and poker Tables. A 5/8 mile harness track is also a major attraction....
in Wilkes-BarreWilkes-Barre, PennsylvaniaWilkes-Barre is a city in the U.S. state of Pennsylvania, the county seat of Luzerne County. It is at the center of the Wyoming Valley area and is one of the principal cities in the Scranton/Wilkes-Barre metropolitan area, which had a population of 563,631 as of the 2010 Census...
(ScrantonScranton, PennsylvaniaScranton is a city in the northeastern part of Pennsylvania, United States. It is the county seat of Lackawanna County and the largest principal city in the Scranton/Wilkes-Barre metropolitan area. Scranton had a population of 76,089 in 2010, according to the U.S...
area) - Philadelphia Park Casino and Racetrack in Bensalem (Philadelphia area)
- Hollywood Casino at Penn National in Grantville, PennsylvaniaGrantville, PennsylvaniaGrantville is an unincorporated community in East Hanover Township Dauphin County, Pennsylvania, United States. It is part of the Harrisburg–Carlisle Metropolitan Statistical Area.-Points of Interest:* St...
(HarrisburgHarrisburg, PennsylvaniaHarrisburg is the capital of Pennsylvania. As of the 2010 census, the city had a population of 49,528, making it the ninth largest city in Pennsylvania...
area) - Presque Isle Downs and Casino in ErieErie, PennsylvaniaErie is a city located in northwestern Pennsylvania in the United States. Named for the lake and the Native American tribe that resided along its southern shore, Erie is the state's fourth-largest city , with a population of 102,000...
- Meadows Racetrack & CasinoThe Meadows Racetrack and CasinoThe Meadows Racetrack and Casino is a standardbred harness racing track and slot machine casino in North Strabane Township near Meadow Lands, Washington County, Pennsylvania, United States. The facility is located between U.S...
in WashingtonWashington, PennsylvaniaWashington is a city in and the county seat of Washington County, Pennsylvania, United States, within the Pittsburgh Metro Area in the southwestern part of the state...
(PittsburghPittsburgh, PennsylvaniaPittsburgh is the second-largest city in the US Commonwealth of Pennsylvania and the county seat of Allegheny County. Regionally, it anchors the largest urban area of Appalachia and the Ohio River Valley, and nationally, it is the 22nd-largest urban area in the United States...
area)
- A brand new racino named Valley View Downs & Casino is struggling to get financing and waiting for license approval. The proposed location is only five miles from the state border so it would be easily accessible to the half a million people in the metropolitan area of Youngstown, OhioYoungstown, OhioYoungstown is a city in the U.S. state of Ohio and the county seat of Mahoning County; it also extends into Trumbull County. The municipality is situated on the Mahoning River, approximately southeast of Cleveland and northwest of Pittsburgh, Pennsylvania...
. In October 2010, American Harness Tracks purchased the property, and on July 12, 2011, the Pennsylvania State Harness Racing Commission allowed Valley View Downs to move ahead; however, funding has yet to be positively identified.
Stand-alone casinos
On the same day, the board voted to grant five permanent casino licenses for stand-alone casinos. The licensed facilities are:- Mount Airy Casino ResortMount Airy Casino ResortThe Mount Airy Casino Resort is a casino and hotel located in Mount Pocono, Pennsylvania. The casino resort has 188 hotel rooms, a casino with 2,523 slot machines and table games, five restaurants, a spa and salon, a nightclub, and an 18-hole golf course.-History of the Location:Mount Airy...
in StroudsburgStroudsburg, PennsylvaniaStroudsburg is a borough in Monroe County, Pennsylvania, United States. It is located in the Poconos region of the state, approximately five miles from the Delaware Water Gap, at the confluence of the Brodhead and Pocono Creeks. It is the county seat of Monroe County. Stroudsburg is part of the...
, which opened on October 22, 2007 - Sands Casino Resort Bethlehem in the Lehigh ValleyLehigh ValleyThe Lehigh Valley, known officially by the United States Census Bureau as the Allentown-Bethlehem-Easton, PA-NJ metropolitan area and referred to locally as The Valley and A-B-E, is a metropolitan region consisting of Lehigh, Northampton, Berks, and Carbon counties in eastern Pennsylvania and...
, which opened on May 22, 2009 - Rivers CasinoRivers CasinoThe Rivers Casino is a casino in Pittsburgh, Pennsylvania, USA. It is owned by Holdings Acquisition Co. L.P., a joint venture of Walton Street Capital LLC and High Pitt Gaming LP...
in Pittsburgh, which opened on August 4, 2009 - SugarHouse CasinoSugarHouse CasinoSugarHouse Casino is a casino entertainment development along the Delaware River in Philadelphia, Pennsylvania's Fishtown neighborhood. It was one of five stand-alone casinos awarded a gaming license on December 20, 2006 by the Pennsylvania Gaming Control Board...
in Philadelphia, which opened on September 23, 2010 - Foxwoods Casino PhiladelphiaFoxwoods Casino PhiladelphiaFoxwoods Casino Philadelphia was a proposed casino to be located first along the Delaware River, then under pressure from local residents attempted to move to the The Gallery at Market East in Center City in Philadelphia, PA...
(yet to begin construction)[license was revoked on December 17, 2010.]
Because of the limited number of slot machines in Pennsylvania, the revenue per machine is much higher than it is in Nevada ($120 per day), where 171 thousand machines are in locations with unrestricted locations. In addition, Nevada has about 3000 locations with restricted licenses (15 slot machines or less).
Resort casinos
Currently, both of the resort casino licenses have been awarded.- On April 9, 2009, the Valley Forge Convention Center was licensed to operate 500 slot machines. However, after the license was awarded, the operators of Parx Casino initiated a legal battle that halted plans. The Pennsylvania Supreme Court ruled against Parx Casino on March 8, 2011. The prospective operators of the casino at Valley Forge Convention Center are expected to resume planning and construction, but the stipulations of resort casinos were modified after initiation of the legal battle. The table games legislation, which passed in January 2010, allows resort casinos to have up to 600 slot machines and 50 table games.
- On April 14, 2011, Nemacolin Woodlands ResortNemacolin Woodlands ResortThe Nemacolin Woodlands Resort is a resort in Farmington, Fayette County, Pennsylvania. The resort is currently owned by Maggie Hardy Magerko, president of the 84 Lumber Company, and was founded by Joseph Hardy.-History:...
in Fayette CountyFayette County, PennsylvaniaFayette County is a county located in the U.S. state of Pennsylvania. As of the2010 census, the population was 136,606. The county is part of the Pittsburgh Metropolitan Statistical Area....
was awarded a license to operate 600 slot machines. Nemacolin Woodlands also plans to operate 28 table games, but additional approval is required from the PGCB. Construction is expected to begin once litigation is settled.
Under the table games legislation, a third resort casino license will be created in 2017.
Revenue
| Casino | No. of Slots | Revenue |
|---|---|---|
| Parx | 3,526 | $31,093,946 |
| Sands Bethlehem | 3,022 | $22,702,187 |
| Harrah's Chester | 2,958 | $21,067,829 |
| Penn National | 2,435 | $19,833,041 |
| The Meadows | 3,316 | $20,813,281 |
| Presque Isle | 2,070 | $14,428,969 |
| Mohegan Sun | 2,330 | $18,907,113 |
| Mount Airy | 2,275 | $12,973,084 |
| Rivers | 2,960 | $23,354,281 |
| SugarHouse | 1,549 | $14,974,574 |
The revenue from slot machines is taxed at 55%.
| Casino | No. of Tables | Revenue |
|---|---|---|
| Parx | 180 | $9,500,924 |
| Sands Bethlehem | 129 | $8,696,493 |
| Harrah's Chester | 121 | $6,754,616 |
| Penn National | 64 | $3,047,235 |
| The Meadows | 78 | $3,160,914 |
| Presque Isle | 44 | $1,581,424 |
| Mohegan Sun | 84 | $3,313,016 |
| Mount Airy | 72 | $3,665,017 |
| Rivers | 107 | $5,433,105 |
| SugarHouse | 52 | $6,238,223 |
The revenue from table games is taxed at 16%.