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Pennsylvania Lawmakers Revive Auctioning Idea

HARRISBURG, Pennsylvania – As reported by the (Pennsylvania) Intelligencer: "Just as the impasse on Indian gaming had broken and the way cleared for slots to be legalized, the year-old idea of auctioning casino licenses has been revived by lawmakers who say the state could earn an extra $2 billion.

"The renewed interest, especially among conservative Republican lawmakers, comes a week after an Illinois auction netted $518 million for a license to operate a casino in a Chicago suburb. In contrast, the gaming bills in the Pennsylvania Senate would charge $50 million for a license at one of eight horse-racing tracks and $75 million each for the four non-track venues.

"…For several months, Republicans in the Legislature have refused to agree to grant licenses to Indian tribes, saying that they'd rather see the tribes try to prove a land claim in federal court.

"But Democratic senators, following Fumo's lead, have insisted that it makes sense to license a slots parlor to be run by a tribe with a potential Pennsylvania land claim as a way to ensure that any Indian-run gambling will be taxed by the state. Should the Indians prove successful in federal court, they could set up gambling operations that are tax-free.

"House Majority Leader Sam Smith, R-66, said lawmakers should look at an auction,

"…Smith's comments followed a Friday press conference in which Gov. Ed Rendell rejected the idea of auctioning the licenses.

"…But anti-gaming legislators such as Rep. Paul Clymer, R-145, said if slots are going to be legal, it only makes sense to get as much money as possible for them…"

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