If Pennsylvania's going to allow online gambling and regulate fantasy sports betting, brick-and-mortar casinos want a piece of the action, gaming industry officials told state lawmakers Wednesday.
In-state casinos are employing Pennsylvanians and investing millions in construction projects, industry leaders said. So, their argument to a state House committee went, drafting online gaming rules to allow them to lead that segment of the industry would benefit the state.
"We'd just like to make sure the casino industry is allowed to participate and at least play by the same set of rules," said Donn Mitchell, chief administrator of Isle of Capri Casinos, which manages a casino at Nemacolin Woodlands Resort in Fayette County.
The comments came during a hearing of the state House's Gaming Oversight Committee at Valley Forge Casino Resort.
The committee heard from officers with the two casinos, the only ones designated as resort casinos by the state. Casinos of that class are smaller and must be attached to a pre-established resort.
The hearing comes as lawmakers consider allowing casinos to expand their games and debate whether to allow slots terminals in taverns, social clubs and off-track-betting parlors.
Legislators are also considering allowing online gambling licensed through casinos. And the state is among several considering whether to regulate "daily fantasy sports" websites, such as FanDuel and DraftKings. Such sites allow players to compete in predicting players' performances during a given game.
A similar hearing is planned for today at Parx Casino near Philadelphia.
With a 54 percent stake in gaming revenue, the state has an interest in casinos' success, said Rep. John Payne, a Dauphin County Republican and the committee's chairman.
Pennsylvania casinos face fierce competition from out of state, he said. And neighboring states, including New Jersey, which lost gaming business to Pennsylvania, are pulling out all the stops to lure customer back.
So he said, it's important that Pennsylvania help its casinos stay competitive when it comes to regulations and expenses.
"So many people think: 'We ate Atlantic City's lunch, it's all over,'" Payne said. "Well trust me, Atlantic City's not going to just take this."
Casino officials said they see opportunity in being able to license online gaming and fantasy sports. But they were adamant that expanding slots to other sites would cripple their business.
"Our customers go where it is easiest for them to get the gaming product that they're looking for," Mitchell said.
Both casinos said they'd be OK with slots in off-track facilities as long as they're not permitted within 50 miles of a casino. But they were opposed to slots in bars.
Rep. James Santora said many bar owners are looking for a way to compete with casinos, which they believe cut into their business by offering free drinks at facilities that allow smoking.
"They need help as well and we've got to reach some type of agreement to help those folks as well," the Delaware County Republican said.
And the committee's ranking Democrat, Rep. Nick Kotik of Allegheny County, said casinos shouldn't worry because many bars will be deterred from slots by the associated red tape.
Casino officials also aired some gripes about state policies, specifically recently announced increases in regulatory fees and a proposal to tax the free slots play casinos offer to attract visitors.
Cutting into casinos' bottom line means less investment and fewer jobs, they said.
"As we get squeezed and as our revenues start to decrease, we're going to have to make some tough choices," said Jim Rigot, Valley Forge casino president.
They also asked lawmakers to remove a requirement, specific to resort casinos, that customers spend at least $10 on site to be eligible to gamble. That set-up was drafted with good intentions, they said, but has resulted in logistical nightmares and angry customers who don't return.
Contact Liam Migdail-Smith: 610-371-5022 or [email]lsmith@readingeagle-com[/email]. - See more at: Casino operators on online gambling: Deal us in | Reading Eagle - NEWS
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