Sen. Hughes - Letter To Gaming Control Board - 11.14.14

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William H. Ryan, Jr.

Chairman
Pennsylvania Gaming Control Board
P.O. Box 69060
Harrisburg, PA 17106-9060
Chairman Ryan:
Last week, the Pennsylvania Gaming Control Board announced that is has scheduled a
meeting for November 18, 2014 in Philadelphia for purposes of considering an award of the
second Category 2 slot machine license statutorily required to be located in the city. Getting to
this point has taken considerable time but I am pleased to learn that the board may have finally
reached a decision and commend the board for its transparency and for engaging the city of
Philadelphia and our residents in this process. I have long supported another license being
awarded in the city for the purposes of job creation, tax relief, and economic development and
believe issuing a second casino license will benefit the city.
While I have not taken a position on the merits of any of the proposed projects, I strongly
believe in racial and ethnic diversity of ownership of the project and want to remind the board
that this is an extremely important factor to consider. When the Pennsylvania Race Horse
Development and Gaming Act (Gaming Act) was passed in 2004, promoting diversity in
ownership of licensed entities was a major issue before the General Assembly. The importance
of that issue is reflected in section 1212 of the act, which provides:
1212. Diversity goals of board.
(a) Intent.--It is the intent and goal of the General Assembly that the
board promote and ensure diversity in all aspects of the gaming activities
authorized under this part. The board shall work to enhance the representation of
diverse groups in:
(1) The ownership of licensed entities in this Commonwealth.
***
In addition, section 1102 of the act clearly states the legislative intent of the act as
follows:

1102. Legislative intent.


The General Assembly recognizes the following public policy purposes
and declares that the following objectives of the Commonwealth are to be served
by this part:
***
(5) The authorization of limited gaming is intended to provide broad
economic opportunities to the citizens of this Commonwealth...
***
As a strong supporter of the Gaming Act, I can assure you that my support, and the
support of many of my colleagues in both chambers, was, in large part, contingent upon the
inclusion of this language and the belief that members of the Pennsylvania Gaming Control
Board would strongly consider it when making licensing determinations. Unfortunately, ten
years later, that has not been the case as minority participation in ownership (with the exception
of the original award of the Pittsburgh license to the late Mr. Don Barden) has been minimal, if
not totally non-existent. This board has a chance to remedy the failure of prior boards on
November 18.
To date, Pennsylvania gaming industry has exceeded expectations in all areas except
diversity. It is my firm belief that our gaming industry should reflect the diversity of our state,
especially the participation of minority investors in the ownership of licensed entities. I hope that
the Gaming Control Board will take this issue into account when making its decision next week.
Sincerely,
Senator Vincent J. Hughes
7th Senatorial District
Cc: Members of Pennsylvania Gaming Control Board
Kevin F. OToole, Executive Director
R. Douglas Sherman, Chief Counsel
All Democratic Senators

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