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If Pennsylvania Governor Ed Rendell's proposed video poker plan- House Bill 1317- which excludes operators, is legalized, up to half of the state's 400 amusement companies would likely close. John Milliron, legislative counsel of the Pennsylvania Amusement and Music Machine Association (PAMMA) testified before the Pennsylvania House Gaming Oversight Committee on May 7. Milliron warned this formula would cut into entertainment dollars used for tavern coin-operated amusements. The Pennsylvania Tavern Association's executive director also testified, claiming state and local taxes and licensing fees taverns would negate their 25% share.
Rendell aims to replicate Oregon's single-supplier system. Oregon operators, promised inclusion, supported VLT legalization in the 1990s. Oregon then changed policy, awarding the operating contract to one corporate operator.
The Rendell administration estimates $1 billion annually from 35,400 machines. Taxed at 50%, the proceeds would fund college scholarships.
HB 1317 will probably go to the full chamber before the summer recess.
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