Pennsylvania
Awards Six Slot Licenses
Six gaming equipment companies,
including industry giant International Game
Technology and Las Vegas-based Aristocrat Technologies,
have been awarded Pennsylvania's first slot
machine licenses.
In
a unanimous vote Tuesday, the Pennsylvania Gaming
Control Board said the companies are subject
to a series of 40 conditions set out by the
regulatory agency. Pennsylvania lawmakers, in
July 2004, authorized the installation of up
to 61,000 slot machines in 14 locations, including
racetracks and stand-alone casinos.
Seven
racetracks, including four that are operating,
are expected to be the first licensed to receive
slot machines, possibly by the end of the year.
Up to 5,000 slot machines will be authorized
at each location.
"This
is a major step for expanded gaming in Pennsylvania,"
gaming control board Chairman Tad Decker said
in a statement.
Still,
Pennsylvania regulators will need to license
in-state distributors to work with the manufacturers.
The control board is divided over whether to
allow distributors to operate within the entire
state or within selected regions.
"They're
finally moving forward to get issues resolved,
which is a good sign," Susquehanna Financial
Group gaming analyst Brian McGill said. "But
the key is still how many distributors will
be allowed. The timing has been a moving target,
but my best guess right now is we're looking
at a September time frame."
IGT
spokesman Ed Rogich said the company was the
first to file an application with the state,
but until the suppliers are determined, the
excitement level remains the same.
"(IGT's
licensing) shows progress but it doesn't change
anything as of today," Rogich said. "It's
a positive step that brings us closer to reality,
but a whole lot more has to happen."
Aristocrat
Technologies President Gavin Isaacs said previously
that Pennsylvania was a strategic opportunity
for the Las Vegas-based slot machine manufacturer.
"Aristocrat,
together with our Pennsylvania gaming machine
distributor KGM Gaming is looking forward to
working with Pennsylvania throughout the implementation
of its gaming program," Isaacs said.
How
long the process will take is still a mystery.
Pennsylvania
is the first new major gaming jurisdiction of
any consequence since the late 1990s. Under
the gaming tax structure, 53 percent of all
revenues generated by the slot machines will
go to state and local governments.
In
addition to seven racetrack sites, the state
will award gaming licenses of 5,000 slot machines
each to five stand-alone casinos -- two in Philadelphia,
one in Pittsburgh and two at sites to be determined.
Two resort locations of 500 machines each will
also be awarded.
Even
if the distributors are determined by the end
of summer and the racetracks are awarded licenses,
facilities to house the slot-machine-only casinos
will need to be built.
"You're
pretty much looking at a summer of 2007 event,"
McGill said.
IGT
and Aristocrat were joined by WMS Industries
as the most well-known major gaming companies
receiving the licenses. Still under consideration
are Shuffle Master, Bally Gaming, Konami Gaming,
Atronic Gaming and lottery company Gtech Holdings.
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