TESTIMONY by Dianne M. Berlin, coordinator of CasinoFreePA
Senate Rules and Executive Nominations Committee, Tuesday, September 12, 2006
10:30 A.M Hearing Room, North Office Bldg 1, Harrisburg, PA
Chairman Brightbill and members of the Senate Rules and Executive Nominations Committee.
Thank you for this opportunity to address possible changes to Act 71. My name is Dianne Berlin and I serve as volunteer coordinator of CasinoFreePA, a statewide coalition of groups and individuals opposing casino gambling in PA.
This legislation should have had microscopic examinations by the public prior to any vote.
Gambling is NOT a harmless activity. There are numerous associated negatives including addiction, bankruptcy, crime, divorce, etc. and even suicide which come with individual and societal costs. Slot machines are highly addictive and have been called the “crack cocaine” of gambling.
The National Gambling Impact Study Commission Final Recommendations include a strong warning against convenience gambling due to the potential for greater social costs. (Just a note: Originally, Las Vegas citizens were not to gamble. They were to take their visitors’ money and send them packing with any gambling related problems..
That is not the case here. PA’s goal is to target our own citizens.
According to Earl Grinols, the per capita benefit of a casino is $34 and the per capita costs are $190. (http://www.ncalg.org/Library/Studies%20and%20White%20Papers/Economics/GrinolsCutting%20Cards%20and%20Craps.pdf)
To say that the negative impact in this decision has been minimized is kind. It along with the associated costs both human and monetary has been almost ignored. .
Singapore has opened a casino and any local who gambles there must pay a daily non-refundable levy of $100. They have recognized the fact that there will be socio-economic costs from gambling.)
The Commission also recommended against “saving” tracks with slots.
The Commission wanted states to have a “pause” or moratorium in order to evaluate gambling and its impact and determine if gambling related decisions made were wise and in the public good. We are not the only ones who have ignored these recommendations but all should have heeded them.
Had this been done, we would not be having this hearing today.
http://govinfo.library.unt.edu/ngisc/reports/ngisc-frr.pdf
We should have a study to give us a benchmark of the gambling related problems already existing here in the Commonwealth.
Making this even worse, the casino applicants get to target the community where THEY want to be. The communities are not ones who are able to invite them. With the primary feeder market, all communities within that area should be able to approve or disapprove having a casino as they will be impacted and not just with traffic!
When Sen. Fumo attended a Philadelphia Zoning Board of Adjustment session re a 47 story high rise stated … “here is a classic example of an obnoxious intrusion in the neighborhood, done in deceitful, below-the-belt means."…. (http://www.philly.com/mld/inquirer/15077678.htm) he was echoing the sentiments of the citizens in communities across the Commonwealth which have been put on the defensive by the very government which is to protect them. It has pitted neighbor against neighbor and all this for a law which was definitely not demanded by the citizens
To the credit of those legislators who are trying to “improve” this law, certain changes to Act 71 will probably make it better but this will NEVER be a good law. The public trust was betrayed in the way that this massive legislation was passed with NO public scrutiny, NO. public hearings and NO public input.
Included in my packet, are reasons to repeal Act 71 and a list of SOME things which may help provide some protection for communities.
If we have time, I will go over them but some critical information came to me late last week from two men, one in Canada and one in Australia which seems to be evidence to stop the slots now.
Let me make it clear that I am not a technical expert and am not the person to answer technical questions.
Here is what the authors, Tim Falkiner and Roger Horbay call the “Rectification” which is what we would call recommendations from their report on “unbalanced reels.” The term EGM is electronic gaming machines.
(NOTE from Dianne: The original copy of my testimony did not include this but I inserted it in my oral testimony.)
ABSTRACT
Electronic gambling machines (EGMs) have gained a notorious reputation for generating problem gamblers. This paper notes that gambling machines developed separately from table games. It examines the standards applicable to table games and carnival games and the gaffs (cheating methods) used by crooked casinos and carnival grifters. It considers historical and modern gambling machines in the context of these standards and cheating methods. There are uncomfortable parallels between some characteristics of reel EGMs and those of gaffed table and carnival games. Bringing reel EGM standards into line with those applied to straight table games and carnival games would make them safer for the players.
Rectification
Discontinue virtually mapped biased machines
In Australia and New Zealand, the EGM standards do not allow reels with biased symbols. As a start, this Australian standard should be adopted by regulators worldwide and applied to ban virtually mapped, biased reels on both mechanical reel EGMs and video reel EGMs.
Balance the Reels
Video reel EGMs worldwide should be converted to ensure all reels are balanced. The conversion could be carried out most quickly and costs can be minimized by converting existing machines. Existing machines can be brought into compliance by simple on-site replacement of chips and payout graphics.
Require Transparency
The honest stall holder of a straight game will allow customers to inspect his milk bottles or cats so they may satisfy themselves the games are on the level. Casino gamblers may call for the inspection and examination of dice and decks of cards. Applying the same standards, if reel EGMs are to be retained as a legal form of gambling, EGM manufacturers should exhibit, on each machine, a table showing balanced reels with the numbers of each symbol on each reel and the size of the reels used. This information should be certified by the government regulator.
What they have found is that the machines are designed to make the gambler think that he or she is very close to winning. The old slot machines had many more chances of the gambler winning because they had balanced reels and they also were not electronic.
The slots are not scrutinized or tested for concealed fraudulent features or processes. They are tested for percentage of payouts which is not the same.
In no way should Pennsylvania go forward one more inch without having a thorough investigation of these machines for fraudulent features or processes. In fact, our Attorney General should join forces with other Attorneys General to ask the Department of Justice for an investigation on a federal level regarding this report. Consumer fraud is serious.
The lead article in the 2004 Mercer Law Review is relevant to this very issue.
John W. Kindt, “The Insiders” for Gambling Lawsuits: Are the Games “Fair” and Will Casinos and Gambling Facilities be Easy Targets for Blueprints for RICO and Other Causes of Action?, 55 MERCER L. REV. 529-593 (2004) (lead article)
(http://www.family.org/cforum/pdfs/fosi/gambling/Mercer_Law_Review_Vol_55.pdf )
There are a myriad of concerns and problems with this law. Each and every one needs to be addressed satisfactorily. However, this latest information makes it mandatory that it be proven or refuted as soon as possible.
I would like to offer a recommendation of two solutions. Of course, the first would be for a repeal which is preferable. The second would be for a moratorium with a suspension of all activities related to moving forward with anything related to implementing Act 71.
The public trust needs to be reinstated but it must be earned. Checking this out would be a beginning.
Thank you.
This material is available on www.casinofreepa.org