PRINTER'S NO. 598
No. 570 Session of 1999
INTRODUCED BY SALVATORE, KASUNIC AND HART, MARCH 12, 1999
REFERRED TO STATE GOVERNMENT, MARCH 12, 1999
AN ACT
1 Providing for the licensing and regulation of limited electronic
2 gaming machines in this Commonwealth; providing for the
3 creation and preservation of the Limited Electronic Gaming
4 Fund; and creating the Gaming Addiction Fund.
5 TABLE OF CONTENTS
6 Section 1. Short title.
7 Section 2. Legislative intent.
8 Section 3. Definitions.
9 Section 4. Powers and duties of department.
10 Section 5. Requirements for limited electronic gaming machines.
11 Section 6. Use of enforcement agents.
12 Section 7. Unlawful use by minors.
13 Section 8. Limitations.
14 Section 9. Local referenda; implementation.
15 Section 10. Authority to license.
16 Section 11. Collection and deposit of revenue.
17 Section 12. Disposition of revenue from limited electronic
18 gaming machines.
1 Section 13. Administrative and other expenses.
2 Section 14. Preemption of local taxes and license fees.
3 Section 15. Existing machines.
4 Section 16. Exemption from State gambling laws.
5 Section 17. Exemption from Federal regulation.
6 Section 18. Effective date.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Short title.
10 This act shall be known and may be cited as the Limited
11 Electronic Gaming Act.
12 Section 2. Legislative intent.
13 It is the intent of the General Assembly to use a portion of
14 the proceeds from the licensing and regulation of limited
15 electronic gaming to create the Limited Electronic Gaming Fund
16 for the purpose of providing pharmaceutical assistance for the
17 elderly.
18 Section 3. Definitions.
19 The following words and phrases when used in this act shall
20 have the meanings given to them in this section unless the
21 context clearly indicates otherwise:
22 "Clubs." Nonprofit establishments which have a valid State
23 club liquor license.
24 "Department." The Department of Revenue of the Commonwealth.
25 "Distributor." An individual, partnership or corporation
26 that buys, sells or leases limited electronic gaming machines.
27 The term excludes machine owners and manufacturers.
28 "Fund." The Limited Electronic Gaming Fund created under
29 this act.
30 "Incentives." Any consideration, including any premium or
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1 bonus in cash of advance commission or merchandise, offered from
2 a licensed machine owner to a licensed establishment owner in
3 order to solicit his business.
4 "Licensed establishment." A restaurant, bar, tavern, hotel
5 or club which has a valid State liquor license.
6 "Limited electronic gaming machines" or "machine." A device
7 or machine which, upon insertion of a coin or cash, is available
8 to play or simulate the play of the games of poker, bingo, keno
9 and blackjack, which utilizes a video display and
10 microprocessors and from which, whether by the skill of the
11 player or by chance, the player may receive free games or
12 credits which can be redeemed for cash or legal goods or
13 commodities.
14 "Machine owner." An individual, partnership or corporation
15 that owns, services and maintains limited electronic gaming
16 machines for placement in licensed establishments.
17 "Manufacturer." An individual, partnership or corporation
18 that manufactures or assembles limited electronic gaming
19 machines.
20 "Net machine revenues." The money put into limited
21 electronic gaming machines minus credits paid out in cash.
22 "Participating political subdivision." A city, incorporated
23 town, township or borough where limited electronic gaming
24 machines are in use under this act.
25 Section 4. Powers and duties of department.
26 (a) General powers and duties.--The department shall have
27 the power to promulgate regulations and its duty shall be to:
28 (1) Provide for licensing procedures under this act.
29 (2) Prescribe necessary application and reporting forms
30 to be used under this act.
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1 (3) Prescribe electronic accounting devices necessary to
2 verify reports required under this act.
3 (4) Examine prototypes of limited electronic gaming
4 machines of manufacturers seeking a license under this act.
5 The department shall require a manufacturer seeking the
6 examination and approval of a limited electronic gaming
7 machine to pay the anticipated actual costs of the
8 examination in advance and, after the completion of the
9 examination, shall refund any overpayment or charge and
10 collect amounts sufficient to reimburse the department for
11 underpayment of actual costs. The department may contract for
12 the required examination of limited electronic gaming.
13 (5) Grant or deny license applications.
14 (b) License approval.--The department may not deny an
15 application or limit, condition or restrict a license except for
16 reasonable cause. An applicant shall not be granted a license
17 unless the following conditions are met:
18 (1) If the applicant is an individual:
19 (i) The applicant is an honest person of good
20 character and integrity and is qualified and has adequate
21 financing from suitable sources.
22 (ii) The applicant is a citizen of the United States
23 and has been a resident of this Commonwealth for at least
24 two years previous to the application.
25 (2) If the applicant is a partnership, the partners,
26 general and limited, qualify as individuals under paragraph
27 (1).
28 (3) If the applicant is a corporation:
29 (i) It is a registered Pennsylvania corporation for
30 at least two years.
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1 (ii) At least 50% of its directors have been
2 Commonwealth residents for at least two years.
3 (iii) All officers qualify as individuals under
4 paragraph (1).
5 (iv) Its stockholders are individuals.
6 (v) Every stockholder owning 5% or more of the stock
7 of the corporation qualifies as an individual under
8 paragraph (1).
9 (4) If the license applicant has conducted a gaming
10 operation in a jurisdiction which permits gaming, the license
11 applicant must produce letters of reference from the gaming
12 or casino enforcement or control agency which specify the
13 experiences of the agency with the license applicant, the
14 license applicant's associates and the license applicant's
15 gaming operations. If the license applicant is unable to
16 obtain these letters within 60 days of the request, the
17 license applicant may submit a copy of the letter requesting
18 the information, together with a statement under oath that
19 during the period gaming activities were conducted the
20 license applicant was in good standing with the appropriate
21 gambling or casino enforcement or control agency. The
22 department may utilize the investigations and findings of
23 other states in evaluating an applicant or licensee.
24 (5) Each license applicant must provide such other
25 information, documentation and assurances as may be required
26 by the Director of the Division of the State Lottery to
27 establish by clear and convincing evidence the license
28 applicant's good character, honesty and integrity.
29 Information under this paragraph may relate to family,
30 habits, character, reputation, business affairs, financial
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1 affairs, business associates, professional associates and
2 personal associates covering the ten-year period immediately
3 preceding the filing of the application.
4 (6) Each license applicant must accept any risk of
5 adverse public notice, embarrassment, criticism, damages or
6 financial loss which may result from any disclosure or
7 publication by a third party of any material or information
8 requested by the Director of the Division of the State
9 Lottery pursuant to action on an application. The license
10 applicant expressly waives any claim against the Director of
11 the Division of the State Lottery and the Commonwealth and
12 its employees from damages as a result of a disclosure or
13 publication described under this paragraph.
14 (c) Hearing.--A person who is denied a license shall have
15 the right to a hearing before the department. The hearing shall
16 be conducted in accordance with the provisions of 2 Pa.C.S.
17 (relating to administrative law and procedure).
18 (d) Winning percentage.--The department shall prescribe
19 winning percentage and necessary machine accounting information.
20 Limited electronic gaming machines shall be set to award players
21 minimum winnings of 80%. Limited electronic gaming machines
22 shall have electronic accounting devices that the department may
23 use to verify revenue due and winning percentages.
24 (e) Violations.--The department shall investigate, suspend
25 or revoke licenses for violations of this act and shall hold
26 hearings to consider these matters. A license may not be
27 suspended or revoked until a hearing is completed. Any person
28 who with intent to manipulate the outcome, payoff or operation
29 of a limited electronic gaming machine manipulates the outcome,
30 payoff or operation of a limited electronic gaming machine by
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1 physical tampering or any other means commits a misdemeanor and
2 shall, upon conviction, be sentenced to pay the costs of
3 prosecution and a fine of not less than $5,000 nor more than
4 $15,000 or to imprisonment of not less than one year nor more
5 than five years, or both, at the discretion of the court.
6 (f) Standards of conduct.--The department shall promulgate
7 regulations for the conduct of the officers, employees and
8 agents of the department.
9 Section 5. Requirements for limited electronic gaming machines.
10 (a) Machine characteristics.--The Director of the Division
11 of the State Lottery shall establish and procure a central
12 communications system capable of monitoring and communicating
13 with each licensed video gaming machine.
14 (b) Requirements.--Each limited electronic gaming machine
15 licensed under this act:
16 (1) Shall offer only limited electronic games authorized
17 under this act and licensed by the department.
18 (2) May not have any means of manipulation that affect
19 the random probabilities of winning a limited electronic
20 game.
21 (3) Shall have one or more mechanisms that accept coins
22 or cash in the form of bills. The mechanisms shall be
23 designed to prevent obtaining credits without paying by
24 stringing, slamming, drilling or other means. If an attempt
25 to obtain credit involves physical tampering, the machine
26 shall suspend itself from operation until reset.
27 (4) Shall have nonresettable meters housed in any
28 readily accessible locked machine area that keep a permanent
29 record of all coins and cash inserted into the machine, all
30 refunds of winnings made by the machine's printer, credits
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1 played for limited electronic games and credits won by
2 limited electronic gaming players.
3 (5) Shall be capable of printing a ticket voucher
4 stating the value of the prize for the player at the
5 completion of each limited electronic game, the time of day
6 in 24-hour format showing hours and minutes, the date, the
7 machine serial number, the sequential number of the ticket
8 vouchers and an encrypted validation number from which the
9 validity of the prize may be determined.
10 (6) Shall have accounting software that keeps an
11 electronic record which includes, but is not limited to, the
12 following: total coins and cash inserted into the machine,
13 the value of winning tickets claimed by players, the total
14 limited electronic gaming credits awarded by a limited
15 electronic game, the payback percentage credited players of
16 each limited electronic game and the net revenue of each
17 machine.
18 Each approved licensed establishment under this act shall
19 operate video gaming machines insuring the integrity and
20 security of each machine as a condition of license.
21 Section 6. Use of enforcement agents.
22 (a) Powers.--Employees of the department designated as
23 enforcement agents are empowered to investigate the background
24 and associates of license applicants to whatever extent is
25 judged necessary by the department. No investigation may be
26 undertaken prior to the submission of an application for a
27 license. No investigation may continue subsequent to the
28 granting of a license, the denial of a license or the withdrawal
29 of a license application.
30 (b) Authority.--Enforcement agents are empowered to be peace
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1 officers and shall have police power and authority throughout
2 this Commonwealth to arrest, on view or under warrant, a person
3 tampering with limited electronic gaming machines, attempting or
4 conspiring to manipulate the outcome or the payoff of a limited
5 electronic gaming machine or manipulating the outcome or payoff
6 of a limited electronic gaming machine by physical tampering or
7 through interference with the lawful and proper functioning of
8 the mechanism.
9 (c) Investigation and report.--Enforcement agents may
10 investigate alleged illegal activities concerning limited
11 electronic gaming machines and their operation, maintenance and
12 placement. Findings shall be reported in writing to the
13 department, which shall refer suspected criminal activity or
14 violations of law to the appropriate district attorney for
15 prosecution.
16 (d) State and local police.--In addition to any other person
17 authorized to enforce the provisions of this act, the
18 Pennsylvania State Police and police of any municipality shall
19 be empowered to enforce the provisions of this act. Additional
20 moneys may be appropriated from the fund for enhanced
21 enforcement.
22 Section 7. Unlawful use by minors.
23 (a) Minors.--No person under 21 years of age may use or play
24 limited electronic gaming machines. A minor using or playing or
25 attempting to use or play a limited electronic gaming machine
26 commits a summary offense and shall, upon conviction, pay a fine
27 of not more than $1,000.
28 (b) Licensees.--A licensed establishment which permits a
29 person under 21 years of age to play or use the limited
30 electronic gaming machines, whether or not that licensed
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1 establishment is actually aware of the minor's age, commits a
2 summary offense and shall, upon conviction, pay a fine of not
3 more than $5,000. The establishment of the following facts by a
4 person allowing a minor to operate the limited electronic gaming
5 machines shall constitute a defense to prosecution under this
6 subsection:
7 (1) The minor falsely represented in writing that the
8 minor was 21 years of age or older.
9 (2) The appearance of the minor was such that an
10 ordinary person of prudent judgment would believe the minor
11 to be 21 years of age or older.
12 (3) Permission to operate the limited electronic gaming
13 machines was given in good faith, relying upon written
14 representation and appearance and in the reasonable belief
15 that the minor was actually 21 years of age or older.
16 Section 8. Limitations.
17 (a) Limit on amount played and awards given.--A limited
18 electronic gaming machine may not allow more than $2 to be
19 played on a game or award free games or credits that may be
20 redeemed for cash in excess of $500 per game or an equivalent
21 value of legal goods or commodities.
22 (b) Hours of operation.--No limited electronic gaming
23 machine licensed under this act may be played except during the
24 legal hours of operation for the on-premises consumption of
25 alcoholic beverages. A person who violates this subsection
26 commits a misdemeanor and shall, upon conviction, be sentenced
27 to pay a fine of not less than $100 nor more than $500 and, on
28 failure to pay the fine, to imprisonment for not less than one
29 month nor more than three months. For a second or subsequent
30 conviction, a person shall be sentenced to pay a fine of not
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1 less than $300 nor more than $500 or to imprisonment for not
2 less than three months nor more than one year, or both.
3 (c) Posting odds.--The odds of winning each limited
4 electronic game shall be posted on or near each limited
5 electronic gaming machine. The manner in which the odds are
6 calculated and how they are posted shall be established by the
7 department by rule promulgated under this act.
8 (d) Direct dispensing.--A machine may not directly dispense
9 coins, cash, tokens or any other article of exchange or value,
10 except for a ticket voucher stating the value of the prize for
11 the player at the completion of each limited electronic game.
12 Section 9. Local referenda; implementation.
13 In any municipality, a question may be placed before the
14 electorate with respect to issuance of licenses within the
15 limits of the municipality under the provisions of this section.
16 Whenever electors equal to at least 25% of the highest vote cast
17 for any office in the municipality at the preceding general
18 election file a petition with the county board of elections or
19 when the governing board of the municipality adopts by a
20 majority vote a resolution to place the question of issuing
21 licenses, the county board shall cause a question to be placed
22 on the ballot and submitted at the following primary, municipal
23 or general election. The question shall be in the following
24 form:
25 Do you favor the licensing and regulation of
26 electronically monitored video gaming machines in certain
27 liquor-licensed establishment in (name of municipality)
28 in order to provide additional funding for senior
29 citizens' programs, local schools, colleges and
30 universities, local government operations?
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1 The local referendum shall be held in accordance with the
2 provisions of the Pennsylvania Election Code. If a majority of
3 electors voting on the question vote "yes," licenses shall be
4 issued by the secretary in the municipality; if a majority of
5 the electors voting on the question vote "no," the secretary
6 shall have no power to issue any licenses in that municipality
7 unless and until at a later election a majority votes "yes" on
8 the question.
9 Section 10. Authority to license.
10 (a) Types of license.--After approving the proper
11 application, the department may issue the following licenses:
12 (1) A manufacturer's license may be issued to a person
13 who manufactures or assembles limited electronic gaming
14 machines for use in this Commonwealth. The annual fee shall
15 be $25,000. It shall be lawful for any person or company
16 licensed as a manufacturer under this act to sell or offer to
17 sell limited electronic gaming machines in this Commonwealth.
18 (2) A distributor's license may be issued to a person
19 who buys or sells limited electronic gaming machines in this
20 Commonwealth. The annual fee shall be $25,000.
21 (3) A machine owner's license may be issued to a person
22 who owns, services and maintains limited electronic gaming
23 machines for placement in licensed establishments. The annual
24 fee shall be $500 for a vendor and $10,000 for the first 50
25 individual limited electronic gaming machine licenses. For
26 each additional limited electronic gaming machine, the annual
27 fee shall be $250 per machine. Every limited electronic
28 gaming machine in use in this Commonwealth shall have a
29 current year's license displayed. Every limited electronic
30 gaming machine licensed under this act must be manufactured
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1 by a person or company licensed under this act. The
2 department may require a surety bond from a licensed machine
3 owner in an amount it determines to be consistent with its
4 conclusion of financial stability of the machine owner, so as
5 to avoid any monetary loss to the Commonwealth because of the
6 activities of a licensed machine owner in the collection,
7 distribution and deposit of limited electronic gaming
8 revenues. The requirement for bonding may be requested of any
9 person who may become a licensed machine owner. The
10 department may also require a financial statement with
11 respect to the financial character of a person who is the
12 machine owner. In lieu of any surety bond which the
13 department may require, it may also seek any other guarantee
14 or surety consistent with the provisions of this act,
15 including a blanket bond.
16 (4) No licensee shall be permitted to advertise gambling
17 or use the word "gambling" in any promotional way, including
18 flyers or other forms of advertisement.
19 (5) A licensed establishment shall also be required to
20 obtain a licensed establishment limited electronic gaming
21 license in order to have limited electronic gaming machines
22 on its premises. This fee shall be in addition to any other
23 license fee imposed by this act. The annual fee for the
24 license shall be $100 for each limited electronic gaming
25 machine.
26 (b) Requirements.--The following requirements pertain to the
27 issuance of limited electronic gaming licenses to licensed
28 establishments:
29 (1) The maximum number of licensed establishment limited
30 electronic gaming licenses authorized under this act shall be
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1 equal to four licenses multiplied by the number of licensed
2 establishments certified by the Pennsylvania Liquor Control
3 Board on the effective date of this act.
4 (2) The department shall issue no more than four limited
5 electronic gaming licenses to any one licensed establishment,
6 except that, if 12 months following the date that the
7 licenses are first issued there remain a number of unissued
8 licenses, the department may issue additional limited
9 electronic gaming licenses to licensed establishments up to
10 the maximum number of limited electronic gaming licenses
11 authorized under paragraph (1). The department shall
12 promulgate rules and regulations pertaining to the issuance
13 of additional limited electronic gaming licenses to licensed
14 establishments under this act.
15 (c) Limitation on licenses.--No person, partnership or
16 corporation may hold more than one type of license, directly or
17 indirectly, or have any interest therein.
18 (d) Incentives prohibited.--A licensed machine owner who
19 gives, or a licensed establishment which receives, an incentive
20 commits a violation of this act.
21 Section 11. Collection and deposit of revenue.
22 (a) Collections to be made weekly.--The net revenue derived
23 from a licensed limited electronic gaming machine shall be
24 collected weekly by the licensed machine owner. All licensed
25 machine owners shall deposit to the credit of the fund in a
26 designated bank all moneys received by owners from the operation
27 of licensed limited electronic gaming machines, less the amount
28 specified in section 12 to be distributed to machine owners and
29 to the licensed establishment where the machine is located. The
30 licensed machine owner shall be responsible for distribution of
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1 the percentage of net revenues due under section 12 to licensed
2 establishments.
3 (b) Banks.--For purposes of this section, a designated bank
4 shall mean a bank or banking association and trust company
5 organized under the authority of the United States or the
6 Commonwealth and which has been designated by the State
7 Treasurer as a deposit facility for net revenues from limited
8 electronic gaming. The designated bank shall maintain usual
9 records of deposit and shall provide the department with a
10 weekly statement of all limited electronic gaming transactions
11 made during the immediately preceding week. The designated bank
12 shall provide other services prescribed by the department. The
13 department shall compensate the bank for services performed.
14 (c) Accountings to be filed monthly.--All licensed machine
15 owners shall file each month with the department reports of
16 their collections and deposits of net revenue derived from
17 licensed limited electronic gaming machines. In addition, the
18 following information shall be provided:
19 (1) The serial number of each limited electronic gaming
20 machine electronic accounting device.
21 (2) The name and address of the premises where the
22 machine is located.
23 (3) A computer printout taken directly from the
24 electronic accounting device of each machine of the total
25 coins and cash inserted into the machine, the value of
26 winning tickets claimed by players, the total limited
27 electronic gaming credits awarded by a limited electronic
28 game, the payback percentage credited players of each limited
29 electronic game and the net revenue of the machine.
30 (4) Any additional information prescribed by the
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1 department.
2 Section 12. Disposition of revenue from limited electronic
3 gaming machines.
4 (a) Municipality revenue.--The sum of $1,000 per machine
5 shall be paid to the municipality in which the machine is
6 operated. These funds shall be derived from application fees and
7 fines paid into the State Lottery Fund.
8 (b) Net revenues.--The net revenue derived from limited
9 electronic gaming machines shall be allocated as follows:
10 (1) Thirty-three percent to the licensed machine owner.
11 (2) Thirty-three percent to the licensed establishment
12 which is the location of the machine or machines.
13 (3) Thirty-three percent to the Commonwealth to be used
14 for purposes set forth in subsection (d).
15 (4) One percent to be divided by formula among
16 participating municipalities.
17 (c) Creation of Limited Electronic Gaming Fund.--Except for
18 the percentage of net revenue allocated to licensed machine
19 owners under subsection (b)(1) and the percentage of net revenue
20 allocated to licensed establishments under subsection (b)(2),
21 the net revenue derived from limited electronic gaming machines
22 and deposited in designated banks shall be paid into a special
23 fund to be known as the Limited Electronic Gaming Fund, which is
24 hereby created and which shall be and shall remain in the
25 custody of the State Treasurer.
26 (d) Semiannual transfers to program.--On January 1 and July
27 1 of each year, the State Treasurer shall transfer from the
28 Limited Electronic Gaming Fund to the Pharmaceutical Assistance
29 Contract for the Elderly Fund the amount of revenue necessary to
30 pay the cost of the tier two program and any costs of the tier
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1 one program not paid for by the State Lottery Fund. No moneys
2 from the State Lottery Fund shall be used to create or expand
3 any program not already funded with revenues from the State
4 Lottery Fund on the effective date of this act unless such
5 programs are approved by an affirmative vote of two-thirds of
6 the members elected to the Senate and the House of
7 Representatives.
8 (e) Annual transfers.--On January 1 of each year the State
9 Treasurer shall transfer 20% of the moneys in the Limited
10 Electronic Gaming Fund to fund basic education and 20% of the
11 moneys in the Limited Electronic Gaming Fund to fund higher
12 education through the State System of Higher Education. The sum
13 of $40,000,000 shall be set aside annually and appropriated for
14 the purposes of Pennsylvania stadiums and indoor arenas.
15 (f) Other appropriations not affected.--Any and all
16 appropriations from the fund shall be in addition to any and all
17 appropriations contained in a general appropriation act for
18 basic education purposes and higher education purposes and shall
19 not be used as substitutes for appropriations made in a general
20 appropriation act for those purposes.
21 Section 13. Administrative and other expenses.
22 (a) Disposition of collected fees and fines.--Except for the
23 percentage of revenue prescribed under subsection (b), all
24 revenue from license fees and fines collected by the department
25 under this act shall be paid into the General Fund. The
26 department shall receive an annual appropriation from the
27 General Fund for salaries and for administrative expenses
28 associated with carrying out the duties imposed under this act,
29 including the costs of licensing, enforcement, revenue
30 collection, reporting and other functions prescribed under this
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1 act.
2 (b) Gaming Addiction Fund.--The Gaming Addiction Fund is
3 hereby created. Two and one-half percent of the revenue
4 collected by the department from license fees and fines shall be
5 transferred annually to the Gaming Addiction Fund, which shall
6 be administered by the Department of Health. The Department of
7 Health shall distribute moneys from this fund throughout this
8 Commonwealth to organizations involved in the treatment and
9 rehabilitation of persons with gaming disorders in accordance
10 with regulations to be adopted by the Department of Health.
11 Transfers from the department to the Gaming Addiction Fund shall
12 continue as long as revenue from limited electronic gaming
13 license fees and fines exceeds the department's expenditures
14 under subsection (a).
15 Section 14. Preemption of local taxes and license fees.
16 (a) Preemption.--Limited electronic gaming machines and
17 coin-operated amusement machines shall be exempt from taxes
18 levied under the act of August 5, 1932 (Sp.Sess., P.L.45,
19 No.45), referred to as the Sterling Act, the act of December 31,
20 1965 (P.L.1257, No.511), known as The Local Tax Enabling Act, or
21 the act of April 13, 1972 (P.L.184, No.62), known as the Home
22 Rule Charter and Optional Plans Law.
23 (b) Fees restricted.--Coin-operated amusement games,
24 excluding limited electronic gaming machines, may be licensed by
25 local political subdivisions, including home rule charter and
26 optional plan municipalities, for a total of up to, but not
27 exceeding, $50 per machine per year. Political subdivisions
28 shall receive compensation under this act in lieu of a license
29 fee or tax.
30 Section 15. Existing machines.
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1 (a) Exemption.--Machines manufactured and sold to machine
2 owners or distributors prior to the effective date of this act
3 shall conform to the manufacturing provisions of this act as the
4 department shall deem necessary for the security and integrity
5 of the machines. These machines shall be considered to have been
6 manufactured, distributed, sold and used legally in this
7 Commonwealth.
8 (b) Regulation of existing machines.--The department shall
9 promulgate regulations providing for the registration of
10 existing limited electronic gaming machines and for the
11 collection and auditing of net revenue derived from existing
12 machines.
13 Section 16. Exemption from State gambling laws.
14 Limited electronic gaming machines and their use shall be
15 exempt from State gambling laws, including, but not limited to,
16 18 Pa.C.S. § 5513 (relating to gambling devices, gambling,
17 etc.).
18 Section 17. Exemption from Federal regulation.
19 The General Assembly declares that the Commonwealth is exempt
20 from section 2 of the Gambling Devices Transportation Act (64
21 Stat. 1134, 15 U.S.C. § 1172). Shipments of limited electronic
22 gaming devices into this Commonwealth in compliance with
23 sections 3 and 4 of the Gambling Devices Transportation Act (64
24 Stat. 1134, 15 U.S.C. §§ 1173 and 1174) shall be deemed legal
25 shipments into this Commonwealth.
26 Section 18. Effective date.
27 This act shall take effect immediately.
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