PA and gambling - whats next?

For years, legalizing casino gambling in Pennsylvania was a whispered political discussion, the subject of rumors. For at least six years, it has been an active political debate. It started with the state horse racing industry arguing that slots were necessary to reinvigorate farms and horse tracks. It became part of the last gubernatorial election and a priority during Gov. Ed Rendell's first year in office. Last week, the rumors became reality.

Act 71 of 2004 created the Pennsylvania Gaming Control Board and gave it a mission: License up to 14 slots casinos. Whatever you think about the badly flawed law (see the editorial below) and whether the ''racinos'' should have waited until it was fixed, a law was in place and the board had a job to do.However, it would be a mistake to ignore political realities regarding what the board did on Wednesday. The slots law has been controversial from its inception and it was challenged in court. Gov. Rendell made it the centerpiece of his promise to deliver property tax relief, especially to senior citizens. Last week, Republican gubernatorial candidate Lynn Swann attacked this promise with television commercials. There has been just as much partisan effort to delay slots operations from coming to fruition as there has been to get it done.In this context, Gaming Board Chairman Tad Decker said, ''We did it as fast as we could.'' And Gov. Rendell was able to called it a ''milestone'' that ''is a clear sign to all homeowners that property tax relief is on the way.''

How much that relief will be remains to be seen. Pocono Downs in Luzerne County was awarded the first license and will probably have the first slots operation producing revenue as early as the end of November. In all, the gaming board awarded five licenses to tracks and these licensing fees alone will generate $250 million.And, the board showed it means business regarding enforcement by fining the Pocono Downs licensee for political gifts from two employees. Whenever this happens, however, the board must identify which officials or candidates benefited.

Gov. Rendell predicted slots would generate $3 billion in revenue and $1 billion for property tax relief. But board studies on revenue estimates were lower by tens of millions of dollars than the applicants predicted.Even before all the licenses have been awarded — and that won't happen until the end of December — there's talk of what's next. Slots applicants and board members expect the General Assembly to eventually approve table games and full casinos. Democratic House members have already proposed that. Time will tell if slots can deliver on all the promises.