FOR IMMEDIATE RELEASE

June 2nd, 2005

COMMONWEALTH OF PENNSYLVANIA

Pennsylvania Gaming Control Board
P.O. Box 69060
Harrisburg, PA 17106-9060

CONTACT

Doug Harbach or Richard McGarvey (717) 346-8321

PA Gaming Control Board Issues Industry Letter On Vendor-licencing Policy

PITTSBURGH: The Pennsylvania Gaming Control Board today issued an industry letter to potential applicants for gaming-facility operating licenses, alerting them that, as part of the licensing process, the Board intends to review all of the applicants’ contracts and business relationships.

“A key factor in the Board’s decision-making process will be the integrity and credibility of the potential licensee in all aspects of its business dealings,” said Board Chairman Thomas A. “Tad” Decker.

“Applicants should understand that the Board’s review of any contracts may result in the contractor’s being required to apply for a license as a non-gaming vendor.”

The industry letter is available on the Board’s Web site, www.pgcb.state.pa.us, and is attached to this press release.

The Board unanimously approved the letter during a meeting in Pittsburgh that was the Board’s second meeting outside of Harrisburg.

 

Editor's note: A copy of the letter is attached.

 

DATE: June 2, 2005

TO: All Potential Applicants for Slots Gaming Licenses

FROM: Thomas A. Decker, Chairman
Pennsylvania Gaming Control Board

SUBJECT: Notice Regarding Vendor Contracts Entered into by Potential Applicants for Slot Machine Licenses

Under Section 1202 (B)(4) of the Pennsylvania Race Horse Development and Gaming Act, the Pennsylvania Gaming Control Board has the exclusive authority to issue, approve, condition or deny the issuance of all slot machine licenses in Pennsylvania. A key factor in the Board’s decision-making process regarding any application for licensure will be the integrity and credibility of the potential licensee in all aspects of his or her business dealings.

The Board is issuing this letter to put all future applicants for slot machine licenses on notice that, as part of its review of applications for licensure, the Board intends to scrutinize any and all vendor contracts and business relationships entered into by any applicant regardless of whether these contracts were created prior to the filing of the application. The Board advises that those interested in applying for slot machine licenses conduct due diligence reviews of all vendors, contractors, and subcontractors, including those the applicant has contracted with for construction services. This review should include an evaluation of the vendor’s finances and character. Applicants should understand that the Board’s review of any contracts may result in the contractor being required to apply to the Board for licensure as a non-gaming vendor and that the decision to require licensure may be subject to certain dollar thresholds.

More information on the licensing process will be released by the Board as it becomes available.

cc: Mary Colins, Commissioner
William Conaboy, Commissioner
Jeffrey Coy, Commissioner
Joseph Marshall, Commissioner
Ken McCabe, Commissioner
Sanford Rivers, Commissioner