HB 1141 — An Act amending Titles 4 (Amusements), 18 (Crimes and Offenses) and 35 (Health and Safety) of the Pennsylvania Consolidated Statutes, in revenues, further providing for taxes and assessments; adding provisions relating to local gaming terminals by providing for general provisions, for administration, for application and licensure, for operation, for enforcement and for revenue; imposing the local gaming terminal tax; establishing the Local Gaming Fund; providing for ethics; in riot, disorderly conduct and related offenses, further providing for the offense of gambling devices, gambling, etc.; in Commonwealth services, establishing the Pennsylvania Emergency Management Programs Fund; prescribing penalties; and making appropriations.

PRINTER'S NO.   1260

                      THE GENERAL ASSEMBLY OF PENNSYLVANIA



                             HOUSE BILL
                             No. 1141
                                                    Session of
                                                      2025

     INTRODUCED BY NEILSON, MADDEN, GIRAL, McNEILL, CERRATO,
        T. DAVIS, RIVERA AND GREEN, APRIL 4, 2025

     REFERRED TO COMMITTEE ON GAMING OVERSIGHT, APRIL 4, 2025


                                         AN ACT
 1   Amending Titles 4 (Amusements), 18 (Crimes and Offenses) and 35
 2      (Health and Safety) of the Pennsylvania Consolidated
 3      Statutes, in revenues, further providing for taxes and
 4      assessments; adding provisions relating to local gaming
 5      terminals by providing for general provisions, for
 6      administration, for application and licensure, for operation,
 7      for enforcement and for revenue; imposing the local gaming
 8      terminal tax; establishing the Local Gaming Fund; providing
 9      for ethics; in riot, disorderly conduct and related offenses,
10      further providing for the offense of gambling devices,
11      gambling, etc.; in Commonwealth services, establishing the
12      Pennsylvania Emergency Management Programs Fund; prescribing
13      penalties; and making appropriations.
14      The General Assembly of the Commonwealth of Pennsylvania
15   hereby enacts as follows:
16      Section 1.         Section 4102(b)(1) of Title 4 of the Pennsylvania
17   Consolidated Statutes is amended to read:
18   § 4102.    Taxes and assessments.
19      * * *
20      (b)    Video gaming terminal tax and assessments.--
21             (1)   The department shall determine and each terminal
22      operator licensee shall pay on a bimonthly basis:
23                   (i)    A tax of [42%] 40% of its gross terminal revenue
 1             from all video gaming terminals operated by the terminal
 2             operator licensee within this Commonwealth.
 3                 (ii)    A [10%] 9% local share assessment from its
 4             gross terminal revenue.
 5                 (iii)   A regulatory assessment established in section
 6             4104 (relating to regulatory assessments) from the
 7             terminal operator licensee's weekly gross terminal
 8             revenue.
 9             * * *
10      Section 2.      Title 4 is amended by adding a part to read:
11                                    PART IV
12                             LOCAL GAMING TERMINALS
13   Chapter
14      51.    General Provisions
15      53.    Administration
16      55.    Application and Licensure
17      57.    Operation
18      59.    Enforcement
19      61.    Revenues
20      63.    Ethics
21      65.    Miscellaneous Provisions
22                                   CHAPTER 51
23                               GENERAL PROVISIONS
24   Sec.
25   5101.    Scope of part.
26   5102.    Legislative intent.
27   5103.    Definitions.
28   § 5101.    Scope of part.
29      This part relates to local gaming terminals.
30   § 5102.    Legislative intent.

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 1      The General Assembly recognizes the following public policy
 2   purposes and declares that the following objectives of the
 3   Commonwealth are to be served by this part:
 4             (1)   The primary objective of this part, to which all
 5      other objectives and purposes are secondary, is to protect
 6      the public through the regulation and policing of all
 7      activities involving gaming, and to prohibit all forms of
 8      gaming, wagering and gambling in this Commonwealth that have
 9      not been expressly authorized by statute.
10             (2)   The authorization of local gaming in this part is
11      intended to provide a significant source of new revenue to
12      the Commonwealth and to licensed clubs, fraternal
13      organizations and small businesses and to provide for new
14      employment opportunities by creating skilled jobs for
15      individuals related to the conduct of local gaming at
16      licensed facilities in this Commonwealth, as well as
17      supporting property tax relief, economic development
18      opportunities and other similar initiatives.
19   § 5103.    Definitions.
20      The following words and phrases when used in this part shall
21   have the meanings given to them in this section unless the
22   context clearly indicates otherwise:
23      "Affiliate," "affiliate of" or "person affiliated with."        A
24   person that directly or indirectly, through one or more
25   intermediaries, controls, is controlled by or is under common
26   control with a specified person.
27      "Applicant."     A person that, on the person's own behalf or on
28   behalf of another, applies for permission to engage in an act or
29   activity that is regulated under the provisions of this part.
30      "Associated equipment."     Equipment or a mechanical,

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 1   electromechanical or electronic contrivance, component or
 2   machine used in connection with local gaming terminals or
 3   redemption terminals, including replacement parts, hardware and
 4   software.
 5      "Background investigation."     A security, criminal, credit and
 6   suitability investigation of a person as provided for in this
 7   part that includes the status of taxes owed to the United
 8   States, the Commonwealth and a political subdivision of the
 9   Commonwealth.
10      "Board."     The Pennsylvania Gaming Control Board established
11   under section 1201 (relating to Pennsylvania Gaming Control
12   Board established).
13      "Bureau."    The Bureau of Investigations and Enforcement of
14   the board.
15      "Cash."    United States currency and coin, including cash
16   equivalent.
17      "Cash equivalent."    A ticket, token, chip, gift card,
18   voucher, billet, electronic credit, prepaid debit card or other
19   similar instrument or representation of more than nominal value
20   that the board deems a cash equivalent in accordance with this
21   part.
22      "Central control computer."     A central site computer
23   controlled by the department and accessible by the board to
24   which all local gaming terminals communicate for the purpose of
25   auditing capacity, real-time information retrieval of the
26   details of any financial event that occurs in the operation of a
27   local gaming terminal or redemption terminal, including, but not
28   limited to, coin in, coin out, ticket in, ticket out, jackpots,
29   local gaming terminal and redemption terminal door openings and
30   power failure and remote local gaming terminal or redemption

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 1   terminal activation and disabling of local gaming terminals or
 2   redemption terminals.
 3      "Cheat."    Any of the following:
 4          (1)     To defraud or steal from a player, terminal operator
 5      licensee, establishment licensee or the Commonwealth while
 6      operating or playing a local gaming terminal, including
 7      causing, aiding, abetting or conspiring with another person
 8      to do so.
 9          (2)     To alter or causing, aiding, abetting or conspiring
10      with another person to alter the elements of chance, method
11      of selection or criteria that determine:
12                 (i)    The result of a local gaming terminal game.
13                 (ii)    The amount or frequency of payment in a local
14          gaming terminal game.
15                 (iii)    The value of a wagering instrument.
16                 (iv)    The value of a wagering credit.
17          (3)     The term does not include altering a local gaming
18      terminal or associated equipment for maintenance or repair
19      with the approval of a terminal operator licensee and the
20      board.
21      "Cheating or thieving device."         A device:
22          (1)     used or possessed with the intent to be used to
23      cheat during the operation or play of a local gaming
24      terminal; or
25          (2)     used to alter a local gaming terminal without the
26      terminal operator licensee's and the board's approval.
27      "Coin-operated amusement game."         A machine that requires the
28   insertion of a coin, currency or token to play or activate a
29   game the outcome of which is predominantly and primarily
30   determined by the skill of the player and does not pay, award or

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 1   offer a prize in the form of cash or merchandise. The term does
 2   not include a slot machine, hybrid slot machine, video gaming
 3   terminal or local gaming terminal.
 4      "Compensation."   Anything of value, money or a financial
 5   benefit conferred on or received by a person in return for
 6   services rendered or to be rendered whether by the person or
 7   another.
 8      "Complimentary service."    A lodging, service or item provided
 9   to an individual at no cost or at a reduced cost that is not
10   generally available to the public under similar circumstances. A
11   group rate, including a convention and government rate, shall be
12   deemed to be generally available to the public.
13      "Conduct of local gaming."    The licensed placement, operation
14   and play of local gaming terminals under this part, as
15   authorized and approved by the board.
16      "Controlling interest."    Any of the following:
17          (1)   For a publicly traded domestic or foreign
18      corporation, the term means a person has a controlling
19      interest in a legal entity, applicant or licensee if the
20      person's sole voting rights under State law or corporate
21      articles or bylaws entitle the person to elect or appoint one
22      or more of the members of the board of directors or other
23      governing board or the person holds an ownership or
24      beneficial holding of 5% or more of the securities of the
25      publicly traded corporation, partnership, limited liability
26      company or other form of publicly traded legal entity, unless
27      this presumption of control or ability to elect is rebutted
28      by clear and convincing evidence.
29          (2)   For a privately held domestic or foreign
30      corporation, partnership, limited liability company or other

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 1      form of privately held legal entity, the term means the
 2      holding of a security in the legal entity, unless this
 3      presumption of control is rebutted by clear and convincing
 4      evidence.
 5      "Conviction."    A finding of guilt or a plea of guilty or nolo
 6   contendere, whether or not a judgment of sentence has been
 7   imposed as determined by the law of the jurisdiction in which
 8   the prosecution was held. The term does not include a conviction
 9   that has been expunged or overturned or for which an individual
10   has been pardoned or had an order of Accelerated Rehabilitative
11   Disposition entered.
12      "Corporation."    The term includes a publicly traded
13   corporation.
14      "Department."    The Department of Revenue of the Commonwealth.
15      "Eligible establishment."    An establishment that meets the
16   eligibility criteria specified in section 5513(f) (relating to
17   local gaming establishment licenses).
18      "Establishment license."    A license issued by the board
19   authorizing an establishment to permit a terminal operator
20   licensee to place and operate local gaming terminals on the
21   establishment's premises under this part and the rules and
22   regulations promulgated under this part.
23      "Establishment licensee."    A local gaming establishment that
24   holds an establishment license.
25      "Executive-level public employee."    The term includes the
26   following:
27          (1)     A deputy secretary of the Commonwealth and a member
28      of the Governor's Office executive staff.
29          (2)     An employee of the executive branch:
30                (i)   whose duties substantially involve licensing or

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 1          enforcement under this part, who has discretionary power
 2          that may affect or influence the outcome of a
 3          Commonwealth agency's action or decision or who is
 4          involved in the development of regulations or policies
 5          relating to a licensed entity; or
 6                (ii)    with law enforcement authority.
 7          (3)   An employee of a county or municipality with:
 8                (i)    discretionary powers that may affect or
 9          influence the outcome of the county's or municipality's
10          action or decision related to this part or who is
11          involved in the development of law, regulation or policy
12          relating to matters regulated under this part; or
13                (ii)    law enforcement authority.
14          (4)   An employee of a department, agency, board,
15      commission, authority or other governmental body not included
16      in paragraph (1), (2) or (3) with:
17                (i)    discretionary power that may affect or influence
18          the outcome of the governmental body's action or decision
19          related to this part or who is involved in the
20          development of regulation or policy relating to matters
21          regulated under this part; or
22                (ii)    law enforcement authority.
23      "Financial backer."     An investor, mortgagee, bondholder,
24   noteholder or other sources of equity or capital provided to an
25   applicant or licensed entity.
26      "Fund."   The Local Gaming Fund established in section 6104
27   (relating to Local Gaming Fund).
28      "Gaming employee."     Either of the following:
29          (1)   An employee of a terminal operator licensee or
30      manufacturer or supplier licensee who is not a key employee

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 1      and who the board determines is involved in the conduct of
 2      local gaming.
 3          (2)   An employee of an establishment licensee whom the
 4      establishment licensee designates as the gaming manager in
 5      accordance with this part.
 6      "Gaming manager."   An individual employed by an establishment
 7   licensee and primarily responsible for the management of local
 8   gaming at the licensed premises as required by this part. A
 9   gaming manager may not be licensed as an employee of more than
10   one licensed eligible establishment.
11      "Gaming service provider."    A person not required to be
12   licensed as a terminal operator, manufacturer, supplier or
13   establishment licensee and provides goods or services to a
14   terminal operator licensee that the board determines directly
15   relates to the operation and security of a local gaming terminal
16   or redemption terminal. The term shall not include a person that
17   supplies goods or services that, at the discretion of the board,
18   does not impact the integrity of local gaming, local gaming
19   terminals or the connection of local gaming terminals to the
20   central control computer system, including:
21          (1)   Seating to accompany local gaming terminals.
22          (2)   Structural or cosmetic renovations, improvements or
23      other alterations to a local gaming area.
24      "Gross terminal revenue."    The total of cash or cash
25   equivalents received by a local gaming terminal minus the total
26   of cash or cash equivalents paid out to players as a result of
27   playing a local gaming terminal. The term does not include
28   counterfeit cash or cash taken in a fraudulent act perpetrated
29   against a terminal operator licensee for which the terminal
30   operator licensee is not reimbursed.

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 1      "Holding company."   A person, other than an individual,
 2   which, directly or indirectly, owns or has the power or right to
 3   control or to vote a significant part of the outstanding voting
 4   securities of a corporation or other form of business
 5   organization. A holding company indirectly has, holds or owns
 6   such power, right or security if it does so through an interest
 7   in a subsidiary or successive subsidiaries.
 8      "Incentive."    Consideration, including a promotion or prize,
 9   provided to a player or potential player as an enticement to
10   play a local gaming terminal.
11      "Inducement."   Any of the following:
12          (1)   Consideration paid directly or indirectly, from a
13      manufacturer, supplier, terminal operator, procurement agent,
14      employee or another person on behalf of an applicant or a
15      licensee under this part to an eligible establishment,
16      establishment licensee, establishment licensee owner or an
17      employee of the establishment licensee, directly or
18      indirectly as an enticement to enter into a terminal
19      placement agreement with the terminal operator and solicit or
20      maintain the establishment licensee or establishment licensee
21      owner's business.
22          (2)   Cash, incentive, marketing and advertising cost,
23      gift, food, beverage, loan, prepayment of gross terminal
24      revenue and other contribution or payment that offsets an
25      establishment licensee's operational costs or as otherwise
26      determined by the board.
27          (3)   The term does not include the cost paid by a
28      terminal operator applicant or terminal operator licensee
29      related to making local gaming terminals operate at the
30      premises of an establishment licensee, including wiring and

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 1    rewiring, software updates, ongoing local gaming terminal
 2    maintenance, redemption terminals, network connections, site
 3    controllers and cost associated with communicating with the
 4    central control computer system.
 5        (4)   Structural changes necessary to segregate the local
 6    gaming area or maintain the security of local gaming
 7    terminals and redemption terminals as required by the board
 8    that do not exceed $2,500, except that any changes in excess
 9    of $2,500 must be shared equally between the terminal
10    operator applicant or terminal operator licensee and the
11    establishment applicant or establishment licensee.
12        (5)   Surveillance technology to monitor only the local
13    gaming area.
14        (6)   Operation of local gaming terminals at a licensed
15    establishment, including wiring and rewiring, software
16    updates, ongoing local gaming terminal maintenance,
17    redemption terminals, network connections, site controllers
18    and costs associated with communicating with the central
19    computer system.
20        (7)   Installation of a security and alarm system at the
21    premises of an establishment licensee that are reasonably
22    necessary to protect local gaming terminals and redemption
23    terminals outside normal business hours, provided that the
24    cost does not exceed $1,000.
25        (8)   A requirement established by the board regarding a
26    minimum standard for a local gaming area.
27        (9)   A fee established by the board to cover costs
28    associated with the mandatory employee training program
29    established under section 3706 (relating to compulsive and
30    problem gambling).

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 1      "Institutional investor."      A retirement fund administered by
 2   a public agency for the exclusive benefit of Federal, State or
 3   local public employees, investment company registered under 15
 4   U.S.C. Ch. 2D Subch. I (relating to investment companies),
 5   collective investment trust organized by banks under Part Nine
 6   of the Rules of the Comptroller of the Currency, closed-end
 7   investment trust, chartered or licensed life insurance company
 8   or property and casualty insurance company, banking and other
 9   chartered or licensed lending institution, investment advisor
10   registered under 15 U.S.C. Ch. 2D Subch. II (relating to
11   investment advisers) and any other person as the board
12   determines is consistent with this part.
13      "Intermediary."   A person, other than an individual, that is:
14          (1)   a holding company with respect to a corporation or
15      other form of business organization, that holds or applies
16      for a license under this part; and
17          (2)   a subsidiary with respect to a holding company.
18      "Key employee."   The term includes the following:
19          (1)   An individual employed by a manufacturer licensee or
20      a terminal operator licensee and designated by the licensee
21      to have primary authority to make decisions regarding the
22      conduct of local gaming.
23          (2)   A gaming manager.
24          (3)   Any other individual employed by a manufacturer
25      licensee or terminal operator licensee whom the board, in its
26      reasonable discretion, determines holds primary authority to
27      make decisions regarding the conduct of local gaming.
28      "Key employee licensee."    An individual who holds a key
29   employee license.
30      "Law enforcement authority."      The power to conduct

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 1   investigations of or to make arrests for criminal offenses.
 2      "Licensed entity."     A terminal operator licensee,
 3   establishment licensee or manufacturer licensee under this part.
 4      "Licensed entity representative."      A person, including an
 5   attorney, agent or lobbyist, acting on behalf of or authorized
 6   to represent the interest of an applicant, licensee or other
 7   person authorized by the board to engage in an act or activity
 8   that is regulated under this part regarding a matter before or
 9   that may reasonably be expected to come before the board.
10      "Licensed facility."     As defined in section 1103 (relating to
11   definitions).
12      "Licensed gaming entity."      As defined in section 1103.
13      "Licensee."      A person licensed under this part.
14      "Local gaming area."     The area of an establishment licensee's
15   premises where local gaming terminals and redemption terminals
16   are installed for operation and play.
17      "Local gaming terminal."
18          (1)   Any of the following:
19                (i)    A mechanical, computerized or electrical
20          contrivance, game, terminal, machine or other device
21          approved by the board which, upon insertion or payment of
22          cash or cash equivalent as a wager, is available to play
23          or operate one or more games, the play or outcome of
24          which is determined by any element of either chance or
25          skill, and may deliver or entitle the player to receive
26          cash or cash equivalent, or any instrument or
27          representation of value that is more than nominal, as
28          determined by the board in its sole discretion.
29                (ii)    Any video gaming terminal including those in
30          operation at a truck stop establishment as defined in

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 1          section 3102 (relating to definitions).
 2                (iii)    Associated equipment necessary to conduct the
 3          operation of the contrivance, terminal, machine or other
 4          device.
 5          (2)   The term does not include:
 6                (i)    A lottery game, as that term is defined under
 7          the act of August 26, 1971 (P.L.351, No.91), known as the
 8          State Lottery Law.
 9                (ii)    A gambling-style device or game made available
10          for play at a family entertainment center in accordance
11          with the provisions of 18 Pa.C.S. (relating to crimes and
12          offenses).
13                (iii)    A coin-operated amusement game.
14                (iv)    A device used to play multiplayer video gaming
15          competitions where the element of chance does not have a
16          material effect on the play or outcome of the game.
17                (v)    A redemption terminal or other associated
18          equipment necessary to operate or utilize a machine or
19          device described in subparagraph (i).
20                (vi)    A slot machine, a hybrid slot machine or a
21          skill slot machine currently in operation at a licensed
22          facility under Part II (related to gaming).
23                (vii)    Any game determined by the board, in its sole
24          discretion, to fall within subparagraph (i), (ii), (iii)
25          or (iv).
26      "Manufacturer."     A person that manufactures, builds,
27   rebuilds, fabricates, assembles, produces, programs, designs or
28   otherwise makes modifications to a local gaming terminal,
29   redemption terminal or associated equipment for use or play of
30   local gaming terminals in this Commonwealth.

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 1      "Manufacturer license."    A license issued by the board
 2   authorizing a manufacturer to manufacture or produce local
 3   gaming terminals, redemption terminals or associated equipment
 4   for use in this Commonwealth. The term does not include a
 5   terminal operator who manufactures redemption terminals for its
 6   own use and does not sell manufacturer terminals to other
 7   licensees.
 8      "Manufacturer licensee."    A person that holds a manufacturer
 9   license issued under this part.
10      "Minor."    An individual under 21 years of age.
11      "Municipality."    A city, township, borough or incorporated
12   town.
13      "Non-institutional lender."    An individual or entity which
14   provides financing to a terminal operator applicant or licensee
15   and is not a licensed financial institution, where such
16   financing does not involve any component of convertible debt,
17   warrants, other forms of equity or similar rights, including the
18   ability to influence or control the operations of the terminal
19   operator applicant or licensee, representation on the terminal
20   operator applicant or licensee's board of directors or its
21   equivalent, or the ability to elect one or more directors.
22      "Party."    The bureau or an applicant, licensee, registrant or
23   other person appearing of record in a proceeding before the
24   board.
25      "Person."    A natural person, corporation, foundation,
26   organization, business trust, estate, limited liability company,
27   trust, partnership, limited liability partnership, association
28   or other form of legal business entity.
29      "Player."    An individual who wagers cash or a cash equivalent
30   in the play or operation of a local gaming terminal.

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 1      "Principal."     Any of the following:
 2          (1)   An officer, director, person that directly holds a
 3      beneficial interest in or ownership of the securities of an
 4      applicant or anyone licensed under this part.
 5          (2)   A person that has a controlling interest in an
 6      applicant or anyone licensed under this part or has the
 7      ability to elect a majority of the board of directors of a
 8      licensee or to otherwise control anyone licensed under this
 9      part.
10          (3)   A procurement agent, lender or other licensed
11      financial institution of an applicant or anyone licensed
12      under this part, other than a bank or lending institution
13      which makes a loan or holds a mortgage or other lien acquired
14      in the ordinary course of business or a non-institutional
15      lender.
16          (4)   An underwriter of an applicant or anyone licensed
17      under this part or other person or employee of an applicant.
18          (5)   A terminal operator licensee, manufacturer licensee
19      or supplier licensee deemed to be a principal by the board,
20      including a procurement agent.
21      "Procurement agent."    A person that shares in the gross
22   terminal revenue or is otherwise compensated for the purpose of
23   soliciting or procuring a terminal placement agreement.
24      "Publicly traded corporation."        A person, other than an
25   individual, that:
26          (1)   has a class or series of securities registered under
27      15 U.S.C. Ch.2B (relating to securities exchanges);
28          (2)   is a registered management company under 15 U.S.C.
29      Ch. 2D Subch. I; or
30          (3)   is subject to the reporting obligations imposed by

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 1      15 U.S.C. Ch. 2B by reason of having filed a registration
 2      statement that has become effective under 15 U.S.C. Ch.2A
 3      Subch. I (relating to domestic securities).
 4      "Redemption terminal."     The collective hardware, software,
 5   communications technology and other ancillary equipment used to
 6   facilitate the payment of cash or a cash equivalent to a player
 7   as a result of playing a local gaming terminal.
 8      "Security."   As defined in the act of December 5, 1972
 9   (P.L.1280, No.284), known as the Pennsylvania Securities Act of
10   1972.
11      "Slot machine."     As defined in section 1103.
12      "State Treasurer."    The State Treasurer of the Commonwealth.
13      "Subsidiary."     As defined in section 1103.
14      "Supplier."   A person that sells, leases, offers or otherwise
15   provides, distributes or services any local gaming terminal,
16   redemption terminal or associated equipment for use or play in
17   this Commonwealth.
18      "Supplier license."     A license issued by the board
19   authorizing a supplier to provide products or services related
20   to local gaming terminals, redemption terminals or associated
21   equipment for use in this Commonwealth.
22      "Supplier licensee."     A person that holds a supplier license.
23      "Terminal operator."     A person that owns, services or
24   maintains local gaming terminals for placement and operation on
25   the premises of an establishment licensee.
26      "Terminal operator license."     A license issued by the board
27   authorizing a terminal operator to place and operate local
28   gaming terminals in an establishment licensee's premises in
29   accordance with this part and the rules and regulations
30   promulgated under this part.

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 1      "Terminal operator licensee."        A person that holds a terminal
 2   operator license.
 3      "Terminal placement agreement."          The formal written agreement
 4   or contract between an applicant for a terminal operator license
 5   or terminal operator licensee and an applicant for an
 6   establishment license or establishment licensee that establishes
 7   the terms and conditions regarding the placement of local gaming
 8   terminals and the conduct of local gaming.
 9                                    CHAPTER 53
10                                  ADMINISTRATION
11   Sec.
12   5301.     Powers of board.
13   5302.     Regulatory authority of board.
14   5303.     Temporary regulations.
15   5304.     Appeals.
16   5305.     Records and confidentiality of information.
17   5306.     Reporting.
18   5307.     Diversity.
19   5308.     Authority of department.
20   5309.     Central control computer system.
21   5310.     Department of Drug and Alcohol Programs or successor
22             agency.
23   § 5301.     Powers of board.
24      (a)     General powers.--
25             (1)   The board shall have general and sole regulatory
26      authority over the conduct of local gaming as described in
27      this part. The board shall ensure the integrity of the
28      acquisition and operation of local gaming terminals,
29      redemption terminals and associated equipment and shall have
30      sole regulatory authority over every aspect of the conduct of

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 1      local gaming.
 2            (2)   The board may employ individuals as necessary to
 3      carry out the requirements of this part who shall serve at
 4      the board's pleasure.
 5      (b)   Specific powers.--The board shall have the power and
 6   duty:
 7            (1)   To require background investigations from certain
 8      applicants and licensees.
 9            (2)   At its discretion, to issue, approve, renew, revoke,
10      suspend, condition or deny issuance or renewal of licenses or
11      other authorizations that may be required by the board under
12      this part.
13            (3)   At its discretion, to suspend, condition or deny the
14      issuance or renewal of a license or other authorization or
15      levy a fine or other sanction for a violation of this part.
16            (4)   To require prospective and licensed gaming employees
17      to submit to fingerprinting by the Pennsylvania State Police
18      or its authorized designee. The Pennsylvania State Police or
19      its authorized designee shall submit the fingerprints to the
20      Federal Bureau of Investigation for purposes of verifying the
21      identity of the individual and obtaining records of criminal
22      arrests and convictions.
23            (5)   To require prospective and licensed gaming employees
24      to submit photographs consistent with a statement of policy
25      developed by the board.
26            (6)   To determine the suitability of a person that
27      furnishes or seeks to furnish to a terminal operator licensee
28      directly or indirectly goods, services or property related to
29      the conduct of local gaming.
30            (7)   To approve an application for or issue or renew a

20250HB1141PN1260                    - 19 -
 1    license or other authorization that may be required by the
 2    board, if the board is satisfied the person has demonstrated
 3    by clear and convincing evidence that the person is of good
 4    character, honesty and integrity whose prior activities,
 5    criminal record, if any, reputation, habits and associations
 6    do not pose a threat to the public interest or the effective
 7    regulation and control of local gaming or create or enhance
 8    the danger of unsuitable, unfair or illegal practices,
 9    methods and activities in the conduct of local gaming or the
10    carrying on of the business and financial arrangements
11    incidental thereto.
12        (8)    To publish on the board's publicly accessible
13    Internet website a complete list of persons or entities who
14    applied for or held a terminal operator license,
15    establishment license or manufacturer license at any time
16    during the preceding calendar year and affiliates,
17    intermediaries, subsidiaries and holding companies thereof
18    and the status of the applications or licenses.
19        (9)    To prepare and, through the Governor, submit
20    annually to the General Assembly an itemized budget
21    consistent with Article VI of the act of April 9, 1929
22    (P.L.177, No.175), known as The Administrative Code of 1929,
23    consisting of the amounts necessary to be appropriated by the
24    General Assembly out of the accounts established under
25    section 6102 (relating to regulatory assessments) required to
26    meet the obligations under this part accruing during the
27    fiscal period beginning July 1 of the following year.
28        (10)    In the event that appropriations for the
29    administration of this part are not enacted by June 30 of any
30    year, funds appropriated for the administration of this part

20250HB1141PN1260                 - 20 -
 1    which are unexpended, uncommitted and unencumbered at the end
 2    of a fiscal year shall remain available for expenditure by
 3    the board or other agency to which the funds were
 4    appropriated until the enactment of an appropriation for the
 5    ensuing fiscal year.
 6        (11)     To collect and post information on the board's
 7    publicly accessible Internet website with sufficient detail
 8    to inform the public of persons with a controlling interest
 9    or ownership interest in an applicant for a license or
10    affiliate, intermediary, subsidiary or holding company of an
11    applicant for a license. The posting shall include:
12               (i)    If the applicant is a publicly traded domestic
13        or foreign corporation, partnership, limited liability
14        company or other legal entity, the names of persons with
15        a controlling interest.
16               (ii)    If the applicant is a privately held domestic
17        or foreign corporation, partnership, limited liability
18        company or other legal entity, the names of all persons
19        with an ownership interest equal to or greater than 5%.
20               (iii)   The name of a person entitled to cast the vote
21        of a person named under subparagraph (i) or (ii).
22               (iv)    The names of officers, directors and principals
23        of the applicant for a license or licensee.
24        (12)     Determine, designate and classify employees of an
25    applicant entity or licensed entity as key employees.
26        (13)     Designate and classify games as local gaming
27    terminals.
28        (14)     Refer potential violations of the criminal
29    provisions in this part or of 18 Pa.C.S. (relating to crimes
30    and offenses) to the Pennsylvania State Police for

20250HB1141PN1260                    - 21 -
 1      investigation and initiation of proceedings as specified in
 2      Chapter 59 (relating to enforcement).
 3   § 5302.    Regulatory authority of board.
 4      (a)    Board powers.--The board shall have the power and duty:
 5             (1)   To deny, deny the renewal of, revoke, condition or
 6      suspend a license or permit provided for in this part if the
 7      board finds in its sole discretion that an applicant,
 8      licensee or permittee or its officers, employees or agents
 9      have furnished false or misleading information to the board
10      or failed to comply with the provisions of this part or the
11      rules and regulations of the board and that it would be in
12      the public interest to deny, deny the renewal of, revoke,
13      condition or suspend the license or permit.
14             (2)   To restrict access to confidential information in
15      the possession of the board that has been obtained under this
16      part and ensure that the confidentiality of information is
17      maintained and protected.
18             (3)   To prescribe and require periodic financial
19      reporting and internal control requirements for terminal
20      operator licensees.
21             (4)   To require that a terminal operator licensee provide
22      to the board its annual financial statements, with such
23      additional detail as the board requires, which shall be
24      submitted not later than 180 days after the end of the
25      licensee's fiscal year.
26             (5)   To prescribe the procedures to be followed by
27      terminal operator licensees for a financial event that occurs
28      in the operation and play of local gaming terminals.
29             (6)   To require that an establishment licensee prohibit
30      minors from operating or using local gaming terminals or

20250HB1141PN1260                     - 22 -
 1    redemption terminals.
 2        (7)    To establish procedures for the inspection and
 3    certification of compliance of local gaming terminals,
 4    redemption terminals and associated equipment prior to being
 5    placed into use on the premises of an establishment licensee
 6    by a terminal operator licensee.
 7        (8)    To require that a local gaming terminal may not be
 8    set to pay out less than the theoretical payout percentage,
 9    which percentage shall be no less than 85% as specifically
10    approved by the board. The board shall adopt regulations that
11    define the theoretical payout percentage of a local gaming
12    terminal game based on the total value of the jackpots
13    expected to be paid by a play on a local gaming terminal game
14    divided by the total value of local gaming terminals wagers
15    expected to be made on that play or local gaming terminal
16    game during the same portion of the game cycle. The board
17    shall specify whether the calculation includes a portion of
18    or the entire cycle of a local gaming terminal game.
19        (9)    To require that an establishment license applicant
20    provide detailed site plans of its proposed local gaming area
21    for review and approval by the board for the purpose of
22    determining the adequacy of the proposed security and
23    surveillance measures. The applicant shall cooperate with the
24    board in making changes to the plans suggested by the board
25    and shall ensure that the plans as modified and approved are
26    implemented. The board shall not require a floor-to-ceiling
27    wall to segregate the local gaming area, but may adopt rules
28    to establish segregation requirements.
29        (10)    To promulgate rules and regulations governing the
30    advertisement of local gaming terminals, provided that the

20250HB1141PN1260                 - 23 -
 1    board shall require all advertisements to display or
 2    reference the toll-free problem gambling telephone number
 3    maintained by the Department of Drug and Alcohol Programs or
 4    successor agency under section 5310(b) (relating to
 5    Department of Drug and Alcohol Programs or successor agency).
 6        (11)   To enter into contracts with persons for the
 7    purposes of carrying out the powers and duties of the board
 8    under this part.
 9        (12)   To adopt regulations governing the postemployment
10    limitations and restrictions applicable to members and
11    employees of the board subject to section 6302 (relating to
12    additional board restrictions). In developing the
13    regulations, the board may consult with the State Ethics
14    Commission, governmental agencies and the Disciplinary Board
15    of the Supreme Court regarding postemployment limitations and
16    restrictions on members and employees of the board who are
17    members of the Pennsylvania Bar.
18        (13)   To review and approve all cash and cash equivalent
19    handling policies and procedures employed by terminal
20    operator licensees.
21        (14)   To promulgate rules and regulations governing the
22    placement of automated teller machines within or adjacent to
23    local gaming areas.
24        (15)   To establish mandatory age-verification training
25    and procedures for establishment licensees and their
26    employees to ensure that minors do not access a local gaming
27    area, local gaming terminal or redemption terminal.
28        (16)   To establish mandatory problem gambling training to
29    be completed by all employees of licensed entities under this
30    part.

20250HB1141PN1260                - 24 -
 1             (17)   To promulgate rules and regulations necessary for
 2      the administration and enforcement of this part.
 3      (b)    Applicable law.--Except as provided in section 5303
 4   (relating to temporary regulations), regulations shall be
 5   adopted in accordance with the act of July 31, 1968 (P.L.769,
 6   No.240), referred to as the Commonwealth Documents Law, and the
 7   act of June 25, 1982 (P.L.633, No.181), known as the Regulatory
 8   Review Act.
 9   § 5303.    Temporary regulations.
10      (a)    Promulgation.--In order to facilitate the prompt
11   implementation of this part, the board shall promulgate
12   regulations within 45 days following the effective date of this
13   subsection, which such regulations shall be deemed temporary
14   regulations and shall expire no later than two years following
15   the publication of the temporary regulations. The board may
16   promulgate temporary regulations not subject to:
17             (1)    Section 612 of the act of April 9, 1929 (P.L.177,
18      No.175), known as The Administrative Code of 1929.
19             (2)    Sections 201, 202, 203, 204 and 205 of the act of
20      July 31, 1968 (P.L.769, No.240), referred to as the
21      Commonwealth Documents Law.
22             (3)    Section 204(b) of the act of October 15, 1980
23      (P.L.950, No.164), known as the Commonwealth Attorneys Act.
24             (4)    The act of June 25, 1982 (P.L.633, No.181), known as
25      the Regulatory Review Act.
26      (b)    Expiration.--Except for temporary regulations related to
27   security and surveillance, the authority provided to the board
28   to adopt temporary regulations in subsection (a) shall expire
29   two years following the publication of the temporary
30   regulations. Regulations adopted after that date shall be

20250HB1141PN1260                      - 25 -
 1   promulgated as provided by law.
 2   § 5304.    Appeals.
 3      An applicant, licensee or permittee may appeal a final order,
 4   determination or decision of the board involving the approval,
 5   issuance, denial, revocation, nonrenewal, suspension or
 6   conditioning, including any disciplinary action, of a license,
 7   permit or authorization under this part in accordance with 2
 8   Pa.C.S. Chs. 5 Subch. A (relating to practice and procedure of
 9   Commonwealth agencies) and 7 Subch. A (relating to judicial
10   review of Commonwealth agency action).
11   § 5305.    Records and confidentiality of information.
12      (a)    Records.--The board shall maintain files and records
13   deemed necessary for the administration and enforcement of this
14   part.
15      (b)    Confidentiality of information.--
16             (1)   The following information submitted by an applicant,
17      licensee or permittee under Chapter 55 (relating to
18      application and licensure) or obtained by the board or the
19      bureau as part of a background or other investigation from
20      any source shall be confidential and withheld from public
21      disclosure:
22                   (i)    Information relating to character, honesty and
23             integrity, including family, habits, reputation, history
24             of criminal activity, business activities, financial
25             affairs and business, professional and personal
26             associations submitted to or otherwise obtained by the
27             board or the bureau.
28                   (ii)   Nonpublic personal information, including home
29             addresses, telephone numbers and other personal contact
30             information, Social Security numbers, educational

20250HB1141PN1260                        - 26 -
 1        records, memberships, medical records, tax returns and
 2        declarations, actual or proposed compensation, financial
 3        account records, creditworthiness or financial condition
 4        relating to an applicant, licensee or permittee or the
 5        immediate family thereof.
 6             (iii)    Information relating to proprietary
 7        information, trade secrets, patents or exclusive
 8        licenses, architectural and engineering plans and
 9        information relating to competitive marketing materials
10        and strategies, including customer-identifying
11        information or customer prospects for services subject to
12        competition.
13             (iv)    Security information, including risk prevention
14        plans, detection and countermeasures, emergency
15        management plans, security and surveillance plans,
16        equipment and usage protocols and theft and fraud
17        prevention plans and countermeasures.
18             (v)    Information with respect to which there is a
19        reasonable possibility that public release or inspection
20        of the information would constitute an unwarranted
21        invasion into personal privacy of an individual as
22        determined by the board.
23             (vi)    Records of an applicant, licensee or permittee
24        not required to be filed with the Securities and Exchange
25        Commission by issuers that either have securities
26        registered under 15 U.S.C. § 78l (relating to
27        registration requirements for securities) or are required
28        to file reports under 15 U.S.C. § 78o (relating to
29        registration and regulation of brokers and dealers).
30             (vii)    Records considered nonpublic matters or

20250HB1141PN1260                  - 27 -
 1        information by the Securities and Exchange Commission as
 2        provided by 17 CFR 200.80 (relating to Securities and
 3        Exchange Commission records and information).
 4              (viii)   Financial information provided to the board
 5        by an applicant or licensee.
 6        (2)   No claim of confidentiality may be made regarding
 7    criminal history record information that is available to the
 8    public under 18 Pa.C.S. § 9121(b) (relating to general
 9    regulations).
10        (3)   Except as provided in paragraph (1), no claim of
11    confidentiality may be made regarding a record in possession
12    of the board that is otherwise publicly available from the
13    board under the act of February 14, 2008 (P.L.6, No.3), known
14    as the Right-to-Know Law.
15        (4)   Except as provided in section 5904(h) (relating to
16    investigations and enforcement), the information made
17    confidential under this section shall be withheld from public
18    disclosure in whole or in part, except that confidential
19    information shall be released upon the order of a court of
20    competent jurisdiction or, with the approval of the Attorney
21    General, to a duly authorized law enforcement agency or shall
22    be released to the public, in whole or in part, to the extent
23    that the release is requested by an applicant, licensee or
24    permittee and does not otherwise contain confidential
25    information about another person.
26        (5)   The board may seek a voluntary waiver of
27    confidentiality from an applicant, licensee or permittee but
28    may not require an applicant, licensee or permittee to waive
29    the confidentiality provided under this subsection as a
30    condition for the approval of an application, renewal of a

20250HB1141PN1260                  - 28 -
 1      license or other action of the board.
 2            (6)   (i)     No current or former member and no current or
 3            former employee, agent or independent contractor of the
 4            board, the department, the Pennsylvania State Police, the
 5            Office of Attorney General or other executive branch
 6            office who has obtained confidential information in the
 7            performance of duties under this part shall intentionally
 8            disclose the information to a person, knowing that the
 9            information being disclosed is confidential under this
10            subsection, unless the person is authorized by law to
11            receive it.
12                  (ii)    A violation of this subsection shall constitute
13            a misdemeanor of the third degree.
14                  (iii)    In addition to any penalty under subparagraph
15            (ii), an employee, agent or independent contractor who
16            violates this subsection shall be administratively
17            disciplined by discharge, suspension, termination of
18            contract or other formal disciplinary action as
19            appropriate. If a current member violates this paragraph,
20            the other members shall refer the matter to the current
21            member's appointing authority.
22      (c)   Notice.--Notice of the contents of information, except
23   to a duly authorized law enforcement agency pursuant to this
24   section, shall be given to an applicant or licensee in a manner
25   prescribed by the rules and regulations adopted by the board.
26      (d)   Information held by other agencies.--Files, records,
27   reports and other information in the possession of the
28   department pertaining to an applicant, licensee or permittee
29   shall be made available to the board as may be necessary to the
30   effective administration of this part.

20250HB1141PN1260                       - 29 -
 1   § 5306.    Reporting.
 2      (a)    Report by board.--Beginning October 1, 2026, and every
 3   year thereafter, the annual report submitted to the Governor and
 4   the General Assembly by the board under section 1211 (relating
 5   to reports of board) shall include information on the conduct of
 6   local gaming for the previous calendar year:
 7             (1)   Total gross terminal revenue.
 8             (2)   Total number of terminal operator licensees,
 9      establishment licensees and manufacturer licensees.
10             (3)   All taxes, fees, fines and other revenue collected
11      and, where appropriate, revenue disbursed. The department
12      shall collaborate with the board to carry out the
13      requirements of this paragraph.
14             (4)   Other information related to the conduct of local
15      gaming that the board deems appropriate.
16      (b)    Participation.--The board may require licensees to
17   provide information to the board to assist in the preparation of
18   the report under subsection (a).
19   § 5307.    Diversity.
20      (a)    Intent.--It is the intent and goal of the General
21   Assembly that the board promote and ensure diversity in the
22   gaming activities authorized under this part.
23      (b)    Reports by applicants.--An applicant for a terminal
24   operator license shall submit a diversity plan to the board. At
25   a minimum, the diversity plan shall contain a summary of:
26             (1)   All employee recruitment and retention efforts
27      undertaken to promote the participation of diverse groups in
28      employment with the applicant if issued a terminal operator
29      license.
30             (2)   Other information deemed necessary by the board to

20250HB1141PN1260                     - 30 -
 1      assess the diversity plan.
 2      (c)     Review.--The board shall conduct a review of a diversity
 3   plan. When reviewing the adequacy of a diversity plan, the board
 4   shall take into consideration the total number of local gaming
 5   terminals the applicant proposes to operate within this
 6   Commonwealth.
 7      (d)     Periodic review.--The board shall periodically review
 8   the terminal operator licensee's diversity plan and recommend
 9   changes.
10      (e)     Applicant or licensee responsibility.--An applicant or
11   licensee shall provide information as required by the board to
12   enable the board to complete the reviews required under
13   subsections (c) and (d).
14   § 5308.    Authority of department.
15      (a)     Powers.--The department shall administer and collect
16   taxes imposed under this part and interest imposed under section
17   806 of the act of April 9, 1929 (P.L.343, No.176), known as The
18   Fiscal Code, and promulgate and enforce rules and regulations to
19   carry out its prescribed duties in accordance with this part,
20   including the collection of taxes, penalties and interest
21   imposed by this part.
22      (b)     Application of rules and regulations.--The department
23   may prescribe the extent, if any, to which any rules and
24   regulations shall be applied without retroactive effect. The
25   department shall prescribe the forms and the system of
26   accounting and recordkeeping to be employed and through its
27   representative shall at all times have power of access to and
28   examination and audit of any equipment and records relating to
29   all aspects of the operation of local gaming terminals and
30   redemption terminals under this part.

20250HB1141PN1260                    - 31 -
 1      (c)    Procedure.--For purposes of implementing this part, the
 2   department may promulgate regulations in the same manner in
 3   which the board is authorized as provided in section 5303
 4   (relating to temporary regulations).
 5      (d)    Additional penalty.--A person that fails to timely remit
 6   to the department or the State Treasurer amounts required under
 7   this part shall be liable, in addition to liability imposed
 8   elsewhere in this part, to a penalty of 5% per month up to a
 9   maximum of 25% of the amounts ultimately found to be due, to be
10   recovered by the department.
11      (e)    Liens and suits for taxes.--The provisions of this part
12   shall be subject to the provisions of sections 242 and 243 of
13   the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform
14   Code of 1971.
15   § 5309.    Central control computer system.
16      (a)    Control.--To facilitate the auditing and security
17   programs critical to the integrity of local gaming terminals in
18   this Commonwealth, the department shall have overall control of
19   local gaming terminals which shall:
20             (1)   Be linked, at an appropriate time to be determined
21      by the department, to a central control computer under the
22      control of the department and accessible by the board to
23      provide auditing program capacity and individual terminal
24      information as approved by the department.
25             (2)   Include real-time information retrieval and terminal
26      activation and disabling programs.
27      (b)    System requirements.--The central control computer
28   employed by the department shall provide:
29             (1)   A fully operational Statewide local gaming terminal
30      control system that has the capability of supporting all

20250HB1141PN1260                     - 32 -
 1    local gaming terminals permitted to be in operation under
 2    this part.
 3        (2)   The employment of a widely accepted gaming industry
 4    protocol to facilitate a local gaming terminal manufacturers'
 5    ability to communicate with the Statewide system and must
 6    allow for remote software updates of the local gaming
 7    terminals.
 8        (3)   The delivery of a system that has the ability to
 9    verify software, detect alterations in payout and detect
10    other methods of fraud in all aspects of the operation of
11    local gaming terminals.
12        (4)   The delivery of a system that does not alter the
13    statistical awards of local gaming terminal games as designed
14    by the manufacturer and approved by the board.
15        (5)   The delivery of a system that provides redundancy so
16    that each component of the network is capable of operating
17    independently by the department if any component of the
18    network, including the central control computer, fails or
19    cannot be operated for any reason as determined by the
20    department, and to assure that all transactional data is
21    captured and secured. Costs associated with a computer system
22    required by the department to operate within a local gaming
23    area, whether independent or as part of the central control
24    computer, shall be paid by the terminal operator licensee.
25    The computer system shall be controlled by the department and
26    accessible to the board.
27        (6)   The ability to meet all reporting and control
28    requirements as prescribed by the board and department.
2

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