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January 7, 2011 | By Jim Panyard | Posted in Legislature

Schroder Promises Tough Oversight On Gambling

Wants open bidding on vacated Foxwoods license

The state’s gambling industry will be under much stricter scrutiny by the General Assembly if the new head of the House Gaming Oversight Committee has his way.

State Rep. Curt Schroder (R-Chester) said Friday, “We intend to give real meaning to the word ‘oversight,’” contending the previously Democrat-led committee was too lax in looking at the industry and state Gaming Control Board (GCB).

Mr. Schroder also said he will introduce legislation for the now-vacant casino license once held by Foxwoods for a location in the city of Philadelphia to be open for bidding with a minimum floor of $50 million. The state’s other licenses were sold for a flat $50 million.

He said whether the license goes for another Philadelphia casino plan or elsewhere in the state “is something the market should decide.”

“The law is currently silent on the rebidding of a vacated license,” he said.

Despite several years of effort, the Foxwoods group was ultimately unable to put together a package to develop a casino. The GCB revoked the license in December.

The Oversight Committee will also examine whether the duties of the GCB’s investigatory arm, the Bureau of Industry Enforcement, should be turned over to state law enforcement agencies, most likely the Pennsylvania State Police, Mr. Schroder said.

The lawmaker also questioned whether the “fiduciary duties” of the GCB should be placed with another entity. He said the board has appeared to be more concerned with industry profits than with regulation.

“That situation may have improved somewhat recently, but under [former GCB chairman Tad] Decker, the term ‘fiduciary duty’ was prostituted,” Mr. Schroder said.

Asked about four GCB positions up for renewal by the end of January and whether he believed the current members should be reappointed, Mr. Schroder said, “That is not my decision.”

The representative also said he wrote a letter of recommendation to Gov.-elect Tom Corbett for former state Rep. Jerry Birmelin, a Pike County Republican, for a possible GCB spot.

The board positions up for renewal are to be nominated by Mr. Corbett, Senate President Pro Tem Joe Scarnati (R-Jefferson), Speaker of the House Sam Smith (R-Jefferson) and House Minority Leader Frank Dermody (D-Pittsburgh).

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Jim Panyard is a reporter for PA Independent. He can be reached at Jim@PAIndependent.com.

View all posts by Jim Panyard»