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After heated debate on the reasons for requiring slot
machine middlemen in Pennsylvania, it looks like that specific requirement
could be removed from Pa. law—the question is how soon and what slot machine
middlemen will be affected? The bill to remove the slot machine middlemen
would allow slot machine casinos to deal directly with the slot machine
manufactures rather than forcing them to go through slot machine suppliers
(often termed slot machine middlemen, or just middlemen). This issue is
raised primarily by the Republican party in addition to many industry
critics who assert that the provision largely benefits political insiders
rather than the Pennsylvania work-force at large—which was how the
requirement was touted when the Democratic party presented the issue prior
to its approval.
Currently there are a few slot machine middlemen companies concerned about
the long term solvency of their company if the law goes into effect. Bally
Technologies Inc., based out of Las Vegas, has announced that it will not
use the slot machine middlemen to conduct business in Pennsylvania if it is
not required. Similarly, IGT—based out of Reno, is the largest slot machine
manufacturer in the nation and the contracted company that IGT uses to sell
slot machines in Pa. announced they would reevaluate the use of the slot
machine middlemen “from a business standpoint” if the law changes according
to Ed Rogich of IGT.
These two companies are not alone in their change in company policies if the
laws change, and that is sad news for businessmen like Edward J. Hannon Jr.,
co-owner of TDN Money Systems—a company with slot machine supplying
connections for some of the major casinos in Pa.; with the change in
restrictions TDN would most assuredly loose the supplying rights to casinos
like Harrah’s Chester, Philadelphia Park, the Nemacolin Woods resort among
others.
For these middlemen, this sudden change-of-heart seems cruel, but at least
the bill will cover the licensing costs these companies paid—at $25,000 for
a license it’s a small but definite compensation.
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