Slot Machine Middlemen

Pennsylvania stands apart in its laws that don’t allow slot machine manufacturers to sell directly to casinos—instead manufactures use what a called middlemen to distribute slot machines. It must be great to be the middlemen because the manufactures sell the slot machines to these in-state distributors who then mark-up the prices and sell them to the casinos.

And not just anyone can get a distributors license from the state—the Gaming Control Board chooses who will receive these slot machine distributor licenses. The idea behind these slot machine middlemen is to create more jobs in the state. But not everyone agrees with this idea, many see folly in this middleman—opponents are saying that this legislature just gives crooked politicians the opportunity to get personal money out of the slot machine industry.
 

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