Pennsylvania - Gambling in AmericaPennsylvania has had a wide variety of legalized gambling activities for many decades. But even before wagering on harness racing and thoroughbred racing was authorized in the 1930s, there was an established illegal network of numbers games and casino games. A lottery was established in 1971, and charity bingo was given the stamp of approval by government in 1981. Illegal numbers gambling persisted. This was evidenced by the “666” scandal that touched the state’s legal lottery in 1979. A Pittsburgh television station that announced lottery results controlled the Ping-Pong balls used for the state lottery’s numbers game. A dishonest person approached the television announcer and made an offer that should have been refused. But instead the television announcer allowed the dishonest person access to the lottery balls; that person then applied weights (using a paint substance) to all but the fours and sixes. A network of confederates then traversed the state making bets on all three-number combinations of fours and sixes. There were eight such combinations. Unfortunately, 666 came up. This is a very popular number for bettors in that it has biblical significance. Not only the network of dishonest people but also the general population bet heavily on the number. But the population bet on the numbers with illegal gamblers as well; and the illegal gamblers used the state-selected number as their winning number. The state and the illegal game lost more money to winners on that day than they had ever lost before or since that time. The illegal gamblers became suspicious, as there were rumors that people were betting heavily on certain numbers in certain locations. In a case of good and evil working together to protect the integrity of the game, the illegal numbers organization launched its own investigation, tracked down people in the network, and then informed the state police, who in turn were led to the television announcer. He and the others received prison sentences for their involvement. There were two consequences of the “666” scandal that merit consideration. First, there was no state oversight of the rigged game; after all the state ran the game. After cheating was discovered, there was no attempt to close down the game. The numbers game continued without any interruption. Second, the state made no attempt to reimburse the losing players who were cheated in the scandal.
From the moment legal casinos opened in Atlantic City, Pennsylvania could feel the dollars flowing out of the state. Entrepreneurs found it easy to convince many government officials that Pennsylvania had to legalize casinos in order to keep gambling revenues in the state. There were several campaigns for casinos in the 1980s and 1990s. The first major effort focused upon establishing casinos in three Pocono Mountains resort area.
Caesars World was a campaign sponsor, as they had purchased four resort properties in the area. Wayne Newton also owned a Pocono property. Several polls and advisory votes were taken in the region, and in all cases the residents rejected the idea. The governor also offered his opposition. Legislative bills for casino failed in 1981, 1982, and 1983.  In the early 1990s, following Iowa’s lead, several bills were introduced to permit riverboat casinos. One plan had 20 boats in the state, with from 5 to 10 in Philadelphia, 5 in Pittsburgh, 2 in Erie, and others in the northeast part of the state. The plan failed to get a floor vote in either house of the legislature. In 1999 the boat plan was attached to a plan for slot machines in bars and taverns and at tracks. The governor said he would approve the bills if the legislature called for a popular referendum. Three bills appeared headed for passage, calling for three separate statewide votes. Opponents, however, maneuvered votes to defeat the measure, and Pennsylvania exited the century with no casinos or machine gaming.