(The Center Square) – An investigation launched by Allegheny County District Attorney Stephen Zappala into no-bid contracts and spending irregularities in Pittsburgh under the administration of former Mayor Ed Gainey has led to a call that Gainey resign from the Pennsylvania Gaming Control Board.
Republican state Rep. Russ Diamond of Lebanon County said the resignation is necessary in order to “avoid the appearance of impropriety” at the board. Diamond is the top Republican on the House Gaming Oversight Committee.
“As the regulator of a multi-billion dollar industry in which the Commonwealth is a major stakeholder, the Gaming Control Board needs to stay above the fray in any type of potential scandal,” Diamond said. No one is passing judgment on Gainey, Diamond said.
The investigation into spending within Gainey’s mayoral administration in Pittsburgh dates back at least to early this year. This week, a spokesperson for Zappala confirmed the investigation is continuing and said the office could not comment further.
No one has been charged.
Gainey makes $145,000 a year as a Gaming Control Board member. Asked for comment and specifically for a connection with Gainey, the agency said it would have no comment.
Gainey was a state lawmaker for nine years and became mayor of Pennsylvania’s second-largest city in 2022. His bid for re-election ended with his defeat by Corey O’Connor in the Democratic primary last year.
Shortly after he left office early this year, Gainey was appointed to the state gaming board by House Speaker Joanna McClinton.
A March affidavit filed in Allegheny County Court by a detective in Zappala’s office led to the issuance of a search warrant. The affidavit was sealed by a judge’s order for a period of months.
“Under the former Gainey administration, specific procedures were being exploited to the detriment of the City of Pittsburgh by funding specific organizations without following proper procedures,” the affidavit said. Those procedures, the document said, included no-bid contracts and helped push the city into financial distress.
The affidavit recounted statements made by O’Connor soon after he took office. The new mayor said his administration was re-opening Pittsburgh’s 2026 budget because of serious concerns about its accuracy and about five-year financial projections.
The affidavit said, “Despite last year’s projections that showed the City of Pittsburgh would close 2025 with a small surplus, current indications are that there was an $8.6 million deficit. It was revealed by the current administration that certain areas were ‘underfunded, improperly funded, or not funded at all."”
Among other things, the search warrant sought city records related to the city’s relationship with more than a dozen organizations.
The state Gaming Control Board, an independent agency, is charged with the regulation of casino and internet-based gambling, sports wagering, video gaming terminal gambling, and fantasy sports games.
