Pennsylvania an attractive proposition for investors

FORGING AHEAD IN GAMBLING STAKES

It is said that a boost to the economy will make it harder for expanded gaming to be approved in several US states. Gambling bills and amendments thought likely to gain approval in states such as Kentucky and Kansas now seem to face indefinite delays. Ohio is licensing four new casinos but it is Pennsylvania where the gambling industry is set for a major expansion.

Racinos, resort casinos and stand-alone slots parlours make up the fourteen permitted licences, and some major players are in the bidding. Applications for licences have been made by groups that include Harrah’s Entertainment for Philadelphia, Pittsburgh and Chester; Las Vegas Sands for Bethlehem; Boyd Gaming for Limerick; Pinnacle and Trump Entertainment Resorts for Philadelphia; Isle of Capri for Pittsburgh; Aztar for Allentown; and Penn National Gaming for Grantville. The tribes that operate the big Connecticut casinos, Mohegan Sun and Foxwoods, are also involved in licence bids in Pennsylvania.

The Pennsylvania Gaming Control Board has already received local impact studies from all the projects and has scheduled public hearings during April and May. These will start at the controversial Gettysburg site on 5 April and end on 3 May in Somerset. The licence applicants will be given no more than 40 minutes to make their play and local community groups will each get 10 minutes to put their case. Individuals from the general public will have just 3 minutes to speak. The hearings will become part of Evidentiary Record.

It is estimated that slot machine operations in Pennsylvania will generate around US$3 billion annually. Gaming tax has been set at 52%, netting a substantial amount for state coffers. The first racino operations, there were six applications for seven licences, could be up and running before the end of the year. The stand-alone (5) and resort (2) operations are expected to take longer to open.
(E-03.27.08)

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