The Pennsylvania Gaming Control Board (PGCB) yesterday made known the process by which it selected five stand-alone casino operators from thirteen applicants. There were five applicants for the two Philadelphia licences, one of which was the Keystone Development Partners,LLC/TrumpStreet proposed development for mostly vacant land in an industrial area away from the Delaware River, to be called TrumpStreet Casino and Entertainment Complex.

For all his trumpeted business acumen, the reason that the Trump project was not selected by the PGCB seems to have had much to do with the three first principles of success: location, location, location. Comments from opponents to the scheme named the possible impact on a school and residents of Abbotsford House nearby. The chosen site was the only project that was not on the Delaware River, being instead in a mixed industrial and residential neighbourhood with few other attractions.

The Keystone application estimated that 3,000 slot machines at the site should realise US$399.4 million annually, 28.5% higher than the US$310.8 million estimated by the PGCB Financial Suitability Task Force. HSP, an eventual winner, projected US$320.3 million, just 3% higher than the Task Force evaluation. The other licence winner, Foxwoods Casino, estimated 8.7% higher than the Task Force at US$338 million annually.

In summing up, the PGCB concluded that the winning applicants’ projects stood out in terms of the synergy provided by the riverfront locations, proximity to City Center and downtown Philadelphia. The Board mentions the fact that the planned developments are away from primary residential areas, separated by Interstate 95 and accessible from there. The distance between the chosen locations was thought to have the advantage of spreading patron traffic. As might have been expected, location seems to have been the deciding factor for the PGCB. (E-02.02.07)

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