As negotiations continue in Pennsylvania to get the state budget approved, over ten days after a ‘breakthrough’ was announced, the Philadelphia US$355 million slots development SugarHouse Casino is finally to break ground 8 October after three years of delays and protests. The afternoon ceremony, which is not open to the public, will be attended by Mayor Michael Nutter and City Councillors. The chairman of the Pennsylvania Gaming Control Board will be present. An interim facility will open, housing 1,700 slot machines, within ten months.

The latest slots operation to open in Pennsylvania is the Rivers Casino in Pittsburgh but so far it is failing to live up to expectations with regards to revenue. Opened 9 August, the casino has been downgraded in Standard & Poor’s credit rating from B to B- with the prospect of a further downgrade if operating performance does not improve. Rivers features 3,000 slot machines, five restaurants and a 1,000 seat outdoor amphitheatre. So far this month the average taxable win/slot/day in Pennsylvania is US$243.61 but at Rivers casino it is US$193.36. Of the nine operations now running in the state only Mount Airy has a lower average at US$178.06.

Budget negotiations are not being helped by the ongoing disputes over table games. It is still undecided how to implement the introduction of table games such as blackjack and poker into Pennsylvania’s slot machine operations. There is also a possible new tax on small games of chance although this proposal has its opponents. Talks are centered on how to handle casinos at resorts, the fee to charge for table games licenses and the rate at which they will be taxed. Governor Rendell has stressed that unless the tax level is sufficient to balance the budget he will exercise his power of veto. (E-09.29.09)

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