In Pennsylvania slots projects continue to move ahead, upgrading facilities from temporary to permanent. Last week the Pennsylvania Gaming Control Board (PGCB) announced that current slots projects scheduled to be operational by July 2009 could result in a 40% increase in revenues and create nearly 3,000 more jobs.

Kevin Hayes, Director of Gaming Operations, told the Board that The Meadows Racetrack and Casino and Mohegan Sun at Pocono, along with the two new stand-alone facilities - Sands Bethworks in Bethlehem and Majestic Star Casino in Pittsburgh - may produce an increase in gross terminal revenue of US$650 million. Gaming tax collection would then increase on an annualized basis by nearly US$360 million, based on the 55% tax rate.

“Within the next 15 months, the Commonwealth will see an expansion of gaming which nearly parallels what we saw in the combined years of 2006 and 2007,” Hayes reported. “In particular, the tremendous scope and size of two new projects, Sands Bethworks and Majestic Star, will drive this significant increase.”

By mid-2009 all licensed facilities are scheduled to have a combined 24,123 slot machines in operation, with estimated gross terminal revenue of approximately US$2.28 billion. Hayes told the Board that the four projects will produce approximately 3,750 new permanent jobs along with 4,700 construction-related jobs. Currently, the seven operating facilities employ 6,000 people.

These figures do not include additional projects licensed but not scheduled to open until after July 2009. The permanent facility at Philadelphia Park Casino should open in late 2009 and the two Philadelphia projects, SugarHouse Casino and Foxwoods Casino, have yet to break ground. There remain three other slots operator licences available and the PGCB begins the public hearing process on applications later this week.

Board Chairman Mary DiGiacomo Colins said, “The progress made to build a new revenue-producing industry in Pennsylvania within just a few short years has been tremendous. At the same time, there is no shortage of hard work ahead for our staff and the operators as we strive to fully realize the mandate of the Legislature and the Governor to help build and regulate safe operations that will produce sustainable revenues.” (E-04.28.08)

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