Operator News
US – Sands loses out on $9.9m mini-casino after pitching it too close to Mount Airy
By Phil - 21 February 2018
In a dramatic turnaround, The Pennsylvania Gaming Control Board’s Executive Director Kevin O’Toole has annulled the earlier award to Sands Bethworks Gaming for a Category 4 casino location, claiming it intruded upon the reserved area of a previously secured Category 4 location held by Mount Airy.
Given that the location is non-conforming to Act 42’s requirements, the bid has been therefore invalidated and Executive Director O’Toole will proceed to consider the award for the fourth Category 4 casino auction to the second and only other bidder, Greenwood Gaming and Entertainment, Inc.
Greenwood Gaming and Entertainment, which operates the Parx Casino in Bucks County, gained the award in the fourth auction in a process that establishes the order in which the winning bidders select a location for a Category 4 casino.
Greenwood Gaming and Entertainment’s bid amount of $8,111,000 secured a location for placement of a Category 4 casino in a 15-mile radius area with a center point in South Newton Township in Cumberland County.
The application will contain the precise site of the proposed Category 4 casino, as well as detailed plans and information concerning the proposed building plan, amenities, employment projections and other related information. Once the application is received and determined to be complete, the Board will post public information about the project on its website for interested persons to review.
A Category 4 Slot Machine License would permit the entity to operate between 300 and 750 slot machines. The entity could also petition for permission to initially operate up to 30 table games for an additional fee of $2.5 million with the capability of adding an additional 10 tables games after its first year of operation.
Las Vegas Sands thought it had won the auction for Pennsylvania’s fourth mini-casino auction with a bid of nearly $9.9m and had earmarked Hempfield Township, Mercer County, for its planned satellite casino, close to the border with Ohio, giving Las Vegas Sands a presence in eastern and western Pennsylvania.
Sands Bethlehem President and Chief Operating Officer Brian Carr said before the annulment: “It’s an exciting opportunity. Las Vegas Sands is really excited to partner with the state in any way. Pennsylvania remains a great gaming market, and we believe some parts of the state are actually under served.”
Joseph Weinert, Senior Vice President of Spectrum Gaming Group, said: “This is a real departure for Las Vegas Sands in terms of the type of facility they’re developing. They are a developer of renowned resorts, and even Sands Bethlehem does not fit that, but it has evolved into a significant destination. So having a so-called mini-casino is a real change of pace for this company and is somewhat surprising.”
