About two years ago, the Governor of Pennsylvania signed a gambling bill into law; this bill allows gambling expansion to take place in the state.
The bill at which Governor Tom Wolf signed into law also allows the addition of online gambling and other acts associated with gambling. This gave 10 out the state’s 12 existing and operating casinos the chance to bid for a license to operate satellite casinos.
However, with the look of things, it seems the state of Pennsylvania would love to make more additions to the state’s gaming portfolio. After an announcement was recently made by the Pennsylvania Gaming Control Board (PGCB) stating that it has passed approval on the proposal to make an allocation for additional mini-casino licenses to be awarded.
The press release by (PGCB)
Following the official press release form of the Pennsylvania Gaming Control Board (PGCB).
” …in September the PGCB will hold an auction for the right to apply for a Category 4 satellite casino license, the first of which is scheduled to take place on September 4, 2019, at 10 am, just ahead of its regularly scheduled meeting. The agency’s Public Hearing Room situated on the 2nd Floor of Strawberry Square in Harrisburg will be the site of the auction. All current holders of a Category 1, 2 or 3 casino licenses in Pennsylvania are eligible to participate in this auction.”
Starting from 10 a.m. on the 4th of September 2019, the agency will start accepting and considering proposals prior to its regularly scheduled meeting.
According to reports, the required minimum bid needed to win the bidding war still remains the same. The Gaming Expansion Act 42 signed in 2017 attached a minimum amount of $7.5 million as a required amount to win a bid.
However, the eventual winner of the bidding war will also have to pay an additional $2.5 million in fees if the Venture decides to make arrangements for another 30 table games. Note that this will allow the addition of 10 more tables after successfully completing a year of operation. Another entire certificate will be required to operate additional tables.
The announcement on the whole arrangement made after series of deliberation was made by the agency. The collective nod was given to go ahead with the auction process which started in January and ended in April of the same year (2018). The auction produced five successful bids which amounted into $127 million; all proposals were offered in a bid to win the right to obtain on a Category 4 license. In fact, the agency awarded the winners with bid price which included:
- Mountainview Thoroughbred Racing Association, LLC, the operator of Hollywood Casino at Penn Course, is seeking a license to construct a satellite casino in Springettsbury Township, York County ($50,100,000)
- Stadium Casino, LLC, which is constructing a Category 2 casino Philadelphia, is seeking a license to construct a satellite casino in Hempfield Township, Westmoreland County ($40,100,005)
- Mount Airy #1, LLC which operates the Mount Airy Casino Resort, is seeking a license to construct a satellite casino in Big Beaver Borough, Beaver County ($21,188,888.88)
- Greenwood Gaming and Entertainment Inc., which operates the Parx Casino, is seeking a license to construct a satellite casino in Shippensburg Township, Cumberland County ($8,111,000)
- Mountainview Thoroughbred Racing Association, LLC was a successful bidder a second time and was awarded a Category 4 license on June 12, 2019, to construct a satellite casino in Caernarvon Township, Berks County ($7,500,003).