Most of Pennsylvania's 10 operating casinos have been open for nearly 2 years. Last month the 10 casinos in Pennsylvania grossed $264.3 million from slots and table games.
However, the casinos have not yet begun repaying a combined $63.9 million in loans from the state...and they're not legally required to do so...yet.
Michael Smith, spokesman for Pennsylvania Treasurer Rob McCord, says the loans were made from the Property Tax Relief Reserve Fund between 2007 and 2010 to help get the industry up and running.
A June 30 deadline is looming, not to begin paying back the loans, but rather for the Pennsylvania Gaming Control Board to adopt a repayment plan.
"The law does say the casinos are not obligated to begin repaying the loans until the 11th facility is up and running."
However, McCord believes that could be another year or two for the 11th casino to begin operations. That's because in December the Gaming Control Board revoked the license of the proposed Foxwoods Casino four years after awarding the license and without the facility ever getting started.
The law says the repayment plan has to be adopted by the end of next month...
"Treasurer McCord's proposal is the next day on July 1 we should amend the fiscal code and require the 10 operating casinos up and running today to start repaying those loans," says Smith.
McCord, as Treasurer, is a non-voting member of the Control Board and is the legal custodian of the Property Tax Relief Reserve Fund. McCord believes that a further delay in repaying the loans creates the risk that not enough funds may be available to trigger property tax relief funds next year.
Amending the fiscal code is up to the legislature.
Showing posts with label gambling. Show all posts
Showing posts with label gambling. Show all posts
Thursday, May 26, 2011
Wednesday, May 25, 2011
Senator: Prohibit Gambling with Unemployment Funds
A state senator is chagrined that the latest Unemployment Compensation bill passed the Pennsylvania Senate without her amendment to bar the use of such funds at casinos.
Senator Lisa Boscola says her amendment would have prevented beneficiaries from using their Unemployment Compensation card at any ATM machine inside a casino.
Boscola says a similar measure is in place for state welfare cards, and could easily be implemented by the Pennsylvania Gaming Control Board.
The Northampton County Democrat says she thinks gambling with unemployment funds is a misuse of the program, which is paid into by employers. Boscola says she doesn’t think preventing cash withdrawals at casino ATMs is restricting anyone’s liberty.
Boscola says she had previously introduced the legislation as a stand-alone bill, but that has been in committee since the last legislative session. She says she’s going to increase her public outreach efforts and keep trying to get the original bill passed.
“Part of this is education, because once people know that individuals are using this card at the casinos, they’re getting very upset. But not enough people know right now,” says Boscola. “As I make people more aware, I’m hoping that more and more senators say, ‘You know what, this is a problem and we need to correct it.’”
Boscola says she thinks there are two reasons the amendment didn't make it through the Senate vote: first, because it would have delayed an urgent bill; second, because the state's gaming industry vehemently opposed it.
Senator Lisa Boscola says her amendment would have prevented beneficiaries from using their Unemployment Compensation card at any ATM machine inside a casino.
Boscola says a similar measure is in place for state welfare cards, and could easily be implemented by the Pennsylvania Gaming Control Board.
The Northampton County Democrat says she thinks gambling with unemployment funds is a misuse of the program, which is paid into by employers. Boscola says she doesn’t think preventing cash withdrawals at casino ATMs is restricting anyone’s liberty.
Boscola says she had previously introduced the legislation as a stand-alone bill, but that has been in committee since the last legislative session. She says she’s going to increase her public outreach efforts and keep trying to get the original bill passed.
“Part of this is education, because once people know that individuals are using this card at the casinos, they’re getting very upset. But not enough people know right now,” says Boscola. “As I make people more aware, I’m hoping that more and more senators say, ‘You know what, this is a problem and we need to correct it.’”
Boscola says she thinks there are two reasons the amendment didn't make it through the Senate vote: first, because it would have delayed an urgent bill; second, because the state's gaming industry vehemently opposed it.
Probe Finds Political Pressure On Gaming Decisions
A two-year grand jury investigation of Pennsylvania’s Gaming Control Board culminated in a scathing 102-page report, but no recommendations for criminal charges.
The report alleges political pressure from lawmakers and board members led to intentionally lax investigations of casino license applicants, hires for well-connected but poorly-qualified job candidates, and rushed decisions. It says board officials ran interference for preferred license applicants, leading to incomplete background checks by its Bureau of Investigation and Enforcement. The grand jury says the organization “engaged in activities which eroded, at a minimum, this grand jury’s confidence in the system.” It "failed to thoroughly protect the public from unlawful gaming practices; failed to maximize potential new revenue to the commonwealth to support property tax relief.”
Longtime board critic Mike Vereb, a Montgomery County House Republican, said the report shows the need for reform. “This is a damning report. And it doesn’t indict people, but it indicts the process,” he said. “And we have an obligation – and the people in this building better start getting the message – we have an obligation to fix the law.”
Vereb sponsored a House bill removing the Bureau of Investigation and Enforcement, the board’s investigative arm, from under the agency’s control. The report recommended the change, along with 20 other suggestions, including annual independent audits; online posting of contracts and right-to-know requests; stricter guidelines for gubernatorial appointees; a decrease in the amount of executive sessions conducted by the board; and full public transcripts of the sessions that do take place.
In a statement, Board Chair Greg Fajt called the report “a rehash of old news,” and a waste of tax money. "The Board has steadfastly and repeatedly said that we did our work well, we have protected the public, and the citizens of Pennsylvania are reaping tremendous dividends from our work…After this grand jury met for more than 2 years, there were no arrests, no presentments, no indictments. They found no criminal activity because there was, in fact, no criminal activity to be found."
The report alleges political pressure from lawmakers and board members led to intentionally lax investigations of casino license applicants, hires for well-connected but poorly-qualified job candidates, and rushed decisions. It says board officials ran interference for preferred license applicants, leading to incomplete background checks by its Bureau of Investigation and Enforcement. The grand jury says the organization “engaged in activities which eroded, at a minimum, this grand jury’s confidence in the system.” It "failed to thoroughly protect the public from unlawful gaming practices; failed to maximize potential new revenue to the commonwealth to support property tax relief.”
Longtime board critic Mike Vereb, a Montgomery County House Republican, said the report shows the need for reform. “This is a damning report. And it doesn’t indict people, but it indicts the process,” he said. “And we have an obligation – and the people in this building better start getting the message – we have an obligation to fix the law.”
Vereb sponsored a House bill removing the Bureau of Investigation and Enforcement, the board’s investigative arm, from under the agency’s control. The report recommended the change, along with 20 other suggestions, including annual independent audits; online posting of contracts and right-to-know requests; stricter guidelines for gubernatorial appointees; a decrease in the amount of executive sessions conducted by the board; and full public transcripts of the sessions that do take place.
In a statement, Board Chair Greg Fajt called the report “a rehash of old news,” and a waste of tax money. "The Board has steadfastly and repeatedly said that we did our work well, we have protected the public, and the citizens of Pennsylvania are reaping tremendous dividends from our work…After this grand jury met for more than 2 years, there were no arrests, no presentments, no indictments. They found no criminal activity because there was, in fact, no criminal activity to be found."
Tuesday, March 22, 2011
Legislature Considers Shifting Gaming Investigative Duties
Pennsylvania’s acting Attorney General supports a bill moving an investigative unit from the Gaming Control Board to his department, but tells lawmakers the transition would be difficult.
The measure, which has passed the House, would move the Bureau of Investigations and Enforcement (BIE) into the Attorney General’s office. The unit conducts background checks on casino license applicants, among other duties.
Acting AG Bill Ryan told the Senate Appropriations Committee it makes sense to move BIE to his department or the State Police, but conceded the switch would take time and cost money. “To me, and this is my opinion, it would best be done from the ground up,” he said. “I honestly don’t know, Senator, if we could just graft what’s there to our office. I see a lot of issues that could be problematical if that was done.”
The Gaming Control Board says the transition would cost 2 million dollars. Sponsor Mike Vereb, a Republican, is skeptical of the estimate. “They are saying that’s because of computer systems and hardware,” he said. “Let it be known that there is no independent assessment of how much this would cost. We’d have to cut bureaucracy out, and one would think that if we couldn’t cut that at least in half, we could eliminate a better part of it.”
Meantime, confirmation hearings for Ryan’s potential successor, Linda Kelly, will likely be held in April. A vote could come in April or May, according to Senate Republican spokesman Erik Arneson. Kelly needs the support of 2/3 of lawmakers to be confirmed.
The measure, which has passed the House, would move the Bureau of Investigations and Enforcement (BIE) into the Attorney General’s office. The unit conducts background checks on casino license applicants, among other duties.
Acting AG Bill Ryan told the Senate Appropriations Committee it makes sense to move BIE to his department or the State Police, but conceded the switch would take time and cost money. “To me, and this is my opinion, it would best be done from the ground up,” he said. “I honestly don’t know, Senator, if we could just graft what’s there to our office. I see a lot of issues that could be problematical if that was done.”
The Gaming Control Board says the transition would cost 2 million dollars. Sponsor Mike Vereb, a Republican, is skeptical of the estimate. “They are saying that’s because of computer systems and hardware,” he said. “Let it be known that there is no independent assessment of how much this would cost. We’d have to cut bureaucracy out, and one would think that if we couldn’t cut that at least in half, we could eliminate a better part of it.”
Meantime, confirmation hearings for Ryan’s potential successor, Linda Kelly, will likely be held in April. A vote could come in April or May, according to Senate Republican spokesman Erik Arneson. Kelly needs the support of 2/3 of lawmakers to be confirmed.
Wednesday, February 16, 2011
AG's Office Would Take Over Gaming Investigations
A bill changing the way casino license applicants are screened has passed the Pennsylvania House 126-72 and is moving to the Senate.
The measure eliminates the Gaming Control Board’s investigative unit, and shifts its responsibilities to the Attorney General’s office.
Many Democrats argued the change would add politics to the investigative process. “Many of my constituents to not believe that the Attorney General’s office is, in fact, nonpartisan or bipartisan,” said Representative Margo Davidson of Delaware County, alluding to the AG’s investigation of petition fraud by Congressman Patrick Meehan’s campaign. Some Democrats have argued the investigation was less than thorough, due to the fact Meehan is Republican.
The bill’s author, Republican Mike Vereb, responded by pointing out Gaming Board members are all appointed by lawmakers or the governor. “We elect our courts, we elect our governor, we elect our Attorney General. The State Police Commissioner is appointed by the governor. At some point, someone who’s elected has a role in making sure these units operate,” he said
The change would cost $2 million, which many Democrats say the state can’t afford. Republican supporters point out the money comes from gambling revenue, and not the state’s general fund, and Majority Leader Mike Turzai of Allegheny County questioned the figure’s validity.
Republican Senator Jane Earll of Erie has said she opposes the shift. She chairs the Senate’s Community, Economic and Recreational Development Committee, which oversees gambling. Turzai insisted he’s confident the bill can still move forward. “We’re going to be prioritizing legislation for both houses to look at, and our relationship with the Senate leadership and their team, I think, is very very good. And I think any proposal gets an opportunity to be heard and voted on by the House is certainly something that everybody will take a look at,” he told reporters.
The measure eliminates the Gaming Control Board’s investigative unit, and shifts its responsibilities to the Attorney General’s office.
Many Democrats argued the change would add politics to the investigative process. “Many of my constituents to not believe that the Attorney General’s office is, in fact, nonpartisan or bipartisan,” said Representative Margo Davidson of Delaware County, alluding to the AG’s investigation of petition fraud by Congressman Patrick Meehan’s campaign. Some Democrats have argued the investigation was less than thorough, due to the fact Meehan is Republican.
The bill’s author, Republican Mike Vereb, responded by pointing out Gaming Board members are all appointed by lawmakers or the governor. “We elect our courts, we elect our governor, we elect our Attorney General. The State Police Commissioner is appointed by the governor. At some point, someone who’s elected has a role in making sure these units operate,” he said
The change would cost $2 million, which many Democrats say the state can’t afford. Republican supporters point out the money comes from gambling revenue, and not the state’s general fund, and Majority Leader Mike Turzai of Allegheny County questioned the figure’s validity.
Republican Senator Jane Earll of Erie has said she opposes the shift. She chairs the Senate’s Community, Economic and Recreational Development Committee, which oversees gambling. Turzai insisted he’s confident the bill can still move forward. “We’re going to be prioritizing legislation for both houses to look at, and our relationship with the Senate leadership and their team, I think, is very very good. And I think any proposal gets an opportunity to be heard and voted on by the House is certainly something that everybody will take a look at,” he told reporters.
Monday, February 7, 2011
Resort License Still Pending
Pennsylvania’s Gaming Control Board still hasn’t decided where to place a new resort casino.
It will take more than a majority vote for the Board to award a license to one of four casino applicants.
All four legislative appointees and at least one of the three board members picked by the governor will need to approve the winner.
Gaming analyst Steve Rittvo of the Innovation Group recently told lawmakers Pennsylvania’s eastern and western casino markets are saturated, and another category two gaming parlor would likely hurt revenue at existing casinos.
But he says another smaller resort casino likely wouldn’t take traffic away from already-operating establishments.
"I mean that’s why you put them in resort facilities. They were capturing tourists that were coming there. The gaming revenues that they would generate probably for the most part are not coming from existing casinos.
Sites in Gettysburg, at Nemacolin Woodlands in Fayette County, the Poconos and outside Harrisburg are vying for the license, which the Gaming Control Board isn’t required to award to anyone.
It will take more than a majority vote for the Board to award a license to one of four casino applicants.
All four legislative appointees and at least one of the three board members picked by the governor will need to approve the winner.
Gaming analyst Steve Rittvo of the Innovation Group recently told lawmakers Pennsylvania’s eastern and western casino markets are saturated, and another category two gaming parlor would likely hurt revenue at existing casinos.
But he says another smaller resort casino likely wouldn’t take traffic away from already-operating establishments.
"I mean that’s why you put them in resort facilities. They were capturing tourists that were coming there. The gaming revenues that they would generate probably for the most part are not coming from existing casinos.
Sites in Gettysburg, at Nemacolin Woodlands in Fayette County, the Poconos and outside Harrisburg are vying for the license, which the Gaming Control Board isn’t required to award to anyone.
Board chair Greg Fajt says an announcement isn’t coming anytime soon.
"We have not yet reached a qualified majority on that. And when we do we’ll tee it up for a decision and make a decision."
"We have not yet reached a qualified majority on that. And when we do we’ll tee it up for a decision and make a decision."
The Board isn’t required to award the license to anyone, and there aren’t any time restrictions on the decision.
Friday, January 28, 2011
Will Gaming License Be Rebid?
The head of Pennsylvania’s Gaming Control Board is warning lawmakers not to move too quickly on passing a law opening up a Philadelphia casino license to a statewide bid.
In December, the Gaming Control Board revoked the license of Philadelphia’s troubled Foxwoods casino, which never got up and running.
Its license is Philadelphia-specific, but the House Gaming Oversight Committee has now taken the first step toward changing the law, so anyone in the state could bid for the license.
During testimony, Board Chair Greg Fajt reminded the committee Foxwoods investors have challenged the revocation in court, and the case might take years to finish.
He warned against re-bidding the license before the matter is resolved.
"Again, who knows what somebody might do. But I think that somebody would have to get a lot of hard thought to spending a million dollars-plus to put together an application for a license that may not exist once this case has wound its way through the courts."
Committee Chair Curt Schroeder, a Chester County Republican, says the bill is a priority, but Republicans won’t rush it through the House.
He’s planning on taking a deliberative process, and holding several more hearings on the issue.
In December, the Gaming Control Board revoked the license of Philadelphia’s troubled Foxwoods casino, which never got up and running.
Its license is Philadelphia-specific, but the House Gaming Oversight Committee has now taken the first step toward changing the law, so anyone in the state could bid for the license.
During testimony, Board Chair Greg Fajt reminded the committee Foxwoods investors have challenged the revocation in court, and the case might take years to finish.
He warned against re-bidding the license before the matter is resolved.
"Again, who knows what somebody might do. But I think that somebody would have to get a lot of hard thought to spending a million dollars-plus to put together an application for a license that may not exist once this case has wound its way through the courts."
Committee Chair Curt Schroeder, a Chester County Republican, says the bill is a priority, but Republicans won’t rush it through the House.
"We’ll let the courts do their thing. We’ll work on it on our end in the legislature. And the timing will work itself out in the end, however that has to be."
He’s planning on taking a deliberative process, and holding several more hearings on the issue.
Friday, December 31, 2010
Rendell: Gaming Helping Racing
As the Rendell Administration prepares to leave office, officials are touting casino gambling as a success, when it comes to boosting the Pennsylvania's horse racing industry.
Agriculture Secretary Russell Redding says 44-thousand racing jobs have been created, since the industry started getting 12 percent of slots revenue in 2006.
He notes Pennsylvania breeding is up 10 percent during a national downward trend, and says the racing benefits trickle down.
"The veterinary care provided, the fees provided, the buildings. And you get that long-term growth of the equine industry that everybody says they wanted. We're beginning to see the results now."
During last year's debate over legalizing table games, racing officials said they were worried poker and blackjack tables would take money away from slot machines, and hurt racing revenue.
But November and October's slot revenue was up from 2009 figures.
The state made 61 million dollars from gaming last month, compared to 56 million in November 2009.
Governor Ed Rendell says that has dramatically increased the purses commonwealth tracks can offer, which, in turn, has boosted Pennsylvania breeding.
"And now Pennsylvania's starting to get horses like Smarty Jones to stand in stud. The industry, with the jobs it produces, is on the road back."
The Agriculture Department says Pennsylvania breeding saw a 10 percent increase this year, when national figures were down.
Agriculture Secretary Russell Redding says 44-thousand racing jobs have been created, since the industry started getting 12 percent of slots revenue in 2006.
He notes Pennsylvania breeding is up 10 percent during a national downward trend, and says the racing benefits trickle down.
"The veterinary care provided, the fees provided, the buildings. And you get that long-term growth of the equine industry that everybody says they wanted. We're beginning to see the results now."
During last year's debate over legalizing table games, racing officials said they were worried poker and blackjack tables would take money away from slot machines, and hurt racing revenue.
But November and October's slot revenue was up from 2009 figures.
The state made 61 million dollars from gaming last month, compared to 56 million in November 2009.
Governor Ed Rendell says that has dramatically increased the purses commonwealth tracks can offer, which, in turn, has boosted Pennsylvania breeding.
"And now Pennsylvania's starting to get horses like Smarty Jones to stand in stud. The industry, with the jobs it produces, is on the road back."
The Agriculture Department says Pennsylvania breeding saw a 10 percent increase this year, when national figures were down.
Monday, December 27, 2010
GOP: Phila. Doesn't Need Another Casino
Top Republicans say they want to amend Pennsylvania's gaming laws, and take the revoked Foxwoods casino license away from Philadelphia.
The incoming head of the House Gaming Oversight Committee says he'll introduce a bill next year reopening the Philadelphia-specific casino license to a statewide bid.
Senate Republican leaders indicate they'd seriously consider the measure, if it passes the lower chamber.
When asked about the movement, Governor Rendell said it's not his call, since he's leaving office - but he said he could buy the argument Philadelphia's gaming market might be oversaturated.
"Bucks County - Parx - Harrah's in Chester, SugarHouse in Philadelphia. And it's likely that the Valley Forge license will be granted. So they might decide Philadelphia's got too much. On the other hand, they might look at the state, take a look and say, where is there part of the state that needs another?"
Senate Majority Leader Dominic Pileggi's spokesman, Erik Arneson, says Republicans would also be open to disbanding the license altogether.
"We have a lot of experience now with casinos in Pennsylvania. And there could be the argument made the casino market in our state is saturated. And Senator Pileggi would be very willing to listen to those kinds of arguments as well."
A measure reopening the Foxwoods license for bid passed a Senate committee this session, but never saw a floor vote.
Thursday, December 16, 2010
PA Auditor Finds Gaming Board Problems
Pennsylvania’s fiscal watchdog says the Pennsylvania Gaming Control Board is in violation of the state’s Sunshine Act. Auditor General Jack Wagner says the board failed to issue the proper approvals for $7 million in contracts for legal and other professional services.
Wagner says of the 23 contracts he audited, 19 of them were not awarded through competitive sealed bids, were not emergency contracts and often were not the subject of board votes during public meetings. "The single most important mission of the Gaming Control Board is to reassure the public that the gaming industry in Pennsylvania is being professionally run and to protect its integrity," Wagner says. He says for many there is a perception that gaming and criminal activity go hand in hand so the board should “bend over backwards” to make sure there is no appearance of impropriety.
The audit found that the board's regular meeting minutes gave no sign as to whether the members knew about the details of the contracts, or how the board may or may not have been involved in the decision-making and deliberations. "The absence of documentation to support claims made about selected vendors is a serious problem,” says Wagner, "Without such documentation, the board cannot assure the public, the General Assembly, gaming entities or other service providers, that it selected the service providers in the commonwealth's best interest." He says if the board is not getting the best deal it means the property owners of Pennsylvania are not getting the highest rate of tax relief possible.
The audit also found questionable activity when it comes to travel expense and miscellaneous purchases. The audit found “Governing board members and some top staff unnecessarily claimed meal reimbursements at two and one-half times more than the state's standard reimbursement rate… Four governing board members and a staff executive spent at least $33,000 for a trip to Rome… Governing board members did not justify their stays at expensive hotels, and received reimbursements for rooms of guests who traveled with the Gaming officials.” The report goes on to say, “Auditors found that 39 of 135, or 28.8 percent, of meal vouchers were submitted for reimbursements at the maximum enhanced rate that was as high as $152.50, compared with the maximum standard rate of $61.” Wagner says there is no way to match the claims with the actual spending because the board did not require receipts.
Wagner has turned the audit over to the Attorney General’s office for review and has called on the board to change its rules and practices.
UPDATED 12/17/10
Gaming Board Spokesperson Doug Harbach says, "We take the Auditor General’s findings on our procurement seriously. We’re practical. In the future we’re looking at approving all contracts with a public vote. This is simply a difference of opinion on how we conduct our contracting and how the Auditor General believes it should be done."
Wagner says of the 23 contracts he audited, 19 of them were not awarded through competitive sealed bids, were not emergency contracts and often were not the subject of board votes during public meetings. "The single most important mission of the Gaming Control Board is to reassure the public that the gaming industry in Pennsylvania is being professionally run and to protect its integrity," Wagner says. He says for many there is a perception that gaming and criminal activity go hand in hand so the board should “bend over backwards” to make sure there is no appearance of impropriety.
The audit found that the board's regular meeting minutes gave no sign as to whether the members knew about the details of the contracts, or how the board may or may not have been involved in the decision-making and deliberations. "The absence of documentation to support claims made about selected vendors is a serious problem,” says Wagner, "Without such documentation, the board cannot assure the public, the General Assembly, gaming entities or other service providers, that it selected the service providers in the commonwealth's best interest." He says if the board is not getting the best deal it means the property owners of Pennsylvania are not getting the highest rate of tax relief possible.
The audit also found questionable activity when it comes to travel expense and miscellaneous purchases. The audit found “Governing board members and some top staff unnecessarily claimed meal reimbursements at two and one-half times more than the state's standard reimbursement rate… Four governing board members and a staff executive spent at least $33,000 for a trip to Rome… Governing board members did not justify their stays at expensive hotels, and received reimbursements for rooms of guests who traveled with the Gaming officials.” The report goes on to say, “Auditors found that 39 of 135, or 28.8 percent, of meal vouchers were submitted for reimbursements at the maximum enhanced rate that was as high as $152.50, compared with the maximum standard rate of $61.” Wagner says there is no way to match the claims with the actual spending because the board did not require receipts.
Wagner has turned the audit over to the Attorney General’s office for review and has called on the board to change its rules and practices.
UPDATED 12/17/10
Gaming Board Spokesperson Doug Harbach says, "We take the Auditor General’s findings on our procurement seriously. We’re practical. In the future we’re looking at approving all contracts with a public vote. This is simply a difference of opinion on how we conduct our contracting and how the Auditor General believes it should be done."
Monday, November 15, 2010
Nemacolin Among Four Casino Applicants
Representatives from Nemacolin Woodlands Resort and Isle of Capri will go before the Pennsylvania Gaming Control Board this week to plead their case in their effort to be awarded the last remaining Pennsylvania Category 3 casino licenses. A Category 3 licenses must be awarded to an established, year-round resort. Pennsylvania state law allows for two such licenses. The first is held by Valley Forge Convention Center Partners.
Nemacolin Woodlands Resort Manager Chris Plummer says their application is the only application that lives up to the spirit of the Category 3 Licenses. “Nemacolin is, no doubt about it, Pennsylvania’s most well established, year-round resort,” says Plummer, “we are adding an amenity to our resort to help the resort, to help tourism in Pennsylvania, to generate jobs, generate taxes.” Plummer says the other three applicants are just creating “mini Category 2 casinos.” Category two licenses are awarded to stand alone casinos such as the Rivers in Pittsburgh. Category 1 licenses are reserved for racetracks.
Also pleading their case at the November 16th and 17th hearing will be Mason-Dixon Resorts, which plans to operate out of the Eisenhower Hotel and Conference Center in Adams County; Penn Harris Gaming at the Holiday Inn Harrisburg West, Cumberland County; and Bushkill Group, which will operate out of the Fernwood Hotel and Resort in Monroe County. Plummer says none of those applicants are running facilities like he is running. “People come to Nemacolin to play golf, to eat in 5 star, 5 diamond restaurants, stay in five star lodging, enjoy the spa, and maybe gamble at night,” says Plummer.
Several current casino licenses holders plan to contest one or more of the licenses applications. Among them is the Meadows Racetrack and Casino. A spokesperson at the meadows did not make an official from the company available for an interview. The Meadows is less than an hour and a half drive from Nemacolin. Plummer says the business model they have does not rely on taking player from the Meadows. He says his casino would be a destination for travelers from around the country with 70% of expected guests being from outside of Southwestern Pennsylvania.
Plummer says the casino would create 600 new jobs and could be open within 6-9 months of the licenses being granted. Nemacolin has teamed up with casino operator Isle of Capri to file the application under the name Woodlands Fayette. Isle of Capri was part of the failed attempt by the Pittsburgh Penguins to land a license to operate a casino out of the new arena.
Nemacolin Woodlands Resort Manager Chris Plummer says their application is the only application that lives up to the spirit of the Category 3 Licenses. “Nemacolin is, no doubt about it, Pennsylvania’s most well established, year-round resort,” says Plummer, “we are adding an amenity to our resort to help the resort, to help tourism in Pennsylvania, to generate jobs, generate taxes.” Plummer says the other three applicants are just creating “mini Category 2 casinos.” Category two licenses are awarded to stand alone casinos such as the Rivers in Pittsburgh. Category 1 licenses are reserved for racetracks.
Also pleading their case at the November 16th and 17th hearing will be Mason-Dixon Resorts, which plans to operate out of the Eisenhower Hotel and Conference Center in Adams County; Penn Harris Gaming at the Holiday Inn Harrisburg West, Cumberland County; and Bushkill Group, which will operate out of the Fernwood Hotel and Resort in Monroe County. Plummer says none of those applicants are running facilities like he is running. “People come to Nemacolin to play golf, to eat in 5 star, 5 diamond restaurants, stay in five star lodging, enjoy the spa, and maybe gamble at night,” says Plummer.
Several current casino licenses holders plan to contest one or more of the licenses applications. Among them is the Meadows Racetrack and Casino. A spokesperson at the meadows did not make an official from the company available for an interview. The Meadows is less than an hour and a half drive from Nemacolin. Plummer says the business model they have does not rely on taking player from the Meadows. He says his casino would be a destination for travelers from around the country with 70% of expected guests being from outside of Southwestern Pennsylvania.
Plummer says the casino would create 600 new jobs and could be open within 6-9 months of the licenses being granted. Nemacolin has teamed up with casino operator Isle of Capri to file the application under the name Woodlands Fayette. Isle of Capri was part of the failed attempt by the Pittsburgh Penguins to land a license to operate a casino out of the new arena.
Tuesday, November 2, 2010
State Enforcing Gaming Self Exclusion Laws
The Pennsylvania Gaming Control Board says it has cited four casinos for allowing individuals on the state’s Self-Exclusion List to play since the law went into effect. The most recent was the Mount Airy Casino Resort, which was fined $40,000 for allowing individuals on the list to gain access to the gaming floor, and for sending promotional mailings to a self-excluded individual. Once a person places him or herself on the Self-Exclusion List, gaming facilities in the state must deny them all gaming privileges and cannot issue them a player's club membership. The casino must also remove self-excluded persons from mailings and other forms of advertising or promotions. Gaming Control Board Office of Compulsive and Problem Gaming, Acting Director Liz Lanza says just letting a player on the floor will not result in a fine but if casino management does not follow its “compulsive and problem gambler plan” it can be sighted.
Gaming Control Board employees based at the casinos and casino employees that have contact with players are given information about individuals on the list including their names and photographs and are asked to keep an eye out for those people. People on the Self Exclusion List are also subject penalties if they try to flout the law. Lanza says all of their winnings will be confiscated and they will be subject to arrest for trespass. So far the state has caught people violating the terms of the Self Exclusion List 220 times. She says nearly all of them were recognized by casino or Control Board staff but some were not noticed until they won a jackpot and had to produce their identification. Lanza says right now there are 1,825 individuals on the list. Anyone can sign up for a one-year, five-year or lifetime ban. For those on the one and five-year lists they are allowed to remove themselves after the set period of time. Lanza says nearly 200 people have taken themselves off the list.
This is the fourth time a casino in Pennsylvania has been fined for Self-Exclusion List violations. The first two fines were levied on the Meadows Racetrack and Casino in December 2009 and April 2010. The third fine was against Parx Casino in April 2010. Those fines ranged fro $5,000 to $20,000. The fines against Mt Airy cover 4 separate incidents.
Gaming Control Board employees based at the casinos and casino employees that have contact with players are given information about individuals on the list including their names and photographs and are asked to keep an eye out for those people. People on the Self Exclusion List are also subject penalties if they try to flout the law. Lanza says all of their winnings will be confiscated and they will be subject to arrest for trespass. So far the state has caught people violating the terms of the Self Exclusion List 220 times. She says nearly all of them were recognized by casino or Control Board staff but some were not noticed until they won a jackpot and had to produce their identification. Lanza says right now there are 1,825 individuals on the list. Anyone can sign up for a one-year, five-year or lifetime ban. For those on the one and five-year lists they are allowed to remove themselves after the set period of time. Lanza says nearly 200 people have taken themselves off the list.
This is the fourth time a casino in Pennsylvania has been fined for Self-Exclusion List violations. The first two fines were levied on the Meadows Racetrack and Casino in December 2009 and April 2010. The third fine was against Parx Casino in April 2010. Those fines ranged fro $5,000 to $20,000. The fines against Mt Airy cover 4 separate incidents.
Thursday, September 23, 2010
Table Games Tax Revenues Behind Projections
Table games at Pennsylvania casinos generated fewer tax dollars than budget revenue estimates projected they would during their first full month of operations. But the Gaming Control Board isn’t worried about the numbers.
Table games brought in $34.5 million at the nine casinos last month, and generated 4.8 million dollars in state tax money. However, budget officials are counting on about $6.2 million a month to balance the state's books.
Gaming Control Board spokesman Doug Harbach argues it’s still early, though.
"I think you’ll continue to see the popularity of these table games increase as the casinos and their staff get their marketing efforts expanded. As you see also the number of games and the types of games bring brought in to the casinos being the right mix to meet their patrons’ needs.
Philadelphia’s Parx Casino was the highest performer, bringing in 887-thousand state tax dollars. Presque Isle had the lowest totals, collecting 264-thousand dollars in taxes.
For the most part, slots revenue at the casinos was about the same as August 2009.
Table games brought in $34.5 million at the nine casinos last month, and generated 4.8 million dollars in state tax money. However, budget officials are counting on about $6.2 million a month to balance the state's books.
Gaming Control Board spokesman Doug Harbach argues it’s still early, though.
"I think you’ll continue to see the popularity of these table games increase as the casinos and their staff get their marketing efforts expanded. As you see also the number of games and the types of games bring brought in to the casinos being the right mix to meet their patrons’ needs.
Philadelphia’s Parx Casino was the highest performer, bringing in 887-thousand state tax dollars. Presque Isle had the lowest totals, collecting 264-thousand dollars in taxes.
For the most part, slots revenue at the casinos was about the same as August 2009.
Thursday, August 26, 2010
Table Games Generate $2,455,508 for PA in First Month
The first numbers on the launch of table games at Pennsylvania casinos have been released and Rivers Casino in Pittsburgh is topping the list. In the first 24 days (7/8 – 7/31) of operations the casino had gross revenues on 85 tables of $3,052,531. That resulted in $427,354 in state tax and $61,051 in local tax being collected. Of the nine casinos operating table games in July that was the highest take from the third highest number of tables. Harrah’s Chester Casino and Racetrack had the most tables at 99 but had fewer days of operation. The Medows Racetrack and Casino grossed $1,911,064 from 62 tables over the same 24 days. Pennsylvania Gaming Control Board Executive Director Kevin O'Toole says, "While the implementation of table games created a significant patron traffic increase in July, it is too early to draw any conclusions on these numbers or the effect of table games on slot machine gaming."
Tuesday, August 17, 2010
Sen. Stack: Expand Games of Chance Not Shale Tax
Pennsylvania Governor Ed Rendell is urging the state legislature to take action this fall on his proposal to impose a new Marcellus Shale gas extraction tax to help close a $280 million budget gap. The governor is also calling for a 1.9% cut in discretionary spending as part of his plan. Republicans have come out against the proposal saying no new or expanded taxes should be added to the state budget. Democrat Mike Stack of Philadelphia is not ruling out the idea of a severance tax but he says now is not the time to impose it. Stack says lawmakers should hold off on any action until a new governor takes office next year. Stack also says the state needs to be very careful with any tax policy involving the young but growing industry. He says there needs to be a great deal of debate, discussion and deliberation on the mater.
Rendell says if the state legislature acts this fall on a natural gas extraction tax, it could generate about $70 million by the end of the fiscal year. Stack says he knows a better way to find the additional funds. The Democrat says the legislature should take action this fall on his legislation that expands the state’s Small Games of Chance Law to include taverns. He says about $100 million a year in tax revenue could be generated for the state, and a percentage of the funds raised at taverns would go to charitable organizations under his proposal. The legislation would also increase the weekly payout limits for private clubs and organizations. “That would help them generate funds for their operations and charitable programs,” says Stack. That bill is currently before the Senate Finance Committee.
Rendell says if the state legislature acts this fall on a natural gas extraction tax, it could generate about $70 million by the end of the fiscal year. Stack says he knows a better way to find the additional funds. The Democrat says the legislature should take action this fall on his legislation that expands the state’s Small Games of Chance Law to include taverns. He says about $100 million a year in tax revenue could be generated for the state, and a percentage of the funds raised at taverns would go to charitable organizations under his proposal. The legislation would also increase the weekly payout limits for private clubs and organizations. “That would help them generate funds for their operations and charitable programs,” says Stack. That bill is currently before the Senate Finance Committee.
Thursday, July 8, 2010
Gaming Board Responds to Treasurer's Suit
The Pennsylvania Gaming Control Board is pushing back against State Treasurer Rob McCord’s demand to be included in executive sessions.
Earlier this year McCord sued the Board for barring him from closed-door sessions.
As Treasurer, McCord is a non-voting member of the oversight panel.
Board attorneys filed a response in Commonwealth Court this week, arguing the Treasurer has a limited role in gaming matters, and his exclusion from executive sessions is “consistent” with that.
Treasury lawyer Christopher Craig says that’s wrong.
"The Gaming Act says that he is a member of the Board. The only restriction the Gaming Act places is he cannot vote. But that means he can voice objections. He can make statements in support. He can make suggestions. He can initiate motions, file resolutions, etc."
A Gaming Control Board spokesman declined to comment on the lawsuit. When McCord initially filed the suit, the Board said he’d be allowed to attend meetings if he signed a confidentiality agreement. Craig says he anticipates Commonwealth Court will hear oral arguments on the matter later this year.
Meantime, table games began operating at the Meadows Racetrack and Casino in Washington County and Pittsburgh Rivers Casino at 6 this morning.
Earlier this year McCord sued the Board for barring him from closed-door sessions.
As Treasurer, McCord is a non-voting member of the oversight panel.
Board attorneys filed a response in Commonwealth Court this week, arguing the Treasurer has a limited role in gaming matters, and his exclusion from executive sessions is “consistent” with that.
Treasury lawyer Christopher Craig says that’s wrong.
"The Gaming Act says that he is a member of the Board. The only restriction the Gaming Act places is he cannot vote. But that means he can voice objections. He can make statements in support. He can make suggestions. He can initiate motions, file resolutions, etc."
A Gaming Control Board spokesman declined to comment on the lawsuit. When McCord initially filed the suit, the Board said he’d be allowed to attend meetings if he signed a confidentiality agreement. Craig says he anticipates Commonwealth Court will hear oral arguments on the matter later this year.
Meantime, table games began operating at the Meadows Racetrack and Casino in Washington County and Pittsburgh Rivers Casino at 6 this morning.
Wednesday, July 7, 2010
Green Light For Table Games at the Meadows, Rivers Casino
The Pennsylvania Gaming Control Board has given the go ahead to two southwestern Pennsylvania casinos to begin table game operations tomorrow morning (July 8) at 6 o'clock.
David LaTorre, a spokesman for the Meadows Racetrack and Casino in Washington County, says the approval came late this morning following an 8 hour test run Tuesday...."We couldn't be more pleased...it was a great test run. There were few if any glitches."
LaTorre says he's not sure if there will be a big crowd at 6 in the morning ready to play table games ..."Table games players don't follow the same pattern as slots players, they tend to play later in the day, in the evening."
But he does expect a steady flow throughout the day.
LaTorre says the casino will have 68 tables with 26 set aside for poker on the lower level and the other 42 will be for craps, roulette, baccarat, blackjack and pai gow poker.
LaTorre says they can change the mix of table games but only with Gaming Control Board approval and they might do that after they determine which games "work and which don't work."
Gaming Control Board spokesman Richard McGarvey says the Rivers Casino on Pittsburgh's North Shore, was also given approval to begin running its table games July 8 at 6 a.m. The Rivers also had an 8 hour test run Tuesday.
There will be 86 table games at the Rivers Casino North Shore facility including 24 “non-bank” Poker Games where players compete against each other not the casino. The other 62 tables will host “bank games”... blackjack, craps, roulette, 3-card poker, Texas Hold'em, pai gow poker, mini baccarat, and 1 Big 6 wheel.
David LaTorre, a spokesman for the Meadows Racetrack and Casino in Washington County, says the approval came late this morning following an 8 hour test run Tuesday...."We couldn't be more pleased...it was a great test run. There were few if any glitches."
LaTorre says he's not sure if there will be a big crowd at 6 in the morning ready to play table games ..."Table games players don't follow the same pattern as slots players, they tend to play later in the day, in the evening."
But he does expect a steady flow throughout the day.
LaTorre says the casino will have 68 tables with 26 set aside for poker on the lower level and the other 42 will be for craps, roulette, baccarat, blackjack and pai gow poker.
LaTorre says they can change the mix of table games but only with Gaming Control Board approval and they might do that after they determine which games "work and which don't work."
Gaming Control Board spokesman Richard McGarvey says the Rivers Casino on Pittsburgh's North Shore, was also given approval to begin running its table games July 8 at 6 a.m. The Rivers also had an 8 hour test run Tuesday.
There will be 86 table games at the Rivers Casino North Shore facility including 24 “non-bank” Poker Games where players compete against each other not the casino. The other 62 tables will host “bank games”... blackjack, craps, roulette, 3-card poker, Texas Hold'em, pai gow poker, mini baccarat, and 1 Big 6 wheel.
Tuesday, July 6, 2010
Western Pa. Casinos Test Their Table Games
Table game trials will take place at the Rivers casino in Pittsburgh, the Meadows Racetrack and casino in Washington County, and Presque Isle Downs casino in Erie today. If all goes well, the games will begin Thursday morning at 6:00 a.m.
Those games include blackjack, poker, roulette, and craps.
Bets will be limited to five or six dollars. At the Rivers, proceeds will benefit the Mario Lemieux Foundation; at the Meadows, the trial run will benefit the United Way of Washington County.
The Rivers' George Matta says this will be almost the same as slots testing.
"They will audit our process, our procedures to ensure that we follow everything and it's reported correctly. Everything that we need to do to report to the state will be audited and tested," says Matta.
Test runs will begin in a few days at central and eastern Pennsylvania casinos.
Those games include blackjack, poker, roulette, and craps.
Bets will be limited to five or six dollars. At the Rivers, proceeds will benefit the Mario Lemieux Foundation; at the Meadows, the trial run will benefit the United Way of Washington County.
The Rivers' George Matta says this will be almost the same as slots testing.
"They will audit our process, our procedures to ensure that we follow everything and it's reported correctly. Everything that we need to do to report to the state will be audited and tested," says Matta.
Test runs will begin in a few days at central and eastern Pennsylvania casinos.
Wednesday, May 26, 2010
Rivers Gets Table OK
The Pennsylvania Gaming Control Board has given the green light to Rivers Casino to add 86 table games to their North Shore facility. The application calls for the games to be divided in to a pair of rooms. One will include 24 “non-bank” Poker Games. Those are tables where players compete against each other not the casino. The other 62 tables will host “bank games.” Rivers Casino Manager Todd Moyer says 42 will be Blackjack tables, 6 will be Craps tables, 3 will be Roulette tables, 3 tables will host Three-Card Poker tables, and 3 will be reserved for Texas Hold’em Bonus tables. Rounding out the list will be 2 Pai Gow Poker tables, 2 Mini Baccarat tables and 1 Big 6 wheel.
The application to the state says the addition of the games will create 309 full-time and 149 part-time jobs. Moyer says most of the dealers have already been hired and are in training. He says he expects to be making hires for additional security and food service staff soon. That same application promised the state that revenues from slot machines will not fall with the addition of the table games. Moyer says he thinks the markets for slots players is different than table games players. However, Moyer says they have heard from current customers asking for the addition of table games. Tax revenues from table games is split between the state’s general fund and local taxing bodies. Tax dollars from slots is split among the local municipalities and counties and property tax relief. Rivers Casino currently runs 3,000 slots machines and Moyer says that will not change.
Also yesterday, the state Gaming Control Board approved the table games application for the Sugarhouse Casino in Philadelphia. That means approvals are in place for all ten slots parlors in the state to add table games to their operations. The state will allow the games to open by region throughout July.
The application to the state says the addition of the games will create 309 full-time and 149 part-time jobs. Moyer says most of the dealers have already been hired and are in training. He says he expects to be making hires for additional security and food service staff soon. That same application promised the state that revenues from slot machines will not fall with the addition of the table games. Moyer says he thinks the markets for slots players is different than table games players. However, Moyer says they have heard from current customers asking for the addition of table games. Tax revenues from table games is split between the state’s general fund and local taxing bodies. Tax dollars from slots is split among the local municipalities and counties and property tax relief. Rivers Casino currently runs 3,000 slots machines and Moyer says that will not change.
Also yesterday, the state Gaming Control Board approved the table games application for the Sugarhouse Casino in Philadelphia. That means approvals are in place for all ten slots parlors in the state to add table games to their operations. The state will allow the games to open by region throughout July.
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