Edging Out the Competition

Twenty-two applicants are locked in stiff competition over Pennsylvania’s fourteen, unoccupied slots licenses.  To edge out the competition, the hopefuls will have to do a lot more than just build structures that will house 5,000 slot machines.

Excluding the obvious slots parlor, submitted plans include all sorts of extras, everything from business conference centers, hotels, restaurants, and spas.  The list of amenities goes on and on.  The plans for the Mount Airy Resort in Paradise Township include over 500 housing units, a public greenway, and a 200-room luxury hotel.  Pocono Manor Casino’s plans for Tobyhanna Township include a retail shopping village, restaurants, and a 25 story hotel with an indoor pool. 

The massive plans being submitted in Pennsylvania by these casino operators are a reflection of how extraordinarily competitive the nationwide gambling industry has become.  The provision in the 2004 slots law favoring “revenue-or tourism-enhanced locations” also has a lot to do with the one-upmanship.

In addition, the casinos that make up gambling holy lands like Atlantic City and the great Las Vegas make most of their money from their entertainment and hospitality facilities these days.  According to Joe Weinert, editor of Gaming Industry Observer, “Gaming, nationwide, has evolved into a multi-faceted entertainment experience.  More and more facilities are following the Las Vegas model.”  

 Slot machines themselves do not create a unique enough experience.  Slots can be played anywhere from a casino to a racetrack.  Casino operators are looking to edge out competitors by creating unique visitor and tourist destinations.

Adding fuel to that mindset, Act 71 of the slots law encourages the Pennsylvania Gaming Control Board to license projects that “will maximize net revenue to the Commonwealth, or enhance year-round recreational tourism within this Commonwealth in comparison to other proposed facilities.”

Propositions for the two standalone slots licenses to build outside of Philadelphia and Pittsburgh, especially, must reflect the provisions in Act 71.  Six applicants are vying for the two licenses: Mount Airy, Pocono Manor, Lehigh Valley Tropicana, Sands Bethworks Gaming, Boyd Pennsylvania Partners, and Crossgates.

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