International edition
July 17, 2019

On September 4th

Pennsylvania to restart mini-casino auctions

Pennsylvania to restart mini-casino auctions
The first auction in this round is scheduled for September 4, 2019 at the PGCB's Public Hearing Room.
United States | 07/11/2019

The state’s Gaming Board has approved a motion to re-implement the auction process that ended in April of 2018 after it received no bids for a sixth license

T

he Pennsylvania Gaming Control Board announced on Wednesday that it will hold an auction for the right to apply for a Category 4 casino license. The state is planning to award licenses for five more mini-casinos as part of a gambling expansion authorized in 2017 by the state government.

The first auction in this round is scheduled for September 4, 2019 at the PGCB's Public Hearing Room. All current holders of a Category 1, 2 or 3 casino license in Pennsylvania are eligible to participate. The Board will stream the auctions live via its web site.

Under the Gaming Expansion Act of 2017, the Gaming Control Board was authorized to award up to 10 Category 4 (satellite) slot machine operator licenses through an auction process which was conducted from January to April 2018, resulting in five successful auctions garnering $127 million in bids to secure the right to obtain a Category 4 license. The winners and their bid price are as follows:

  • Mountainview Thoroughbred Racing Association, LLC, which operates Hollywood Casino at Penn National Race 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 in 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); and,
  • 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 ($7,5000,003).

The first five auctions raised $127 million, and the first mini-casino is expected to open next year.

The Gaming Expansion Act 42 of 2017 established a minimum bid price of $7.5 million for Category 4 slot machine licenses.  A separate certificate for table games can then be obtained through Board approval for a fee of $2.5 million. A Category 4 facility may have between 300 and 750 slot machines along with a maximum of 30 table games at opening with the capability of adding an additional 10 table games after its first year of operation.

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