Satellite Casino Auctions Continue in PA

Pennsylvania’s gambling expansion plans continue as now a third gaming operator has obtained licensing to provide a satellite casino in the state. Late last year, Pennsylvania saw a gaming package approved that would allow for several expansions within the gaming industry, including the addition of as many as 10 satellite casinos. As of now, three operators have obtained licensing for the mini-casinos.

The first to earn a license Mountainview Thoroughbred Racing Association, LLC, the company behind Penn National Race Course’s Hollywood Casino. They paid $50.1 million for a Category 4 license. Two weeks later, Stadium Casino LLC, a group that is developing a casino for Philadelphia, paid $40.1 million for licensing.

Last week, Mount Airy Casino Resort paid a much lower $21.1 million to be able to open a satellite gaming venue. One more auction will be held by the Pennsylvania Gaming Control Board this month to hopefully award a 4th Category 4 license.

With this licensing, the operators will be able to open a new gaming venue, one that will have as many as 300 to 750 slot games. Operators had to bid a minimum of $7.5 million to be considered for licensing. If the license holder wants to offer table games, they must provide an additional $2.5 million in fees. The auctions will continue into May, until all ten licenses have been bid on. If existing operators pass on the remaining licenses available, regulators will open the process up to outside entities.

Pennsylvania decided to add in satellite casinos to their mix of gaming expansions in an effort to bring in much-needed funds to the state. With the three licenses alone, the state has already procured over $100 million which certainly will help with the budget shortage. With this gaming option, the state has access to instant funds as well as additional monies each year as taxes are paid for games in operation.

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