The American Gaming Association’s “Get to Know Gaming” tour landed in Philadelphia late last week, where state and local officials joined community groups and local casino officials for a roundtable discussion that focused on the benefits the casino industry has brought communities in the region.
The panel, moderated by Econsult Solutions President Stephen Mullin, included Geoff Freeman, president and CEO of the AGA; U.S. Rep. Pat Meehan, whose district includes Philadelphia; Wendy Hamilton, general manager of SugarHouse Casino; Marc Oppenheimer, chief marketing officer of Parx Casino in nearby Bensalem; Richard F. Levins, vice president and deputy general counsel, PA Markets, Independence Blue Cross; Julie Coker Graham, president and CEO, Philadelphia Convention & Visitors Bureau; and state Senator Larry Farnese of Philadelphia.
The moderator’s company, Econsult Solutions, is well-known in Pennsylvania, having published a study that concluded that the Philadelphia market will be able to sustain the second casino license approved by the state Gaming Control Board. That license—for the Live! Casino Hotel—is owned by a partnership of Baltimore’s Cordish Companies and Greenwood Gaming, owner of the Parx Casino. Its viability in Philadelphia and the larger Northeast gaming market was a subject of contention between Hamilton of SugarHouse and one of the panelists, Oppenheimer of Parx.
Lawmakers on the panel also touched on the scramble to pass an alternative funding plan for communities in the state that host casinos, in the wake of the state Supreme Court’s finding last week that the 2004 gaming law’s 2 percent tax on slot revenues for host communities is unconstitutional.
However, for the most part, the roundtable discussion focused on the benefits the Philadelphia region has derived from the casino industry—the common theme of similar events in Pittsburgh, Ohio, Colorado and elsewhere under the Get To Know Gaming campaign, which spreads the word on the benefits of gaming to communities in the 40 states where commercial casinos are legal, and the estimated $75 billion the industry contributes to local communities.
Freeman noted that Pennsylvania is now the second largest commercial gaming market in the U.S., noting that the industry generates more than $6 billion in economic activity in the state, with 34,000 jobs supported—including 18,000 direct jobs in the industry. “This industry has delivered for Pennsylvania, and it’s delivered to local communities.” He added that the state’s casinos are now working with the local casinos to work out a solution to the host-community funding issue.
Freeman also called for increased discussion on new gaming elements in Pennsylvania that represent growth for the industry—touching on internet gaming in particular, which is being debated in the state legislature. He also touted the potential of legalized sports betting and daily fantasy sports for their potential to grow industry revenues.
The panel, though, concentrated on what gaming has done for the Philadelphia region. “Anyone will tell you that from the time gaming was legalized in Pennsylvania, the area around SugarHouse became critically important to our owners,” said Hamilton. She notes that SugarHouse has for years funded the local Special Services District, headed by Levins; and other local community groups.
Hamilton also said the casino has supported local city traditions such as the Mummers Parade, New Year’s fireworks, and various arts and civic organizations. “What’s good for Philadelphia is good for SugarHouse,” she said.
Levins touted the many benefits the local community has seen from gaming revenues, from education to a world-class ballpark for local little-league teams that replaced a field where out-of-town teams sometimes refused to play because of its ragged condition. Oppenheimer touted similar contributions Parx has afforded Bensalem and Bucks County, including a complete retooling of local EMS, police and fire department services.
Meehan said the greatest benefit of Pennsylvania casinos to the communities they serve is the 18,000 jobs provided, adding that they are “family-sustaining jobs.” He also said casinos have provided “anchors of revitalization” for challenged areas such as Chester, the location of Harrah’s Philadelphia. Farnese added that the first $5 million of slot tax goes exclusively to aid education, and for that reason, state lawmakers will look closely over the next 120 days to replace the money lost due to the state Supreme Court decision.
Farnese said lawmakers will work hard to replace the host-community funds before the November break in the legislative session.
It was during the Q&A session at the end of the event that the panel addressed what some considered the elephant in the room—possible cannibalization of the market by a second Philadelphia casino. Oppenheimer of Parx said Greenwood Gaming considered the issue carefully and decided that the location of the new casino in the stadium district revealed “opportunity for incremental revenue for the state of Pennsylvania.”
Hamilton of SugarHouse disagreed. “We think the idea is horrifying,” she said. “Our customers, our employees, our neighborhoods want stability. A lot of the things we’ve discussed today depend on stability for our property. If we want to continue doing the things we do by choice for our community, we need stability going forward. We’ve seen what happened in Atlantic City, with five casinos closing in the last 24 months. At the end of the day, there is a finite percentage of people who will game as a recreation, and there are a hell of a lot of casinos on the Eastern seaboard. Let the existing operators continue to grow and develop and invest in developing our neighborhoods. Growth in this market does not indicate we need more slot machines. That is not what we need.”
It was the sole point of contention in a session which, like the other events in the AGA campaign, illustrated the benefits of the gaming industry. “This industry has a great story to tell,” Freeman said of the Get To Know Gaming campaign. “Some $240 billion in economic activity, 1.7 million jobs, making a difference across 40 states, and doing that one local community at a time.”
The event was held in one of the new meeting and convention facilities at SugarHouse, part of the casino’s $164 million expansion, completed earlier this year.
