A proposal to create up to 10 “satellite casinos” across Pennsylvania, all linked to current licensees, was the state Senate’s latest bid for gaming expansion to help close a .2 billion deficit in the budget that was enacted July 1.
However, the proposal—as well as bills to legalize and regulate online gaming and daily fantasy sports, authorize tablet gaming at airports and consideration of a controversial state House bid to legalize video gaming terminals, or VGTs, at bars and taverns across the state—is likely to remain only a proposal until at least fall.
While the state Assembly officially adjourned for the summer, the Senate went back in session for two days last week. However, instead of voting on a gaming package that is being counted on for $250 million in annual revenues, senators drafted a package including some $550 million in new taxes and fees, and a plan to borrow money to fill the gap.
As the week ended, senators were still debating and moving toward a vote that would send the revenue package to the House. That means the gaming expansion package has moved to the back burner, most likely to be taken up in the fall legislative session.
The plan for satellite casinos would be the first such casino expansion in the nation. Each of the 10 large stand-alone and racetrack casinos would have the option of opening a satellite casino anywhere in the state under the plan. The proposal is being pushed as a viable alternative to the VGT plan, which is vehemently opposed by current casino licensees.
According to a report on the PennLive website, auctioning off the satellite licenses, with a minimum bid of $10 million, also is being considered. In addition to providing an alternative to VGTs, the sources told the site the satellite casinos are considered as a method to create a market-protection zone around each of the current casinos.
One operator is not warm to the idea. “The vast majority of the potential sites for these new casinos fall within our market area in central Pennsylvania, representing a severe threat to our property and the more than 1,050 jobs it represents,” Eric Schippers, Penn National’s senior vice president for public affairs, said in a recent statement to PennLive. “We’re beyond disappointed and will do everything in our power to fight to protect our employees’ jobs.”
