CLARION CO., Pa. (EYT) — The odds may be against Clarion County getting a mini-casino in the auction of licenses, but local municipalities are playing their cards close to their vests if they will opt out of allowing any of the new casinos in their area.
Act 42 of 2017 passed October 26 creates the most significant expansion of gambling in Pennsylvania since casinos were first allowed more than a decade ago by creating the new designation of “mini-casino.” This act authorizes mini-casinos to be erected in the state of Pennsylvania.
The auction is limited to only 15 licenses throughout the state, and only the current owners of existing larger casinos (Category 1,2, and 3) can bid on the license.
Although all municipalities are included in the legislation, there is a brief window until December 31 for them to give a written resolution prohibiting the construction of such facilities.
“I think that unless there is a fundamental belief by the township supervisors or they feel it is not appropriate for their area, the amount of revenue that the local share gets from being a host community is pretty lucrative,” said State Representative Donna Oberlander. “It’s an opportunity that they could legitimately see increased revenue in their area.”
“I have not heard from any of our municipalities in the 63rd district, besides the two I have read about in the media,” continued Oberlander. “The Gaming Control Board has only reported seven townships throughout the state that have elected to prohibit the siting of a category four casino.”
Act 52 defines “mini-casino” as a category four casino, with no fewer than 300 but no greater than 750 slot machines and table games. The act also prohibits the siting of mini-casinos within a 25-mile radius of an existing casino except in the case where the owner of the existing casino is the applicant for the mini-casino license.
The successful bidders for new licenses also can select their sites. An existing casino owner can only win one of the mini-casino licenses. With many wealthy and high-power casino owners possibly bidding, prices are expected to escalate, much as they did when alcohol license prices were auctioned off in recent years with the entrance of convenience stores entering that market after a law was changed allowing six-pack sales.
Bidding would start at $7.5 million per license and an additional $2.5 million for a table games certificate. The act also restores a requirement that casinos pay roughly $140 million annually to their host communities.
Ashland and Monroe Townships in Clarion County recently discussed their options during their November meetings, but no actions were taken. The law also allows municipalities to later rescind the resolution if there is interest in their municipality after the auction.
Monroe Township could be a location for such a site with I-80 running through the township and considerable development at Exit 62. Many experts agree that the owners would decide which site can deliver more customers to increase the bottom line.
Monroe Township discussed the matter at its November meeting on the day after information was received about the situation. Supervisors wanted more time to look into the options. Nothing will now be decided until the group’s next meeting on December 12.
A recent feasibility study for a convention center in Clarion County could also provide some interest in a Clarion Borough site.
“When they did the study for the convention center funded by the Clarion County Economic Development Corporation and the hotel tax committee, the study did look at university property behind Liberty Street as well as Trinity Point and expanding one of the hotel properties at Exit 62,” said Clarion Mayor and Blueprint Communities President Dan Parker.
The study talked about the development of the land leading to the Clarion River behind the Suites on Main. Expected costs of laying infrastructure and establishing a road to the river along with the building of a hotel were high, and the study ultimately recommended the expansion of an existing hotel at Exit 62 to provide a larger meeting facility to host regional meetings and large weddings.
Clarion Borough Council has also taken no action to opt out.
“As far as I know, the borough is aware of it because we got the memo,” said Parker. “It’s something for the borough to think about, but I don’t know how the winds blowing on that or what they’re planning.”
Act 42 also allows gambling in airports, truck stops.
Before passage of the gambling expansion act, Pennsylvania was a leader in gambling options, second only to Nevada.
