The Philadelphia state gambling authorities will soon announce their decision whether to accept a second casino license for the region. The Gaming Control Board of the state will discuss and vote on the proposal on the 18th of November.
The vote will undergo a strict inspection and control as the stakes of the auction equal a huge financial for the local authorities in the form of income taxes. There are a few investors who have shown interest in attaining a license to operate video slot machines and casino table games in Philadelphia.
The current and only license holder in the state has shown a desire to disrupt the negotiations and discussions between the gambling authorities and the investors, stating that the information the regulators have about the current state of the gambling industry is incorrect, and may cause future financial instability of the region.
The current license holder, SugarHouse, made an announcement last Thursday that there is a considerable decrease in revenue from video slots. Moreover, it stressed the fact that the neighboring state (New Jersey) and the crash of its gambling sector, with four casinos closing down in one year, are obvious indicators that the density of the market is over the limits.
In an interview, the general manager of the company stated that if a second license is provided, it will not only affect SugarHouse negatively, but other local casino operators; affiliates and vendors will also suffer. Wendy Hamilton further expressed her fears that if there is “another mouth at the table”, the situation of the sector will go out of control.
Back in January this year, the state regulators held a hearing with a number of license applicants and reviewed their project proposals. The hearing was closed prematurely. Sugarhouse demanded the authorities analyze and inspect the proposals thoroughly, before making a decision to provide a second license or to withhold it.
The spokesperson of the regulators’ board, Doug Harbach, refrained from making any comments on the SugarHouse demand. He reminded the public that the board has already stated that it is to look carefully at the possible outcomes of a launch of a second casino.
There are a number of entertainment establishments in the region of Philadelphia, as well as very tight competition in the neighboring states. Four months ago, Penn National Gaming Inc. cancelled a project for creating a casino facility for $480 million, explaining the main reason for that decision being the over-saturation of the market.
It is known that two of the candidates for the license have proposed to build casinos midtown, whereas another two plan to locate their facilities near the sports areas in south Philadelphia. All candidates are confident that another casino will not over-saturate the sector.
The general manager of Sugarhouse did not comment on whether the company will enter a lawsuit against a second casino license if it is accepted. However, there has already been an attempt by a few of the company investors to make a legal claim, yet unsuccessful.
