Wednesday, October 7, 2009

Casino Association Threatens to Sue if Gaming Law is Changed

The House has proposed an amendment that would allow smaller, “Category 3” resort casinos from the current limit of 500 slot machines to 1500, and from only allowing guests of the resort to play to allowing the general public.
Executive Director of the Pennsylvania Casino Association (PCA) Ken Smukler says this will negatively effect larger, “Category 2” stand-alone casinos, such as Rivers Casino. He says the state required these casinos to pay a $50 million application fee. In exchange for that fee, the state made certain representation in the initial gaming legislation that if there is ever another smaller gaming facility in the same market as a Category 2 facility, the smaller could only have a limited number of slot machines, and could only market them to guests of the resort.
Smukler says the state is now trying to break the initial arrangement, jaded by the idea of more money. He says if they move forward with this amendment, the PCA intends to take the case directly to court, demanding back the $50 million that each Category 2 casino was forced to pay.

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