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Mini-casino licenses up for grabs: Some local municipalities opt out

Last week, Pennsylvania’s first Class 4 “mini-casino” license was sold for $50 million.

Over the next six months, the state Gaming Control Board will record nine more, and open up gambling to truck stops and airports in the state as part of the Act 42 gaming expansion.

The legislation was passed in order to help address the state’s budget woes. It will also help guarantee the very popular LSA grant program in Carbon County, and potentially bring in huge tax revenue for the counties where the licenses are located.

The first license was granted to Penn National Gaming, which plans to open a mini-casino in York County. And while there are no known local proposals for mini-casinos, officials in Schuylkill County say it would be a lucrative prospect for whoever gets one.

“Some municipalities have opted out, but others will take the chance based on the possibility of economic growth and vitality,” said Robert S. Carl Jr., executive director of the Schuylkill County Chamber.

In Carbon County, it would be virtually impossible to open a mini-casino because the bill specifically protects Mount Airy Casino from having any more competition from its surrounding counties. State Rep. Doyle Heffley, R-Carbon, said he opposed that provision, but supported the bill to help the state’s budget woes. He said there will be momentum to change it in the coming years.

“Whether you support gaming or not, it should be local option,” Heffley said. “I don’t think we should be blocking out entire counties from being able to compete for these licenses.”

Several local municipalities have exercised that local option. They include East Side Borough, Lehigh, Mahoning, Packer and Towamensing townships in Carbon County; Rush and Walker townships in Schuylkill; and Eldred and Ross townships in Monroe.

Commissioner Wayne Nothstein said that while he’s not totally sold on having a casino here, he said it would be a benefit to Carbon County to have the money spent by local gamblers stay local.

“I’m not too sure that it’d be a good idea for the county — but it would be nice, if we’re not getting the revenue from the other casinos, then I would like to see something local,” he said.

Heffley agreed that if gambling is being expanded, there should be more opportunities for the revenue to remain at a local level. He said he would like to see local private clubs get video gaming terminals — the technology that was recently approved for truck stops around the state. Those private clubs are known for offering their members small games of chance, where the revenue stays local, and often ends up benefiting area organizations.

“That money has come back to our community. Several of our local civic organizations have donated thousands of dollars to local police, local fire and local EMS, and local communities for parks and recreation for children,” Heffley said.

Carl said that he hasn’t heard of any proposals yet in Schuylkill County, but if a municipality was working with a company who planned to buy a license, they would keep their cards close to their vest.

The benefits could go a long way for the town that gets a license. The municipality would get 1 percent of table game revenue and 2 percent of slots revenue from the facility. The county would get the same amount to be distributed as grants. Carl said that could help a town lower taxes, or invest in revitalizing itself and attracting tourists.

“From a revenue standpoint, it would be a big plus,” Carl said.

Carl said Schuylkill’s location between Interstates 78 and 81 could make it a good location for a mini-casino.

“I think we’re positioned as convenient to get to. I’d say that’s an asset of Schuylkill County,” Carl said.

Existing casino license holders get the first crack at the licenses. The nine remaining auctions will take place through July 30. The minimum bid for a license is $7.5 million.