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Mohegan Sun Pocono 1280 Highway 315 Wilkes-Barre, PA 18702 General Information and Hotel Reservations: 1.888.WIN.IN.PA. For assistance in better understanding the content of this page or any other page within this website, please call the following telephone number 1.888.WIN.IN.PA. (AP) — Pennsylvania will again seek to auction a mini-casino license on Sept. 2, under orders from state lawmakers in search of cash for a treasury starved of tax collections. The Pennsylvania Gaming Control Board is permitted to issue 14 casino licenses. Seven were guaranteed to the state’s racetracks. There were five standalone Pennsylvania casino licenses awarded. Two resorts receive licensure. A third resort will receive a license in 2017 to bring the total to 15 Pennsylvania casinos within its borders. The Pennsylvania Gaming Control Board offered parties the chance to bid for a mini-casino license once more after the previous auction in 2019 did not attract any bidders. The license for a satellite gaming outlet costs at least $7.5m; the bidding process for a Category 4 casino license took place on Wednesday. Individual Application – all individuals associated with the liquor license. Entity Application – any affiliated entity of the liquor license. IRS-4506-T - Request for Transcript of Tax Return. For fingerprinting questions please contact the Gaming Control Board at: TavernGamesPGCB@pa.gov.

Pennsylvania’s 2017 Gaming Expansion Act authorized up to 10 Category-4 (satellite) slot operations, or “mini-casinos,” in the Keystone State.

Since then, only four of the licenses have been snapped up, with diminishing returns for the state in each round of bidding. To wit:

• First, regional juggernaut Penn National paid $50.1 million for a license in York County.
• Then Stadium Casino (aka the Cordish Co.), which is now building a casino in Philadelphia’s Stadium District, paid $40.1 million for a location 40 miles east of Pittsburgh.
• Airy paid $21.2 million for a location in New Castle, between Pittsburgh and Youngstown, Ohio, but its financing fell apart and the license was rescinded.
• A fourth bid was submitted by Greenwood Gaming and Entertainment Inc., operator of Parx Casino, which coughed up just $8.111 million to construct a satellite casino in Cumberland County. That project is in limbo because of geological issues at the site, and Parx is scoping out possible new locations.
• Finally, last June, Penn National won a second license for a Hollywood-branded mini-casino in Morgantown, which bisects both Berks and Lancaster counties, paying just $7.5 million.

Subsequent rounds of bidding aroused no interest, and the auctions were supposedly shut down forever. On September 2, however, lawmakers will return to the well once more, hawking a fifth license in hopes of generating cash for Covid-starved state coffers.

According to a new report from Atlantic City-based consultancy GGH Morowitz, all current Pennsylvania casino operators and licensees are eligible to participate, subject to certain limits.

Some things remain the same: the minimum bid is $7.5 million for up to 750 slot machines, and winning bidders may pay $2.5 million to offer up to 30 table games at opening, with the option to add 10 more after a year.

And some things have changed. “The winning Cat-4 bidder may offer sports betting on-site at the new location or through online/mobile channels inside the state,” states the report by Cory Morowitz and William Allsup, “provided they purchase a $10 million sports betting license.”

Amid the upheaval caused by the virus—which shut down construction on the origina mini-casinos—“the gaming industry is adapting and looking forward,” the report states. “Whether it’s the white-hot online gaming and sports wagering markets or the few remaining greenfield markets that exist, the industry is looking to deploy capital.”

Looking Back, Looking Ahead

In January 2018, when the Pennsylvania Cat 4 licenses were first put out for bid, GGH Morowitz identified 15 desirable sub-markets ripe for the bidding, based on proximity to population density, a right-sized investment, promotional strategies and branding. That initial report was prescient, and predicted that Cat-4 bid amounts “would decline with each succeeding bid as marginal returns declined.”

Originally, GGH Morowitz concluded, “Cat-4 casinos could cannibalize existing markets, but would ultimately grow the total PA gaming market over time.” Each potential location would require careful analysis, and be “considered from the lens of a defensive acquisition or a strategic growth acquisition.”

“All of these conclusions remain valid,” the firm now states.

Pa Casino Employee License

But given the recent lack of interest, will investors show up for the third round of bidding next month?

Could be. The Morowitz report points to four markets that are “still viable as potential Cat-4 locations,” located “mostly in the center of the state (Altoona, State College & Williamsport),” along with “the highest value location,” the New Castle/northern Pittsburgh market.

“Despite its competitive dynamics,” Morowitz writes, Newcastle is prime “simply due to its concentration of nearby population relative to the other markets.”

The other markets benefit from “significantly less competition, and all have relatively similar population and income characteristics,” the report states.

“One positive for the three smaller markets is that they have the potential to draw patronage from other smaller, underserved markets, as there are no casinos near the geographic center of the state” (prospective casino sites can’t be located within 40 miles of another casino location).

Will Covid Affect Values?

With the economy hammered by the coronavirus, along with a high state tax rate, plenty of existing competition, a steep cost of entry and the current state of the capital markets, “any Cat 4 bid will be constrained and the license fee will likely skew towards the minimum,” Morowitz writes.

Among the risks, of course, is “the continuing unknown impact of Covid,” and concerns that a second viral wave could again shut down the gaming industry. Add to that the “continued overhang of the prospect of VGTs at retail establishments in PA, something that has been bandied about for some time.

“As a benchmark, VGTs in Illinois, while growing the overall market, ultimately cannibalized casinos by 17 percent to 20 percent. Typically, this uncertainty is managed through a higher cost of capital or discount rate applied to cash flows associated with an opportunity.”

All these speed bumps notwithstanding, the report states, “The new availability of a New Castle location, reasonable demographics of other locations, and optionality to enter with a smaller right-sized offering, while keeping potential expansion into other forms of gaming available for future consideration, would seem to outweigh the risks associated with a bid in the current environment, Covid aside.”

In the opinion of the authors, “there should be demand for this license, and that demand should result in a price that exceeds the bid floor.

“Bottom line, for some, this is a bid worth making and winning.”

For additional information, contact Cory Morowitz at cory@morowitzgaming.com or call (609) 226-9426.

Sources: GGH Morowitz analysis, ESRI data

• Year Pennsylvania Regulated Gambling: Horse racing (1963), Lottery (1972), Bingo (1981), Slot Casinos (2004), Table Games (2010)
• Estimated Tax Revenue from Gambling: $2.8 billion
• Estimated Gambling Revenue: $6.8 billion
• Pennsylvania Gambling Age: 18 for lottery, bingo, and racing, 21 for casinos
• Smoking ban: Pennsylvania permits casinos to set aside a percentage of the floor for smoking areas
• Online gambling status: Horse racing is the only form of legal online gambling

Pennsylvania is the second largest casino state in terms of gambling revenue. Most of the state’s casinos are racetracks with attached casinos. There are three resort-style Pennsylvania casinos. Those offer fewer slots than the main gaming establishments in the state. This is unusual compared to most other states where casinos offer amenities. Most Pennsylvania casinos offer little more than gambling on slots, video poker, and table games.

Casinos are not the only forms of Pennsylvania gambling within the state. There is a state lottery that sells instant games and holds lotto drawings. There are live horse racing and off-track betting. Charities may hold limit games of chance to raise funds.

Paying Gambling Taxes in Pennsylvania

Do you have to pay taxes on your gambling winnings? OnlineUnitedStatesCasinos has gathered everything you need to know about paying taxes on your gambling winnings straight from a Certified Public Accountant. For more information please visit our exclusive Gambling Taxes article.

Pennsylvania Casinos Map & Guide

• Harrah’s
• Parx Casino
• Rivers Casino
• Sands Bethlehem
• Sugarhouse Casino

• Number of B&M Casinos: 12
• Number of Poker Rooms: 10
• Number of Indian Casinos: 0

Types of Pennsylvania Online Gambling Allowed

There is only one form of legalized online Pennsylvania gambling. That is off-track betting on horses. Sites like TVG, TwinSpires, and XpressBet partnered with Pennsylvania tracks to offer this service over the Internet and on mobile apps.

Daily fantasy sports sites claim to be legal in Pennsylvania. There is no law on the books that expressly states that. The companies claim to be skill gaming sites. There are bills under consideration by the Pennsylvania Legislature that would make daily fantasy sports a regulated and legal activity. DraftKings, FanDuel, CBS Sports, and Yahoo! are among the sites that accept Pennsylvania players.

Types of Live Pennsylvania Gambling

• Slots: Yes
• Blackjack: Yes
• Poker: Yes
• Craps/Roulette: Yes
• Horses: Yes
• Lottery: Yes

Pennsylvania gambling offers nearly every form of betting they want in the state. Pennsylvania casinos started out only offering slots, video poker, and electronic table games. That expanded to live poker, blackjack, craps, roulette, and nearly any house-banked card game one can imagine. There are 12 Pennsylvania casinos with one more in the planning stage.

There are seven racetracks in Pennsylvania. These offer live racing and race books. These tracks moved into the casino business. That helped keep the racing industry above water.

The Pennsylvania Lottery sells scratch-off tickets and lotto drawings. These are available at thousands of convenience stores across the state. There are Pennsylvania-only lotto drawings that include Pick 2, Pick 3, Pick 4, Pick 5, Cash4 Life, Cash5, and Match 6. The Pennsylvania Lottery also participates in multi-state lottery drawings. These are Powerball and Mega Millions.

Bingo is permissible if spread by a charity. There are more than a dozen licensed bingo halls in the state.

Pennsylvania Gambling Laws

The Pennsylvania Gaming Control Board is permitted to issue 14 casino licenses. Seven were guaranteed to the state’s racetracks. There were five standalone Pennsylvania casino licenses awarded. Two resorts receive licensure. A third resort will receive a license in 2017 to bring the total to 15 Pennsylvania casinos within its borders.

Casinos in Pennsylvania pay a tax rate of 55 percent on slots, video poker, and electronic table games. Live poker and table games have a tax rate of 16 percent.

Charities may apply for a bingo license. These cost $100 and are active for one year. Bingo games may have no prize larger than $250 for a single game except for the jackpot drawing. That bingo game may have a $2,000 prize pool. The largest amount of money that may be awarded in one day by a bingo charity is $4,000. Bingo halls may not spread more than two nights of action a week. Exceptions are made for charities that only hold annual celebrations. These nonprofit groups can hold 10 consecutive days of bingo games.

The Pennsylvania Lottery may only spread two types of games. One is instant games, sometimes referred to as scratch-off tickets. The other is lotto drawings. The Pennsylvania Lottery holds its own drawings as well as joins multi-state pools.

Horse racing is active in Pennsylvania. Seven tracks are licensed to offer live races. Each has a race book. Horse racing tracks may partner with online betting apps for remote wagering. Players may make deposits and withdrawals at the partner tracks.

The minimum Pennsylvania gambling age is 18 years of age, except for casinos, where the minimum gambling age is 21. Bingo participants may be under 18 if accompanied by an adult.

List of Pennsylvania Casinos

There are 12 Pennsylvania casinos open and currently operating. Seven are at racetracks that also offer live and simulcast betting, and the rest are casino resorts.

History of Pennsylvania Gambling

Horse racing was the first form of legalized gambling in Pennsylvania. Its regulation started in 1964. The racing industry dated back more than 200 years before that. Dozens of tracks operated off the book races where the betting was handled through underground networks. It took until 1964 for the state to determine it was better off regulating and taxing the racing industry than to let it operate without any oversight.

The Pennsylvania Lottery was created by Act 91 on August 26, 1971. The first lottery ticket was sold on March 7, 1972. It was a half-dollar drawing with a $1 million grand prize. The Pennsylvania Lottery joined interstate drawings on June 27, 2002.

The Racehorse Development and Gaming Act was signed into law by Governor Ed Rendell on July 5, 2004. This permitted racetracks to add slots, video poker and electronic table games. It was created to help save the state’s racing industry. Table games and live poker were added in January 2010.

The new table games helped Pennsylvania’s gambling industry explode. The state surpassed New Jersey as the second highest state in terms of gaming revenue in 2012. Pennsylvania has retained that title ever since. Nevada is the only state with more gaming revenue than Pennsylvania.

Pennsylvania looked again to expand gambling in 2013. This time, it was over the Internet. Multiple attempts have included online poker and casino games. None has reached the assembly or senate floor for a vote.

The Pennsylvania Legislature is also looked to expand gambling to daily fantasy sports in 2016. Those talks have also failed to produce a new law regulating and taxing the contests.

Pennsylvania Casinos & Gambling FAQ

Pa Casino License News

The minimum Pennsylvania gambling age is determined by the types of gambling they want to use. Lottery and racing players must be at least 18. Pennsylvania casino players must be 21 years of age or older. Bingo players must be at least 18 unless accompanied by a parent or guardian.

Slots, video poker, electronic table games, live poker, blackjack, baccarat, Pai Gow, Three Card Poker, Four Card Poker, Ultimate Texas Hold’em, Let it Ride, Mississippi Stud Poker, Texas Hold’em Bonus and Caribbean Stud Poker are among the approved games at Pennsylvania casinos.

Yes. All seven horse racing tracks in Pennsylvania offer race books.

The only form of online gambling legal in Pennsylvania is off-track betting on horses.

State law does not cover daily fantasy sports. Sites like DraftKings, FanDuel, CBS Sports and Yahoo! claim that the contests are skilled games.

Pennsylvania generates more gaming revenue than any other state except Nevada.

Pa Casino Commission

The Pennsylvania Lottery sells scratch-off and lotto tickets.