New Castle, PA. A state law passed last year authorizes the gambling board to auction the rights to 10 new mini-casinos in an effort to scrounge money for a threadbare state treasury.
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BIG BEAVER — Beaver County might have hit the jackpot, but Lawrence County could still get some winnings from Monday's announcement on the location of a new mini-casino.
Monroe County-based Mount Airy Casino is purchasing more than 100 acres of land near Interstate 376 and the Pennsylvania Turnpike to build a mini-casino and entertainment complex in Big Beaver.
Mount Airy Pittsburgh Casino Resort is expected to open in late 2019, bringing hundreds of jobs and potentially millions in gambling tax revenue. Officials expect to break ground on the resort in the fourth quarter of 2018.
'It's a game changer — it's a game changer any time a new business comes into the Beaver County region, bringing new jobs into the county,' said Daniel Camp, chairman of the Beaver County commissioners. 'Beaver County has been looking for this entertainment venue to come here and this is our big chance. We're excited.'
Camp said that he is excited to work with Mount Airy officials as partners with the county and the borough. It was a big announcement for the county, Commissioner Tony Amadio said, and one he was ecstatic about.
'Beaver County wins again,' Amadio said. 'First, we got the multi-billion dollar cracker plant, and today we got the multi-million dollar casino and entertainment center. One way to build your revenues is to bring in economic development, and we worked hard to do just that.'
Commissioner Sandie Egley, who is attending a commissioners conference in Gettysburg this week, did not return multiple requests for comment. Egley chose not to be part of casino talks in the county this spring.
Good news for some, not others
But while Beaver County officials are excited for another economic boom, it comes at the disappointment to their neighbors to the north. Dan Vogler, chairman of the Lawrence County commissioners, said the county tried hard to entice Mount Airy officials.
'Obviously, I am disappointed in that decision,' he said. 'People up here in Lawrence County put forward a great promotion on locating in the county.'
Mystical unicorn no deposit slot machine. Vogler said public and private groups from throughout the county, including Ellwood City, were involved in attempting to lure Mount Airy to Lawrence County. He said they argued that locating in Lawrence County would not only give the casino owners access to the Pittsburgh market, but also the eastern Ohio market.
'I thought we put our best foot forward,' Vogler said. He noted casino officials met in the county twice and were given tours of the community where possible sites were pointed out.
Despite his disappointment, Vogler said he respects the company's decision. And he said the location in Big Beaver is still a positive for Lawrence County because it is right on the county line. Vogler said he expects the proximity will give some Lawrence County residents opportunities for jobs at the casino.
The chosen plot
The property is being purchased from local developer Pat Nardelli's Castlebrook Development. A sale price was not available. The parcel of land is off Fairlane Boulevard.
The casino will be designed by the Friedmutter Group, known for its work at the Cosmopolitan resort in Las Vegas. Phase one will include 750 slot machines, 30 table games, a buffet and sports bar. Future phase-two development plans include a full-service resort hotel, convention center, restaurant, pool, spa and salon and other “destination-focused” amenities.
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“We envision the casino as just the start of building something truly special for the tri-state area,” Lisa DeNaples, owner and managing trustee of Mount Airy Casino Resort, said in a release. “Imagine not just a casino, but a destination that raises industry-wide expectations and standards — serving as a phenomenal gathering space for celebrations and live entertainment and bringing upwards of 700 jobs to regional residents.”
Of those 700 jobs, 400 would be full time, while 300 would be temporary construction jobs.
Winning bid
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In February, Mount Airy submitted a winning bid of $21.1 million for one of 10 mini-casino licenses across Pennsylvania. Under their bid, Mount Airy officials committed to locating the casino within a 15-mile radius of New Castle in Lawrence County.
Municipalities in that radius — which encompass portions of Lawrence, Mercer, Butler and Beaver counties — had the opportunity to opt out of allowing a casino. Big Beaver was one of two municipalities in Beaver County to keep their hat in the ring.
In April, Mount Airy officials began reaching out to officials in all four counties, Camp said. After receiving the winning bid, Mount Airy started doing their homework, said Vincent Jordan, vice president of marketing and gaming operations for the casino company.
'It was an intense process,' Jordan said. 'We channeled all of our attention into location and economics and commissioned a company to come in and look at Mount Airy's assessment to validate our assessment.'
Mount Airy's resort in the Pocono Mountains is 1,000 acres, Jordan said, and the company wanted to make sure wherever they expanded into western Pennsylvania at had opportunities for long-term development. The parcel Mount Airy is purchasing is about 110 acres, and there is an opportunity to expand on another 70-plus acres, Jordan said.
Mount Airy met with officials from all four counties, Jordan said. In April, Camp and county solicitor Garen Fedeles went to the Poconos resort for an informational meeting. Amadio was unable to make the trip, while Egley chose not to attend. In May, Camp, Fedeles, Amadio, Big Beaver officials and members of the Beaver County Economic Development Authority attended a meeting at Seven Oaks County Club in Ohioville at the request of Mount Airy officials.
The main purpose of the meeting was to show support for a land agreement between Nardelli and the casino. Fedeles said county and municipal officials signed a nondisclosure agreement and were not allowed to speak about the meeting. Egley refused to sign the agreement and did not attend any of the meetings.
'It was a show of good faith that Beaver County wanted this here,' Camp said. 'They saw that all sides were on board before they made their decision.'
Among those in attendance at the Seven Oaks meeting was former Mount Airy owner and Scranton-area businessman Louis DeNaples, who has been barred from profiting from the casino after being accused of lying to the Pennsylvania Gaming Control Board about his relationship with two mobsters. Camp said DeNaples never spoke with county officials about casino business.
Jordan reiterated Monday that DeNaples does not have anything to do with the operations or business decisions at the casino. His daughter, Lisa, runs the casino and resorts.
'We are fully aware of the restrictions placed on Mr. DeNaples,' Jordan said. 'I am confident that none were violated.'
Another controversial Beaver County figure was in attendance at the May meeting. Mike Veon — a former state representative who was convicted and imprisoned for his role in a scheme to use state money to pay bonuses to legislative staffers for campaign work — works with Castlebrook Development as a consultant, Camp said, and has worked with numerous sites for Nardelli's company.
Veon also has a tie to Louis DeNaples, who gave Veon $30,000 in campaign contributions in May 2002. Reports show his realty company made an additional $20,000 in contributions in 2004 and 2005.
Veon’s ties to the last attempt at bringing a casino to Beaver County have led attorneys to request a U.S. District Judge to find Veon in contempt of court. Veon was subpoenaed in June to be deposed in a civil lawsuit related a mid-2000s bid to open a casino and racetrack in the Beaver and Lawrence counties area. Veon led the charge to bring the racetrack to South Beaver Township.
According to federal court filings, Veon “may be in a position to testify as to the political motivations involved in the issuance of gaming licensing.”
Entertainment complex
Among those representing the Beaver County Economic Development Authority at the May meeting was its solicitor, Joe Askar, who said he did not sign a nondisclosure agreement. Askar said the authority has been asked if it is able to obtain a bond for portions of the project. The authority has done such work before on a Nardelli project, namely the development behind Beaver Valley Mall.
Whether the authority would “float a bond” for a portion of the casino development has not been discussed, Askar said.
“If it made financial sense to the authority, they would consider it,” Askar said. “It would be just like the sports and airport authorities in Allegheny County.”
Jordan said that both the county and the borough have expressed excitement to Mount Airy at the idea of having a convention center and entertainment venue.
'We're looking forward to working with the county, the borough and the authority to bring that to Beaver County,' Jordan said. 'It's an exciting time, and exciting day. We're excited to bring this type of facility to (Beaver County).'
Jordan said there is no set time frame for when the second phase of the casino and resort will begin. At the family-owned casino and resort in the Poconos, the resort has 188 upscale guest rooms and suites. It features several signature restaurants, including Guy Fieri's Mt. Pocono Kitchen and Bistecca by Il Mulino. The resort includes a lakefront, 18-hold golf course, a 16,000-square foot spa, salon and exercise facility and a $6 million indoor-outdoor pool and entertainment complex. The resort — which totals more than 1,000 acres Jordan said — also houses a covered outdoor pavilion that hosts a summer concert series, a nightclub and bar and a banquet and conference center.
Clearly, the resort planned for Big Beaver won't be as sizable, but it will be far more than just slot machines and table games once development is done, Jordan said.
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'It's not just a casino that (Beaver County) is getting here,' Jordan said. 'It's a resort that offers a great deal of entertainment and partnership with the community.'
Spreading the wealth
The project is being hailed as a win for the region, and it will likely have tremendous ramifications on the borough of Big Beaver.
Jason Landsbach, the president of the borough’s council, said Monday’s announcement could completely change the tiny borough of less than 2,000 people.
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“At last, good news,” he said.
For starters, he said the borough can expect to receive an additional $250,000 annually in taxes and other revenues from the development, which is significant given that the borough’s budget is only about $600,000.
“That’s a real shot in the arm,” he said.
State gambling law mandates that 4 percent of the casinos revenues be distributed back to the county and municipality. Camp said that some, if not all, of the county's portion of the revenue will be able to be dispersed to other municipalities in the form of grants.
Ellwood City Ledger editor Patrick O'Shea contributed to this report.
After a delay, the 5th mini-casino auction took place in Pennsylvania with no bids submitted.
Since January, the Pennsylvania Gaming Control Board has hosted two auctions a month to provide current land-based gaming operators with the opportunity to acquire licensing for smaller, satellite casinos. Up to 10 licenses are up for grabs and so far, each auction for licensing has seen a few bids, that is until this past week. After a two-day delay, the 5th auction for satellite licensing took place with the Gaming Control Board receiving no bids from operators.
The auction was originally set for Wednesday of this week, but bad weather caused the auction to be delayed until Friday. Now, according to the Board, no bids were sent in for the 5th gaming license up for grabs. Executive Director of the Board, Kevin O’Toole, announced during the beginning of the auction that there had been no formal proposals submitted.
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Four licenses for satellite casino gaming have been auctioned thus far, so has interest now waned? Since January, the Board has planned two auctions per month, through the month of May. For now, only existing operators in the state can apply for satellite licensing and must bid a minimum of $7.5 million to be considered.
With six satellite casino licenses remaining and no bidders during this recent auction, a second round of auctions will begin in two weeks. With these auctions, the smaller resort casinos of the state will have a chance to bid. This will include Lady Luck Casino. Operators who already secured rights to build a mini casino can also be eligible again to bid for additional licensing.
Winners So Far
Thus far, over $118 million has been paid to the state via the mini-casino auctions. The first winner was Mountainview Thoroughbred Racing Association who bid $50.1 million. The company will be building in York County. Stadium Casino LLC earned the second license, securing a spot in Westmoreland County with a $40.1 million bid.
The bids dropped even further during the third auction with Mount Airy #1 LLC earning the next license with $21.2 million. The company plans to build in New Castle. Greenwood Gaming and Entertainment Inc. earned the fourth license with an $8.1 million bid. This auction had a bit of drama as the Sands Bethworks Gaming LLC initially earned the license, but their bid was invalidated after it was found that their plans overlapped the location buffer with the plans of Mount Airy. Greenwood will be constructing their venue in Cumberland County.
Moving Forward
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This empty auction does raise some concerns. Will there be any more interest in the mini-casino licenses? Will the state continue to be able to earn much-needed funds from the new gaming option? it is disheartening to see that no bids came in this go-round, especially considering the amount of money that has already been spent.
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We may see that in two weeks, bids continue to run dry. Gaming regulators would have to determine how to proceed next. It may take outside investors to get the ball rolling again if new gaming facilities are to be built in the state.
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Existing operators may also have their eye on other gaming options. Along with the satellite casinos being approved last year, online gaming is also coming soon. Current land-based gaming operators may be looking to go online rather than focus on building another gaming facility. We will have to watch and see over the coming weeks if any interest is shown this go round and how the auctions will proceed in the future.