Penn National has officially submitted an application to the Pennsylvania Gaming Control Board for the establishment of its second satellite casino in Pennsylvania. This marks the official commencement of the development process for Hollywood Casino Morgantown.
Located in Caenarvon Township in Berks County, the casino will be situated on a spacious 36-acre plot. Its strategic location is in close proximity to the intersections of Interstate 76 (the Pennsylvania Turnpike), Interstate 176, and Route 10 (the Morgantown Expressway).
The gaming area of the facility will cover approximately 80,000 square feet, accommodating 750 slot machines and 30 table games. Additionally, there is room for an additional 10 tables if demand necessitates their inclusion.
CEO Timothy J. Wilmott declared in a press release that after considering various options, the chosen location for our Category 4 casino in and around Berks County stands out due to its exceptional accessibility to three major roads. He emphasized that Hollywood Casino Morgantown’s strategic positioning will enable us to attract increased revenue from the densely populated suburbs to the western side of Philadelphia, while also safeguarding our current market share at Hollywood Casino at Penn National Race Course.
In addition to its regular casino offerings, Hollywood Casino Morgantown will also include a sports-and-racebook for sports enthusiasts. Guests can enjoy a variety of dining options, including a sophisticated fine dining restaurant, a convenient food court, and a relaxed lounge venue.
Penn National anticipates that the casino will be fully operational sometime in the first half of 2020, resulting in the creation of 250 permanent job positions. Additionally, an extra 275 jobs will be generated to complete the construction process.
What the heck is a satellite casino?
The discussion surrounding the potential establishment of a new satellite casino in Pennsylvania might raise an inquiry: what exactly is a satellite casino? In essence, a satellite casino refers to a smaller-scale casino facility strategically positioned to avoid any disruption to the operations of larger casinos.
There are currently 12 casinos spread throughout Pennsylvania. In the previous year, the state legislature made the decision to further broaden gambling opportunities in the Keystone State.
The new legislation included provisions that legalized online casinos and sports betting within the state. Additionally, it granted permission for the establishment of ten Category 4 casinos, also known as satellite casinos or “mini-casinos.”
The casino licenses have restrictions in terms of scope and location. According to the law, they are allowed to accommodate a range of 300 to 750 slot machines. Additionally, they can have a maximum of 30 table games.
Nevertheless, the legislation also permitted restrictions on potential sites for these particular casinos.
The first condition is that any satellite casino cannot be established within a 25-mile radius, or what is referred to as a “buffer zone,” of any of the twelve existing casinos. The second condition allows each municipality in the state to decide whether they want to be considered as a potential location for a Category 4 casino, and they have the option to vote and opt-out of this possibility.
Due to these factors, the choices for establishing a satellite casino are constrained, and these choices are additionally curtailed by each company’s assessment of the demand in the remaining municipalities.
Who has PA satellite casinos?
The licenses were granted by the PGCB through an auction process, with Category 1 and 2 license holders initially being the only participants. However, the eligibility for Category 3 casinos was extended in the last two auctions.
Despite the provision of ten Category 4 licenses by the law, the PGCB only granted five of them. With decreasing interest and diminishing fees gathered from each subsequent auction, it is improbable that any additional licenses will be made available in the near future.
Penn National is the exclusive recipient of two Category 4 licenses. In order to secure the first license, the company outbid others by offering over $50 million, demonstrating their eagerness for the opportunity. However, it is noteworthy that this license was obtained at a price only $3 higher than the base rate of $7.5 million.
It is possible that Penn National had a motive other than just operating these casinos. Their strategic locations could potentially provide safeguarding for the company’s primary asset, the Penn National Race Course.
In August 2018, Penn National, the owner of Hollywood Casino Charles Town, made history by introducing sports betting, making it the first venue in West Virginia to offer this service.