SEARCH NEWS:

 

Pennsylvania receives first licensing payment

WILKES-BARRE, Pennsylvania – (PRESS RELEASE) -- Governor Edward G. Rendell today accepted a check on behalf of the citizens of Pennsylvania for $50 million from Mohegan Sun at Pocono Downs. The Governor said the check represents the first payment made by a gaming entity to the commonwealth, and gets homeowners one step closer to significant property tax relief funded by gaming.

"As gaming continues to come on line in Pennsylvania, we will move closer and closer to guaranteed property tax relief for each and every homeowner," said Governor Rendell. "Gaming facilities like Mohegan Sun at Pocono Downs will help fund the largest property tax reduction in Pennsylvania history, in turn helping working families and young Pennsylvanians trying to purchase their first home, and retired homeowners who risk losing their houses.

"Thousands of Pennsylvanians will also find new employment opportunities as more and more jobs are created at the Downs and through a boost in business in the surrounding area."

Senior citizens - who are the hardest hit by rising property taxes - will get the extra help they need by a major expansion of the state Property Tax and Rent Rebate Program. An additional 420,000 senior citizens will receive help paying their property taxes or rent, and an estimated 146,000 senior citizens will have their school property taxes completely eliminated.

"Without gaming, we could not have increased the income limit to $35,000 for homeowners and boosted the maximum rebate to $650," said Governor Rendell. "As each new gaming facility prepares to open the doors of these new tourist attractions in cities across Pennsylvania, 11 of them will pay $50 million to the commonwealth, like Mohegan Sun did today, helping to fuel property tax relief."

Mohegan Sun at Pocono Downs will celebrate its grand opening on Tuesday, Nov. 14, 2006, with a ceremony at 9:30 a.m. and doors opening at 10 a.m., pending final approval by the Pennsylvania Gaming Control Board.

Phase One of the Mohegan Sun project features two floors housing almost 1,100 slot machines, a food court, bar and patio. An additional third floor will be used for office space.

On Sept. 26, the Pennsylvania Gaming Control Board unanimously approved five applications for slot-machine gaming operator licenses, the first such licenses awarded under the Race Horse Development and Gaming Act of 2004.

The six licenses are all associated with horse-racing tracks that are currently operating or are under construction across the commonwealth. Three of the entities approved, including Mohegan Sun at Pocono Downs, have indicated that they expect to begin gaming operations sometime between October 2006 and January 2007.

The Gaming Control Board approved licenses for:

• Chester Downs and Marina LLC (Chester Downs, Delaware County)

• Downs Racing LP (Pocono Downs, Luzerne County)

• Greenwood Gaming and Entertainment Inc. (Philadelphia Park, Bucks County)

• Mountainview Thoroughbred Racing Association (Penn National, Dauphin County)

• Washington Trotting Association Inc. (The Meadows, Washington County)

Since then, a sixth applicant for a Conditional Category 1 license, Presque Isle Downs Inc. (Presque Isle Downs, Erie County), was awarded.

Under Act 71:

-- There are 14 gaming venues -- seven of which are tracks, five are non-track parlors and two are resort-based locations.

-- Slots licensees will pay 34 percent of their gross revenue to the state, with most proceeds going to the property-tax relief fund. The remaining funds will also go to aid the horseracing industry and local communities that host slots facilities, and to create a state program to prevent and treat compulsive gambling.

-- Track and non-track licensees will pay a $50 million fee up front to operate slots, while resort licensees will pay a $5 million fee.

-- All slots license holders will undergo rigorous background checks and receive approval from the Pennsylvania Gaming Control Board. Slots operations will be monitored by a central computer at the state Department of Revenue to ensure their integrity.

The licenses awarded to date are all conditional Category 1 licenses. Under Act 71, the Board must also approve permanent licenses for the entities approved. The Gaming Control Board expects to act on 21 permanent applications for 13 gaming licenses in December 2006, according to Chairman Tad Decker.

The Rendell administration is committed to creating a first-rate public education system, protecting our most vulnerable citizens and continuing economic investment to support our communities and businesses.

< Gaming News