July 11th, 2012


Pennsylvania Gaming Control Board
Commonwealth Tower, Strawberry Square
303 Walnut Street, 5th Floor
Harrisburg, PA 17101


Doug Harbach or Richard McGarvey (717) 346-8321

Application Period Announced For Philadelphia-based Category 2 Slot Machine Operator's License

HARRISBURG, PA: The Pennsylvania Gaming Control Board today announced that it is now accepting applications for the one remaining Category 2 Slot Machine License and Table Games Certificate. By law, the licensed casino must be located in the City of Philadelphia subject to certain mileage parameters.

The application and instructions for completion are available on the Board’s website at Applications are very detailed and require the submission of substantial plans and documents. The deadline for submission is November 15, 2012.

Chairman William H. Ryan, Jr. noted that the Pennsylvania General Assembly has been considering legislation that would amend the Gaming Act and repeal the requirement that the licensed casino be located only in Philadelphia.

"However, since it appears that the General Assembly will not approve such a change in the foreseeable future," Ryan said, "the Board believes that it is in the best interest of the people of Pennsylvania to proceed with the application process.

Ryan adds that since this process may take 9 to 12 months from the close of the application period until the Board is in a position to consider all the applications, the Board felt it was time to move forward.

The Pennsylvania Race Horse Development and Gaming Act permits the Board to award up to five Category 2 slot machine operator licenses, with at least two of those being in the City of Philadelphia. The Board awarded two such licenses to Philadelphia applicants in December 2006. One of the Philadelphia awards was to HSP Gaming, LP, which opened the SugarHouse Casino in September 2010. The second award was made to Philadelphia Entertainment & Development Partners, LP which intended to open the Foxwoods Casino Philadelphia. That license holder, however, was unable to construct and open that casino, and the Board revoked the license in December 2010. Following court appeals, the revocation decision was upheld in March of this year.

Ryan said the public can be assured that the process in awarding this license will be transparent with affected citizens and organizations provided ample opportunity to weigh in with comments and concerns.

"There will be a thorough background investigation of all applicants and public vetting of all proposed projects," Ryan said. "Most importantly, this Board will come to Philadelphia and listen to comments both in support of and against each application."

If awarded a Category 2 Slot Machine Operator’s license, by statute the holder must pay a $50,000,000 one-time fee to the Commonwealth to operate up to 5,000 slot machines and an additional $24,750,000 (Note: this fee amount is different from original press release) for a certificate that permits the operation of up to 250 table games. The license holder must also maintain $1,500,000 in an account as a deposit from which payments can be drawn to satisfy bills from the regulatory agencies of the Commonwealth.

The Board invites any interested parties who have additional questions on the Category 2 license and application process to contact a representative in the PGCB’s Bureau of Licensing by calling 717-346-8300 or by e-mail at

About the Pennsylvania Gaming Control Board:
The Pennsylvania Gaming Control Board was established in 2004 with the passage of Act 71, also known as the Race Horse Development and Gaming Act. Pennsylvania’s first new state agency in nearly 40 years, the Gaming Control Board is tasked to oversee all aspects of the state’s casino industry. The 11 casinos in operation all offer both slot machine and table game gambling, employ over 16,000 people, and collectively have generated more than $6.9 billion in tax and license fee revenue since the first casino opened in November 2006. A portion of that money has delivered property tax reduction in each of the past 5 years for all Pennsylvania homeowners; provided funding to the Commonwealth’s horse racing industry, fire companies, a statewide water and sewer project grant program, and the state’s General Fund; and, established a new stream of tax revenue to local governments for community projects.

A wealth of information about the Gaming Control Board’s regulatory efforts and Pennsylvania’s gaming industry can be found at At this website, visitors can watch Board meetings live or view videos of past meetings, look up future meeting schedules and past meeting transcripts, obtain information on identifying a gambling problem and gaining assistance, access an interactive map of casino locations, request a speaker for their group, along with much more information. You can also follow the agency on Twitter by choosing @PAGamingControl.

# # #