Pennsylvania: DeNaples' family wins mini-casino USD 21.2 M bidding

In a search for cash to patch up the state's threadbare finances, lawmakers and Democratic Gov. Tom Wolf last year approved a massive expansion of casino gambling that includes auctioning the rights to 10 new mini-casinos.

On Thursday, the family of billionaire founder Louis DeNaples -owners of the Mount Airy Casino Resort in Pennsylvania- submitted a winning bid of nearly $21.2 million to build a mini-casino along the Ohio border. 

DeNaples' winning bid raises the total from the first three auctions to $112 million. Pennsylvania is the nation's No. 2 state for commercial casino gross revenues, second to Nevada, and is already No. 1 in tax revenue from gambling — $1.4 billion in the most recent fiscal year.

Vincent Jordan, Mount Airy's vice president of marketing and gaming operations, said executives there had not settled on a final location in Lawrence County, but called the Ohio border home to "a lot of people, a lot of opportunity."

Mini-casinos can operate up to 750 slot machines and license holders can pay $2.5 million more to operate 30 table games. Bids are limited for now to the owners of Pennsylvania's 11 casino licenses that allow holders to operate up to 5,000 slot machines and 250 table games.

Lawrence County officials had actively sought a suitor for a mini-casino after several investors tried unsuccessfully for years to build a casino and racetrack there. Area officials hope the casino will provide an economic boost.

"Today's a good day for our community," Lawrence County Commissioner Dan Vogler said.

Mount Airy did not specify a specific site where it plans to build and gave no details about what kind of establishment it plans to build. But Vogler said he expected a Lawrence County casino could draw from five surrounding counties — three in Pennsylvania and two in Ohio — that, with Lawrence County, have a combined population of 1 million.

Pennsylvania-based Penn National Gaming won the first mini-casino license last month, bidding $50.1 million to put one in an area of south-central Pennsylvania that includes the city of York. A Baltimore-based developer that's building a casino in Philadelphia's stadium district won the second license, bidding $40.1 million to put up a casino in Westmoreland County, outside Pittsburgh.

Mount Airy's bid comes after critics say state lawmakers gave it two sweetheart provisions in the gambling bill.

One provision protects much of northeastern Pennsylvania from the construction of a mini-casino that could compete with Mount Airy Casino for gamblers. Another provision effectively forces higher-earning casinos to bail out lower-performing casinos, potentially delivering a $4 million payment to Mount Airy and Presque Isle.

Rival casinos have filed legal challenges that threaten both provisions.