No bids received at Pennsylvania’s mini-casino auction 

The Pennsylvania Gaming Control Board announced Wednesday that no bids were submitted at its auction to reserve the opportunity to apply for a Category 4 Satellite Casino license, thus concluding this auction process.

Per Act 20 of 2019 ("Act"), the Board was to conduct up to five auctions for the remaining Category 4 Slot Machine Licenses. Bidders could only be current holders of Pennsylvania casino licenses. The Act also further directed that no further auctions are to be conducted if an auction fails to generate a bid.

The so-called ‘mini-casinos’ can offer up to 750 slot machines and eventually up to 40 table games.

Under the Gaming Expansion Act of 2017, the Gaming Control Board was authorized to award up to 10 Category 4 (satellite) Slot Machine Operator Licenses through an auction process which was conducted from January to April 2018, resulting in five successful auctions garnering $127 million in bids to secure the right to obtain a Category 4 license. Two of the projects have thus far received approval by the Board to begin construction:

• Mountainview Thoroughbred Racing Association, LLC, which operates Hollywood Casino at Penn National Race Course, was awarded a Category 4 license on June 12, 2019 to construct a satellite casino in Caernarvon Township, Berks County (bid price: $7,5000,003).
• Stadium Casino, LLC, which is constructing a Category 2 casino in Philadelphia, was awarded a Category 4 license on August 14, 2019 to construct a satellite casino in Hempfield Township, Westmoreland County (bid price: $40,100,005);

Three Category 4 projects have submitted applications, after successfully winning an auction last year, with their final award still pending:

• Mountainview Thoroughbred Racing Association, LLC, is seeking a second license in this category to construct a satellite casino in Springettsbury Township, York County (bid price: $50,100,000);
• Mount Airy #1, LLC which operates the Mount Airy Casino Resort, is seeking a license to construct a satellite casino in Big Beaver Borough, Beaver County (bid price: $21,188,888.88);
• Greenwood Gaming and Entertainment Inc., which operates the Parx Casino, is seeking a license to construct a satellite casino in Shippensburg Township, Cumberland County (bid price: $8,111,000).

A Category 4 Slot Machine License permits the entity to operate between 300 and 750 slot machines. The entity could also petition for permission to initially operate up to 30 table games for an additional fee of $2.5 million with the capability of adding an additional 10 tables games after its first year of operation.