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by: Glenn Haussman.
The Pennsylvania gaming industry was set up not only with the goal of adding $1 billion a year to the state’s coffers; it also had the added responsibility of trying to reinvigorate the state’s flagging horse racing industry.

PA Gambling Helping State Horse Race Biz


Now, during a board meeting of the Pennsylvania Gaming Control Board, top management from the state’s horse racing facilities are reporting that the additional revenues being funneled in their direction are helping to improve the business in multiple ways.

These leaders of state horse race tracks are reporting the new money created by slots gaming has significantly increased purses resulting in attraction of better horses, boosted attendance at simulcast facilities located at the tracks, and spurred plans for improvement of patron amenities.

In addition, gaming revenues are leading to plans for significant improvements to the backstretch area of the tracks including stables and dormitory facilities.  Except for newly constructed tracks Presque Isle Downs and Chester Downs, these backstretch improvements are required by the Gaming Act through the expenditure by each facility of $5 million dollars over the initial five-year period following the issuance of their license and no less than $1.25 million for five years thereafter.  Some of the tracks testified that their plans will be in excess of this minimum requirement.
The four facilities that opened since Mohegan Sun at Pocono Downs saw the first slot machine begin public play in November, 2006 have accepted more than $3.5 billion in wagers resulting in a return to date of more than $39 million to the horse racing industry.  Of that amount, 80% must be placed in a purse account set up by and for the benefit of the horsemen and 4% goes to a health and pension benefit account for the horsemen.  The remaining 16% of funds go to breeder’s programs which are administered by the Commonwealth.

Representing the four operating slots facilities were:
•    Robert J. Soper, President & CEO and Dale Rapson, Vice President, Racetrack Operations at Mohegan Sun at Pocono Downs
•    Dave Jonas, President & COO, Hal Handel, CEO,  and Thomas C. Bonner, Vice President & General Counsel for Philadelphia Park Casino
•    Vince Donlevie, Senior Vice President & General Manager, and Michael Tanner, Director of Racing Operations at Harrah’s Chester Casino and Racetrack
•    Richard Knight, President, CEO, General Manager, Rosemary Williams, Director of Racing Operations (MTR Gaming) and Debbie Howells, Director of Racing at Presque Isle Downs
Two track slot facilities have yet to open.  Representatives from those companies updated the Board on their preparation to commence operations:
•    Michael Graninger, Vice President and General Manager and John Marshall, General Manager at The Meadows Racetrack and Casino
•    J. Gary Luderitz, Vice President & General Manager and Rob Marella, Director of Racing at Hollywood Casino at Penn National

The Meadows is working toward approval by the Gaming Board for an early summer opening, while Penn National expects to be ready to seek approval for opening in early 2008.

Combined with licensing fees, legalized gaming from these six facilities has thus far returned $480 million to taxpayers.
This year, the state’s 7,929 slot machines have pulled in $158,673,000 in taxes for the state and an additional $129,823,000 for the casino operators.  Additionally, the state has seen wages of nearly $3.2 billion and paid out almost $2.9 billion. 

The Pennsylvania Gaming Control Board has also launched a program where local law enforcement agencies will soon be able to apply for grants to enforce and prevent the unlawful operation of slot machines in their jurisdictions.

 The grant program was developed and approved by the Legislature as part of the Pennsylvania Race Horse Development and Gaming Act and funded with $5 million annually from money generated from slot machine facilities.

© Copyright 2007 Gambling Central's material. It may not be published, broadcast, rewritten, or redistributed.


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