Competitors seeking Pennsylvania’s remaining casino “resort” license tried to convince state gambling regulators Wednesday to approve their projects, instead of a Gettysburg area proposal.
Developers from Nemacolin and Mechanicsburg argued that their projects represent the best revenue-opportunity for the state’s gambling industry, which lacks an
The two projects are competing against the proposed Mason Dixon Resort & Casino in Cumberland Township for the state’s last resort license, as well as a group in the Poconos, which testified Tuesday with Mason Dixon investors. Licenses are issued to well-established hotels, with resort amenities, situated at least 15 miles from other gaming sites.
Nemacolin operator Maggie Hardy Magerko, also CEO of 84 Lumber, told the seven-member Gaming Control Board that her project best meets the criteria of the state’s gaming act with its wide range of amenities. Her father, Joseph Hardy, bought the land more than two decades ago.
“My dad has a saying, ‘the only thing Nemacolin doesn’t have is an ocean.’ We’re working on it,“ Hardy-Magerko told the Gaming Control Board. “We’re also working on gaming.”
The 2,000 acre site southwest of Pittsburgh in Fayette County features a 36 hole championship golf course, world-class spa, five-star hotel, ski resort, shooting range, and fine dining, among other amenities. There are 322 total rooms, in four complexes.
“I know of no other casinos in the world, that offer this many amenities. This is a huge opportunity for our state,” Nemacolin General Manager Chris Plummer told the Gaming Control Board, which plans to issue the license Dec. 16, or Jan. 6.
The Nemacolin Resort is considered the Gettysburg project’s top threat to the license, coveted by Mason Dixon Resort co-investors David LeVan and Joseph Lashinger.
Hardy-Magerko now operates the facility that was originally purchased by her father, Joe, more than two decades ago. The Hardy Family attended Wednesday’s suitability hearing, but Joseph Hardy, a well-known political donor and philanthropist, did not speak as he tasted a cigar for much of the four-hour hearing.
Gaming Control Board member Kenneth Trujillo noted that while the resort is impressive, he questioned whether there is enough clientele in that area to support gaming. Plummer acknowledged that revenues have declined over the last five years.
“I understand that it’s a great resort, but it hasn’t been able to generate money over the last five years. I have concerns about how viable this model is,” said Trujillo. “Your total revenues are on a downward spiral.”
Plummer replied that while revenues have “gone down, last year was the bottom.” Nemacolin is projecting a 13 percent increase in revenues over the next year, at $49 million. The board draws 350,000 visitors on an annual basis to Wharton Township, Fayette County.
Pittsburgh area casino operator Bill Paulos, of The Meadows Casino, testified against the Nemacolin Resort receiving the Category Three license. Paulos argued that a third western Pennsylvania casino, coupled with The Rivers in Pittsburgh, as well as two regional casinos in West Virginia, may cannibalize the market. Gaming Control Board member Ray Angeli also questioned market saturation.
“The only hope that Nemacolin has in reaching its revenues is to market to existing customers of Meadows and The Rivers,” Paulos told the Gaming Control Board. “It will take gaming dollars already in the area.”
“We are your partners,” Paulos told the board. “I paid $66.5 million to be your partner, so I’m going to trust that you’re going to make the right decision, and I’ll back you 100 percent.”
Gaming Control Board member Jeffrey Coy lauded the Hardy Family, well-known for political contributions to prominent state lawmakers, including those who crafted the gaming law in 2004-05.
“You are truly examples of good Pennsylvania citizens,” Coy told the Hardy Family.
“Your contributions to community and the state need to be commended. It’s pretty evident that you do things the right way,” said Coy.
Gaming Board member Gary Sojka noted that the resort is located four miles from Fort Necessity, an historic area like the 6,000-acre Gettysburg National Military Park. The 300-room Eisenhower Inn is located about a half-mile from the park.
“Do people consider that Hallowed Ground? Have you heard objections?” Sojka asked Plummer, who replied, “I have not.”
Gaming hearings aren’t new to Nemacolin. The resort and its developer, Woodlands Fayette, LLC, applied in 2005-06 for a resort license, but pulled its application, citing concerns over the gaming law, and lack of a proven operator. St. Louis-based Isle of Capri has partnered with Nemacolin to operate the resort casino, with up to 600 slot machines and 50 table games.
“You’re proposing to do a resort casino,,” said Gaming Control Board member Kenneth T. McCabe, “and what we heard yesterday was convenience casinos.”
A proposal to convert the Holiday Inn in Mechanicsburg into a resort casino, featuring a Recreational Vehicle park, closed out the presentations at 3:30 p.m. Investors behind the project noted that the hotel — which would lose its flag if awarded a license — hosts hundreds of wedding and special events each year, and that a resort casino represents a “natural expansion.”
The casino would include an “RV experience,” featuring 36 recreational vehicles for overnight guests. Investors told gambling regulators that they’re trying to capture the “RV market,” and that 8 percent of American households have such vehicles.
Mason Dixon Resort investors, including Gettysburg businessman David LeVan and Florida lawyer Joseph Lashinger, presented their project Tuesday, as well as the Bushkill Group of the Poconos. Spokesman David La Torre attended Wednesday’s hearings to scout the competition, as well as Lashinger.
“We believe we made a compelling case for licensure,” La Torre said regarding Tuesday’s hearing, which drew 150-plus supporters and opponents of the $75 million plan to the State Museum auditorium in Harrisburg. “Mason Dixon is the best candidate, but we’ll see if the board agrees with us.”
Six years after the state legislature legalized gambling, there are still no Category Three hotel resort casinos open in Pennsylvania. There are racetracks (Category I) and stand-alone casinos (Category II) casinos open. LeVan applied for a Category II license in 2005-06, but that Straban Township project was denied by the Gaming Control Board.
There are patronage restrictions for resort casinos. Patrons must be overnight guests, guests of the resort or patrons of its amenities, or possess a membership pass.
A final decision on the license could come as early as Dec. 16, explained GCB Chairman Greg Fajt, during the board’s regularly scheduled meeting. Otherwise, a decision would be postponed until Jan. 6.
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