from yesterday's Philadelphia Inquirer --
Delays of casinos costing millions
The Gaming Control Board says Pa. is losing $990,000 in taxes each day opening of the sites is postponed.
By Suzette Parmley
"Legal and political delays in opening Philadelphia's two waterfront casinos are costing about $1.8 million a day in gross slots revenue, according to a state gaming official.
Targets for the casinos' openings have been pushed back about a year because of fervent neighborhood opposition, disputes over riverbed construction rights, and jurisdictional squabbles.
Meanwhile, Pennsylvania, which gets a 55 percent cut of the two slots parlors' take, stands to lose about $990,000 in tax revenue for every day the openings are delayed, according to the state Gaming Control Board.
The city loses $72,054 a day, or at least $26.3 million a year, from its share of the casinos' tax take.
The figures do not count the expenses the city and state will incur to host the casinos." ....
"Six slots parlors, including Philadelphia Park in Bensalem and Harrah's Chester Casino & Racetrack in Delaware County, are fully operational.
In addition to tax revenue, there are host fees, pilot payments, and other fees to the city, said Joe Grace, a spokesman for Mayor Street. "You are looking at $85 million to $90 million over the course of the five-year financial plan," he said. "So we support gaming as a significant economic tool for the city of Philadelphia, and support it to move forward."
The Pennsylvania Race Horse Development and Gaming Act was passed in July 2004 and signed into law by Gov. Rendell. It authorizes up to 61,000 slot machines in 14 venues throughout the state.
SugarHouse Gaming and Foxwoods Development Co. L.L.C. were awarded the two city slots licenses almost one year ago, on Dec. 20, 2006, by the gaming board.
On Dec. 3, the Pennsylvania Supreme Court ordered City Council to give SugarHouse all the necessary permits and approvals to begin construction immediately." ....
"Foxwoods is seeking similar relief from the state's highest court for its planned casino at Columbus Boulevard between Tasker Avenue and Reed Street in South Philadelphia. It filed for a rehearing Tuesday." ...
"Combined, the two slots parlors by SugarHouse Gaming and Foxwoods are expected to generate $658.3 million a year, based on each casino having at least 3,000 slot machines, according to their gaming-license applications." ...
"Carlin said SugarHouse's interim facility, with 1,500 slots, was slated for a July 2009 opening - instead of in early 2008, when it had first been planned.
Foxwoods originally had anticipated a November 2008 opening. Dougherty said his team was now budgeting for a 22-month construction schedule from when and if ground was broken. Foxwoods had planned to break ground in April 2007."
for the complete story see:
http://www.philly.com/philly/business/20071210_Delays_of_casin
os_costing_millions.html
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