Penn National Pays Additional $6 Million for More Slots Licenses in Cecil County

Penn National Gaming Incorporated has paid another $6 million for additional slots licenses in Cecil County where it is competing for the state's approval to construct a new gaming establishment in Perryville.

The issue was a potential serious block for the Wyomissing, Pennsylvania-based gaming organization, which was under considerable pressure from state gaming regulators to increase its stake in the casino project or face a rejection of its slots casino bid.

Company spokesperson Eric Schippers said on October 6th, 2009 that the group has submitted an amended casino application for 1,050 slot machines and a check for $6 million to the state committee handling slot machine gaming.

That is in addition to the five hundred slot machines that Penn National applied for earlier this year. Schippers said that Penn National Gaming is scheduled to talk with Maryland Video lottery Facility Commission to discuss the group's project.

In August 2009, Penn National Gaming made its bid to construct a gambling parlor on a thirty-six acre location off Interstate 95 and Route 222 in Perryville. The gaming organization plans to spend a total of $85 million to build its slots parlor, which could open on October 2010.

The project is expected to produce about $47 million in revenue in its first five years of gaming operation. A state law approved by a November 2008 referendum allowed five slots parlors in the state of Maryland. Aside from Cecil County, additional locations include Baltimore City, Allegany, Anne Arundel and Worcester Counties.

With a maximum of fifteen thousand slot machines, state officials hope that the slots parlors will bring in $600 million for public education. Penn National officials said that they were initially reluctant to pay more money or bid for additional slots licenses until they knew more about the process.

Penn officials also said that they wanted to know if they could get the money that they had paid if their slots bid was dismissed. Officials added that they also want to know what kind of slot machines would be provided for the slots location. Under the state's slots plan, the Maryland Lottery Commission would acquire or lease the slot machines for each of the five slot gaming establishments.

Officials from Penn National Gaming said that inferior machines would make it difficult for them to attract gamers and it will affect the viability of their proposed slot machines facility. Approval of all but one slots facility plan-the Ocean Downs near Ocean City-is taking longer than what is expected.

Sunday, 15 November 2009
Caroline Mitchell