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Casino project to start rolling
Message was posted: 09:53 Jul 28th, 2006

User: birdman Rank: Casino Gold: 2244CG Contributor rating: 4720 Status: Offline

Casino news from http://www.pennlive.com/ Penn National Gaming Inc. expects to start construction of the slot-machine casino at its Penn National Race Course in Grantville next week. The five-story, 365,000-square-foot casino will feature 2,000 slot machines when it opens during the first quarter of 2008 and could handle as many as 3,000 machines, Penn National said. The much-anticipated project is expected to revive the racetrack, which opened in 1972. The grandstand has been demolished to clear the site for the Hollywood-theme casino. Penn National said yesterday it expects the project to cost about $310 million, including $50 million for the state licensing fee. That's 18 percent more the $262 million price tag projected when the casino plan was announced early last year. Peter M. Carlino, chairman and CEO, said the higher estimate reflects a rise in costs for construction and materials and a refinement of the company's development plans. "We're not concerned about the net result, even with the adjustment of cost," he said. The company expects to receive approval of a conditional Category 1 gaming license by the end of September, based on comments from the chairman of the Pennsylvania Gaming Control Board. Category 1 licenses are earmarked for racetracks in the state. A hearing on the company's license request is scheduled for 9 a.m. Aug. 9 in Harrisburg at the State Museum, Third and North streets. Carlino said the company has "not ruled out completely" the opening of a temporary slot-machine facility before completion of the casino. However, he said the company's obligation to make a $10 million tax payment to local and county municipalities when the slot-machine facility opens would have to be clarified. Carlino and other Penn National executives said the $10 million tax payment is required whether the casino is open for just a few months or the full year. However, Steve Kniley, a spokesman for the state Department of Revenue, said regulatory provisions allow for a pro-rated payment for the portion of a year that a casino is in operation.