As we wait for online poker rooms to finally launch in Pennsylvania, it looks like one casino who already shelled out the big bucks for an interactive gaming license has reversed course and will sit out the upcoming party. Multiple media outlets have reported that the Philadelphia Live! Casino, a property that is still under construction, will be sold before it is even completed and that its current owners want to transfer their gaming licenses.
The first reporting came from Global Gaming Business’s Roger Gros, who tweeted, “Sources are telling us that the Philly Live! casino project is dead in the water. The two owners, Cordish and Parx, will ask permission from the PA gaming board to sell the license. No confirmation yet, but very reliable source.”
Online Gaming License Affected
Philadelphia Live!, was one of nine casinos to file applications for all three types of internet gaming before the July 16th deadline. The complete list of those casinos is as follows:
Parx Casino
Mount Airy Casino Resort
Philadelphia Live! Hotel and Casino
Sands Casino Resort Bethlehem
Hollywood Casino at Penn National Race Course
Valley Forge Casino Resort
Harrah’s Philadelphia Casino & Racetrack
Rivers Casino
Sugarhouse Casino
Each of those casinos had to pay $10 million in total to apply for online poker, online table games, and online slots licenses. Individually, each license would have cost $4 million. Mohegan Sun Pocono missed the deadline and had to pay full price at $12 million for the three applications. Presque Isle Downs Casino only filed for online slots and table games, so it paid $8 million.
In addition to the online gaming licenses, Philadelphia Live! also shelled out $50 million for a Category 2 gaming license and $40.1 million for a Category 4 gamin license. Yikes.
This month, Rivers Casino changed its mind and decided to withdraw all three of its applications. We don’t know if it will receive a refund of its $10 million; one would think it will or it would have just gone forward and at least gotten the licenses, even if it didn’t plan on launching any sites. The casino will instead focus on sports betting.
There was some question as to how many casinos would apply for licenses, as not only are the fees high, but the taxes are quite…something. The 14 percent plus 2 percent local tax on internet table games and poker are fine, but internet slots will be taxed at a 54 percent rate plus the 2 percent local tax, which is insane.
So now, if we assume that the Philadelphia Live licensing slots will remain active in some form, there are now ten slots still open: four for online poker, three for online table games, and three for online slots. Outside operators – that is, those who are not one of Pennsylvania’s casinos – can now submit applications. The Pennsylvania Gaming Control Board will randomly select from all approved applications to determine who will be granted licenses.