Nemacolin Woddlands withdraws slots application..
December 1, 2006
I think this speaks more to the political red tape in the PA slots license than anything else. Typical PA nepotism and pork projects and glad handing. The state legislature could mess up a once car funeral.
http://postgazette.com/pg/06332/741868-100.stm
I'm nothing short of stunned.
Amazing. You would have thought that basic issues like this would have been worked out some time ago and if there are some other factors as well.
Wonder what happens to their $5M application fee based on this 'misunderstanding".
With both resorts withdrawing, you have to wonder. Is the State making it too difficult? Did they realize that a mere 500 slots wouldn't be worth the hassle in comparison to a full fledged "casino" in PGH with 2000+ slots and free drinks? Is the thought of Wheeling getting tables and full gaming part of the equation?
Everyone seems to think the $5 mil licensing fees have been lost to both 7S and Nemacolin...I just don't buy that. Businessmen of this caliber just don't gamble $5 mil on a whim, I'm sure the majority of it will be reimbursed minus some filing fees of a few grand.
It seems to me that with the strict regulations, dealing with the State, cost of building, cost of training employees, providing security, etc to host 500 slots and try to compete against larger casinos would be a losing situation for the resorts.
I would partly agree, but in terms of the viability Nemacolin could be somewhat of a different situation than 7S was or potentially HV could be.
Granted the other slot parlors will have many more machines, but a resort has the advantage of a captive audience who is generally there for several days and drawn for other things who then gets diverted to the slots which could be a big advantage. A slot parlor requires someone to actively decides to go play and there isn't much to keep them there for long. It is why the vegas convention hotels do so well and I personally think this would be a goldmine for a PA ski resort that gets it right.
Anyway, Nemacolin may just not have the volume of traffic that 7S does or maybe the right kind of traffic. I'm still amazed that smart businessmen invested so much time and energy in this just to pull out at the 11th hour if at the end of the day the numbers never worked
It speaks volumes about the state of PA and all of its stupid rules & regulations when a guy like Joe Hardy pulls his application for slots. There may be other reasons for him pulling his application... Nemacolin Woodlands Resort just received a highly coveted 5 star rating and having a casino on its grounds may jeopardize this.
I know this is somewhat off topic, but would someone please explain to me why it's taking so long to award a gaming license in the city of Pittsburgh? You've got an outfit that is willing to build a new arena ($290 million) for the Penguins at no cost to the taxpayer, yet the decision has been delayed. What is there to ponder? This is a no-brainer. The Penguins have a new owner who wants to stay put, but I don't blame him if he moved the team. This new arena was promised to Mario Lemieux several years ago, but the idiot politicians have done absolutely nothing. I'm sure the most important part of the decision making process over who gets that slots license is what gaming outfit provides the most payoffs and kickbacks to local & state leaders. I believe that PA, especially under the current governor, is one of the most corrupt state governments in the country.
HockeyDave,
As you know, I am usually wrong.
But someone told me this weekend on good inside info that the decision has been made and that Harrah's will get the license and that time is just being wasted so they can claim that due diligence was applied....so you are exactly right, it has nothing to do with what's best for the people and the city and instead has everything to do with politics and clout. I hope this person was wrong, but would not be surprised if they are right.
Leo
imho it's obvious this is not a money issue. slots in most any vegas casino generate 1/3 of all gross profits. if you do the math, basicall to pay back $5M in one year each slot maching has to make 12 transactions/hour @ an average pull price of 17 cents. (30% max bet, 70% single) with an average 83% program across all machines. That ain't bad.
Interesting. I noticed that a) the 84 Lumber Classic was off the PGA tour schedule and b) Woodlands World had moved down into Uniontown. I wonder if either or both of those moves had been made in anticipation of getting the casino.
Aren't there a few resorts in the Poconos with ski areas that have been closed for a while? I wonder if they are being snapped up by Eddies buddies as we speak.
Quote:
Woodlands World had moved down into Uniontown
One of the (persistent) rumors that I had heard re: Nemacolin & slots was that the Woodlands World buliding was intended to be the slots parlor building from day one. The rumor even went so far as to claim that the buliding was wired with electrical outlets every two or three feet, in anticipation of wiring up those 500 slot machines.
I have absolutely no idea if any of the rumor is true, but I find it amusing if nothing else.
I have not seen it for myself but I have heard the parking lot behind where Woodlands World was increased to accommadate the slots parking.
.. interesting .... the real tell would be if those outlets also had provisions for cat-5 networking cables ... if so it's a sure bet (pun intended). most igt slots (and everybody) are networked to a server now for floor/pit management.
