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Gaming

With many Eastern states severely strapped for cash, more casino expansion is likely to be on the way. Governors and legislatures, with an eye on potential tax revenues, are paving the way for gaming development.

Bills currently before the Pennsylvania legislature would allow table games at the state’s nine casinos. Delaware adopted legislation in May allowing sports betting at its three racinos (racetrack casinos). However, a federal appeals court has stymied full implementation.

Non-gaming states are also hoping to get in on the action.

With bipartisan support, Ohio Gov. Ted Strickland in July announced "immediate action" to implement video lottery terminals (VLTs) at Ohio’s seven racetracks, allowing each up to 2,500 machines.

A move is also afoot to place a constitution-changing measure on Ohio’s November ballot that would allow for casinos in Cincinnati, Cleveland, Columbus and Toledo.

Maryland voters passed a constitutional amendment last November allowing for casinos totaling 15,000 slots in five locations. Last summer, the state began hearings on four proposed projects, including Ocean Downs Racetrack in Berlin as well as others in Baltimore and Anne Arundel County.

Last year, Massachusetts Gov. Deval Patrick’s legislative measure to develop three resort casinos failed. However, the press has speculated that there are now enough votes to get a gaming bill passed.

New Jersey
Despite declining gaming revenues at Atlantic City’s 11 casino resorts, the Atlantic City Convention & Visitors Authority (ACCVA) reported a "strong flow" of summer visitors.

"The number of room bookings made through the authority website, visitor center and call center in July reflects a 26 percent increase over last July," says Jeff Vasser, ACCVA chairman, adding that the Sheraton Atlantic City Convention Center Hotel experienced a 2.6 percent July occupancy increase over the same month last year.

Construction continues in the city, which has invested billions of dollars to diversify and upgrade its visitor infrastructure.

Towering over the boardwalk is the frame of Revel Entertainment’s $2 billion, 47-story casino, which is more than half complete. Slated to open in 2011, it will include 1,900 rooms and a 5,000-seat theater.

Scheduled to open late this year is One Atlantic, a special events center with 10,000 square feet of indoor space atop the Pier Shops at Caesars. More than 20 events are already booked for 2010.

In June last year, the 800-room Water Club opened with 18,000 square feet of meeting space at the Borgata, completing a two-phase, $600 million project at the resort complex.

Early last year, Harrah’s Atlantic City unveiled its 960-room Waterfront Tower, bringing total rooms to 2,590. In fall 2008, Trump Taj Mahal’s 786 room Chairman’s Tower debuted, completing a $250 million project that included renovation of the existing 1,250-room casino hotel.

Also last year, the 331-room Chelsea, which is the boardwalk’s first non-gaming boutique hotel and has a 4,400-square-foot ballroom, came on the scene.

The ACES (Atlantic City Express Service) train service debuted in February, providing weekend service from New York City’s Penn Station to the rail terminal, with a stop in Newark, N.J.

Pennsylvania
The Keystone State unveiled its first casino in November 2006. Last year’s gaming revenues topped $1.6 billion, increasing 48.3 percent over 2007, moving Pennsylvania from ninth to seventh place in the American Gaming Association (AGA) list of top-producing states.

Opened in August, Pennsylvania’s ninth casino, the 3,000-slot Rivers Casino on Pittsburgh’s waterfront, includes a 1,000-seat amphitheatre. In May, Las Vegas Sands unveiled Sands Casino Resort Bethlehem. Located on the former Bethlehem Steel site, it has 3,000 slots, with another 2,000 opening in November.

With a variety of dining and entertainment options, both are $700 million-plus projects that will include 300-room hotels and substantial meeting and event space in future phases.

In addition to the Sands and Rivers, one other standalone casino resort is open, the 188-room, 2,500-slot Mount Airy in the Poconos, which debuted in November 2007. Facing planning, site and legal issues, construction has yet to start on two casinos approved for Philadelphia’s riverfront, Foxwoods and SugarHouse.

State legislation has allowed for 500-slot casinos at two established resorts. In April, the state awarded a license for Valley Forge Convention Center, which has two hotels. The Poconos’ Fernwood Hotel & Resort and Crowne Plaza Reading have applied for the other license.

New England
The Constitution State’s two powerhouse casinos—Foxwoods and Mohegan Sun—make up the country’s fourth-largest casino market.

In May last year, the $700 million, 825-room MGM Grand at Foxwoods debuted, adding 115,000 square feet of meeting and event space to Foxwoods’ existing 50,000 square feet of available space. The new property also has a 4,000-seat theater and a 1,400-slot casino.

Before the expansion, Foxwoods Resort Casino already boasted six casinos, 1,416 guest rooms, five entertainment venues, a spa and golf.

Last year, Mohegan Sun suspended work on the final phase of its $925 million Project Horizon expansion, which is to include a 919-room tower with additional retail and event space. The two completed phases are Sunrise Square, which opened in August 2007, and Casino of the Wind, which opened in August 2008.

Sunrise Square is an Asian-themed gaming and dining area; Casino of the Wind has 45,000 square feet of gaming space and 22,000 square feet of dining and retail areas.

In Rhode Island, Twin River, the former Lincoln Park greyhound track/casino, two years ago unveiled a $220 million expansion, increasing the slot count from 3,000 to 4,700 and adding new restaurants and a 29,000-square-foot event center.

Filing for Chapter 11 bankruptcy protection in June, the owners announced an agreement had been reached in which lenders will become the new owners and the casino will remain fully operational.

Last year, Maine’s lone casino—Hollywood Slots, Hotel & Raceway in Bangor—unveiled a 151-room hotel with meeting space in a $132 million project that also included a new 1,000-slot casino and dining outlets.

New York
The Empire State is pushing ahead to get an additional racino, and three Native American casinos in the Catskills. It now has five Native American casinos with Las Vegas-style gaming, and eight racetrack casinos that opened between early 2004 and late 2006.

The newest and largest racino is the $300 million, 5,500-slot Empire City at Yonkers Raceway, which single-handedly made Yonkers the country’s 19th largest casino market last year with gaming revenues of $486.5 million, according to AGA.

After a casino-hotel project for Aqueduct Racetrack in Queens fell through in March when the chosen developer failed to come up with the upfront fee, the state reopened bids. Six new bidders include Wynn Resorts, a group that includes Hard Rock International and a group that includes Delaware North Companies and Harrah’s.

Also, Empire Resorts is building the first phase of its $700 million Concord-Empire Hotel and Casino. On the site of the demolished Catskill’s Concord Hotel, it is slated to open by early 2011. It will feature a 500-room hotel, a casino and racetrack, with further phases calling for substantial meeting and convention space.

Legislation passed in 2001 allowed the Seneca Nation to expand. It also allowed other tribes up to three new Catskills casinos, a move stymied by a federal policy requiring casinos to be within commuting distance of a reservation.

The Seneca Nation has three casinos: the 604-room flagship Seneca Niagara Casino & Hotel, with 30,000 square feet of meeting space; the 200-room Allegany Casino & Hotel in Salamanca, which last year opened a 2,000-seat seat event center but suspended work on a second 200-room tower; and downtown Buffalo’s 2-year-old Buffalo Creek Casino, which suspended work on a hotel and 2,000-slot permanent casino last year.

Near Syracuse, the Oneida Nation’s Turning Stone Resort & Casino has 700 rooms in four hotels, 100,000 square feet of meeting and event space and three golf courses. This year it added an eight-court tennis complex.

Delaware
Last year, the 500-room Dover Downs Hotel & Casino, which has 35,000 square feet of meeting space, completed the final $50 million phase of three expansions, increasing its count from 2,500 to 3,100 and adding the Colonnade restaurant and retail area. The property recently added a sports betting facility.

The First State has two other casinos: Harrington Raceway & Casino and Delaware Park.

Eastern Canada
In Ontario, Niagara Falls boasts the 368-room Fallsview Casino Resort, which has a 3,000-slot casino and 50,000 square feet of meeting space. Connected to the casino by an enclosed walkway is the Hilton Hotel & Suites Niagara Falls Fallsview, which recently opened a 53-story tower addition, doubling its number of rooms to 1,000 and making it the largest of the 19 hotels on Fallsview Boulevard.

Across the river from Detroit, Windsor Casino became Caesars Windsor following a $439 million expansion and renovation last year. The expansion included a 369-room tower, bringing total rooms to 758. The property also offers a 5,000-seat events center and 100,000 square feet of meeting space.

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About the author
Tony Bartlett