Pennsylvania. Casino City s North American Gaming Almanac 405. United States Pennsylvania

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1 currently offers commercial casinos, parimutuel horse race betting, racinos, charitable gaming, and a state lottery. In July 2004, Governor Ed Rendell signed a bill legalizing slot machines at 4 racetracks and slot parlor locations throughout the state. The bill was passed in order to bolster the racing industry, which had been in decline, and also to help the state raise billions of dollars to cut property taxes and fund economic development. The Gaming Control Board was established in 2004 and issued of the 4 licenses in The Board has set legislation to eventually allow 6,000 slot machines to operate in the state. In October 2007, Mount Airy Casino Resort was the first commercial casino to open in. Since then, four additional casinos have opened, the most recent being Valley Forge on March 3, 202. On Jan 8, 200 governor Ed Rendell signed into law a bill which allows for Live table games in racinos. Properties began offering table games in July of 200. Revenue by Gaming Activity Casino/Card Rooms,039.03,65.57, , Lotteries,243.75,239.73,27.5, Race/Sports Total 2, , , , revenue has been interpolated to an annual basis from adjacent time periods Revenue Change From Prior Year Casino/Card Rooms 39.4% 55.49% 2.60% 5.75% Lotteries -0.86% -0.32% -.82% 0.57% Race/Sports -7.36% -6.04% -0.90% -6.88% All Gaming Activities 66.4% 22.76% 0.6% 8.70% Inflation Adjusted Revenue Revenue in Millions 20 USD Casino/Card Rooms,28.35, , , Lotteries,353.88,299.76,280.54, Race/Sports Total 2, , , , Inflation Adjusted Revenue Change From Prior Year Casino/Card Rooms % 49.93% 22.09% 3.94% Lotteries -3.6% -4.00% -.48% -.08% Race/Sports -9.93% -9.5% -0.60% -8.23% All Gaming Activities 6.38% 8.28% 0.57% 6.97% Gaming Profile by Type of Location Locations Casinos % Horse Track Racinos % Total % Slots Casinos... 0, % Horse Track Racinos... 6,6 6.0% Total... 27, % Table Games Including Poker Casinos % Horse Track Racinos % Total..., % Poker Tables Casinos % Horse Track Racinos % Total % Table Games Excluding Poker Casinos % Horse Track Racinos % Total % Casino and Card Room Gaming Act 7 of 2004 (the Race Horse Development and Gaming Act) authorizes the Gaming Control Board to license 4 slot-machine gaming facilities across. Seven Category licenses are authorized for horse racetracks (six are currently operating). Five Category 2 licenses are authorized for stand-alone slots facilities: two in Philadelphia, one in Pittsburgh, and two at tourism-enhanced locations across the state (four of the five licenses are now in operation). Two Category 3 licenses are authorized for existing resorts: one has been awarded but is engaged in a legal dispute while the remaining license has four candidates under consideration (Bushkill Group, Inc., Mason- Dixon Resorts, Nemacolin Woodlands Resort, and Penn Harris Gaming). 's gaming law initially provided for 37,000 slots; however, that number will increase to 6,000 when expansions are complete. Each license holder is allowed up to 5,000 slot machines. In 2006, six racetrack operators and five stand-alone casinos were licensed as permanent operators of casino gaming. For the protection of the public, in November 2006, the government approved an amendment to the 2004 Race Horse Development and Gaming Act. Section 53 established a code of ethics which prohibited politicians and their families from having any financial interest in casinos and prohibited state gaming regulators from taking any role in political campaigns. The ethics code also forbade back-room discussions about license applications between Board members and any "interested parties," including lawyers, lobbyists, or employees of slot applicants. It prohibited solicitation of charitable donations from gambling companies and gifts or discounts not available to the general public worth more than $50. In April 2009 following a suit filed by Peter DePaul, the state supreme court lifted the Section 53 ban on political Casino City s North American Gaming Almanac 405

2 United States contributions. DePaul contended (among other claims) that 53 violated his freedom of expression in his right to support any political campaign he wanted (even though he had a financial interest in the Foxwoods Casino project). In March 2006, the House backed an effort to stop a Gettysburgarea slot parlor, approving an amendment to the 2004 slots law that would ban any stand-alone casinos in Adams County. The amendment was attached to the slots law. In June 2006, the state Senate passed a bill that would eliminate the in-state distributor requirements for slot machines purchases. The Court based its decision to lift the ban primarily on an inconsistency of wording between Sections 02() and 53. In an unusual course of action lawmakers, instead of pursuing matters in court, corrected the inconsistency during the Senate Bill 7ll legislative sessions. Their move circumvented the judgment in DePaul v. Commonwealth, Gaming Control Board, rendering it ineffectual. Senate Bill 7 was signed into law on January 7, 200. In addition to reinstating the ethics code, SB 7 opened the doors for table games in the state of. Racetracks and stand alone casinos (Category and 2 licensees respectively) are allowed 250 gaming tables for a fee of $6.5 million. And for a licensing fee of $7.5 million, resorts (Category 3 licensees) are allowed 50 gaming tables. Additionally a 6% tax is imposed in the first year, to be dropped to 4% in the second year. Also, each table game operator must pay 2% of their gross table game revenue to their local communities. Another ethics issue surfaced in early 200, prompting Treasurer Robert McCord to sue the Gaming Board on May, 200 for barring his attendance at private executive session board meetings. In response, the Board filed an objection on July 6, 200, hoping the court would dismiss the case. The Board contended that as an elected official who can accept campaign contributions (which includes contributions made by representatives of the gaming industry), Treasurer McCord has the potential to compromise a deliberation process which was established to be independent from outside interests. Treasurer McCord maintained that he is a recognized member of the Board in accordance with the Race Horse Development and Gaming Act and has a right to attend meetings whether they are closed-door or not. In a 6-0 decision on December 0, 200, the Commonwealth Court overruled the Gaming Control Board s preliminary objection to the suit, thus allowing the McCord case to advance. On January 2, 20 the court ordered that the Gaming Control Board let McCord attend its closed-door meeting, so long as he signed a nondisclosure agreement. The historic area of Gettysburg drew considerable attention when a casino was proposed for a site just south of the Gettysburg National Military Park. In March 2006, the House backed an effort to stop the Gettysburg-area slot parlor, approving an amendment to the 2004 Gaming Act which would ban any standalone casinos in Adams County. The amendment was attached to the 2004 Act in a bill that would eliminate the in-state distributor requirements for slot machine purchases. The Senate approved the bill in June In June 2007, the Supreme Court ruled against four civic associations opposed to the proposed Foxwoods Casino, saying that they had no legal standing to challenge the state s decision to build a casino. Later that month, the Supreme Court rejected three appeals for the same reason by the Philadelphia City Council and residents, who objected to a decision to build SugarHouse Casino. In August 2008, the Gaming Control Board approved a license change for the Pittsburgh casino license. Holdings Acquisition Co., LP, a joint venture between Walton Street Capital, High Pitt Gaming, and Don Barden, now holds the license because Don Barden s PITG Gaming, which had been awarded a slot license in 2006, could not line up enough permanent credit to finish the project. The Board imposed a $2.5 million fee in connection with the restructuring transaction. A year later the Rivers Casino opened its doors on August 9, Although Mohegan Sun at Pocono Downs is owned by the Mohegan Tribe, it operates under a commercial license and is subject to the same rules and regulations as other racinos permitted by the same type of license. Therefore Casino City does not consider Mohegan Sun at Pocono Downs to be a Tribal Gaming Property. In June 2008, after much debate, a House-Senate committee backed a statewide smoking ban, which bans smoking in all public indoor facilities except some bars, smoke shops, private clubs, and casinos. The ban allowed smoking in casinos on up to 50% of the floor, depending on how much revenue was affected. Philadelphia s ban continued, but no other city could impose its own ban. In September 2008, a statewide ban took effect to prevent smoking in all restaurants and other enclosed workplaces. In December 2008, slots in the smoking sections of casinos performed better by 60-20%. Under the state liquor law, half of 's slot machine casinos are prohibited from providing free alcoholic drinks. Patrons at the rest of the slot machine casinos may get one free drink per "offering, which was interpreted by the Board's chief counsel as no more than once a day. In January 2009, Judge Tomas A. James, Jr., ruled that Texas Hold em was a game of skill (and therefore not gambling under state law) after hearing the case of two individuals arrested for holding a private Texas Hold em poker game in one of the defendant s home garage. July 7, 2007, the Gaming Control Board awarded HSP Gaming, LP one of five Category 2 licenses (which authorizes stand-alone slots facilities) for its SugarHouse Casino project. Opponents such as the Philadelphia City Council attempted to prevent the casino from being built on its waterfront location. In addition to the political opposition, other reasons for stopping the project included the discovery of ancient Native American artifacts on the construction site, concern that the site could contain the remains of a Revolutionary War fort, and that the site is a nesting place for the endangered red-bellied turtle. Despite delays from the onset of the project, SugarHouse Casino finally opened its doors on September 23, 200. Beginning December 20, 2006, when the Mashantucket Pequot Tribal Nation was awarded a Category 2 license, problems beset 406 Casino City s North American Gaming Almanac

3 the tribe and its investors culminating in a revocation of their license by the Gaming Control Board nearly four years later. On December 6, 200 the Board voted 6- to revoke the Foxwoods Casino project s $50 million license. This action followed numerous problems with the project including difficulty settling on a location, opposition from local organizations, financing (which included an abandoned partnership agreement with Wynn Resorts), and numerous failures to meet deadlines and extended deadlines. At the time of the Board s decision, the tribe had just entered into another partnership agreement with Caesars Entertainment (formerly Harrah s Entertainment). In January 200 governor Ed Rendell signed into law a bill that allows casinos to offer table games. Properties began offering table games in July of 200. The Gaming Control Board awarded a category 3 license to Nemacolin Woods Resort in April 20. Revenue in Millions 20 USD 2,000,500, ,000,500, Annual Casino and Card Room Gaming Revenue 2006 Annual Casino and Card Room Gaming Revenue 2006 Casino and Card Room Gaming Revenue Revenue in Millions Revenue in USD,039.03,65.57, , Revenue Change 39.4% 55.49% 2.60% 5.75% Inflation Adjusted,28.35, , , Inflation Adj. Change3094.9% 49.93% 22.09% 3.94% Period USD USD 20 Nov ,832,623 9,892,275 Dec ,735,302 25,424,95 Jan ,578,375 49,700,82 Feb ,752,862 58,500,696 Mar ,485,230 89,548,246 Apr ,073,267 83,06,333 May ,63,558 83,740,387 Jun ,958,48 98,59,960 Jul ,428,985 5,305,998 Aug ,5,738,92,42 Sep ,602,034 09,975,450 Oct ,469,958,758,247 Nov ,553,408 09,040,254 Dec ,848,889 07,282,32 Jan ,475,857 4,906,008 Feb ,234,355 28,73,96 Mar ,789,364 49,853,347 Apr ,433,62 39,2,826 May ,327,838 57,642,988 Jun ,473,22 39,78,45 Jul ,240,724 55,65,456 Aug ,052,263 60,743,694 Sep ,5,453 37,307,30 Oct ,203,554 39,84,792 Nov ,29,346 39,402,253 Dec ,000,72 29,889,3 Jan ,303,649 4,407,734 Feb ,579,666 54,827,93 Mar ,9,468 64,572,967 Apr ,658,363 59,442,37 May ,45,27 88,273,89 Jun ,094,863 72,733,03 Jul ,54,226 87,740,685 Aug ,936,232 95,456,938 Sep ,854,995 80,62,003 Oct ,,933 84,89,434 Nov ,293,584 73,475,206 Dec ,048,230 62,029,496 Jan ,24,974 9,853,775 Feb ,279,55 75,24,064 Mar ,62,99 207,559,053 Apr ,253, ,6,205 May ,944, ,847,099 Jun ,585,463 84,900,39 Jul 200 2,053,874 28,470,069 Aug ,635, ,265,287 Sep ,365,05 92,536,302 Oct ,459,45 203,744,004 Nov ,206,835 85,864,023 Dec ,772,637 79,950,362 Jan 20 77,37,92 8,705,094 Feb 20 97,925,54 20,827,965 Mar 20 24,926,433 27,047,093 Apr 20 2,390,229 22,0,952 May ,532, ,267,56 Jun 20 93,055,883 93,03,626 Data provided by Gaming Control Board Casino City s North American Gaming Almanac 407

4 United States Lotteries The Lottery was established in 97. Initially, proceeds were collected to aid with property tax relief for the elderly. Although the scope has expanded beyond property tax relief, the Lottery remains the only state lottery that exclusively targets its proceeds to benefit older citizens. By law, the Lottery must contribute 30 cents of each dollar earned to businesses across and 40 cents to players in the form of prize money. Revenue in Millions 20 USD,350,300,250,200,50,00,050,000,500,400,300,200,00,000 Annual Lotteries Revenue 2006 Annual Lotteries Revenue 2006 Lotteries Revenue Revenue in Millions Revenue in USD,243.75,239.73,27.5, Revenue Change -0.86% -0.32% -.82% 0.57% Inflation Adjusted,353.88,299.76,280.54, Inflation Adj. Change -3.6% -4.00% -.48% -.08% revenue has been interpolated to an annual basis from adjacent time periods Period USD USD 20 7/999-6/ ,425,000,090,986,952 7/2000-6/ ,89,000,00,752,34 7/200-6/ ,703,47,80,054,78 7/2002-6/ ,5,9,238,4,203 7/2003-6/2004,046,22,085,268,654,997 7/2004-6/2005,5,42,849,33,53,634 7/2005-6/2006,265,375,022,435,73,476 7/2006-6/2007,243,72,405,374,854,956 7/2007-6/2008,243,792,334,325,869,508 7/2008-6/2009,235,663,663,299,067,83 7/2009-6/200,98,636,35,248,063,055 7/200-6/20,249,476,032,275,388,426 Data provided by Lottery Race and Sports Wagering hosts racetrack facilities and offtrack operations. Pari-mutuel betting is controlled by the Horse Racing and Harness Racing Commissions of the Department of Agriculture. In January 2008, Governor Edward G. Rendell consolidated the administration offices for Thoroughbred and Standardbred racing. The state harness racing and horse racing commissions remained separate. allows its racetracks to operate slot machines. Revenue in Millions 20 USD Annual Race and Sports Wagering Revenue 2006 Annual Race and Sports Wagering Revenue 2006 Race and Sports Wagering Revenue Revenue in Millions Revenue in USD Revenue Change -7.36% -6.04% -0.90% -6.88% Inflation Adjusted Inflation Adj. Change -9.93% -9.5% -0.60% -8.23% 408 Casino City s North American Gaming Almanac

5 Period USD USD 20 /2000-2/ ,053, ,254,65 /200-2/ ,902, ,202,726 /2002-2/ ,860, ,977,227 /2003-2/ ,752, ,700,76 /2004-2/ ,795,87 279,37,5 /2005-2/ ,042,79 80,332,693 /2006-2/ ,707, ,44,986 /2007-2/ ,079, ,352,795 /2008-2/ ,955,89 8,285,904 /2009-2/ ,06,952 62,05,700 /200-2/200 28,094,642 32,569,05 /20-2/20 5,769,005 6,46,330 Data provided by State Horse Racing Commission Charitable Gaming allows charitable organizations to conduct bingo. Also, under the Local Option Small Games of Chance, charities are allowed to offer punchboards, daily drawings, raffles, and pull tabs. In May 2008, the House passed a bill (HB 2204) that would allow charities to increase the maximum payouts from $4,000 to $0,000 and to increase the number of games per week from two to four. The bill is currently under review by the Senate Finance Committee. Charitable gaming is regulated by the District Attorney in each county. Casino and Card Room Gaming Agency Gaming Control Board PO Box Harrisburg, (77) Fax: (77) Mr. William Ryan - Chairman Mr. Anthony Moscato - Commissioner Mr. Gregory Fajt - Commissioner Mr. James Ginty - Commissioner Mr. Keith McCall - Commissioner Mr. Kenneth Trujillo - Commissioner Mr. Kevin O'Toole - Executive Director Mr. Gary Sojka - Board Member Mr. Michael Cruz - Dir of Gaming Laboratory Ops Ms. Linda Lloyd - Director of Appeals Ms. Susan Hensel - Director of Licensing Ms. Mozelle Daniels - Chief Diversity Officer Legal Counsel: Mr. R. Sherman - Chief Counsel Casino Ops: Mr. Paul Resch - Director of Gaming Operations Publicity: Mr. Doug Harbach - Director of Communications Compliance: Mr. Gerald Stoll - Director of Casino Compliance Lottery Agency Lottery 200 Fulling Mill Road Suite Middletown, 7057 (77) or (800) Fax: (77) Mr. Daniel Hassell - Revenue Secretary Mr. Tom Blaskiewicz - Deputy Exec Dir of Field Ops Mr. Drew Svitko - Interim Executive Director Mr. Walt Rubel - Assistant Executive Director Marketing: Mr. Robert Shelton - Director of Marketing Race and Sports Wagering Agencies State Harness Racing Commission 230 North Cameron Street Room 30 Harrisburg, 70 (77) Fax: (77) Mr. Roy Wilt - Chairman Mr. Noah Wenger - Commissioner Mr. Richard Welsh - Commissioner Mr. Rick Burd - Director of Licensing State Horse Racing Commission Agriculture Building 230 North Cameron Street Harrisburg, 70 (77) Fax: (77) Ms. Corinne Sweeney - Chairman Mr. Raymond Hamm - Commissioner Mr. Daniel Tufano - Director of Horse Racing Other: Mr. Rick Burd - Director of Licensing Casinos % Reporting Property Locations... 5 Slots... 0, % Table Games % Poker Tables % Casino Square Footage , % Convention Square Footage... 87, % Rooms % Cabins % Restaurants % Entertainment Venues % Parking Spaces... 5, % Employees... 4, % Mount Airy Casino Resort 44 Woodland Road Mount Pocono, 8344 (877) Slots... 2,450 Table Games Casino Square Footage... 68,000 Convention Sq Footage... 6,000 Rooms Restaurants... 4 Entertainment Venues... 2 Employees...,300 Managed by Gaming Control Board. Entertainment Venues: The Glass Bar and Gypsies (Night Club). Rivers Casino 777 Casino Drive Pittsburgh, 522 (877) comments@theriverscasino.com Owned by Holdings Acquisition Co., LP. Slots... 2,954 Table Games Poker Tables Casino Square Footage ,000 Convention Sq Footage... 5,000 Restaurants... 8 Casino City s North American Gaming Almanac 409

6 United States Sands Casino Resort Bethlehem 77 Sands Boulevard Slots... 3,000 Bethlehem, 805 Table Games (484) Poker Tables (877) SANDS-77 Casino Square Footage...39,000 Convention Sq Footage... 2,000 Rooms Restaurants... 8 Entertainment Venues... 2 Parking Spaces... 3,500 Employees...,760 Owned by Las Vegas Sands Corp. Entertainment Venues: Molten (Lounge). SugarHouse Casino 00 North Delaware Avenue Philadelphia, 925 (267) info@sugarhousecasino.com Owned by HSP Gaming L.P. Valley Forge Casino Resort 60 First Avenue King of Prussia, 9406 (60) Fax: (484) Slots...,602 Table Games Casino Square Footage... 5,07 Restaurants... 2 Parking Spaces...,700 Employees...,090 Slots Table Games Poker Tables... 5 Casino Square Footage... 50,000 Convention Sq Footage... 54,000 Rooms Restaurants... 7 Entertainment Venues... 3 Owned by Valley Forge Convention Center Partners, L.P. Games: Baccarat, Blackjack, Craps, Pai Gow Poker, Poker, and Roulette. Entertainment Venues: Cameo Lounge, Center Bar, and Seven The Nightclub (Night Club). Attractions: Valley Forge National Park (Outdoor Historic Museum) and King of Prussia Mall (Shopping Area/Mall). Horse Track Racinos % Reporting Property Locations... 6 Slots...6,6 00.0% Table Games % Poker Tables % Simulcasting % Sportsbook % Casino Square Footage...873, % Convention Square Footage...32, % Restaurants % Entertainment Venues % Parking Spaces...6, % Employees... 4, % Harrah's Chester Casino & Racetrack 777 Harrah's Boulevard Slots...2,873 Chester, 903 Table Games (484) Poker Tables (800) Fax: (484) Sportsbook...Yes Casino Square Footage...0,500 Convention Sq Footage...,000 Restaurants... 9 Parking Spaces...2,662 Employees...,200 Owned by Caesars Entertainment Inc. and Marina LLC. Restaurants and Bars: Ace's Diner, Club Cappuccino, Copper Mug, Cove at Riverview (American Traditional), End Zone Sports Bar, Riverview Terrace (American Traditional), Stir, Temptations, and Winning Streaks (American). Hollywood Casino at Penn National Race Course 777 Hollywood Boulevard Slots...2,483 Interstate 8 Exit 80 Table Games Grantville, 7028 Poker Tables... 6 (77) Fax: (77) Casino Square Footage...97,985 pnrcattendant@pngaming.com Convention Sq Footage...6,500 Restaurants... 6 Entertainment Venues... Parking Spaces...4,00 Employees...,42 Owned by Penn National Gaming, Inc. Restaurants and Bars: Celebrity Grill (American), Epic, Final Cut (Steak), Glitterati s Pizza (Italian), Hollywood Sky Box Sports Bar (American), and Mountainview Dining Terrace & Lounge (American). Entertainment Venues: Hollywood on the Roof (Showroom). Attractions: Museum. The Meadows Racetrack and Casino 20 Racetrack Road Slots...3,37 Washington, 530 Table Games (724) Poker Tables (877) Fax: (724) Casino Square Footage...350,000 genmgr@meadowsgaming.com Restaurants... 7 Entertainment Venues... Parking Spaces...,684 Owned by Cannery Casino Resorts, LLC. Restaurants and Bars: Bistecca, Cibo (Pizza), Cookies (Ice Cream), Delvins Cafe, Franks (American), Peppers (Sandwiches), and Terrace Cafe (American). Entertainment Venues: Silks Lounge. Mohegan Sun at Pocono Downs 280 Highway 35 Slots...2,33 Wilkes-Barre, 8702 Table Games (570) Poker Tables... 8 (888) WININPA Casino Square Footage...55,000 Fax: (507) Convention Sq Footage...5,000 mythoughts@mohegansunpocono.com Restaurants... Entertainment Venues... 2 Parking Spaces...4,000 Employees...,280 Owned by Mohegan Tribe. Restaurants and Bars: Bar Louie, Ben & Jerry's (Ice Cream), Betty & Joes (Ice Cream), Hot Dog Hall of Fame, Johnny Rockets, Pacer's Clubhouse (American), Pearl (Sushi), Puck Express (Soups), Rustic Kitchen Bistro & Bar, Ruth's Chris Steak house, and Timbers Buffet. Entertainment Venues: Bar Louis and Breakers Bar. 40 Casino City s North American Gaming Almanac

7 Parx Casino 300 Street Road Bensalem, (25) (800) Fax: (25) Slots...3,537 Table Games Poker Tables Casino Square Footage...260,000 Restaurants... 8 Owned by Greenwood Racing, Inc. Restaurants and Bars: Chickie's and Pete's, Finish Line Café and Deli and Bar (American), Foodies, Horseman's Café (American), Paddock Deli (American), Parx Grill, Derby Room (American), and Sportsview Bar and Grill (American). Presque Isle Downs & Casino 899 Perry Highway Erie, 6509 (866) Fax: (84) pidinfo@pidowns.com Slots...2,070 Table Games Poker Tables... 9 Restaurants... 6 Parking Spaces...4,000 Employees Owned by MTR Gaming Group, Inc. Restaurants and Bars: The Downs Clubhouse and Lounge, Edson's Bar, Le Bonne Vie Steakhouse, The Paddock Bar, Speakeasy Saloon, and Triple Crown Buffet. Casino City s North American Gaming Almanac 4