The Meadows makes case for license renewal
Bill Paulos, principal of Cannery Casino Resorts, made a case Wednesday for renewing The Meadows’ casino license and for enhancing the facility’s well-being.
A member of the audience exits the packed public meeting room of the Courthouse Square office building where the state Gaming Control Board convened its meeting Wednesday.
Nearly nine years have passed since the former Meadows Racetrack got its casino license. Bill Paulos still feels like a winner.
“It was promises made and promises kept,” said Paulos, founder and principal of Cannery Casino Resorts, owner of what became The Meadows Racetrack & Casino. “In nine years, we’ve had only two general managers, two directors of finances, one director of racing, one director of sales.
“That’s a pretty good record of stability and going forward that we kept our promises.”
Paulos was one of six officials connected with the gaming and harness racing destination who spoke Wednesday inside the Courthouse Square building in downtown Washington. The Washington Trotting Association, the casino operator, made its pitch for renewal of the facility’s gaming license at a hearing before the Pennsylvania Gaming Control Board.
The license of each of Pennsylvania’s 12 casinos is up for renewal every three years. The control board will likely render a decision in a couple of months.
A favorable decision is certainly possible, for the place generated millions in tax relief and Local Share Account funding and is largely credited with the hotel and retail boom nearby since gaming began June 11, 2007.
Paulos and Sean Sullivan, vice president and general manager of the North Strabane Township facility, made a compelling case. So did Cannery Executive Vice President Guy Hillyer and Meadows executives Kevin Borgan, Kevin Decker and David Wiegmann.
Yet, as Paulos and Sullivan pointed out, there are concerns. They include keeping state residents from going to out-of-state gaming venues, drawing players who live outside the state, illegal gambling machines, online and off-track betting, hours alcohol can be served and continuing to allow smoking in the casino.
The track also is a concern, which, Sullivan said, could be alleviated by dropping from 208 racing days to 148.
“Harness racing is just about break-even at The Meadows,” he said. “We would have to be creative (with 148 days), but if we do that properly, I think that could make us one of the best tracks in the country. We believe we can market the racing business far better than we do now.”
The proliferation of casinos in surrounding states has been hurting The Meadows, with players often going outside Pennsylvania. This is especially painful financially because the state’s tax on slots revenue is high, 61 percent, nearly twice that as West Virginia (35 percent) and Ohio (33 percent).
“Each casino in each state has a book of high-level players – we’re talking about the top 25 percent of players,” Paulos said. “We want to go after them because (casinos in other states) certainly go after ours.”
Sullivan added, “We need tools, incentives to attract them here.” Those tools could include travel packages, including sports tickets.
Paulos estimated there are 40,000 illegal gambling machines in the state, which likewise is a detriment for casinos. “If we got rid of those 40,000,” he said, “we’d have all licensed machines, all that are taxed.”
Off-track betting, he said, “is not profitable.” There are fewer than 10 off-track venues operating in Pennsylvania, mostly to the east. The Meadows has six OTB licenses, but has only one operating OTB site – in Harmar Township.
Paulos said he would prefer that alcohol be served at The Meadows “for a couple more hours” in the early morning. “Young people are out, but they don’t go out ’til 10 or 11 and we have last call at 1:15. We turn on the lights.”
“When the lights come on,” said Brogan, The Meadows’ marketing director, “you’re basically saying, ‘Party’s over. Leave.'”
Some states have banned smoking at casinos. Banning it in Pennsylvania, Paulos said, could result in a big financial hit for The Meadows, which he said has efficient ventilation.
“We have a very workable system in Pennsylvania,” he said. “We say a casino is a place of choice. If you don’t like the fact people smoke in the building, don’t go.”
Almost lost during the hearing was the issue of The Meadows possibly being sold. About a year ago, Gaming and Leisure Properties Inc. of Wyomissing forged an agreement to purchase the facility from Cannery Casinos Resorts LLC for $465 million. Paulos said the issue is on the Gaming Control Board’s agenda for a meeting next Wednesday.