PENNSYLVANIA SLOTS Rendell: Lawrence-Beaver will get only 1 track license

The governor sees slots as a way to cut property taxes.
VINDICATOR STAFF/WIRE REPORT
BUTLER, Pa. -- Gov. Ed Rendell says he is optimistic that legislators will pass a slots bill by June.
"I think the legislators realize the people are demanding property tax relief. It's the only way to make significant property tax changes," Rendell said Saturday after a ribbon-cutting ceremony at a new museum in Butler. Rendell then headed to Slippery Rock University to give the commencement address.
Rendell said that if slots legislation is approved, the Lawrence-Beaver county region will likely receive only one racetrack license. There are 13 entities vying for the last two remaining licenses.
In Lawrence County, Bedford Downs is proposed just off U.S. Route 422 near the Ohio border. Developer Carmen Shick and his siblings have applied for both the harness and thoroughbred but are hoping to walk away with only one.
In neighboring Beaver County, there are two developers seeking horse racing licenses.
"Southwestern Pennsylvania already has The Meadows in Washington County, and a gaming venue is planned for Pittsburgh. I don't think licenses would be granted in both Lawrence and Beaver counties. The area couldn't support it," Rendell said.
Slots parlors
The current slots proposal calls for two slots parlors, one in Pittsburgh and another in Philadelphia, along with slot machines at the state's current racetracks and two more to be named.
"We're a long shot," conceded Shick, who oversees coal, quarry and construction businesses. "Then again, so was Smarty Jones." He was referring to the horse that won the Kentucky Derby.
Rendell, a Democrat, rode the issue into office 18 months ago, saying that taxing the profits from slots could slash some of the $5 billion or so in property taxes that Pennsylvania homeowners pay each year to fund schools.
Many also see it as a way to boost tourism, resuscitate the state's dying horse industry and provide jobs at tracks and farm-service businesses.
Differences
But despite the fact that a majority of lawmakers have supported the concept, they remain trapped in a web of partisan and philosophical differences.
Backroom negotiations are still roiled by questions like which school districts should get the largest shares of the property-tax relief and how much control the state should have over the gambling operations.
Also muddying the waters is the likely prospect that, as part of any final compromise, slots will also be permitted at resorts and other sites without accompanying racetracks.
The companies vying for a piece of Pennsylvania's prospective slots empire include five multistate companies -- MTR Gaming Group Inc., Magna Entertainment Corp., Centaur Inc., Isle of Capri Casinos Inc. and Penn National -- that collectively list gambling and racing interests in at least 18 states, Canada and Austria. Some of the companies also are involved in simulcasting and off-track and telephone-betting operations.
Shick said he has spent about $1 million on his effort; Centaur spokesman Rick Kelly said the company has spent about $3 million.
Across the border
In the meantime, slot machines are sprouting just beyond Pennsylvania's borders, as neighboring states try to plug budget holes and slots operators look to expand their businesses.
The number of slot machines at casinos and racetracks in neighboring New York, New Jersey, Delaware and West Virginia has grown by about 10,000 in the past year to more than 70,000 now. The number could hit 83,000 in a year.
And as the months roll by, Pennsylvania's slots legislation has grown more unwieldy.
Shick said his plans to build an entertainment complex could be greatly scaled back without slots revenue.
"All things considered," he said, "I think the slots are really what makes the whole project profitable."