Soper says Mohegan expects to spend up to $175 million on construction, furnishings and equipment for the new facility in addition to the one-time $50-million fee it must pay to the state on receipt of the license. A Category One facility can contain up to 3,000 slots. He says Mohegan's plans call for "between 1,500 and 3,000 machines along with some restaurant and retail facilities and a small entertainment area. The design is not completed yet."

Mohegan acquired the 400-acre Pocono Downs and five Pennsylvania off-track wagering operations in five different towns from Wyomissing-based Penn National Gaming Inc. for $280 million. The off-track betting parlors are in Carbondale, East Stroudsburg, Erie, Hazleton and Allentown, which, at 28,000 sf, is the largest of the five. The racetrack and betting locations are continuing in seamless operation since completion of the acquisition, Soper says.

Meanwhile, Penn National's sale of Pocono Downs paved the way for its ability to apply for a slots license at its Penn National Racetrack in Grantville. It has announced plans to develop a $125-million slot machine facility there, also to open next year. State law prevents a single entity to own full interest in more than one slots facility, a ruling that led to the sale of Pocono Downs.

In an unrelated transaction, Penn National's previously announced $2.2-billion acquisition of Alton, IL-based Argosy Faming Co. is expected to close in the second half of this year. It adds seven casinos to Penn National's portfolio making it the third largest casino operator in the country.