PHILADELPHIA—Citing a number of factors, including the city's support for a gaming location in Center City, Penn National Gaming Inc. has announced it has formally withdrawn its bid to develop the $480-million Hollywood Casino Philadelphia.
The Wyomissing, PA-based company had been vying for the city's gaming license for the project at 700 Packer Ave. in the city's sports and entertainment district since November 2012.
"A contributing factor in our decision to withdraw our proposal was the City of Philadelphia's vocal support for a Center City casino location, despite the fact that two-thirds of the profits from our proposed casino were dedicated to the city's education and pension fund liabilities,” says Timothy J. Wilmott, president and CEO of Penn National Gaming. “The market potential in Philadelphia is less today then when we first applied, as a result of the ongoing gaming saturation in the mid-Atlantic region, as well as continued softness in the economy. Nevertheless, we would like to sincerely thank the PGCB for their careful consideration of our proposal.”
Yesterday, Penn National Gaming and partner Cordish Companies submitted an application with the New York State Gaming Commission for a casino license for a $750-million casino to be built in the town of Blooming Grove in Orange County.
“While we're disappointed to be withdrawing from Philadelphia, we're fortunate to still have one of the deepest development pipelines in the gaming industry," Wilmott says.
Construction has begun on the company's $225-million Plainridge Park Casino in Plainville, MA, which is expected to open in June 2015. The company is also constructing a $360-million gaming and entertainment resort for the Jamul Indian Tribe on its reservation near San Diego, which will be managed by Penn National Gaming
Penn National also plans to open two new racing and gaming facilities in Dayton and Austintown, OH this summer and in the early fall respectively.
“Our withdrawal from Philadelphia today will allow us to focus our resources on these higher return projects for our shareholders,” Wilmott says.
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