Casino Parx Halts Hotel Construction Plans, Citing Worries over Skill Games
Parx Casino north of Philadelphia in Bensalem is modifying its hotel plans from new construction to acquisition.
Following the revelation that the Pennsylvania Supreme Court will review the legality of skill games, the slot-like machines that have flooded small businesses across the state, Parx, the wealthiest casino in Pennsylvania, shared that the court's decision will significantly impact whether they proceed with constructing a 300-room luxury hotel and events center. This casino, operated by Greenwood Racing Inc. and its subsidiary Greenwood Gaming and Entertainment, run by British gaming businessmen Bob Green and Bill Hogwood, has chosen instead to invest in the acquisition of a nearby hotel.
Greenwood's plans for luxury hotel construction have been put on hold in favor of purchasing the Inn at Fox Chase, a 167-room hotel located across Casino Way. The details of the transaction remain undisclosed, however, the hotel was sold just last year for $13.75 million.
The Inn at Fox Chase holds a 3.8/5-star rating on Google based on 112 reviews. Google categorizes the hotel as a three-star property.
Concerns Over Skill Games
The Pennsylvania Supreme Court will soon start reviewing state Attorney General Michelle Henry’s assertions that skill games — commonly marketed as Pennsylvania Skill — are prohibited gambling machines. Lower courts have determined that skill games aren’t subject to the state’s Gaming Act due to the elements of skill that enable a skilled player to adjust the payout rate and hence, chance isn’t the sole factor.
Henry alleges that the skill aspect is negligible, typically involving a player simply clicking on the corresponding symbols of a winning payline. Proponents of skill games claim the income, which is divvied between the host business and the games’ manufacturers and distributors, played essential roles in countering pandemic pressures and subsequent inflation.
detractors, including Pennsylvania’s 17 brick-and-mortar casinos, argue that the machines constitute prohibited gambling and affect their slot business. Skill games aren’t taxed or regulated, whereas casinos pay millions in licensing fees for their slot privileges and provide more than half of the terminals’ gross win to the state via tax.
Speaking with the Philadelphia Business Journal, Parx's Chief Marketing Officer, Marc Oppenheimer, stated that the threat posed by skill games put its $100 million hotel project plans on hold.
"Until we have better insight on those issues, we weren’t comfortable committing to a nine-figure investment," Oppenheimer explained.
The American Gaming Association estimates that there are at least 67K unlicensed and unregulated skill games in Pennsylvania.
Hotel Renovations
Parx Casino plans to overhaul the Inn at Fox Chase, with the top sixth floor being completely revamped to feature luxury suites. The hotel's five other floors were recently remodeled, as was the lobby. The hotel will stay open during the sixth-floor work and existing reservations won't be disturbed.
The staff at the Inn at Fox Chase will also have the option to continue employment with Parx. The hotel acquisition is expected to finalize this week.
Last year, Parx generated gross gaming revenue (GGR) of $588.2 million on its physical casino floor, leading the state casino industry. Parx's online operations added $58.3 million in GGR and its oddsmakers retained $17.4 million of bettors' wagers.
When Greenwood applied for a casino license in 2006, company officials informed the Pennsylvania Gaming Control Board that its master plan included an on-site hotel. Since opening the casino in September 2006, Parx has offered its loyalty members discounted nightly rates at the Inn at Fox Chase.
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