Mount Airy reducing slot machines

Mount Airy reducing slot machines

HARRISBURG - Mount Airy Casino Resort has won approval from state gambling regulators to remove 150 slot machines from its gaming floor, a move reflecting concerns about an excess supply of slot machines in Northeastern Pennsylvania.

The casino in Paradise Township initially petitioned to remove 300 slot machines, but scaled back the requested cut to 150 machines. The gaming control board voted to approve the request earlier this month. Mount Airy will be able to remove the slot machines after the gaming board's executive director approves a revised gaming floor plan.

The reduction will leave Mount Airy with 2,275 authorized slot machines. This action came as the gaming board weighs awarding the remaining resort casino license to one of four applicants, including Fernwood Hotel & Resort in Bushkill.

Mount Airy officials cite the addition of 3,000 slot machines to the region's gaming market with the May 2009 opening of Sands Casino Resort Bethlehem and potential costs savings as reasons for the move. Mount Airy and Sands Bethlehem have overlapping markets in Monroe and Northampton counties, according to a presentation made by Mount Airy officials to the gaming board.

The proximity of Sands Bethlehem has led to a loss of market share for Mount Airy, thus requiring adjustments to the number of slot machines on the floor, Mount Airy officials told the board.

Another reason for the move is to make the gaming floor less crowded, said Mount Airy spokeswoman Wendy Wilson on Wednesday. "We just want to make sure there's more access and elbow room for our customers," she added.

Mount Airy officials made no mention in their presentation about the impact adding up to 250 slot machines to the region's gaming market if Fernwood is awarded a resort casino license.

Sands Bethlehem and Mohegan Sun at Pocono Downs have both filed objections to Fernwood's application, but not Mount Airy. At a recent gaming board hearing on Fernwood's application, Sands Bethlehem President Robert DiSalvio said that a casino at Fernwood would result in overlapping markets with his casino, Mohegan Sun and Mount Airy. Fernwood officials have said they want to target an underserved market in northern New Jersey and New York.

The gaming board's vote to approve a reduction of slot machines at Mount Airy is no reflection on how it may act on the resort license decision, said board spokesman Doug Harbach on Wednesday. Board members had to base their decision on the evidence presented to them regarding existing licenses, he added.

Pennsylvania casinos periodically seek adjustments to their slot machine complement, sometimes adding or subtracting machines. But Mount Airy's initial request for a 300-machine cut was considered a large one by industry standards, thus warranting a public hearing on the matter during the gaming board's Dec. 16 meeting, said board spokesman Richard McGarvey.

In giving approval to the smaller 150-machine cut, gaming board officials received assurances that Mount Airy has no plans to expand the number of table games offering poker and blackjack on its premises. That assurance from Mount Airy is considered important because casinos are barred from reducing their slot machines in order to add table games under the 2010 state law legalizing table games.

A Mount Airy representative, Atlantic City attorney Michael Sklar, told the gaming board that the slot machine reduction would have no impact on gross terminal revenue or lead to job layoffs.

Mount Airy owns the slot machines being taken off the floor and will use their parts to refurbish other slot machines in use. Mount Airy anticipates savings on capital replacement and operating costs with fewer machines.