May 13, 2013 0
Penn National Gaming Inc. intends to install at least 3,000 slot machines at Rosecroft Raceway if it wins the right to operate a casino in Prince George’s County, even though the company paid an initial licensing fee to the state that only covers 500 slots.
State law requires companies bidding on casino licenses to submit an initial license fee of $3 million per every 500 proposed slot machines. Penn National’s $3 million fee was dwarfed by MGM Resorts International Inc. ($21.6 million for 3,600 slots) and Greenwood Racing Inc. ($28.5 million for 4,750 slots).
A Penn National spokeswoman said Monday the company only provided a licensing fee for 500 machines because it felt unsure the full fee would be refunded if the company was not awarded the license for the Prince George’s casino.
Karen Bailey, the spokeswoman, said Penn National did the same thing when it bid to operate what is now Hollywood Casino Perryville in Cecil County. If Penn National is awarded the casino license, Bailey said the company would pay the remaining license fee.
Companies are able to revise their proposals as the state Video Lottery Facility Location Commission reviews bids, but are not guaranteed the ability to increase the number of slot machines from their original proposal.