Lawyers for three off-track bettingsites tied to Parx Casino and Racing have quietly sought permission to relocate the licenses of sites in:
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- South Philly (Turf Club)
- Upper Darby in Delaware County
- Montgomery County (The Oaks)
Petitions filed with Pennsylvania regulators ask for approval to move the sports betting and pari-mutuel sites to Chickie’s & Pete’s restaurants, a popular casual eating and sports bar chain.
The petitions hint that betting sites at additional locations may be sought in the future with Parx’s additional licenses.
With the ascent of retail and online sports betting and online horse betting in PA, combined with several months of COVID-19 disruptions, few OTB locations remain open.
Parx sought expedited approval without public input
Petitions seeking the changes expressly asked the Pennsylvania Horse Racing Commission to approve the requests “on an expedited basis” and “without requiring a written public comment period or public comment hearing.”
The current locations are closed or struggling, which is clear in the redacted petitions provided to PlayPennsylvania by the racing commission:
“The partnership and the OTB relocations will reinvigorate … off-track betting operations, bring a new set of customers to the pari-mutuel wagering industry and increase pari-mutuel wagering revenues. Such partnerships, with the built-in potential new customer base and marketing synergies they offer, represent a viable model for the future of off-track facilities.
“Absent the ability to co-locate facilities and take advantage of such relationships, the OTB concept will face significant challenges and continued closures, as the old model is not sustainable given current patron trends and existing facilities that are too large for the market.”
Parx lawyer responds
Mark Stewart, a Harrisburg-based lawyer for Parx, spoke with PlayPennsylvania. Stewart said the current stand-alone OTB model is not the best concept. The proposed moves would allow Parx to modernize its OTB offerings, he added.
Parx already has Chickie’s & Pete’s wagering operations at the casino in Bensalem, Bucks County and Egg Harbor Township in Atlantic County, NJ. The companies are looking to build on that experience, said Stewart.
The gambling spaces would be separate from regular dining areas within the restaurant. Only those above the age of 21 could enter.
Stewart said his client sought no public comment because plans “are very similar, in our view” to what is already allowed.
Shannon Powers, a spokeswoman for the race commission, said there is no decision yet on the request. She added the law is open-ended about allowing for public comment or a hearing in such circumstances.
An agenda for the race commission typically comes out just a few days before a board meeting. The next meeting is on Feb. 23.
Sports wagering will come with horse racing
Approving pari-mutuel wagering automatically allows an applicant to also add sports wagering. That is according to Doug Harbach, the spokesman for Pennsylvania Gaming Control Board.
Once the pari-mutuel license changes get approval from the racing commission, the PGCB’s sole role is to test and approve sports betting systems and technology, he added.
Details from the OTB move petitions
The petitions released by the racing commission redact financial information.
According to one petition, the shuttered Oaks Race and Sportsbook would move operations to 10-20 Liberty Boulevard, East Whiteland Township, where a new Chickie’s & Pete’s is planned. The proposed location is in Chester County.
The Turf Club location at 150 S. 69th St. in Upper Darby had closed a decade ago. The petition seeks to relocate those operations to the Chickie’s and Pete’s at Pilgrim Gardens Shopping Center at 5035 Township Line Road in the Drexel Hill section of Upper Darby.
The South Philadelphia Race & Sportsbook, better known as the Turf Club at 700 Packer Avenue, wants to move up the street to Chickie’s and Pete’s South Philadelphia location at 1526 Packer Avenue.
For a look at one of the full petitions (for The Oaks), see below.
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‘This is exhausting,’ civic leader says
A local South Philly civic club leader adamantly opposes the move and the attempt to stifle public comment. She learned of the proposal because a zoning approval is necessary and neighbors got legal notices.
Barbara Capozzi greeted the request for no public comment with “This is exhausting.”
She said she intends to consult with the Packer Park Civic Association‘s lawyer.
No response from Chickie’s & Pete’s
A request for comment from the restaurant chain’s owner, Pete Ciarrocchi, has had no response as yet.
Sample Parx petition to move OTBs to C&P’s (in full)
Parx Petition to Move OaksThere are plenty of people that are not big fans of online gambling expansion in Pennsylvania. One that may sound surprising is Parx CEO, Anthony Ricci.
At a Thursday PA Gaming Control Board (PGCB) hearing regarding Parx Casino’s license renewal, Ricci sounded off to the board regarding just about every facet of the 2017 gambling bill.
Ricci is enthusiastic about retail sports betting
That is not to say Ricci wasn’t enthusing about some elements of gambling expansion. He said the casino is already reaping the benefits of Parx Sportsbook. When it comes to sportsbook customers, Ricci says it is a new customer the casino is very excited about:
“[Customers] skews a little younger, it does. And people who haven’t come to the casino previously, so we’re pleased about that. It’s attracting a different audience. That’s why we want to proceed with the construction of a permanent sportsbook as an attraction to draw people in, particularly during football season.”
Ricci did admit that these new people at Parx are not interested Winstar casino package deals. in every gaming offering.
“That sports bettor isn’t a slots customer,” he said. “They could be tables games or poker though.”
Ricci sounds off on supposed cannibalization concerns
When asked about potential cannibalization of these new sportsbook customers, Ricci was happy to paint a worst-case scenario that indicted multiple pieces of gambling expansion.
First, he came after online betting:
“It’s a legitimate concern…It’s not something Bob Green and I were advocating for because you’re combining what is potentially one addictive behavior with another addictive behavior on a cell phone. But that’s the law now. It’s our industry, we have to compete as well as we can.”
Ricci went on to compare the plight of retail stores like J.C. Penney going out of business in the era of online shopping to what might befall Parx and other casinos after mobile gaming launches.
MGM and Golden Nugget subjects of criticism
Two companies that seemed to really draw his ire are the two outside entities petitioning their way into the PA online gambling market. PGCB opened up the interactive gaming license process to qualified gaming entities (QGEs) after there were several unused interactive licenses. Golden Nugget NJ, the top-performing NJ online casino, and MGM’s Borgata Casino each applied.
PGCB approved the two as QGEs in January. That is not stopping Ricci from taking shots at the two groups, suggesting they may not have the state’s best interests in mind:
“One of the concerns is that you have other operators coming into the state the way this process is conducted that may not have brick and mortar investment. All they’ve got is a server and they could spend a lot of money marketing, maybe not be so intelligent in what they give a customer to attract them because there is a very low cost of entry for them and they’ll take a shot. It could destabilize the situation.”
Both properties operate online casino businesses in New Jersey. Golden Nugget took in an astonishing $12.18 million in online casino revenue last month. It is also worth noting several other non-native companies have stake in the PA game thanks to a series of online gambling partnerships.
Can you compare NJ online casinos to PA?
Towards the end of his questioning, Ricci really zeroed in on the population disbursement when it comes to PA casinos. Currently, around 68 percent of the population lives within 25 miles of a casino.
However, Ricci notes that number will jump to close to 90 percent once the five mini-casinos open. That is without even considering the online market expected to launch this July.
The Parx leader admitted that, now that it is law, Parx will aim to be the top PA online gaming provider. He still worries the PGCB and other casinos will spend too much time trying to grow the new market instead of focusing on what matters.
“There is a concern it could be a problem for the brick and mortar, which is where the jobs are, where the capital investment is. I’m a bit concerned about the long-term prospects.”
Many industry experts point to how the New Jersey online market resulted in brick and mortar casino growth as well as a healthy new revenue generator. Ricci though, says you cannot possibly compare the two.
“Ninety-five percent of the New Jersey residents are more than 25 miles away from a casino in New Jersey,” he said. When asked if online cannibalized Atlantic City, he balked.
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“Of course not. Nobody lives around Atlantic City.”
So, when it comes to how online will impact PA, Ricci remains insistent that there is no way to tell.
“Nobody knows, there’s no history on this.”
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Even State Senator Robert Tomlinson, who spoke in favor of Parx as a community partner backed Ricci up. He described New Jersey’s online gaming approach as a “defensive mechanism” to try and win back residents going to Philadelphia casinos. Tomlinson voted against the online gambling expansion package and regularly supports Parx’s point of view about gaming in PA.
Nothing new
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Ricci’s anti-online stance is nothing new. However, this important appearance in front of the PGCB might make regulators even more gun shy than they already are in the wake of the new DOJ Wire Act opinion.