A public input hearing on the plans for the Category III gaming license is scheduled for September 2.

This will be the second attempt to bring a resort casino to the 80 years old property. Two years ago the resorts owners attempted to win approval for a gaming license but was dismissed over the Pennsylvania Gaming Control Board’s concerns over Bushkill’s financial strength.

In this round, Bushkill has partnered with Penn National Gaming who has agreed in April to finance, develop and manage the casino if approved by the Board.

“We believe our proven record as operators of a successful resort with the addition of expertise by Penn National in gaming, will allow us to out perform the other applicants in Gaming Revenue and tax revenue to the state.,” said Bushkill Group spokeswomen Gina Bertucci.

Bushkill and Penn National are one of four applicants vying for the remaining license. Penn National Gaming also has a management contract with the Mason- Dixon Resort & Casino competing for the same license.

State lawmakers set a minority inclusion goal of 25% for the Cecil County facility that will become Maryland’s first casino to open since gambling was legalized. However state officials have said that according to reports filed by the Hollywood Casino Perryville only 18% of minority-owned firms have been hired to work on the project.

A spokesman for Penn National Gaming, Eric Schippers, responded to the report by saying that they have actually reached a 22% inclusion rate but that the state has not been given updated numbers yet.

Schippers said that Penn National has not met the goal yet because of restrictions the state had placed on the selection of software firms used to program the 1,500 slot machines.

With another 3% to go and only a few short weeks, Schippers said that they are “working very aggressively to meet the goal.”

Penn National has been chosen as an investor and operator of the proposed $75 million Mason Dixon Resort & Casino in Cumberland Township and has filed a petition with gaming regulators that a rival proposal does not meet the necessary criteria for the license.

Penn said that the proposal submitted by Penn Harris Gaming to develop a resort casino at the Holiday Inn Mechanicsburg “fails to meet the standard for year-round amenities” and does not meet the minimum requirement of at least 275 rooms.

Penn Harris Gaming has proposed using an RV lot to supplement the lack of rooms at the 239 room hotel.

Penn National also cited the hotel sites proximity to their Hollywood Casino at Penn National Race Course, which is approximately 20 miles away.

The group caught up in a legal battle to develop a slots parlor at the Arundel Mills Mall is now targeting Penn National and asking the Lottery Commission to fine the Cecil County casino operator and co owner of the Maryland Jockey Club for financially supporting the anti-slots campaign, Citizens against Slots at the Mall.

Over the past year Cordish Cos, who was awarded a gaming license for a casino in Arundel County, has received opposition from the citizens group who is attempting to stop the casino development with a ballot initiative in November.

The Maryland Jockey Club also attempted to win the license hoping to put slot machines at Laurel Park however was not able to pay the required fees, before Penn National Gaming acquired partial ownership.

The Lottery Commission has given Penn National two weeks to respond to the complaint before they determine if action is warranted.

Eric Schippers, a spokesman for Penn said that the allegations were “without merit”.

According to General Manager Al Britton the new offering has also helped to boost wagering on horse races and slot machines revenue was even up 9% last month.

The casino has already contributed $500,000 from table game revenue to Jefferson County since obtaining its license and launching 85 gaming tables on July 2.

That money has been at the center of controversy over the past few weeks with local municipalities being told that they would not get their portion until next year. According to the wording of the table game legislation set by the West Virginia Lottery Commission, local offices were not entitled to the money if the games were not launched before July 1.

However the county has changed its tune and will be dividing the funds from July among Charles Town, Ranson, Harpers Ferry, Bolivar and Shepherdstown.

Patt Medchill has held the position in Aurora for the past 16 years and will continue to be employed by Penn National on special projects until he can be assigned a new permanent position.

“We want to thank Patt Medchill for his long-term contribution at Hollywood Casino Aurora and look forward to his continuing role at Penn National.” commented John Finamore, Senior Vice President Regional Operations of Penn National Gaming.

Medchill will be replaced by Robert D. Sheldon, pending regulatory approval.

Finamore added “Bob is a proven industry executive and brings over three decades of management experience in both regional and destination gaming markets to Hollywood Casino Aurora. His wealth of experience and accomplishments in all aspects of casino operations make him ideally suited to manage Hollywood Casino Aurora. Bob’s appointment reflects Penn National’s strategy to attract premier management talent for our regional properties.”

Sheldon has been with Penn National since 2006 and most recently held the role of President of the Sugarhouse Casino in Philadelphia.

Sheldon will assume responsibility for all of Hollywood Casino Aurora’s gaming operations including more than 1,170 slot machines and 27 table games.

Penn National is scheduled to open the $98 million gaming venue on September 30, however needs to secure a temporary occupancy permit from town officials before allowing employees on site.

More than 50 executives and administration staff members have been cleared to begin working and more than 250 employee’s still need to be interviewed, hired and trained within the next six weeks in order to move forward with the planned opening date.

However before the Town Planers office can approve the permit a number of county agencies must sign off on various aspects of the project, which is expected to begin this week.

Toledo Mayor Mike Bell and Lucas County Commissioner Pete Gerken were among those present at this morning’s ceremony that marked the beginning of construction of the Hollywood Casino in Toledo.

The $250 million casino project is expected to open in early 2012 with entertainment and dinning venues and a 290,000 square foot gaming floor featuring 2,000 slot machines, 60 table games and 20 poker tables.

During the ceremony, Tim Wilmott, president and chief executive officer of Penn National Gaming presented the Mayor with a check valued at $1 million to reimburse the city for improvements that were abandoned on the casino site.

Last month city council members delayed the acceptance of the check, until they were comfortable that they would not face legal action from the state since the city used grant money for the projects.

Penn National has not released a date to break ground on its casino site in Columbus.

With a grand opening expected for September 30, pending regulatory approval, crews began working on installing the 1,500 slot machines that will be the first to go online when the casino opens.

The $97.5 million gaming facility will include two restaurants, a grill and a coffee shop as well as the 34,000 square foot casino floor that will house slot machines and electronic table games.

With the state’s other planned casinos in the midst of legal battles and citizen opposition, the Hollywood Casino will be the first to open within Maryland’s boarders, four weeks ahead of schedule and less than two years after voters approved gambling.

Peter M. Carlino, Chief Executive Officer of Penn National commented that the early opening is “an accomplishment which reflects the dedication, expertise and coordinated efforts of our facility design, government relations, construction and property management teams.”

Last week, state lottery officials recommended Genting as the last remaining bidder in its third attempt to secure an operator, however Penn National says that their disqualification again puts the process in question.

In a letter that Penn National’s attorneys wrote to the State Division of Lottery they claim that the process was not a “competitive” process and that the reason they were disqualified was because of a flawed process.

Penn National was disqualified last month because the Lottery said they did not conform to the requirements of the RFP. Penn National and SL green both attempted to amend the rules that Penn says were not “commercially reasonable”.

Penn is asking that the current selection be suspended or terminated and that the process be re-opened to make fair for all bidders.

According to the letter, Penn National is reserving its right to challenge the selection and its disqualification.

While many are fighting the referendum known as question 1 for different reasons, Penn National is concerned that the casino could add competition to the Hollywood Slots casino in Bangor. Question 1 proposes not only developing a casino but allowing table games, which is not permitted elsewhere in the state, adding an unfair advantage.

Black Bear Entertainment is the group hoping to win voter approval to build the casino in Oxford County, despite being voted down by Bangor City Council members. The council was concerned that the issue creates a separate set of rules for the proposed casino including gaming operations and tax rates, however Black Bear was able to get the referendum on the ballot.

The “Citizens Against the Oxford Casino” also includes the Maine Association of Agricultural Fairs; the Maine Standardbred Breeders & Owners Association; the Maine Harness Horsemen’s Association; the Passamaquoddy Tribe at Indian Township; and the Greater Bangor Convention and Visitors Bureau.

However, during last week’s conference call CFO Bill Clifford ended the rumors that Penn National would be participating in the planned August 6 auction of 11 of Station Casinos gaming properties.

“I think we can say we’re definitely not interested,” Clifford said.
Penn National has expressed an interest in entering the Las Vegas market for some time however has said that they would take their time finding the right deal.

“At this point I think we’re pretty realistic that the valuations that people are expecting are probably not going to fit within our criteria,” Clifford said.

However Clifford also commented that while they would not be participating in the auction there were other casinos that they were interested in, including Station’s Green Valley Ranch Resort that was not included in the auction.

“Yesterday, PENN reported 2Q10 EBITDA of $148.2 million, ahead of our expectation for $142.5 million and consensus expectations for approximately $142 million.” said analysts.

The firm also indicated that Penn’s recent addition of table games at the Hollywood Casino at Charles Town Races in West Virginia and Hollywood Casino at Penn National Race Course in Pennsylvania as well as a slots casino scheduled to open in Maryland during the third quarter were positive indications that they have the potential to beat their own full year predictions.

“The Company raised full year CY10 guidance slightly ahead of consensus. We believe guidance could be conservative.” Sterne said.

Sterne Agee also raised its target price on PENN stock to $37.00.

Penn National plans to break ground on the $250 million casino on August 12 and presented a check as a reimbursement for the road, storm-sewer line, and public bicycle path that will be torn up to make room for the 200,000 square foot casino. However some City Council members held up the ability to accept the money and told Penn officials to come back next month.

“This is a million dollars that is not owed to us,” said Councilman Mike Craig, whose district includes the casino property. “I can’t believe we are sitting here arguing over this.”

A minority of the council members were concerned that the city could face a potential lawsuit from the state after using grant money to clean up the site and tax money for the improvements.

However after Penn National issued a letter absolving the city of any liability and Mayor Mike Bell signed a covenant promising not to sue the city for reimbursement of the grant, the council is likely to vote to except the payment at the next council meeting.

For the second quarter of 2010 Penn National came in slightly higher than analysts’ expectations posting an adjusted profit of $0.29 a share. However accounting for one time charges relating to impairment losses on Penn’s Ohio property and a police contract ending in Illinois, Penn’s net income fell to $9.2 million from $28.5 million in the same period last year.

A 3% increase in revenue to $598.3 million also beat analysts’ expectations.

With expansion projects in the works in West Virginia, Pennsylvania, Maryland, Kansas and Ohio Penn has raised its full year revenue forecast from $2.41 billion to $2.44 billion and lowered its full year net income predictions from $1.13 to $0.98 a share.

Penn is also predicting third quarter earnings of $0.30 a share on revenue of $622.9 million.

“We compliment the people of Anne Arundel County for persevering to ensure that the voice of the people will be heard at the ballot box in November,” stated Dennis Mills, Vice-Chairman and Chief Executive Officer of MID.

Penn National Gaming joined MI Developments as co-owners of the Maryland Jockey Club that operates the tracks earlier this month and plans to pursue the opportunity to offer Video Lottery Terminals at the tracks if the pending casino development at the center of community protest falls through.

Peter M. Carlino, Chief Executive Officer of Penn National commented, “The Maryland Jockey Club believes the potential to bring a VLT operation to a racing facility, rather than a retail mall location, will be instrumental in preserving Maryland’s rich racing heritage and the existing jobs and other economic benefits associated with the operation of the tracks. If Anne Arundel voters strike down County approved plans for a VLT facility at Arundel Mills mall in November, we are prepared to deploy our Company’s extensive racing and gaming industry knowledge and excellent financial resources to work with the local horsemen and community members and leaders in Laurel to advocate for a license to operate VLTs at Laurel Park.”

On Average, analysts expect Penn to report earnings of $0.27 a share on revenue of $595 million, Penn’s earlier estimates on second quarter earnings predicted $0.26 a share on revenue of $588.3 million.

For the full year analysts predict EPS of $1.18, however Penn’s expectations are slightly lower at $1.13 a share.

In the previous quarter, Penn reported net income at casino and racetrack operations of $36.2 million or $0.34 a share, compared to analyst’s estimates of $0.23 a share.

Last year Lakes entered into an agreement with Penn that allowed them a 10% stake in the casinos in exchange for $1.9 million towards campaign efforts asking Ohio voters to pass a constitutional amendment allowing four casinos to be built in the state.

While Lakes Entertainment has opted out of the agreement for $25 million, they will continue with plans to develop casinos in Cincinnati and Cleveland through Rock Ohio Ventures.

“Although we believe the Toledo and Columbus casinos will be very successful, receiving $25 million now is a good return on our investment with Penn,” said Lakes CEO Lyle Berman.

Penn is expected to break ground on the Toledo project next month and in Columbus early next year. Both casinos are expected to open in 2012.

Following Sunday’s eight hour dress rehearsal, where regulators reviewed everything from game play to security, from dealers to chip counting, they have approved the casino to move forward with 24 hour play on 52 tables including poker, craps, roulette, blackjack and more.

“We were confident that we would receive approval, as our entire team has been diligent in their table games training,” said vice president and general manager Frank Quigley. “We greatly appreciate that the P.G.C.B. has been so cooperative in helping to make this happen.”

Table games will open to the public following the ceremony.

The commission approved the site along Interstate 75 just outside of downtown Toledo for the $250 million facility.

The next step is to apply for building permits, once approved approximately 2,000 construction workers can be hired, paving the way for the casino to become the state’s first casino to break ground.

Pending any setbacks, the 200,000 square foot casino should be completed by early 2012 and is expected to hire up to 1,200 permanent employees.

“We’re very grateful to the plan commission for the unanimous decision which is a giant step forward in terms of getting under way with construction. We will seek building permits with hope of breaking ground within 30 days,” said Eric Schippers senior vice president of public affairs for Penn National Gaming.

Some conditions, however, were placed on Penn that include reimbursement of up to $1.1 million for the cost of abandoned improvements the city has made on the property such as a road, storm sewer line and a public bicycle path.