What Happens if a Category 4 Casino Doesn’t Receive a Bid?
Thus far there have been four licenses for the new Category 4 casinos authorized by Act 42 of 2017. The Act permits ten of these casinos to be located in Pennsylvania with specific provisions on where they can set up shop. The Act also stipulated the way in which auctions for a Category 4 license were to be structured, with rounds of bidding.
As described by the Gaming Control Board in this document, there is an initial round which is open to holders of Category 1 and Category 2 licenses–that is how the first four Category 4 licenses were awarded–who bid a dollar amount and a proposed location. If the initial round fails to produce a winning bid, the Act permits a subsequent auction which is then opened up to Category 3 license holders as well (there are two casinos in this Category). That subsequent auction is currently scheduled for March 21st.
So would anyone other that a current casino license holder get a crack at getting into the casino business? That could happen if initial and subsequent auctions fail to dispense of the ten licenses then at the Board’s discretion it could open up the process in an additional auction in which non-license holders could bid after going through an application and vetting process.