Bethlehem gets casinos

The Pennsylvania Gaming Control Board unanimously approved licenses for five casino projects Wednesday in a decision that's expected to alter the economy, character and basic needs of some of the state's most popular tourist spots, including Bethlehem and the Poconos.

The board's history-making votes authorize Sands BethWorks Gaming to build a casino on Bethlehem Steel's rusting brownfields and Mount Airy Resort to construct a facility in Paradise Township, Monroe County, despite questions about whether its owner, Louis DeNaples, has or had ties to a reputed mobster.


The board also snubbed a Philadelphia casino plan pitched by real estate mogul Donald Trump, and a bitterly contested slots parlor proposed near Gettysburg National Military Park.

Lengthy court appeals could follow, but board Chairman Tad Decker and Gov. Ed Rendell stood by the board's decision on the 13 casino applicants, which included owners and investors who are celebrities and millionaires. ''They were great applicants, really good applications,'' Decker said.

Those who won licenses to operate up to 5,000 slot machines are expected to bolster tourism and generate millions of dollars in tax revenues for the state and their host municipalities, but also increase the demand for police services and traffic improvements. For sites where casinos were denied, it's back to the drawing board.

''I think the application [for Allentown] was really competitive and a better proposition for the Lehigh Valley,'' said a saddened Allentown Mayor Ed Pawlowski as he hurried out of the hearing. Still, he said, ''We're going to continue in Allentown … and pursue our goals as a city.''

Bethlehem Mayor John Callahan shook hands with gaming board members and beamed under the glare of media cameras. ''This development will without a doubt widen the national profile of our city,'' he said.

For the place known as Christmas City, the decision could mean a change in character and identity. More immediately, it means that a more than $600 million South Side development project that has spent months in a holding pattern can take flight.

David Freeman, leader of Citizens for a Better Bethlehem, said the group opposed to the slots parlor had no comment.

The city will try to hire more planning staff to handle the flurry of site plans it is about to get from Las Vegas Sands. Early next year, Sands will probably begin to demolish some of the former Bethlehem Steel buildings, with the hope of excavating the old ore pit that in 18 months is expected to be home to a 300-room hotel and a casino with 3,000 slot machines.

Sands BethWorks partners can now begin signing the growing number of upscale retailers that have been waiting in line to be part of the 200,000-square-foot mall. Sands BethWorks principal Barry Gosin said he will begin engineering and design work for a $50 million to $60 million project to turn Steel's former Third Street headquarters into upscale condominiums and apartments.

On the next lot, ArtsQuest President Jeffrey Parks now begins a capital campaign to build the $49 million SteelStax performing arts and PBS-39, WLVT-TV broadcast center that will take more than a year to plan and an additional 18 months to build.

In Paradise Township, the supervisors are evaluating whether a new casino will require forming a police department or participating in a regional police department. The township relies on state police coverage.

''Now we are going into uncharted territory,'' said Dennis Keesler, chairman of the Paradise supervisors.

The township will also have to consider how much the casino will increase demand for fire services and social services, said state Rep. Mario Scavello, whose district includes Mount Airy. ''We need to make sure everything is in place to protect people from the social ills this will create,'' he said.

The gaming board's decisions, made after about four hours of closed-door deliberations Tuesday night, came in a series of votes taken Wednesday morning without public debate or discussion.

''There wasn't a terrible impasse. … This isn't like we sat down for the first time. … We've been thinking individually for months,'' Decker said. ''I think some people had some ideas before they came in.'' He said he could not talk about the pros or cons of any of the applications, for legal reasons.

An order approving the licenses and an opinion explaining the board's reasoning is expected to be released within three weeks. It has not been decided whether the opinion will also explain why some proposals were rejected, Decker said.

Those who were denied licenses have 30 days after the order is issued to appeal the board's decision to the state Supreme Court. The board will not issue licenses until the appeals period has passed and certain conditions, such as paying a $50 million fee and obtaining permits, are met.