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Sands confirms May 22 opening date for Pa. casino
Sands announces May 22 opening for Pa. casino; Adelson predicts success despite recession
* Michael Rubinkam, Associated Press Writer
* Tuesday March 3, 2009, 3:50 pm EST
* Las Vegas Sands Corp.
ALLENTOWN, Pa. (AP) -- Billionaire casino mogul Sheldon Adelson said Tuesday that Pennsylvania gambling establishments like the one he's opening on former Bethlehem Steel land should hold their own despite the recession.
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The $743 million Sands Casino Resort Bethlehem announced it will open May 22, in time for Memorial Day weekend, to become Pennsylvania's eighth since gambling in the state was legalized.
Adelson's Las Vegas Sands Corp. has been forced to scale back the project amid the economic downturn, halting work on a hotel and shopping mall. The Bethlehem Sands will open with 3,000 slot machines and four restaurants on the site of Bethlehem Steel's former flagship plant, about 50 miles north of Philadelphia and 80 miles west of New York.
Adelson, who was forced to inject $475 million of his own money last year to keep his struggling company afloat, said the Bethlehem casino's proxity to millions of potential customers in New York and northern New Jersey gives it an advantage because gamblers don't have to fly to get to their destination.
He said he's also expecting "the novelty of a new place" to lure gamblers.
"By the time we cycle through all the potential customers, it'll be years in the future," he told The Associated Press. "Everybody's hoping and praying that by that time, the economy will be better again."
While Las Vegas and other destination gambling markets struggle as consumers scale back spending, Pennsylvania's nascent casino industry continues to grow, posting a 6.7 percent increase in gross terminal revenues from January 2008 to January 2009, according to state statistics.
Some of the increase can attributed to more slot machines coming on line, but state gambling officials said the industry is holding up well.
While the Pennsylvania market is too immature to draw solid conclusions about its performance, "when you look at those increases, it's clear the Pennsylvania market is producing significant tax revenues," said Frank T. Donaghue, the state's top gambling regulator.
Michael Pollock, managing director of Spectrum Gaming Group, said the Bethlehem Sands is "particularly well positioned" to succeed because it is easy to get to from Interstate 78, which connects Pennsylvania to New York City and the New Jersey suburbs.
"There's going to be a convenience factor that's going to drive a lot of business. We do expect that property to do well, even in the current economy," he said.
The Bethlehem Sands plans a "soft opening" May 22, subject to approval from the state Gaming Control Board, and a grand opening celebration June 9.
Adleson said he hopes to resume construction on the stalled hotel and shopping complex in six months, using revenues from the casino.
Las Vegas Sands posted a fourth-quarter loss as gambling markets continue to decline in Las Vegas and Macau. The casino giant's properties include the Venetian and Palazzo hotel-casinos in Las Vegas.
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