Sands Casino Resort Bethlehem halted its $93 million expansion this week, which including a new poker room, casino floor space, and restaurants. The Las Vegas Sands Corp, current owners of the Pennsylvania casino, are in the midst of selling the property for $1.3 billion to MGM Resorts International.
Bethlehem Mayor Robert Donchez said he is disappointed to hear that the casino expansion and renovation would not continue. The project would have meant 250 more permanent jobs in the casino, along with hundreds of temporary construction jobs. The area’s poker players are disappointed, because they have been calling for LVS to add a dedicated poker room for the better part of a decade.
Robert Donchez Unsurprised
The story did not surprise locals, according to Mayor Donchez. He said it made little sense for Las Vegas Sands to bankroll a $90 million project when it will no longer own the casino in a few months. Donchez said he only hopes that the new owners of the casino go ahead with the expansion, or a similar project.
Donchez told McCall, “We understand. It’s business. But I certainly hope that whether it’s Sands or MGM, the owner goes forward with the expansion when the sale talks are over. It’s a significant project.”
MGM Resorts Gave No Comment
When asked about the current plans for the casino, neither MGM Resorts spokeswoman Mary Hynes nor Las Vegas Sands Corp spokesman Ron Reese gave a comment. One can expect MGM Resorts International to put their mark on their latest East Coast property, but that does not mean a poker room is in the works. In many parts of the United States, live poker rooms are on the decline.
Sands Bethlehem — soon to be renamed MGM Casino Resort Bethlehem — might be an exception. When Sheldon Adelson’s gaming company built the casino in Bethlehem in 2007, the $800 million spent on the development was the most ever for a Pennsylvania casino. The casino generates about $500 million a year in revenue, easily making it the most lucrative gaming venue in the state. In close proximity to Philadelphia and New York City, the casino is a virtual gold mine.
Sands Bethlehem Jobs Creation
The Sands Bethlehem at the moment has 2500 employees and attracts around 9,000,000 visitors every year. It is a massive complex and big casinos tend to have dedicated poker rooms. At the moment, the development has a 300-room hotel, a concert hall, convention space, and an outlet mall on the complex. With the requisite restaurant space, Sands Bethlehem is a poor man’s integrated resort.
The estimated $93 million expansion is a large expenditure, though. Sands Bethlehem CEO Mark Juliano announced the project in December 2016, just two months before LVS announced it would sell the property to MGM Resorts. It is still unknown why Sheldon Adelson would sell a property that has been so lucrative for him, but he appeared to be unhappy with the way Pennsylvania’s state and local governments assessed taxes.
MGM Resorts International’s Vision
It is obvious why MGM Resorts International wanted to add the property to its East Coast holdings. MGM Resorts CEO Jim Murren has overseen the collection of a network of prestigious casinos in the past couple of years.
First, Jim Murren bought out Boyd Gaming’s 50% stake in Borgata, the highest revenue casino in Atlantic City. At one time, Borgata generated about 40% of the gaming revenues in Atlantic City, so it is far ahead of the competition. Then Jim Murren won a casino license to build a venue in Western Massachusetts — the MGM Springfield Casino.
Last December, MGM Resorts opened the MGM National Harbor, an integrated Maryland casino located just outside Washington D.C. Buying the Sands Casino Resort Bethlehem is thus a chance to add a fourth lucrative casino on the eastern seaboard of the United States. Such casinos allow synergy in cross-promotion, as they various properties share their player databases. An integrated player comps program should allow MGM Resorts to market to all the major US metropolitan populations in the northeast, while offering repeat customers a variety of different gaming experiences.
MGM Resorts International is one of the four giants of the Las Vegas Strip. Perhaps the card players get their wish and the MGM Casino Resort in Bethlehem will build their long-awaited poker room.
