Local casino’s big impact

PLAINS TWP. — Unless you call the owner of an Atlantic City casino, it’s hard to find a negative word about Mohegan Sun at Pocono Downs’ economic impact.

Nearby businesses report increased sales and traffic, officials with the county’s visitors bureau and local chamber of commerce are quick to compliment the facility and use it in marketing campaigns.

Since opening its temporary casino doors in November 2006, the facility has offered 1,200 slot machines, a handful of eateries, live and simulcast harness racing and a much closer destination for gamblers used to boarding buses for the Jersey shore. All that packed into 109,000 square feet of space.

This week, the planned $208 million expansion project opens to the public. Dubbed “Project Sunrise,” the new larger Mohegan Sun at Pocono Downs offers 2,500 slot machines, 16 eateries, boutiques and retail shops, and 409,000 square feet of space.

Pocono Downs also creates jobs, which adds income to the economy and generates tax dollars.

The slots parlor, race track and its auxiliary businesses by week’s end will have more than 1,200 on its payroll.

Pocono Downs Director of Human Resources Kawel Laubach said 700 people have been hired this year.

More than 5,000 applicants applied for positions at a job fair held at the Wachovia Arena, Wilkes-Barre Township, according to vice president of marketing Jim Wise.

Throw in the price tag for the expansion project, and the hundreds of contractors employed to build it, the tens of millions in taxes that have been dispersed to aid local projects and to reduce school property taxes, and the complex has been a windfall for the region and the state.

“With 1,200 employees, that’s a lot of wages and disposable income. Our goal is to really make Northeast Pennsylvania successful in the long term, and whatever we can do to help the local businesses and local vendors, we’ll certainly strive to do that,” said casino Chief Executive Bobby Soper.

State Route 315 ‘on fire’

State Route 315, the road that brings people in and out of the complex, had been a bustling thoroughfare before the first quarter was placed in a slot machine. But since the casino opened, officials at some businesses along the six-mile stretch between the Cross Valley Expressway and Interstate 81 said they’ve seen increases in sales and traffic.

“That whole corridor is on fire,” said Merle Mackin, executive director of the Luzerne County Convention and Visitors Bureau. “Business activity was increasing before Project Sunrise got under way and now it’s even more so.”

And it’s not just those looking for a quick bite or some fuel. Sheetz, across the street from the casino’s parking lot, has seen an increase in lottery ticket sales, according to John Campbell, regional manager for the Altoona-based gasoline and convenience store chain.

“The draw of people that it brings to the area has definitely helped us. Hopefully it continues to grow and succeed and everybody on the strip continues to see their business grow.”

Soper said the plan was to put a marquee draw in the heart of the region and allow the facility and its Northeastern Pennsylvania neighbors to coexist and mutually thrive. He said that’s happened and he believes fears that the casino would hurt rather than help have been quelled.

“You know, how much are we cannibalizing and how much are we assisting,” Soper said. He said the casino, race track and restaurants have “complemented” rather than competed with nearby restaurants or attractions.

Vonderheid full of praise

With Thursday’s planned opening of the 300,000-square-foot casino addition and other shops, business and fears are likely to grow, he said.

Soper projects the daily number of visitors to jump to about 10,000, a 40-percent increase. The slots parlor will transform into a destination rather than a day-tripper’s getaway, said Greater Wilkes-Barre Chamber of Business and Industry President Todd Vonderheid.

“Mohegan Sun is making a significant contribution to the growth and future of this entire region,” Vonderheid said.

And that’s great news for the region, according to Mackin. He said more people coming into the area means more money being spent and the potential for future trips to regional attractions grows.

That’s music to the ears for nearby lodging facilities such as the Woodlands Inn & Resort, which has been offering stay-and-play packages in conjunction with the casino.

Soper said the complex “is another piece of the puzzle that will attract individuals with expendable income.” He said other draws like the arena, the Toyota Pavilion at Montage Mountain, the F.M. Kirby Center and PNC Field all strive to bring people to the area to spend money, be entertained and go home telling their friends about their experience.

Mackin said the casino is the attraction that all others can lean on to bring in guests or to offer guests additional motivation to visit and stay longer.

Ross Kornfeld, the hotel operation manager at the Woodlands, said the casino has been nothing but “great.”

“We love them,” Kornfeld said. The Woodlands package, which includes breakfast and shuttle buses to and from the casino in addition to a room at the inn, has averaged about 50 takers a month. Kornfeld said the casino has been a great marketing partner.

“I can’t tell you how many times we get a call from someone saying they’re coming to town to visit the casino and they need a place to stay,” Kornfeld said. Plus, he added, when conference bookers are looking at potential sites, the nearby casino “is an extra” that helps give the Woodlands an advantage.

Mackin said there’s been an 8 percent to 10 percent increase in hotel room revenue since the casino opened, which he attributes to an increase in the number of visitors to Mohegan Sun at Pocono Downs. The 5-percent room tax, which brought in $1.66 million last year, has brought in $617,891 this year through May.

While the “temporary” casino has certainly lured visitors and cash, Vonderheid said the new offerings will “get more people out of their house to spend money.” He scoffs at allegations that the on-premises eateries will hurt local restaurants, saying the marketplace can sustain the new competition.

“I think the economy and gas is more of an issue than the competition,” Mackin said.

Sam Agolino, the chef at Pazzo Restaurant about three miles north of the casino in Jenkins Township, said “up until now we haven’t seen much business growth from the casino.” He said he’s sure there are diners that have just left or are on their way to gamble, but it’s hard to know for certain.

To date, the casino’s food offerings haven’t really competed with his Italian-heavy menu. But that will change with the opening of the Rustic Kitchen Bistro & Bar inside the upgraded Mohegan Sun.

“Does it concern me? Of course you’re concerned when any new restaurant opens,” Agolino said. “I’m not really scared of it. It’s up to us to keep doing what we’re doing and to keep providing an atmosphere and a menu that people enjoy.”

Eddie’s Place, across from the Fox Hill entrance of the casino, has increased staff by a half-dozen since the casino opened almost two years ago. Owner Eddie Biniek Jr. said business has been aided by his neighbor. He said the construction project that brought dozens of workers to the work site each day also boosted his bottom line because many of them ate their meals at his diner.

“They might get tired of eating at the casino every day and take a walk here,” Biniek said, noting his restaurant is less than a half-mile walk from the casino.

Kornfeld said the dining and nightclub facilities at the Woodlands have not been hurt, but acknowledged that could change once the dining and nightclub amenities open at the casino complex.

“We certainly believe that that will have an impact. When all of those restaurants open it will hurt, but for how long, that remains to be seen,” Kornfeld said.

“If people come from out of town, then everybody will win. If they take just from the local market, then it will have a negative impact,” Kornfeld said.

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Mohegan Sun at Pocono Downs has helped area economically

State Route 315 ‘on fire’

Vonderheid full of praise

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