State Sen. John Yudichak appeared before Luzerne County Council members remotely last week to personally seek their guarantee on a new infrastructure loan.
An estimated $55 million for county and municipal infrastructure projects is at stake, he said.
New state legislation customized solely for the county earmarks $3 million annually for 25 years from the casino-gambling Local Share Account (LSA) to repay debt required to secure the up-front infrastructure cash.
Financial institutions are seeking assurance the county would repay the debt if the Mohegan Sun Pocono casino in Plains Township unexpectedly closes down the road.
Related Video
Yudichak, I-Swoyersville, told council members he is as frustrated as they are that lending institution attorneys want the county assurance for an improbable gaming industry shutdown.
“It is not going to happen, but that’s what lawyers do for a living,” he said, referring to a casino closure. “They want to make sure that every scenario is planned for.”
With 15 casinos that generated $4.83 billion in gross terminal gaming revenue last year, Pennsylvania is ranked as the second most profitable gaming state, just behind Nevada, Yudichak said.
Although individual casinos have closed across the country, no gaming state has ever pulled out of the casino business, he said. Pennsylvania would be compelled to attract another casino operator to Luzerne County if Mohegan Sun Pocono closed, he said.
Among casinos nationwide, Mohegan Sun Pocono is ranked 13th and has generated, on average, more than $10 million annually for the county LSA over the last ten years, he said. Under the new legislation, $3 million of that annual allocation would come off the top to cover the infrastructure program, while the rest would continue to fund local earmarks for a range of community purposes, he said.