Sale Of Sands Casino Bethlehem Pa
Sands relies on tables and slots at its Macau properties. The Sands sale makes sense considering both organizations’ business models, and MGM is wise to acquire the Sands. It is Pennsylvania’s second-highest grossing casino in this fiscal year. In fact, the Sands topped Parx for the most table games revenue in February. Las Vegas Sands completed its $1.3 billion sale of its former Pennsylvania casino resort in Bethlehem to Wind Creek Hospitality last May. Fast forward to today, and the transaction is proving to be. S Sands Casino is reportedly up for sale. By Matt Assad and Nicole Radzievich, Courtesy of The Morning Call/McClatchy-Tribune Regional News Sands Casino Resort Bethlehem is on the selling block, a source familiar with company thinking told The Morning Call. 21, the Sands and Wind Creek’s PCI Gaming Authority filed an official change of ownership petition with the Pennsylvania Gaming Control Board that details how this sale will go down. You can always find a thrilling new adventure playing the slots or tables at Sands Bethlehem.
Tribe will make $250 million worth of improvements to property
The Pennsylvania Gaming Control Board last week approved the $1.3 billion sale of Sands Casino Resort Bethlehem by Las Vegas Sands Corp. to an arm of Alabama’s Poarch Band of Creek Indians.
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The unanimous vote of approval, completed at a special session of the board on Wednesday, clears the way for the closing of the sale, officially by Sands Bethworks Gaming, the partnership of LVS and local investors that owns the license to the property, to PCI (Poarch Creek Indians) Gaming Authority, the arm of the tribe that will be the official licensee.
The board approved the Pennsylvania license for PCI Gaming Authority after approving the sale. PCI is owned by Wind Creek Hospitality, the arm of the tribe that operates its gaming properties. The Bethlehem property, built on the historic site of the Bethlehem Steel Works, is the tribe’s first venture outside of its Alabama Class II properties, and its first commercial venture.
The vote came a full 14 months after the sale of the Sands was announced, its delay due to a particularly crowded agenda this year for Pennsylvania regulators, with the ramp-up of sports betting, mini-casinos, truck stop VGTs and online gaming in the wake of the massive gaming expansion bill passed at the end of 2017.
Las Vegas Sands was represented by Duane Morris LLP partners Scott Kramer, Greg Duffy, of the Philadelphia office and Frank DiGiacomo, Chris Soriano, and Adam Berger, of the Cherry Hill office.
In the meantime, the iconic “Sands” logo has been removed from the entrance to the property, to be replaced by the property’s new name, Wind Creek Bethlehem. The tribe has designated $15 million to complete rebranding expenditures, which it predicts will be complete within 90 days.
With the last remaining hurdle to the sale’s closing removed, the tribe has pledged to immediately begin improvements that had been stalled under LVS, beginning with a $90 million hotel expansion project and continuing with stalled projects to preserve and utilize some of the historic sites of the former steel plant. former Bethlehem Steel No. 2 Machine Shop into a 300,000-square-foot indoor adventure/water park and hotel. Conceptual renderings show the long, vacant building transformed into a gigantic greenhouse-like structure between the SteelStacks and casino.
The tribe has pledged $100 million for the Machine Shop transformation, in addition to the $90 million hotel expansion. However, media reports indicate that the Poarch Band has set aside $250 million for the water park and adjoining hotel.
Within the park will be about 105,000 square feet of water rides, along with other activities like rock-climbing and zip lines, according to the plans submitted with the state.
According to plans submitted to the board, it will take the tribe about two years to build a 276-room hotel along with another 42,000 square feet of meeting space. That project will complement the Bethlehem property’s existing 282-room casino hotel and about 27,000 square feet of meeting space.
Wind Creek’s acquisition financing includes $100 million for the Machine Shop redevelopment, but the operator reportedly will seek development partners to secure the remaining $150 million for the overall expansion.
PCI Gaming will pay the state $3.75 million for its change-of-control fee. The final closing of the sale was expected as early as Friday. “It’s been a long haul for us,” Wind Creek President and CEO Jay Dorris told the Allentown Morning Call. “We’re thrilled, and we’re ready to hit the ground and introduce Wind Creek Bethlehem.”
Pennsylvania’s leader in table games is finally getting its new owner.
The Pennsylvania Gaming Control Board (PGCB) officially approved the sale of Sands Bethlehem Casino to Wind Creek Hospitality, an affiliate of Alabama’s Poarch Band of Creek Indians. The $1.3 billion deal wrapped Friday, finalizing a process that began in March 2018.
Wind Creek’s rebranding and renovations begin immediately
Sands Casino Bethlehem Pa Sale
The casino will be renamed Wind Creek Bethlehem. The new owners will invest $15 million in rebranding efforts, which will include changing out signs at the entrance, hotel, event center, and outlet mall.
According toLehigh Valley Live, renovation efforts will go much further. Approximately $340 million will be spent to add another hotel tower with nearly 300 rooms and create an additional 42,000 square feet to the event center.
Water park planned to enhance tourism
The Wind Creek group is also hoping to build a 300,000-square-foot water and adventure park, along with a third 400-450 room hotel on the property.
In comments made to the PGCB, Wind Creek officials declared their desire to make the Bethlehem property the “No. 1 resort destination in the Northeast.”
Ownership change should bring greater focus to the casino property
The sale of the Bethlehem Sands casino should also bring a healthy change of perspective. The Bethlehem casino will become just the 10th property owned by the Wind Creek group.
It is estimated that 20% of Wind Creek’s earnings will arrive via the Wind Creek Bethlehem. In contrast, Sands Corporation has a much larger portfolio that includes international mega resorts.
Employees will stay on under new ownership
Employees at the Bethlehem casino, which has been open for more than a decade, will also be able to stay on with the new management team.
“One of the things that drew us to this property is the quality and experience of the service-minded employees,” Wind Creek Hospitality President and CEO James Dorris said in a press release Monday. “Each of the nine executives has accepted a multi-year contract with us, and we hope that all team members want to continue their work here as part of the Wind Creek family. We will need them as we grow the offerings at Wind Creek Bethlehem.”
Wind Creek will look to build on Bethlehem’s gambling success
According to PennLive, Pennsylvania’s total casino revenue in 2018 was the highest total ever. Sands Bethlehem played a key role in that, finishing first in table games revenue and third in slot machine revenue among Pennsylvania’s casinos.
Now, the new owners will look to enhance those numbers. Many upgrades are planned for the property. Wind Creek Hospitality will also introduce its rewards program to its new customers. The Wind Creek Rewards program offers travel perks to its Caribbean resorts Renaissance Aruba Resort and Casino, and Renaissance Curacao Resort and Casino.
With all that is planned for the property, the future for Wind Creek Bethlehem should be an exciting one.
Alicia Miller Karner, Bethlehem’s community and economic development director, may have said it best to theMorning Call.
“To have the sale in our rearview mirror allows us to really look forward to the development.”