Vol. 3, No. 9, September 2006
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Mohegans will stay at Pocono Downs
The Mohegan Tribal Gaming Authority announced an agreement with former Pocono Downs owner Penn National Gaming giving the Mohegans back $30 million of its $280 million purchase price in return for removal of the clause in the purchase agreement that allows the tribal authority to back out of the deal and sell the track back to Penn National.
The agreement means the tribal authority is now committed to staying the course in Pennsylvania, where it is building Mohegan Sun at Pocono Downs. The tribe has repeatedly threatened to pull out since it was revealed that its required host community payment put its total tax burden above what was initially anticipated.
Officials say the payments, to be made over five years, will help in the development of the permanent slot facility, which is expected to be complete in early 2008 and employ up to 1,000 people. The track announced that a career fair will take place September 12 and 13 at Philadelphia’s Wachovia Center arena, with 400 jobs to start as early as December at a temporary slot facility.
Officials of Penn National, meanwhile, say the closing of the sale will allow them to devote their full attention to transforming their Penn National Race Course near Harrisburg into a racino.
