The city of Bethlehem has hit the jackpot, after Wind Creek Casino paid its first $2.5 million host fee payment, despite being closed for business since March. The Governor of Pennsylvania had offered casinos the option to defer their first quarter payments until the businesses were up and running once more, but the casino has decided to make the payment anyway.
Previously, it was reported that Pennsylvania cities that serve as hosts for local land-based casinos are being severely impacted by the coronavirus. Cities and counties usually receive a host-fee from the casino, based on their gambling revenues. However, with all casinos closed under directives by the Governor, city budgets are taking a massive hit.
During a recent news conference, the Mayor of Bethlehem, PA, reported that the city was looking at a $5 – $7 million deficit this year because of the reduction to the host fee that it receives from Wind Creek Bethlehem Casino.
Mayor Bob Donchez said that for each month that the casino is closed, Bethlehem loses around $800,000 in host fee revenues.
Several employees at the casino tested positive with COVID-19, and the casino closed its doors indefinitely on March 15th. Since then, the Governor ordered all casinos to close in a bid to control the spread of the virus.
Wind Creek Casino pays a $10 million host fee each year. Bethlehem gets 80% of the fee, plus 2% of Wind Creek’s revenue from slots and table games. This amounts to an extra $2 million annually.
The general manager of the casino, Kathy McCracken said: “We understand that the community is as great as ever, and we wanted to to ensure the funds were delivered as planned.”
Mayor Donchez praised the casino for its decision.
“When Wind Creek’s leadership team arrived last spring, they pledged a commitment to our community,” he said. “This crisis has given them an early opportunity to fulfill that pledge. And for that, we are very thankful.”
