Parx Casino Near Philadelphia Overpaid Taxes by $1.1M, Pennsylvania Plans on Keeping It

Parx Casino north of Philadelphia overpaid taxes on its slot machines to the tune of more than $1.1 million, but Pennsylvania state officials say they’re keeping the money.

Commonwealth Court Judge Kevin Brobson ruled Monday that the casino operator isn’t entitled to receive the funds back, or be issued a credit against its future tax liability. The decision culminates a years-long legal battle between the state and Greenwood Gaming and Entertainment – the parent company to Parx.

Parx says it overpaid on slot machine gross gaming revenue (GGR) between January 1, 2009, through January 4, 2011. The accounting error resulted in the casino sending the Pennsylvania Department of Revenue $1,122,654.89 too much.

Timing is Everything

Green Gaming filed a request with the state in June 2014 to recoup its tax overpay. But in Pennsylvania, tax disputes must be received within three years of the filing.

The tax filing in question was submitted in January 2011, meaning the June 2014 request was roughly six months too late. The casino argued in a lawsuit against the state revenue department that it was still eligible to receive a credit. Brobson found otherwise.

This Court frequently reviews matters that require application of a statute to particular 카지노사이트facts and circumstances. We did that in reviewing this matter initially. As reflected in the Court’s Memorandum Opinion, we sided with … Commonwealth’s position and held that Taxpayer’s petition for refund was untimely,” Brobson explained.

“The remaining question posed by Taxpayer’s exceptions is whether the emphasis that Taxpayer places on the substantive source for the credit it sought from the Department in this matter … warrants a different result from that set forth in the Court’s Memorandum Opinion. It does not. Taxpayer’s exceptions are denied.”

Parx Expansion

Greenwood Gaming recently opened its sportsbook at Parx. While some casinos have built small lounges with a few seats and televisions in wake of sports betting expansion, Parx spent $10 million to create a “destination” for Eagles fans.

The 7,400-square-foot area can accommodate 420 sports fans. It features a 156-foot high HD media wall that can show 36 games at once.

Greenwood is also investing elsewhere in the state, specifically Shippensburg Township. The company won one of the five state-issued Category 4 satellite casino licenses with an $8.11 million bid in February 2018.

The mini-casino is still searching for a viable location for the venue. In July, the company scrapped plans for building it off Interstate 81 at Route 174. A geological survey found that the area could become susceptible to sinkholes in the future.

“There were significant issues that developed with the original site. We are currently working with the Shippensburg community and leaders to identify alternatives in the community,” said Parx Chief Marketing Officer Marc Oppenheimer.

Each Category 4 venue will be initially permitted to house up to 750 slot machines and 30 table games. Sports betting operations can also be permitted with additional regulatory state approvals.

Genting Singapore Plans $3.2B Yen ($29.6M) Bond Issue to Fund Japan Casino

Genting Singapore informed the authorities at the island nation’s stock exchange Monday that the company is looking to sell up to $3.24 billion in yen-denominated corporate debt. Proceeds could be used to fund the gaming firm’s plans to build an integrated resort in Japan.

Like rivals MGM Resorts International and Galaxy Entertainment, Genting Singapore is focusing its Japan efforts on Osaka, the country’s third-largest city. In a shelf registration statement submitted to the Kanto Local Finance Bureau, Genting said it plans to commence the debt offering as early as Oct. 16, and that sales of the corporate bonds could run through October 2021.

At such point when the company actually issues bonds pursuant to the shelf registration, the company will file a supplement shelf registration statement with the KLFB and release further announcements setting out the terms and conditions of each such issuance,” according to Genting’s filing.

Genting Singapore, the operator of Resorts World Sentosa, one of two casinos in the city-state, is a unit of Genting Berhad. That conglomerate has industry interests ranging from energy to real estate, and operates casinos in several countries 안전카지노사이트across two continents.

In A Good Position

Competition to land one of the initial three gaming licenses Japan is fierce. But along with Las Vegas Sands and MGM, among others, Genting Singapore is viewed as one of the leaders in the battle, for multiple reasons.

First, Japanese regulators are hoping integrated resorts in their country will follow the Singapore model that has seen Marina Bay Sands and Resorts World Sentosa become highly profitable without negatively affecting the local area via increased crime.

Second, companies in Japan often sport tidy balance sheets, with plenty of cash and little debt, traits that describe Genting Singapore. The gaming company carries almost quadruple the amount of cash that it does in liabilities, a characteristic some analysts believe will be appealing to Japanese authorities.

Earlier this year, Moody’s Investors Service reiterated an A3 rating on Genting Singpore with a “stable” outlook. The ratings agency considers bonds with A ratings as upper medium-grade with low credit risk. But Moody’s did say increased issuance by Genting Singapore to fund a Japan integrated resort could be credit negative.

Yield and coupon information on Genting Singpore’s bond sale is not yet available.

More Cash Needed

Estimates vary as to what costs will be to construct a gaming venue in Japan. But it appears likely Genting Singapore selling $3.24 billion in debt is a starting point, not an entire cost projection.

Earlier this month, Fitch Ratings boosted its cost forecast for Japan-based casinos to $10 billion to $15 billion, up from a prior expectation of $10 billion.

The Resorts World Sentosa operator may also need to speed up the pace of its bond sales, because it is believed MGM could break ground on an Osaka gaming property in 2021, with the goal of having the venue operational by 2025 when the city hosts the World Expo.