Parx Casino, located north of Philadelphia in Bensalem, has recently announced a change in its plans for hotel construction. The casino, which is considered the wealthiest in the state, has decided to shift from building a new luxury hotel on its grounds to acquiring an existing hotel instead. This decision comes shortly after the Pennsylvania Supreme Court declared that it would review the legality of skill games, such as the popular Pennsylvania Skill machines.
The outcome of the judicial review is crucial for Parx Casino, as it will heavily influence whether the casino proceeds with its initial plan to construct a 300-room luxury hotel and events center. In light of the uncertainty surrounding skill games, Parx has opted to invest in purchasing the Inn at Fox Chase, a 167-room hotel located nearby. The terms of this acquisition deal have not been disclosed, but the hotel was previously sold for $13.75 million just a year ago.
The ongoing debate about the legality of skill games revolves around whether these machines constitute illegal gambling. While proponents argue that skill games played a significant role in supporting businesses during the pandemic, opponents, including Pennsylvania’s brick-and-mortar casinos, claim that these unregulated machines cut into their slot revenue. The Pennsylvania Supreme Court’s review of the matter will determine the future of skill games in the state.
Parx Casino’s decision to acquire the Inn at Fox Chase includes plans to refurbish the hotel, particularly the sixth floor, which will be transformed into luxury suites. The remaining floors and lobby have already undergone recent renovations. Despite these upgrades, the hotel will continue to operate as usual, and current reservations will not be affected. Additionally, employees working at the Inn at Fox Chase will have the opportunity to retain their jobs under Parx’s ownership.
Last year, Parx Casino reported gross gaming revenue of $588.2 million from its physical casino operations, making it the top-earning casino in the state. In addition to its casino earnings, Parx generated revenue from its online operations and sports betting activities. The decision to acquire the Inn at Fox Chase aligns with Greenwood Gaming and Entertainment’s original plan to include an on-site hotel when applying for a casino license in 2006.
As the legal landscape surrounding skill games continues to evolve, Parx Casino remains cautious about its investments and has chosen to focus on acquiring an existing hotel rather than proceeding with new construction. The decision to purchase the Inn at Fox Chase reflects the casino’s commitment to providing quality accommodations for its guests while adapting to the changing regulatory environment.
