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WILKES-BARRE — Plans for an indoor water park at the Mohegan Sun Pocono Casino in Plains Township are on hold.
Building of the water park was first announced in October, 2014, when casino President/CEO Mike Bean revealed plans to add more attractions to the complex over the next three to five years that would drive the group’s $1.5 billion investment even higher.
Bean, 51, president of the local casino operation, told the Times Leader Opinion Board Thursday the water park project has basically dried up for now.
“It’s not going forward at this point,” he said. “We are looking for the right partner. We had a potential partner, but that fell through.”
Bean said the water park is still a part of the casino’s master plan and the search for a new partner is continuing.
At that October, 2014, presentation, Bean said the planned future expansion, which he called “our pack up the minivan approach,” was aimed at attracting more customers from a wider radius.
Back in 2014, Bean also announced other components to the long-term visionary plan: an indoor sports complex with two large indoor sports domes and seven artificial turf fields, a snow park that would feature snow-flex skiing and snowboarding mountain, an outlet shopping mall and, possibly, a second hotel.
On Thursday, Bean said the total capital investment to date is $659 million over the site’s years of evolution from a racetrack to a mini-casino, to revamping the entire racing area, to building a new casino, to construction of a hotel and more.
He said licensing costs to the state are also included in the investment figures and, when added to the $880 million paid in taxes, there is a $1.5 billion total investment along Fox Hill Road.
Bean said there are just under 2,000 employees at Mohegan Sun.
Co-generation plant
Bean expects the new co-generation plant to be operational by the fall. The estimated cost is $3 million and 30 percent of the funding will be in the form of a grant from the Commonwealth Financing Authority in Harrisburg.
Electricity and heat generated by the new system will supplement what is already consumed in the casino and hotel and conference center, will lower utility bills and have a positive impact on the environment.
Once operational, Bean said the electricity and heating from the system are likely to reduce Mohegan Sun Pocono’s carbon footprint by 3,900 metric tons annually.
Mohegan Sun Pocono has teamed with UGI HVAC Enterprises Inc., of Reading, on the project.
Bean said the new system will provide stability and a continuous source of electricity to the casino floor where 2,300 slot machines are located. In the past when there was an interruption, it took a second or two for the back-up generator to restore power, he said.
“Even with a one second stop, the machines must re-boot,” Bean said. “It’s more of an inconvenience to our customers.. This new system should eliminate that.”
Other issues
• Local economy: Bean said the casino, its restaurants and retail shops are typically “at the low end of discretionary spending.” He said the casino business has increased every year and that is a good indicator for the local economy.
Bean attributed low fuel prices as one reason why more people — about 10,000 per day (more on weekends) — visit the casino. Cheaper gas also allows people to travel from farther distances.
• The hotel: Bean said the facility that opened nearly three years ago operates with a 95 percent capacity. “We are currently evaluating whether we need or will need additional rooms,” he said when asked if a second hotel is planned on-site.
He said the local hotel business has increased because of the need for additional rooms not available on the casino site.
• Air quality: Bean said the casino has not been cited by any regulatory agencies regarding the air quality in the casino and the casino employs a full-time crew that operates and maintains the HVAC system.
Banning smoking in casinos would hurt business significantly as the revenue from gaming in smoking areas is double the amount in non-smoking areas, according to Bean.
“If smoking were banned, I believe it would have a substantial impact on revenue,” he said. “We believe in personal choice.”
Bean said the casino contracts with Gmerek Government Relations to act as lobbyists in Harrisburg regarding all issues affecting the gaming industry.
• Online gaming: Bean would favor online gambling under certain parameters, saying the system should be run through existing casinos.
• Customer concerns: Bean wants people to spend “entertainment dollars” they can afford. “We want then to stay within their budgets,” he said.
The casino has a compulsive gambling program in place and employees are trained to recognize customers with gambling problems.
The casino also actively seeks customer evaluations and ratings and suggestions on how to improve. Bean said survey results show the casino has consistently received more than a 50 percent “A” rating by customers.
• Crime/theft: Bean said the casino is always looking to improve in this area, adding there is a Pennsylvania State Police unit on site at all times and a 24-hour surveillance system is operational.
