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Developers of South Philly casino get second license for smaller gambling spot in Western Pa.

Wednesday's auction was the state's second for 10 satelite casino licenses made available through the gambling expansion bill passed last year.

The permit granted for the new casino allows holders to operate between 300 and 750 slot machines.
The permit granted for the new casino allows holders to operate between 300 and 750 slot machines.Read moreCURT HUDSON / AP File Photo

The developers planning a casino and hotel complex in South Philadelphia's sports stadium district have agreed to pay $40.1 million for a license to operate a smaller satellite gaming facility outside Pittsburgh.

Stadium Casino LLC entered the winning bid in a Wednesday morning auction for the state's second "Category 4" gaming license, which permits holders to operate between 300 and 750 slot machines, with the possibility of adding up to 40 table games for another $2.5 million, the Pennsylvania Gaming Control Board said in a release.

The satellite gaming facility planned by Stadium Casino, a venture between Cordish Cos. of Baltimore and businessman Watche "Bob" Manoukian's Bensalem-based Greenwood Gaming & Entertainment Inc., would be in or near Derry Township, Westmoreland County, the gaming board said.

Stadium Casino has up to six months to file a formal license application disclosing precise location details, building plans, and other specifics, which will be made available for public review, the board said.

Carmen E. Gonzales, a spokeswoman for the venture, said in a statement that it looks forward to delivering "a world-class gaming and entertainment venue" to the greater Pittsburgh area.

"Thousands of new excellent jobs will be created, millions of dollars in new tax revenues will flow to the state and local government entities and millions of visitors will be attracted," she said.

Stadium Casino partner Cordish operates two casinos in Florida and one in Maryland, and owns and operates Xfinity Live!, a dining and entertainment venue near the South Philadelphia stadiums. Greenwood is the owner and operator of Parx Casino.

The venture's South Philadelphia project, for which it holds one of the city's two Category 2 licenses for a standalone casino, was granted zoning permits earlier this month.

Wednesday's Category 4 auction was the state's second for the state's 10 satelite casino licenses made available through the gambling expansion bill passed last year.

In the first auction held Jan. 10, Mountainview Thoroughbred Racing Association LLC, which operates Hollywood Casino at Penn National Race Course, was the high bidder with an offer of $50.1 million. Its license was awarded for a facility in or near the borough of Yoe in York County.