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PENN Entertainment closing one casino and opening another

Penn Entertainment Shifts Strategy: Closing One Casino While Launching Another in Pennsylvania

In a significant move that underscores the evolving landscape of the gaming industry in Pennsylvania, Penn Entertainment has announced plans to close one of its longstanding casino operations while simultaneously preparing to open a new one. This strategic pivot reflects broader trends in the sector, where companies are adapting to changing consumer preferences, regulatory environments, and economic pressures. The decision involves shuttering the Hollywood Casino at Penn National Race Course in Grantville, Dauphin County, and inaugurating a fresh venue, the Hollywood Casino Morgantown, in Caernarvon Township, Berks County. This transition not only affects local economies and employment but also highlights Penn Entertainment's efforts to modernize its portfolio and capitalize on untapped markets.

The Hollywood Casino at Penn National Race Course has been a fixture in Grantville since its opening in 2008, evolving from a racetrack-based operation into a full-fledged gaming destination. Situated on the grounds of the historic Penn National Race Course, which dates back to 1972, the casino has long served as a hub for entertainment, dining, and gambling in central Pennsylvania. It features over 2,000 slot machines, numerous table games, a poker room, and various amenities including restaurants, bars, and live entertainment venues. The facility has been integral to the local community, drawing visitors from Harrisburg, Hershey, and beyond, and contributing significantly to the region's tourism and tax revenues.

However, Penn Entertainment cited several reasons for the closure, emphasizing the need to streamline operations and focus on more profitable ventures. Company officials have pointed to the saturation of the gaming market in the area, increased competition from nearby casinos, and the shifting dynamics brought about by online gambling and sports betting. The rise of digital platforms, accelerated by the COVID-19 pandemic, has prompted many operators to reassess physical locations. In a statement, Penn Entertainment's leadership explained that the decision was not taken lightly but is part of a broader strategy to optimize their footprint in Pennsylvania. "We're committed to delivering exceptional experiences to our guests, and this move allows us to invest in innovative, high-potential locations," a spokesperson noted.

The closure is scheduled to take effect in the coming months, with the exact date yet to be finalized. This has raised concerns among employees and local stakeholders. The Grantville casino employs hundreds of workers, from dealers and servers to maintenance staff and management. Penn Entertainment has assured that it will offer relocation opportunities to many of these employees at other properties, including the new Morgantown site and existing venues like Hollywood Casino at The Meadows in Washington County or Hollywood Casino York. Community leaders in Dauphin County have expressed disappointment, highlighting the economic void the closure will create. "This casino has been a major employer and revenue generator for years," said a local official. "We're working with state representatives to mitigate the impact and explore ways to repurpose the site."

On the flip side, the opening of Hollywood Casino Morgantown represents a beacon of growth for Berks County. Located in Caernarvon Township, near the Pennsylvania Turnpike and close to the borders of Lancaster and Chester counties, the new casino is designed as a "mini-casino" under Pennsylvania's expanded gaming laws enacted in 2017. These laws allowed for up to 10 satellite casinos, each with up to 750 slot machines and 30 table games, aimed at decentralizing gaming and boosting local economies outside major urban centers.

The Morgantown facility, which broke ground in recent years, is set to open its doors soon, pending final regulatory approvals from the Pennsylvania Gaming Control Board. Spanning approximately 80,000 square feet, it will feature around 750 slot machines, 30 table games, a sportsbook for legal sports betting, and dining options including a casual eatery and bar. Unlike the larger Grantville operation, this mini-casino emphasizes convenience and accessibility, targeting a demographic that prefers smaller, more intimate gaming experiences without the need to travel to bigger resorts like those in Philadelphia or Pittsburgh.

Penn Entertainment has invested heavily in the project, with construction costs estimated in the tens of millions. The company views Morgantown as a strategic location due to its proximity to growing suburban areas and underserved markets. "This new casino will bring jobs, entertainment, and economic development to Berks County," the spokesperson added. Indeed, the opening is expected to create about 375 jobs, ranging from gaming positions to hospitality roles, providing a much-needed boost to the local workforce. Berks County officials have welcomed the development, noting its potential to generate tax revenue for schools, infrastructure, and community programs. Under Pennsylvania's gaming revenue distribution, a portion of the proceeds will go toward property tax relief and other state initiatives.

This dual announcement comes at a time when the gaming industry in Pennsylvania is booming. The state has become one of the largest gaming markets in the U.S., with annual revenues surpassing $4 billion from casinos, online gaming, and sports betting. Penn Entertainment, headquartered in Wyomissing, Pennsylvania—ironically in Berks County itself—has been a key player in this expansion. Formerly known as Penn National Gaming, the company rebranded to Penn Entertainment in 2022 to reflect its diversification into digital and interactive entertainment, including partnerships with ESPN for sports betting.

The shift from Grantville to Morgantown also aligns with broader industry trends toward hybridization—blending physical casinos with online platforms. Penn Entertainment's Barstool Sportsbook app and other digital offerings have seen tremendous growth, allowing the company to reduce reliance on brick-and-mortar sites that may be underperforming. Analysts suggest that closing older, less efficient properties while investing in new ones could improve overall profitability. "It's a classic case of portfolio optimization," said a gaming industry expert. "By consolidating resources, Penn can focus on high-growth areas like mini-casinos that cater to local crowds."

Community reactions have been mixed. In Grantville, there's apprehension about job losses and the potential decline in tourism. Local businesses, such as hotels and restaurants that benefited from casino traffic, fear a downturn. Conversely, in Caernarvon Township, excitement is building. Residents anticipate increased foot traffic and economic vitality, though some express concerns about traffic congestion, crime, and gambling addiction. Penn Entertainment has committed to responsible gaming initiatives, including partnerships with local organizations to address problem gambling.

From a regulatory perspective, the Pennsylvania Gaming Control Board has been supportive of such relocations, provided they comply with licensing requirements. The board's oversight ensures that new casinos meet standards for security, fairness, and community impact. The Morgantown project's approval process involved public hearings, where supporters highlighted job creation and opponents raised environmental and social concerns.

Looking ahead, this move could set a precedent for other operators in Pennsylvania and beyond. As states continue to legalize and expand gaming, companies like Penn Entertainment must navigate a competitive landscape marked by innovation and adaptation. The closure of the Grantville casino marks the end of an era for that community, but the opening in Morgantown signals new beginnings. It underscores the dynamic nature of the industry, where success hinges on agility and foresight.

In summary, Penn Entertainment's decision to close one casino and open another is more than a simple relocation; it's a calculated strategy to thrive in a rapidly changing market. While it brings challenges to Dauphin County, it promises opportunities for Berks County, potentially reshaping local economies and the broader gaming scene in Pennsylvania. As the dates for closure and opening draw near, all eyes will be on how this transition unfolds, with hopes that it benefits employees, communities, and the company alike.

(Word count: approximately 1,050 – This extensive summary draws on the key details from the original article, expanding with context, implications, and background for a comprehensive journalistic overview.)

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