Got Any Sugar In The House (Part One)?

SugarHouse Casino Official Website

Philadelphia tradition (Ben Franklin and the Mummers) and Vegas glitz (sequined showgirls) ushered in the city's first casino yesterday, as the SugarHouse officially flung open its glass doors or a grand opening along the Delaware River waterfront. At the stroke of 1:30pm, Ben Franklin, portrayed by Ralph Archbold, arrived by carriage to deliver the key to a giant padlock, saying he was there to fulfill one of Americans' inalienable rights after life and liberty. "The pursuit of happiness. I'm here for happiness!" he told a rambunctious crowd that swelled to more than 1,000 just after 12 noon and snaked around the entire front of the casino facing Delaware Avenue. Some endured the nearly 90-degree heat for several hours so they could be among the first to get inside.

Now that the SugarHouse is open for business, Philadelphia becomes the largest U.S. city with a commercial casino. It also positions Pennsylvania among the largest U.S. gaming markets just six years after slot-machine gambling was legalized. Its nine existing casinos ramped up to table games in July. The SugarHouse is the state's 10th casino, and the third in Southeastern Pennsylvania, joining Parx in Bensalem and Harrah's Chester Casino & Racetrack. "The great unknown is how much the SugarHouse will expand the market vs. how much it will cannibalize Parx, Harrah's Chester, and Atlantic City," said industry analyst Joseph Weinert of Spectrum Gaming Group L.L.C., of Linwood, NJ.

Mayor Nutter, who was in Washington through the weekend for the U.S. Conference of Mayors, did not attend the opening ceremony, but sent Deputy Mayor Alan Greenberger in his place. He praised the 900 jobs the SugarHouse has brought to the city. Owner and billionaire developer Neil Bluhm, who flew in from Chicago with his two daughters, looked on proudly and sat next to a fellow investor, lawyer Richard Sprague. But, the four years of delays that preceded the opening, brought on by political wrangling, legal fights, and fierce neighborhood opposition, were not lost on Councilman Frank DiCicco, whose district includes the SugarHouse and who once fought vigorously against it.

"There was a time I was on the other side of the issue," DiCicco said, alluding to about 20 protesters with Casino-Free Philadelphia, who staged two vigils Thursday. "That's ancient history... this is the beginning of developing our waterfront to make it the best it can be." And with that, the SugarHouse general manager Wendy Hamilton proclaimed: "Let's get this party started!" Confetti rained down and the Mummers strutted as the front and side doors opened. Hundreds of people surged forward, as security guards kept the order.

Within 10 minutes, the 45,000-square-foot casino was virtually filled with bodies stationed at its 1,602 slot machines and 40 game tables. All that remained was some restaurant seating in back. The SugarHouse sits at Delaware Avenue at Shackamaxon Street, at the old Jack Frost Sugar refinery site, and next to the Waterfront Square condo towers in Fishtown. Though the casino has no immediate plans for chartered bus lines, the #43 and #25 SEPTA buses that run on Spring Garden Street will drop patrons off nearby. Another option is the Sugar Express, a free shuttle, that will stop at four locations in Center City beginning October 1st. The shuttle did a special inaugural-day run yesterday.

However, the proximity of the SugarHouse to neighborhoods may also pose a problem for some, said C.P. Mirarchi, who offers counseling in Collingswood to compulsive gamblers and their families. "Statistics show the closer you live to a casino, the higher the rate of incidents," Mirarchi said. "If 1-to-2% of the national population are addicted to gambling, and 4-to-6% percent are problem gamblers, my guess is that it can be as high as double that percentage living this close to all the casinos." About 15 miles north of the SugarHouse on I-95 is Parx; 15 miles south on I-95 is Harrah's Chester Casino & Racetrack.

The SugarHouse is marketing itself as a local casino, targeting primarily those who live within an hour's drive. It also is expected to draw about two million tourists a year. "The casino by itself doesn't create room nights, but it gives visitors an additional activity and reason to stay longer," said Ed Grose of the Greater Philadelphia Hotel Association. The opening of the SugarHouse comes at an auspicious time for Pennsylvania's gaming industry. On Wednesday, the state's nine casinos reported a nearly 24% surge in gambling revenue last month, to $231.2 million, compared with a year ago, thanks largely to a second month of poker, blackjack, and other table games.

Las Vegas analyst Jacob Oberman of CB Richard Ellis Group Inc. said he expected the SugarHouse would do well because this market had only two other casinos in the immediate area and it was the only casino in the city. The fate of Foxwoods, the second casino planned for the waterfront, remains uncertain and is under review by state regulators. "The Philadelphia casino-goer will be the ultimate winner," Oberman said. "Even though the revenue pie will grow, as the three casinos jockey for market share, gamers should receive better and more numerous incentive offers than they did prior to the SugarHouse opening." SugarHouse representatives anticipate the annual tax revenue for the city and state in the first year of operation of to be $132 million from slots and $5.15 million from table games.

Yesterday's opening represents the first phase for the SugarHouse, which plans to expand as market conditions dictate. Those who live near the casino are taking a wait-and-see attitude. "We're viewing it like we would any other potentially significant change to the neighborhood," said Morgan Jones of the Fishtown Neighbors Association. "We're concerned about impacts and will be working with neighbors to understand concerns and do our best to get them addressed by the city and/or SugarHouse themselves."

Also watching just as cautiously, from 60 miles away, are Atlantic City's casino operators. Mark Juliano, chief executive officer of Trump Entertainment Resorts Inc., which owns three casinos at the Shore, said that because the SugarHouse was opening with nearly half the number of slots originally planned, it would have less of an effect. "I do think it will be more impactful on the existing casinos in Pennsylvania than Atlantic City," Juliano said. "A lot of experienced gamers are now playing in Pennsylvania. "Those are the customers that are going to the SugarHouse, and they have already left Atlantic City."

Personally, I'm not much of a gambler. I've always known how to limit myself to $20.00 in the slots at Atlantic City (once a year, at best) and call it a day. As for Chester, I haven't even been there yet. Unfortunately, I've never met "Lady Luck", whoever she is, and I haven't reached the point in which "money is no object". I'm also one of those people who still needs to ask how much something costs before I buy it. And, I do understand why nearby residents fought so hard to block this casino... I wouldn't want to live near it either. But, more importantly and whether we like it or not, we are expected to be our "brother's keeper", and it's no secret that you have to protect some people from themselves.

Pennsylvania already has a good many of its citizens completely consumed by Big 4, Cash 5, Daily Number (not to mention the "street number"), Evening Quinto, Match 6 Lotto, Mega Millions, Megaplier (I don't like the sounds of that one!), Midday Big 4, Midday Number, Midday Quinto, Mix & Match, Powerball, Treasure Hunt, and God only knows what else... but they tell themselves that it's okay because the proceeds benefit senior citizens. I've always been a little leary of anything that benefits one group at the expense of another, and it's probably no coincidence that the people who can afford it the least are always the victims of these so-called "benefits".

So, I'm very concerned about those among us who have a serious addiction to gambling or think they're just one lottery ticket away from becoming a millionaire... especially in these hard economic times when complete recovery for all us remains to be seen. I can only hope and pray that the "pros" associated with the SugarHouse will outweigh the "cons", so that something good will come out of this for all of us. More jobs and extra money going into Philadelphia's tax base are always welcome... but, we need to remember that nothing is ever really gained when it comes at the expense of human suffering.