YOUNGSTOWN — Details about Phantom Fireworks’ proposal for an in-person sports betting parlor at the Covelli Centre have been made public, including a partnership with Youngstown to expand the downtown entertainment venue.

At the moment, the project would involve a three-story, approximately 25,000-square-foot addition to Covelli Centre that would include a restaurant and a smaller betting parlor on the first floor and a full-service, retail sportsbook, as well as a separate sports bar, on the second floor.

The third floor would be dedicated for use by the city, with an option for Phantom Fireworks to rent the space for certain occasions. According to the plans, the approximate 4,000-square-foot space would be divided into two rooms, and there would be another 2,500 square feet of outdoor patio space.

The area would be built out and furnished by Youngstown, which could use or rent the space as it sees fit, a proposal states.

“This space is perfect for the city to host meetings, press conferences and other events, as well as allowing public and private entities and individuals to host similar activities,” according to a proposal presented by Michael Podolsky, deputy general counsel for Phantom Fireworks.

The city would own and construct the addition, while Phantom Fireworks would be responsible for building out the interior and renting nearly two-thirds of the space from Youngstown.

It’s estimated the construction would cost the city about $5 million. The cost to build out the interior is $1.5 million to $2 million, Podolsky said.

Youngstown Councilman Julius Oliver, D-1st Ward, who is chairman of the council’s Community Planning and Economic Development committee, said, “I think it’s an excellent addition to the Covelli Centre” and “I think it would definitely bring more development” to the downtown, including around Wean Park.

Having conference-style space at the Covelli Centre would give the facility more of a convention center feel, which could be attractive to groups looking to host conferences and similar events, he said.

Yet being an “overall excellent project and a great idea,” Oliver, whose ward includes the downtown, said there are hurdles and questions with it. Those include the total cost to the city, including debt service on a loan for the construction at the center, especially since the city in December paid off an $11.9 million loan it took out in 2005 to pay for its portion of the $45 million construction cost.

Also, Oliver said he would like to “see a little more skin in the game” when it comes to Phantom Fireworks, and he also has questions about what happens if the restaurant doesn’t work out.

“It’s definitely not a ‘no,’ but it’s not a yes,” Oliver said.

LICENSE

Phantom Fireworks in December 2022 was granted a provisional license by the executive director of the Ohio Casino Control Commission, Matthew T. Schuler. In May, the commission approved the company’s request for a full Type-B gaming proprietor license, which allows the holder to offer sports wagering at a qualified gaming facility.

In November, the commission issued a six-month waiver to entities who held a license, but had not opened a parlor, giving them more time — through June 30 — to do so.

Jessica Franks, spokeswoman for the commission, said the state’s sports gaming law required entities awarded a license to “basically use it or lose it,” and for most, the deadline was Jan. 1.

The commission extended the deadline for entities unable to meet the requirements, whether not having an operator or location, for example, Podolsky said.

The proposal includes creating a temporary sports book to meet the deadline and keep its license, Podolsky said.

It’s possible the commission could extend the deadline again, Franks said, but that remains undetermined. If a license holder hasn’t stood-up its operations within the required time there are two options — the commission would initiate a revocation proceeding or the holder could release the license, Franks said.

If the license is revoked by the commission, there would be a three-year waiting period before the holder could reapply. That, however, might not apply if the holder voluntarily gives up the license, Franks said.

OPERATOR

Podolsky said Phantom Fireworks is in discussions with a couple of companies to operate the sports book, and has a consultant on board to help.

License approval was the first step for the company; next is getting operator approval from the commission. The company, Franks has said, would have to be licensed in Ohio, if not already, and be in compliance with rules before being given the OK to start accepting wagers.

Podolsky admitted Phantom Fireworks has been a “slower mover” on the project, but the company sees that as a good thing, enabling them to “see what has worked, what hasn’t worked” at other locations in Ohio.