Sports Marketing and Tourism Account Program (SMAT)

The Sports Marketing and Tourism Account (SMAT) is administered by the Pennsylvania Department of Community and Economic Development (DCED), operating under statutory authority from the Fiscal Code as amended by Acts 54 of 2022 and 34 of 2023. The program's core aim is to leverage major sporting and esports events to drive year-round tourism, increase economic activity, and enhance the quality of life within the Commonwealth. This account is part of the broader Pennsylvania Gaming Economic Development and Tourism Fund and is explicitly designed to attract high-quality, amateur, and professional sporting events. Funding from the program supports municipalities, local authorities, nonprofit organizations, or eligible legal entities that are actively competing to host major events through a selection process managed by a non-Pennsylvania-based Site Selection Organization. Applicants must be pursuing a single or multiyear commitment to host significant events such as NCAA championships, Formula One races, World Cup matches, the Super Bowl, Olympic activities, and various high-profile professional league events. Only those events facilitated by recognized site selection entities like the NCAA, FIFA, USOC, or major sports leagues are considered eligible. Eligible use of funds includes event preparation costs, venue operational expenses, renovations to existing facilities (public venues exempt from the 20% cost cap), marketing and advertising within Pennsylvania, production and technical needs, site fees and logistical costs, purchase of equipment, public safety improvements, and limited land acquisition costs. Hospitality expenses and temporary facility maintenance are also permitted. However, funds may not be used to solicit the relocation of a Pennsylvania-based franchise, build new venues, or support regular facility maintenance, except where temporary measures are essential to event execution. All grantees must incorporate Pennsylvania’s branded tourism logos and link to visitpa.com in their event marketing and websites. Additionally, recipients must allocate up to 10% of their total awarded funds to provide sponsorship benefits to the state. These may include branding visibility, digital promotions, event broadcasting, on-site activations, and VIP access. Specific sponsorship benefits are determined collaboratively between the grantee and the state. The SMAT application process uses DCED’s Electronic Single Application for Assistance portal. Applicants can submit year-round, with applications reviewed quarterly. Each application must identify a partnering sports commission or Destination Marketing Organization (DMO) or Convention Visitor Bureau (CVB) and include a letter of support. Required data includes projections for earned media, tax revenue, direct spending, job support, and hotel stays. If the event has been previously hosted in Pennsylvania, an economic impact report is also required. Upon selection, applicants receive award letters followed by grant contracts requiring electronic signatures. Contracts over $1 million mandate formal audits, while those under must submit a Grant Close-Out Report. Recipients must maintain complete records for monitoring and comply with prevailing wage, nondiscrimination, and employment inclusion laws. All grantees must register in the Vendor Registration System and set up ACH payment credentials before funding is disbursed. Reimbursements follow submission of verified cost documentation. A final report is also required post-event to document performance and outcomes. The program may continue to fund the same event in future rounds, even after partial awards.