Friday, December 19, 2014

Tower Entertainment files documents to appeal Philadelphia's second casino license to Live! Hotel and Casino



The operators behind the proposed Provence Resort & Casino have filed documents to appeal the decision to award Philadelphia's final casino license.


Tower Entertainment is appealing the Pennsylvania Gaming Control Board's decision to award the city's second and final casino license to Live! Hotel and Casino owned by Stadium Casino, a joint venture between Cordish Cos. and Greenwood Gaming and Entertainment Inc. (owner of Parx Casino).

The basis for the appeal are as follows:

Pennsylvania's gaming act has specific restrictions on individuals and/or entities maintaining ownership interests in multiple casino licensees.

As a result, Tower says the board violated the state law by awarding the casino license to Live! since Greenwood also owns Parx Casino in Bensalem, Pa., which "exceed the thresholds" of the gaming act.

Following the change in its ownership structure, the board did not allow other applicants the chance to present evidence related to this new ownership structure, which the board was required to do under its own regulations. The gaming act also prevents owners of racetracks who are eligible to apply for a category 1 (racetrack) slot machine license from applying for a category 2 slot machine license.

Tower says this provision would ensure diversity in the types of individuals and entities that own Pennsylvania casinos — that the same entities that own racetrack casino would not own standalone casino, for example. Because of this provision, Tower says Stadium should have been found ineligible to apply for the last casino license.

One of the legislature's stated purposes in enacting the state's gaming laws was to prevent the casino industry from being monopolized by a few companies. Building upon this legislative intent, the board's regulations prevent the board from awarding a license to an applicant that would create an undue economic concentration amongst licensees.

Tower's move to appeal the decision, however, will not deter Stadium's plans.

"The appeals to the granting of a casino license to our partnership are without merit and have no impact on our proceeding at full speed on our architectural drawings, permitting and construction," said David Cordish, co-chairman of Cordish Cos. "As precedent, there have been, in the history of casino gaming awards in the state of Pennsylvania, five previous attempts to overturn awards granted by the [board]."

Cordish then said: "In all five instances, the Supreme Court of Pennsylvania upheld the award of the license and the present award presents an equally strong, if not stronger, well-considered conclusion by the commission."

Bart Blatstein, who had been vying for $700 million Provence, said he didn't have a "Plan B" for the site after the decision. Read more here.

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