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.
Source: Philadelphia
Business Journal
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