The Pennsylvania Gaming Control Board gave the green
light again Wednesday for Stadium Casino L.L.C.’s proposed casino and hotel in
South Philadelphia.
The board voted 7-0 that wealthy businessman Watche “Bob”
Manoukian does not, and will not, hold a financial interest in Stadium that
exceeds 33.3 percent, and that Stadium is in full compliance with the state
Gaming Act.
The board agreed with Stadium’s argument based on
evidence and testimony on July 31 from Manoukian, who said that he will
transfer $34 million to a trust for his sons that will own a portion of the
proposed casino. Manoukian said he will fund the trust by “irrevocable and
outright gifts” and that he has no monetary right or claim, or investment in,
the trust.
By a roll-call vote, the gaming board approved a motion
that “Watche Manoukian does not maintain a financial interest in Stadium Casino
L.L.C. through either the Sterling Investors Trust or Sterling Fiduciary
Services Inc.” Funding the trust by gifts did not “rise to a financial
interest.”
In June, the Pennsylvania Supreme Court sent the case
back to the gaming board for a further evidentiary hearing. Based on a special
hearing and legal briefs, the board concluded Wednesday that Manoukian, who
owns an 85.84 percent interest in Parx Casino in Bensalem, did not violate
casino ownership restrictions in the proposed Live! Philadelphia Casino &
Hotel in South Philadelphia.
The law prevents an individual who owns one casino from
owning more than 33.3 percent of another.
Manoukian has a net worth of $850 million, according to board documents. His
company, Greenwood Racing, formed a 50-50 partnership with entities controlled
by the Cordish family in Baltimore.
The gaming board picked the joint venture Stadium to
build Philadelphia’s second casino in November 2014, but state Supreme Court
appeals by a losing bidder and by SugarHouse Casino, the city’s first casino,
have delayed the project.
The June Supreme Court decision was the second time the award of the second
Philadelphia license to Stadium Casino was sent back to the gaming board for
further consideration.
Philadelphia lawyer Richard Sprague, on behalf of
SugarHouse Casino, said Wednesday, “It’s very easy to say ‘I’ve given a gift to
my children.’ What’s the source of the money?” Sprague said. “Stadium was
asked, but did not answer, the exact source of the funds of that $34 million
gift.”
“The answer was ‘multiple sources,’ ” Sprague said,
adding, “Someone should take the depositions of the sons.”
Cyrus Pitre, chief enforcement counsel for the gaming
board, said he supported the board’s decision and noted that
background checks had been done on Manoukian and, as with other casino license
approvals, his staff traces where all the money comes from to know that it’s
from legitimate sources. SugarHouse’s position “borders on complete arrogance,”
Pitre said.
With Wednesday’s action, the gaming control board
will write an “adjudication,” a statement outlining why the board came to its
decision. Once the parties receive the document, it could be appealed
back to the Supreme Court. If no one appeals, the gaming board would move
forward to make the license final, said Richard McGarvey, spokesman for
the gaming board.
Source: Philly.com
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