Pennsylvania Gaming Board Asks $84 Million Gaming Bond from Losing Slots License Applicants

On March 15, 2007, the Pennsylvania Gaming Control Board has gone on a legal offensive against two business organizations that have filed a case against them when they failed to get the two Pittsburgh slot licenses.

The Gaming Board has asked the Pennsylvania Supreme Court to require the Station Square Gaming and the Isle of Capri to pay around $84.4 million in bonds to ensure the potential profit losses that Pennsylvania will suffer because of the appeal by the rejected applicants.

Chairman Thomas Decker said that the state is entitled to insurance because of the millions of dollars in tax profits that they will lose and the state's citizens will also suffer because they will not experience the tax relief that the money from the slot machines will bring. Officials from the Isle of Capri, which previously had a Hill District casino during the slots license bidding process.

The Isle of Capri organization has also proposed to build a new arena for the Pittsburgh Penguins, no strings attached. Their spokesman could not be reached for a comment regarding the demand by the Pennsylvania Gaming Board. The spokesman for Don Barden, who owns PITG Gaming and is the winning bidder for the slots license in the North Shore casino, has declined to comment on the recent development.

The lawyer for Station Square Gaming, Art Stroyd, said that they have not read the petition yet and they will respond to the petition when they have read it throughly. The Pennsylvania Gaming Board is also asking for a $138.5 million gaming bond from Riverwalk and a $58 million gaming bond from the Pocono Manor of Mr. Greg Matzel.

Wednesday, 02 May 2007
Darren G. Strachan