Pennsylvania Gaming Board Evaluates Bluhm's Majestic Star Slots Casino Takeover Application

On July 24th, state gaming regulators commented that the would not meet Chicago billionaire Neil Bluhm's deadline in his attempt to take over the ownership of Pittsburgh's lone slots casino establishment. Mayor Luke Ravenstahl and Allegheny County Chief Executive Dan Onorato met with state Gambling Control Board Acting Executive Director Frank Donaghue and acting chief counsel R. Douglas Sherman to discuss the situation of the $780 million casino on the North Shore.

Bluhm told regulators just last week that the partially constructed casino could fall into bankruptcy if the Gambling Control Board would not give their consent to his application to acquire a seventy-five percent stake in the casino.

Sherman said that they will take as long as it needs to review the takeover application of Bluhm. Onorato said that they hope that gaming board will set a hearing to study the application of Bluhm and make a decision on it as soon as possible.

Ravenstahl and Onorato said that if Bluhm's financial capability are found to be okay and Bluhm is capable of keeping his promise to Pittsburg, then they will support his takeover application. But if the takeover application is rejected, gaming officials could try to revoke the license of Don Barden's PITG Gaming.

Ravenstahl said that could allow other gaming operators to bid on the license but Don Barden would likely challenge the slots license revocation in court. He added that the slots license revocation could also involve the Supreme Court. Onorato said that he is hoping the Gambling Control Board will make an immediate decision on the matter.

Wednesday, 20 August 2008
Caroline Mitchell