Pennsylvania gaming authorities revoked the gaming license of a Foxwoods casino project in Philadelphia late last week, leaving lawmakers distressed over a potential blow to the city’s financial plan. The Pennsylvania Gaming Control Board, fed up after countless delays on the project, voted 6-1 to revoke a $50 million license for the South Philadelphia casino, which has yet to break ground. It marks the first time the state has revoked a multi-million dollar license for a major gaming casino and could leave Philadelphia without a second casino for a long time. The city’s first casino, SugarHouse, opened in September in Fishtown.
The original plans for the new Foxwoods casino had it being built along the Delaware River in South Philadelphia, but the site was changed after opposition from neighborhood groups. The original diagram called for a casino with 3,000 slot machines, a 1,800-seat showroom, and a 4,500-space parking garage built on 16.5 acres. However, a revised plan presented to the gaming board last month called for a two-story, 57,463-square-foot casino with 1,500 slot machines, 70 table games, and 1,376 parking spaces.
The board had set a deadline of December 10th for a signed, finalized deal on what the investors would build, how they would pay for it, who would own it, and who would manage it. According to the head of the Office of Enforcement Counsel, investors submitted letters from two banks that said they were confident but not yet committed in funding $200 million for the $275 million first phase of construction. However, changes were made to an original pledge of 42% of the casino profits going to local charities for children, leaving the board understandably dissatisfied.
Foxwoods Development, an affiliate of the Connecticut-based casino, is reviewing the decision and considering options. “PEDP (Philadelphia Entertainment and Development Partners) has worked diligently to negotiate a development agreement beneficial to all parties, including the city of Philadelphia,” the company said in a prepared statement.
Las Vegas-based Caesars Entertainment, the world’s largest casino company, agreed in October to buy a one-third stake and run the casino once the project was finished. Caesars would have managed the casino under its Horseshoe brand.
“We believe the Caesars transaction would have provided the most advantageous outcome, creating jobs and providing much needed tax revenue for the local community,” a spokesperson from Foxwoods Development said.
The board’s decision to revoke Foxwoods’ license leaves everyone wondering what will happen next. Lawmakers have already proposed ideas for legislation that would allow open competition for gambling licenses reserved for casino projects in Philadelphia and Lawrence County. When the State Legislature voted to legalize gambling in 2004, five of the 14 licenses were labeled “Category 2″ stand-alone casino licenses. Two of those were committed to Philadelphia, one to Pittsburgh, and two to “tourism-enhanced” locations.
Foxwoods’ main location in Ledyard Center, Connecticut holds the largest poker room on the East Coast with more than 100 tables and offers two major tournament series every year: the Foxwoods Poker Classic and the World Poker Tour (WPT) Foxwoods World Poker Finals.
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