The court ruled, 3-2, in favor of the Pennsylvania Gaming Control Board's decision in May 2009 to award one of two casino resort licenses to Valley Forge Convention Center Partners L.P., rejecting Greenwood Gaming & Entertainment Inc.'s appeal.
Greenwood owns the state's top-grossing casino, Parx, in Bensalem. A rival gambling hall at the center would pose new competition less than 25 miles away, in King of Prussia.
"We are pleased that the Supreme Court upheld this licensing decision, which allows this project to move forward so it can create jobs, enhance tourism, and produce much-needed tax revenue for the commonwealth," Greg Fajt, chairman of the Gaming Control Board, said in a statement.
In addition, Fajt said, the ruling recognized that the board "conducted a thorough review of the Valley Forge application, and that its award of the resort license was appropriate and based upon substantial evidence."
Bob Green, chairman of Greenwood, could not be reached for comment Tuesday night.
Among the issues that Greenwood raised when it appealed on June 5, 2009, was whether the Gaming Control Board properly determined that the Valley Forge group was the owner of the center or had sufficient ownership status to satisfy eligibility criteria under the state Gaming Act.
It also questioned whether the board properly determined whether the Valley Forge group owned and operated a "well-established resort hotel" as described in the Gaming Act and board regulations. Such a facility was to have at least 275 hotel rooms and year-round recreational amenities, such as tennis courts, a spa, and restaurants.
In its 13-page ruling, authored by Justice Seamus McCaffery, the court determined that the convention center, which has 488 guest rooms, an outdoor swimming pool, a 3,000-square-foot fitness center, a ballroom, and other attractions, met the criteria.
Two justices, Thomas Saylor and Michael Eakin, dissented, and two others did not participate in the decision. Both dissenters said the center did not qualify as a "well-established resort hotel." Eakin said, "No matter what the board here tried to shoehorn into the term, we know a duck when we see one, and for better or worse, the convention center is a duck, not a goose."
Adrian R. King Jr., the Ballard Spahr attorney for the Valley Forge investor group, led by real estate titan Ira Lubert, said the group "is pleased to receive news of today's Supreme Court decision."
"We look forward to welcoming patrons to this exciting new component of our first-class convention center resort hotel," he said. King offered no firm timetable for the project.
The legal case came in what some say is an increasingly saturated gaming market, and highlights the cutthroat nature of the gaming industry. In addition to Parx, the Philadelphia region is home to Harrah's Chester Casino & Racetrack in Delaware County, and SugarHouse on the Philadelphia waterfront. All three venues are accessible from I-95. In addition, a casino in Bethlehem, Pa., is about 60 miles away. The Valley Forge casino would be the fifth in the Philadelphia region.
While the case was in court, for almost two years, the Valley Forge investor group was prevented from starting work on its casino.
King said the investor group likely will soon meet with the Gaming Control Board to discuss a development timetable. The group estimates that a casino will produce $74 million in annual gross gaming revenue from slot machines by its fifth year of operation.
Under the state's gaming law, a Category 3 licensee - also known as a casino resort - may be eligible to operate up to 600 slot machines and 50 games such as poker, blackjack, and craps. The state law also limits the use of such a casino to registered overnight guests in the on-site hotel, or among patrons utilizing one or more other amenities, such as the restaurants.
The Gaming Control Board is deciding on awarding the second and final Category 3 license available. There are four applicants, with projects proposed for Gettysburg, Mechanicsburg, the Poconos, and southwestern Pennsylvania. The board said it expected to make a decision within two months.
Contact staff writer Suzette Parmley at 215-854-2594 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
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