Foxwoods Casino Loses A $50million Pennsylvania Gaming License

Foxwoods Casino Loses A $50million Pennsylvania Gaming License

Foxwoods Casino Loses A $50million Pennsylvania Gaming License - Image via Wikipedia

The newest Casino project sponsored by Foxwoods was revoked by the Pennsylvania Gaming Control Board. The gaming authorities cited dissatisfaction with planning, funding deadlines and structure of proceeds of profits.

Philadelphia, the location of the proposed casino, has developers reeling over the news. City planners counting on the 2011 profits worry as they review the year’s financial plan for the city.

The original deal struck between Foxwoods and the Pennsylvania Gaming Control Board slated the site to be 16 acres along the Delaware in South Philadelphia. The plans outlined 3,000 slot machines, an 1,800 seat showroom and a 4,500 space parking garage. Also, the Board accepted the deal on commitment of 42% of profit proceeds being designated to local area charities.

The plan hit it’s first pothole when the designated neighborhood raised a petition opposing the site and Foxwoods had to quickly find a new location. Just last month they came up with a plan in time to meet the Dec. 10th deadline, where the building would be a two-level 57,463 foot casino with 1,500 slot machines, 70 gaming tables and 1,376 parking space garage.

The Board was not impressed with the withdrawal of the monies that would have gone to charity, in the interest of the new location building plan. The head of the Office of Enforcement Council revealed that the banks slotted to fund the project, while confident, were not committed to signing on the $275 million down payment toward the first segment of building.

Ceasars Entertainment was engaged to run the casino and own one-third of a stake in the project under its Horseshoe brand. A Foxwoods spokesperson expressed their disappointment recently,  “We believe the Caesars transaction would have provided the most advantageous outcome, creating jobs and providing much needed tax revenue for the local community.”

Luckily for Foxwoods, the legislation to open casinos in Philadelphia and Lawrence County, along with 2 other “tourism-enhanced” locations isn’t dead. The state voted to  provide 14 licenses to PA, two of which are “Category 2” freestanding building licenses. Developers and Foxwoods will have to wait until 2011 to see how their future in Philadelphia unfolds.

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Posted by on Dec 27 2010. Filed under Poker Legal News. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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