Investors could take state to court
The recent revocation of the state gambling license issued to Foxwoods Casino for a Philadelphia operation does not mean a new license will be available in the near future.
In fact, it could be anywhere from 18 months to four years before the license might be available, according to Greg Fajt, chairman of the state Gaming Control Board (GCB).
Thursday, Mr. Fajt said Foxwoods has appealed the decision by the GCB to repeal its license to Commonwealth Court. Even if it loses that appeal, it can go to the state Supreme Court.
Mr. Fajt said due to the “fluidity” of the state court system, the case could linger for some time.
Mr. Fajt was speaking at a public hearing before the state House Gaming Oversight Committee regarding H. B. 65, a proposal to have open bidding on any future gambling licenses issued by the state. The original gambling licenses, including the Foxwoods license, were sold for $50 million each.
At the time, critics said the state could have gained more money through a bid system.
H.B. 65, sponsored by state Rep. Curt Schroder (R-Chester), would begin bidding for a license for a slots and table gaming facility at $66.5 million. One of the three highest bidders – not necessarily the highest bidder – would then be selected by the state as the winner of the license.
Under the Schroder proposal there would be no geographic restriction on the new facility. The bill remains in committee and Mr. Schroder said there will be more hearings on it.
The Foxwoods saga began in late 2005 when Philadelphia-area investors partnering with the Mashantucket Pequot Indian tribe, won the license. After five years of citizen and political opposition in the Philadelphia market, a loss of investor capital availability and a failure to submit an approved plan, the GCB revoked the Foxwoods license in December.
The question of what happens to the initial $50 million put up by Foxwoods for its license remains an open legal question.
Mr. Fajt told the committee gambling and license fees have brought over $4.7 billion to the state since October 2006, when the first “slots only” facilities began operation and $810 million has been spent on Pennsylvania vendors for the operations since January 2009. He said the gambling operations, some of which now include table gambling, employ 14,232 people.
Opening the state to gambling was initially predicated on helping the struggling horse racing industry and lowering state property taxes.
State Treasurer Rob McCord told the committee the average property tax relief provided by gambling has been $200.
