Saving Casinos in Pittsburg
- September 1st, 2008
- Posted in Land-Based Casinos, US Gambling
State gambling regulators have approved a rescue for a financially troubled Pittsburgh casino project, but problems plaguing three other prospective casinos may be far more difficult to resolve. There must be a limit to what amount of money the local government is willing to sink into this plan.
A political stalemate in Philadelphia has left two projects there in limbo, and a northeastern Pennsylvania casino is being managed by a state-appointed trustee while its owner fights four counts of perjury that could cost him his $50 million slot-machine license.
As a result, the Pennsylvania Gaming Control Board has drawn criticism over its choices of casino projects.
Sen. Jim Ferlo, D-Allegheny, submitted comments to the agency saying grave deficiencies exist in the board’s decision-making. Sen. Jane Orie, R-Allegheny, said it has failed to act proactively and demand accountability from the casino groups it has licensed.
The board has maintained that it did its duty in every case, and made the best choices available in licensing a new casino industry that contributes to the government more than half of every dollar it brings in. Many of the problems dogging the casinos - for instance, efforts by Philadelphia city officials and lawmakers to force the casinos to move from planned sites on the city’s riverfront - have nothing to do with the board, agency officials have said.
On Thursday, the board approved the financial rescue of the first owner of the Pittsburgh casino that the agency licensed. Board members thanked Chicago real-estate billionaire Neil Bluhm, who is spearheading the new investor group - and bristled at the criticism. Regardless of all the problems the casinos still offer much hope for a sinking economy.