In Philadelphia the City Council has unanimously voted for asking voters in May whether casinos should be banned near homes, churches and schools. SugarHouse and Foxwoods have been awarded licences for slots operations along the waterfront of the Delaware River in Philadelphia and, should the referendum be passed, the planned sites would be in question. The Pennsylvania Gaming Control Board (PGCB) was quick to point out that the Council’s decision contravenes the state’s gambling law.

The state has been given the authority to select the locations of slots operations and it is expected that the PGCB will request the Supreme Court to prevent the issue being placed on the ballot. The Council wants to challenge the slots law which, it claims, was passed by legislators in the middle of the night on a holiday weekend. If the challenge is successful, the probable result would only be a delay in the opening of the two Philadelphia casinos.

The PGCB has also gone to the state Supreme Court over an appeal filed against its decision to award a licence to a project in Mount Airy. Pocono Manor Investors claim that the PGCB failed to allow comparative evidence when making its choice. The gaming regulators have requested that a bond should be raised by the losing developer, to cover the potential revenue losses to the state.

Four losing applicants in the Pennsylvania slots licensing process have already filed appeals and the PGCB is asking for bonds from them all. In the case of Pocono Manor, the Supreme Court has been requested to grant a bond of US$58 million to cover the amount the state estimates it would lose if the Mount Airy casino opening is delayed by six months. The PGCB sees the bonds as a way to protect state taxpayers who will benefit from the slots revenue. (E-03.16.07)

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