On 2 October 2007 the Pennsylvania Gaming Control Board denied a request from two would-be casino operators in Philadelphia for an extension of time to pay their US$50 million licence fees. SugarHouse Casino and Foxwoods Casino were required to pay the fee within 10 business days, as the Board decided by a 6-0 vote that “the delays to gain all necessary approvals required to begin construction should not have been unexpected.”

Foxwoods had previously filed a lawsuit against Philadelphia City Council in an attempt to get permission to start construction on the Delaware riverfront. Last month SugarHouse filed a similar lawsuit. The companies complain that the City Council switched the zoning from commercial to residential on their proposed sites. Yesterday the Supreme Court of Pennsylvania denied Foxwoods’ request to order the city to allow construction to commence.

The Supreme Court decided that it had no jurisdiction to force the issue of building permits and that the zoning issue was premature, as so far the city had not denied Foxwoods anything based on the new zoning. The SugarHouse case is unlikely to receive a significantly different ruling. The Philadelphia Court of Common Pleas has been sent the Foxwoods case for an expedited review of the building permits.

Many residents in the areas surrounding the proposed casino sites are strongly opposed to having casinos in Philadelphia. Local councils have no say in the matter because under the Horse Race Development and Gaming Act, the Pennsylvania Gaming Control Board has jurisdiction over every aspect of the authorization, operation and regulation of gaming in the Commonwealth.

In June the Supreme Court rejected an appeal by a group of residents and civic associations trying to prevent casino development in Philadelphia. The judges ruled that the residents had no legal standing to challenge the licensing decisions of the Gaming Board. However, the law sets no timetable for the city to act on zoning. (E-11.21.07)

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