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Beleaguered Foxwoods Casino Future Uncertain

Posted on April 29th, 2010

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The future seems rather bleak for Foxwoods Casino, as the fate of its license to operate hangs in the balance. Having gone from one setback to another ever since plans to put up the Foxwoods Casino were approved, the investors behind the casino project are now on tenterhooks as the Pennsylvania Gaming Control Board decides on the future of Foxwoods.

At the moment, both parties’ representatives are keeping mum about the talks that have been taking place, only saying that the decision could swing either way. Having fought tooth and nail to acquire their license, Foxwoods is hoping that everything will be settled in a way that both the board and the investors will be happy with the results.

EXPLORING ALL OPTIONS

At this point, Foxwoods investors are looking at several options to keep the project going until its completion. Word has it that Foxwoods management have been in talks with several possible investors to take over the project.

This problem would have been solved had well-known casino developer Steve Wynn not backed out from taking over the construction of the casino. But barely two months after he expressed his desire to take over, and after announcing that he will be financing forty percent of the project cost, Wynn turned the other way and unexpectedly pulled out of the project.

When asked about the possibility of finding someone else to take over; Steve Cozen, legal adviser for the Foxwoods group of investors, kept mum about the rumors spreading that the group have been in talks with other investors.

The only game plan that Cozen stressed at this point is the group’s willingness to explore all possibilities to save the project from going under.

PENNSYLVANIA GAMING CONTROL BOARD

On the other hand, Pennsylvania’s gaming control board have been quite lenient with the Foxwoods group until this time.

Foxwoods group of investors has so far received two extensions on deadlines given to them by the gaming control board. Some time in August last year, the gaming board awarded the investors a 2-year extension on the opening of their project, giving them until May of next year to open.

The gaming control board, which has been seeing signs of the investors’ inability to fully commit to their project, imposed certain points of reference to give the board a clearer picture of the project’s progress. These were issued together with the 2-year extension.

Unfortunately, Foxwoods was unable to meet all of the benchmarks and once again requested for an extension of up to 3 months.

Perhaps fed-up with the group’s seeming inaction, the gaming control board imposed a fine of two thousand dollars per day because of another missed deadline.

It was around during this time that Steve Wynn decided to take over and just when things seemed to be looking up for the investors, Wynn pulls out.

Currently, Foxwoods group of investors are presenting their plans for the project before the gaming control board to preclude the board from shooting down the project with the revocation of the Foxwoods Casino license.

Pennsylvania Senator Larry Farnese has stated his dismay over the Foxwoods group’s obvious inability to follow through on the casino construction and further stated that he sees no reason why they would want to “deal with this company.”

With all the odds seemingly against them, it remains to be seen whether the Foxwoods Casino will still see the light of day or whether it will be shot down even before it has been opened.

The group of investors behind Foxwoods Casino consists of the Mashantucket Pequot Indian tribe from Connecticut plus local investors Ron Rubin, Lewis Katz and Ed Snider.