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Philadelphia May Lose Second Casino License Due To Foxwoods’ Delays

Posted on May 31st, 2010

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In 2004, Pennsylvania passed a law allowing 14 casinos throughout the state. And in December of 2006, five Category 2 (non-racetrack) slots licenses were granted by the state Gaming Control Board to five potential sites: two in Philadelphia, for SugarHouse and Foxwoods, one in Pittsburgh for Rivers, one in Bethlehem and one in the Poconos. While the four other casino projects have progressed, the Foxwoods casino plan in Philadelphia has stagnated. The $500 million casino project planned to be located along the Delaware River in south Philadelphia has come up against several stumbling blocks.

The developers have encountered financial problems that made it harder for them to put up the required capital. There was also some amount of resistance from residents living near the property, and members of the group Casino Free Philadelphia have been voicing their objections to a casino in the city.

Foxwoods’ failure to develop its project in a span of four years has prompted protests from state lawmakers who said that the casino license awarded to Foxwoods should be withdrawn. They say one casino that’s not operating means less gross gambling revenue is generated for the state for it to be able to lower the property tax for homeowners to its proper level.

Sen. John Wozniak, D-Cambria sponsored Senate Bill 831 which would take away Philadelphia’s second casino license and make it available for anyplace in the state except Pittsburgh because the city already has Rivers Casino. At first, Wozniak wanted to transfer the casino license to the counties of Cambria and Somerset, which are part of his district, but some legislators disagreed, saying casino developers should be given a wider choice of locations. Wozniak’s bill passed a Senate committee that oversees gambling by a vote of 12-2 and will now be taken up by the full Senate.

Sen. Jane Earll, R-Erie, who chairs the Senate panel agrees with Sen. Wozniak and expressed her disappointment over Foxwoods’ inactivity saying that the legislators’ move may seem to some people like a punishment for Foxwoods but she said the time provided to Foxwoods is more than enough to get their facility operational at this point.

The bill, even if passed into law, would take effect only when Pennsylvania’s Gaming Control Board finishes its inquiry that is currently taking place on its decision to cancel the Foxwoods license. Some board members, frustrated over Foxwoods delays, have endorsed the proposal to withdraw the license. A number of board hearings and possible court cases could cause a setback on the board’s decision for a few months.

Rep. Michael O’Brien, D-Philadelphia, said he is going to vote for the bill to remove the second license from the city because he said the expenses the city would incur for public services that a second casino would require, such as additional police force for more security and traffic control and improvements and repairs of roads would be more than what the city would get as its share of casino revenue.

Sen. Larry Farnese, a Democrat, said he is in favour of revoking the Foxwoods casino license because he said Foxwoods has shown that it is not up to the job. The Senator said that if the board decides to take away the license, he would propose for a citywide referendum putting forward the question of whether the license should remain in Philadelphia but in another site or whether the license should be awarded to someplace else in the state as Wozniak’s bill has proposed. The Casino Free Philadelphia, through its spokesman Dan Hajdo, said they welcome Foxwoods’ lack of progress because they do not want to see one more casino in Philadelphia.