Pennsylvania has always been one of the most aggressive states when it comes to casino gambling expansion. Its stiff resistance and oppositions have stalled the proposed casino at Philadelphia by Foxwoods, a giant Connecticut casino. Foxwoods faced difficulties that highlight the challenges of building an urban casino. But, Foxwoods’ hopes of building a casino in Philadelphia seem to have gathered momentum again with the entry of Harrah’s entertainment into the fray.
The Foxwoods project was almost on the verge of losing license from the Pennsylvania Gaming Control Board due to yearlong delays, intense neighborhood opposition, and difficulties in finding a development site. With the announcement of the deal with Harrah’s, the Board has delayed the decision for another month. According to Gaming Analyst Brad Dawkins, it is Harrah’s reputation that has bought some time for the investors. He says that the investors should be able to show their ability to move the project forward in an expedited manner.
You can recall that the Pennsylvania Gaming Control Board had awarded a gaming license to the proposed Foxwoods Casino Philadelphia on December 20, 2006. It was proposed to be located at The Gallery in Centre City in Philadelphia. The four-year old plan grappled with one setback after another from residents and real estate firms. Steve Wynn, who became the managing partner of the project in February 2010, pulled out on April 8, 2010 resulting in a deadlock. This had forced The Pennsylvania Gaming Control Board to rule on whether or not the Philadelphia Entertainment and Development Partners (PEDP) investors should be stripped of the gaming license for the Foxwoods casino project.
PEDP are pleased about the developments that will provide them the much-needed financial support to proceed with the development, construction, and opening of a casino in Philadelphia. Harrah’s, apart from restructuring their interests, would also invest new capital for a minority partnership position in the property, and play a management role. Speaking for PEDP, Stephen A. Cozen commented that the planned transaction would enable the investors to open the doors of the casino to the public within approximately 20 months. He further stated that their immediate task is to win back the project from the Pennsylvania Gaming Control Board.
The proposed casino will operate on the banks of Delaware River with great views. PEDO intends to open with 1500 slots and more than 70 table games at the facility. The casino will also feature Philadelphia steak house along with several dining options and Philadelphia themed sports bar to watch all of the Philly hometown teams in action.
Stepping in of Harrah’s Entertainment as both an investor and an operator of the stalled South Philadelphia project appears to revive hopes. But, because its casino is just 15 miles away in Chester, Harrah’s can have only a one-third stake in Foxwoods. The new Harrah’s partnership hopes to persuade the Pennsylvania Gaming Control Board not to strip the project’s license due to continual delays.
Harrah’s Entertainment, the largest in the gaming industry, is busy with its land-based operations and in preparing for possible Internet gambling regulations in the United States. Currently, the entry of Harrah’s in partnership with Foxwoods has earned some time for local investors. The investors trust that this deal will break and overcome the deadlock, and successfully help them to open the casino at South Philadelphia by 2012.